Embracing development and effectivity: Key Insights from the UK Accounting and Bookkeeping Business Report 2023

We’re happy to share the important thing findings from our examine of the accounting and bookkeeping sector. This report concerned partaking with over 600 accounting and bookkeeping professionals practising throughout the UK, from sole practitioners to massive practices. 

Regardless of international financial uncertainty and rising inflation, this sector has proven outstanding development and resilience. Encouragingly, over half of the respondents reported substantial enterprise development pushed by elevated income, earnings and shopper numbers. 

Check out among the key highlights from the report beneath.

A yr of constant development

Throughout all follow sizes, 72% of these surveyed confirmed a rise in income and revenue. Greater than half (57%) of micro-practices and 65% of small practices additionally reported income will increase. Massive practices emerged as the largest winners, with 30% reporting a major enhance in income.

New shopper acquisition has been a driving pressure for development, with practices including a median of 31 new shoppers to their portfolio.

Diversified service choices are very important to driving development

Almost half (42%) of the corporations we surveyed cited providing new providers as one of many main the explanation why their practices have skilled elevated earnings and income. 

On common, practices provide round six providers to their shoppers, with bookkeeping and advisory being the most typical. Whereas bookkeeping stays prevalent throughout all follow sizes, medium and huge practices generate extra income from advisory providers.

A lot of that is due to practices adapting to rising financial modifications by reevaluating buyer necessities and specializing in enhanced service supply.

A promising alternative for small practices to additional drive follow effectivity

Almost all practices we surveyed (95%) have embraced cloud-based software program to some stage. Whereas cloud adoption is widespread, a promising alternative exists for smaller practices to additional harness the advantages of cloud expertise. Practices leveraging cloud software program for a number of duties exhibited a 75% enhance in earnings, in distinction to the 39% reported by these utilizing it for a single process.

Whereas this is a superb signal of progress for the {industry}, what’s fascinating is that medium and huge practices are extra seemingly to make use of cloud-based software program for a number of duties than micro and small practices. This means a possibility to encourage optimised utilization throughout micro and small corporations by elevating consciousness of the ability of cloud software program to drive follow effectivity.

Optimistic shopper relationships, elevated job satisfaction & larger efficiencies

A formidable 63% of respondents credit score cloud-based software program with considerably bettering shopper providers, resulting in extra optimistic shopper relationships and enabling a greater understanding of their shopper wants.

Amidst industry-wide expertise challenges, 53% of practices which have adopted cloud-based software program noticed a surge in job satisfaction and worker satisfaction. 

Moreover, seamless cloud integration with current software program has boosted follow efficiencies throughout corporations of all sizes, with 52% of practices saying that they’ve saved time on guide every day duties. This has additionally facilitated the introduction of easier billing fashions in 47% of practices, streamlining their billing course of, saving time and permitting them to do extra of what they love. 

Not solely this, practices utilizing Xero for bookkeeping, accounts manufacturing and tax and follow administration (67%) reported extra time saved on every day guide duties in comparison with non-Xero cloud customers (49%).

Unlocking the complete potential by maximising options and instruments in cloud-based software program

Whereas the urge for food for cloud adoption is rising, there may be room for enchancment to maximise the utilization of cloud-based software program’s numerous instruments and options. 

Connecting financial institution feeds, information seize instruments, and cost instruments nonetheless have to be adopted by practices, particularly the micro ones. It’s additionally price taking into consideration that practices implementing cost instruments for over half of their shoppers have reported a powerful 80% surge in earnings.

Embracing development and effectivity

The UK accounting and bookkeeping {industry} has skilled development and optimistic modifications in 2023. Cloud-based software program has performed a vital function on this success, driving elevated effectivity, enhanced shopper providers, and improved worker satisfaction. 

The flexibility to seamlessly combine cloud-based software program with current accounting instruments presents a possibility for practices, notably smaller ones, to additional optimise operations.

By higher cloud adoption, and by providing a diversified vary of providers, accounting and bookkeeping practices can get pleasure from continued development and success within the years to return. Obtain the complete UK Accounting and Bookkeeping Business Report 2023 for all the important thing information and insights that will help you embrace development and effectivity in your follow.