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Will advice in the future be from a robot or a human?
Peter Disney • January 14, 2020
Back in 2015 the BBC wrote an article called “Will a robot take your job?”
Sadly, when I typed in Accountant it revealed that there was a 95% chance that my job was being replaced by automation. Bookkeepers and payroll clerks came out worse at 97%.
In reading further, the result assumed that as logical thinking ‘numbers’ people then obviously this type of work could be replaced by technology. However interestingly jobs requiring empathy or creativity were less prone to automation.
Do accountants seriously have such a boring reputation that they are perceived as having little or no empathy or creativity?
Looking back at my early career I have always been interested in technology in helping to grow my business even back in the days of using accounting software on floppy disks. Every time there was a jump in the use of technology I was there. Through the 1990s I was playing with databases to streamline workflows particularly for business advice. I even built an online business diagnostic tool in 2002 called Plus4Business. It flopped spectacularly which at the time I blamed on a lack of broadband but later I realized I had been kidding myself. Wood & Disney was also the first firm of accountants in East Anglia to go paperless in 2003. And we first started using cloud accounting in 2008 long before many of our competitors. From this you can see that as far as I was concerned technology was the holy grail never believing I was supporting a monster that would one day destroy my profession.
So, we come to today. Am I still a geek who loves all things technology driven? Well yes and no. I do believe that Bookkeepers and accountants focusing solely on compliance will disappear. Xero and QuickBooks are both moving rapidly towards “less human involvement” in bookkeeping using machine learning to recognize the corrections being made by bookkeepers and accountants and dealing with them before we even spot them. A simple case of using our expertise to copy and replicate what we do. QuickBooks has already said that it is changing its DIY model for a Do-It-With-You (DIWY) model. The increase in profits by moving from a £20 per month service to a £200 per month service is a massive incentive, don’t you think? So that’s bookkeepers disposed of so what about accountants? Well Xero has bought a tax compliance system which is not great yet but with accountants using it and suggesting improvements it can only get better to the extent that it will be offered direct to business owners. Accountants shooting themselves in the foot yet again.
So, is this the end of the accountancy profession too? Well of course not for a few reasons. Firstly, business owners are not trained bookkeepers so they will make mistakes which the software cannot correct. We will therefore still be required to carry out forensic assessments of records and make sure they are accurate. That old almost forgotten audit training will finally start to pay off. Secondly, many business owners will simply prefer to concentrate on what they do best and hand over the bookkeeping to someone who is trained and can do the job far better. Lastly, we are still required to act as translators because so many business owners have limited understanding of their numbers and need someone to paint a picture of their performance in a language they understand. Hang on a minute is that empathy showing up?
So, is that it then? Of course not. If you think this is just about an accountant preparing a set of accounts, you are completely missing the point. Of course, business owners need to comply with tax legislation, but they don’t just select someone to prepare a basic set of accounts. Most business owners accept that they do not have all the skills to run a successful business so select their accountants for their ability to advise them on all the other aspects of running a business. So, the real question is can AI offer this advice as well as the basic compliance stuff.
I used to believe the answer was yes hence why I developed Plus4Business 18 years ago. Today I look around and see yet more AI driven advisory systems appearing on the market. The holy grail of automatic success driven by technology. Fill in an online questionnaire and every issue can be resolved. Your business is no different to any other. One size fits all. You can take short cuts, quick fixes, dramatic growth in a matter of days and no hard work at all. Just follow a system.
My attempt to create an online business advisory system didn’t flop because of a lack of broadband but because it took effort. Effort to understand and effort to use. The same applies to today's systems. We all struggle with a lack of time so to use that valuable resource to research, learn and use is just too much effort. That’s why humans will always be required as advisers. As advisers we provide expertise. As mentors we provide experience and as accountants we hold our clients to ‘account’. I think my mission is to stop business owners thinking about the word ‘count’ within accountant. That’s suggests our only value is adding up and subtracting but there is so much more we can do.
In today's fast-paced, ever-changing world, it can be difficult to know who to trust when selecting a supplier. Social media has given rise to a world of noise, where anyone can post anything, and it can be challenging to know what is true and what is not. As a result, credibility has become more critical than ever when selecting any supplier. In this article, we discuss the importance of credibility, the challenges posed by social media noise, and how to identify credible suppliers. What does credibility actually mean? It encompasses sincerity, integrity, authenticity and reliability but fundamentally it is based upon trustworthiness and expertise. It is a combination of both emotion and logic. Credibility is a critical factor when selecting a supplier because it determines whether you can rely on them to deliver what they promise. Making the wrong choice can lead to delays, quality issues, and inevitably financial losses. For example, selecting a supplier based solely on their social media presence can be risky because social media noise can make it difficult to know what is genuine and what is not. In today's world, anyone can post anything on social media, and it can be challenging to separate the truth from the noise. As a result, businesses need to be cautious when using just social media to select suppliers. There was a recent news story about an accountant who had hundreds of 5 star reviews based upon getting massive tax refunds for their clients. It transpired that the refunds were fictitious and HMRC subsequently demanded the refunds back together with interest and penalties leaving those taxpayers with massive debts and long repayment terms. The accountant denied any responsibility and ignored any communications and requests for help. One way to ensure credibility is to look for reliable third-party evidence. For example, has the supplier won any industry awards or hold recognized professional qualifications or perhaps a referral from another professional you already know and trust? Independent endorsements by the supplier’s peers provide a level of reassurance not provided by online reviews. Formal qualifications not only provide evidence of expertise but also ensure adherence to standards of behaviour. The accountant mentioned above was not a chartered accountant and therefore not subject to the rigorous oversight of a professional body. Another way to ensure credibility is to research the supplier's track record including their length of experience. Whilst new suppliers may have recent technical skills learnt from college or university, they will lack the practical experience that comes from working with many clients over many years. For example, a more experienced accountant is likely to have seen a wider range of financial issues and developed a deeper understanding of the unique challenges businesses face especially in regard to surviving recessions. So, you ask how long a supplier has been in business, and what is their experience? This information can be found through online searches, industry publications, or by speaking with other businesses in your industry. Don’t forget to consider the supplier's financial stability. A supplier that is financially stable is more likely to have the resources to deliver on their promises. Consider their financial statements, credit reports, and any other relevant financial information to ensure they are financially sound. We often see advertisements claiming to be able to achieve amazing results yet when you check their own accounts at Companies House they are often insolvent. If they cannot get their own house in order how can they achieve those results for you. It is also important to evaluate the supplier's communication skills. Do they respond to your inquiries promptly and professionally? Do they communicate clearly and effectively? A supplier that is responsive and communicates well is more likely to be reliable and trustworthy. There is a lot of discussion over recent years that you should consider the supplier's values and ethics before doing business with them. Simon Sinek’s view is we don’t buy what a supplier sells, we buy why they sell it. We like to understand our supplier’s “purpose”. Whether you believe that or not asking questions about their culture, codes of conduct or ethical guidelines will ensure that you feel comfortable in dealing with them. So choosing a supplier that aligns with your values and ethics can help ensure a long-term, mutually beneficial relationship. Finally, it is important to evaluate the supplier's level of innovation. In today's rapidly changing business environment, it is crucial to choose a supplier that can adapt to changes and innovations quickly. Consider their investment in technology and R&D. In conclusion, credibility is essential when selecting a supplier, particularly today where social media noise can make it difficult to know who to trust. By looking for third-party endorsements, researching track record, evaluating financial stability, considering their values and ethics, and assessing their level of innovation, businesses can ensure they select a supplier that is reliable, trustworthy, and can deliver on their promises.
Life is about making choices. This is true about both your personal and business life. The decisions we make are usually governed by more than just about money; where and how you should “spend” your limited resources. Time, energy, feelings, values and beliefs all come into play. Choices are about "opportunity cost". Money, time, your energy, are all limited resources so consider carefully “What’s in it for me” for every element of your life.
