As part of their annual software development survey in the spring, accounting and tax software specialist – BTCSoftware – took the opportunity to question small and medium-sized accountancy practices on their business confidence about the next 3 years.
Confidence
Just over 66% of respondents were optimistic that their practice would have grown in size and turnover by mid 2018. This was followed by 24% who felt their practice would have stayed the same. Only 9% were looking to retire, sell or close their business by the end of the 3 year period.
CEO of BTCSoftware, Rob Ellis, commented, “It is reassuring that there is business confidence in the sector and many small and medium sized accounting practices are expecting to grow. It echoes national reports of greater confidence around.”
Ellis adds, “That’s not to say there’s an easy ride ahead for accountancy practices. In our survey we also asked what accountants felt was the greatest challenge facing their practice in the next 3 years. The results show that many in the profession feel there are tremendous changes and challenges ahead. They will need to respond to quickly and effectively to these if they are to achieve their growth ambitions.”
Challenges on the horizon
When asked what the greatest challenges facing small and medium accountancy practices in the next 3 years, these were the top 5 themes in order of popularity
- Continuing tax legislation changes and new demands from HMRC
- Technological changes including online offerings and the new digital tax accounts
- Increasing competition driving greater price sensitivity in clients
- Clients adopting greater self-sufficiency and feeling they don’t require an accountant’s expertise
- Auto enrolment
These themes echo/contrast with comments and discussions BTCSoftware has observed over the past months at major industry events such as Accountex and the CIMA Members in Practice Conference.
Rob Ellis concludes, “It has been really helpful to assess what the business landscape for small to medium sized accountancy practices may look like over the next three years. The survey has flagged key issues our clients are concerned about and we will be looking to give our support to ensure they still achieve the growth they seek.”
He adds, ‘The survey also gave us vital feedback on the software development roadmap we need to undertake and we are currently evaluating what new features will be introduced and when. We’d like to thank everyone who took part in the research.”
