App advisory and real-time data
App advisory and real-time data
How accountants are supporting clients with digital transformation.
In the continued drive for improved efficiency, businesses of all sizes are looking to assimilate digital automation across operations, streamlining processes and systems through apps and various software. But with exponential growth in the app market and ongoing open banking development, the options available can be overwhelming. Businesses are turning more and more to accountants for help and support in this area.
One high-profile transformation was by Weetabix, which needed to improve the processing of supplier invoices within its Accounts Payable department. The business implemented a streamlined system which automated the entire accounts payable process, including data capture, automated invoice matching and creation of compliant document store for all invoices.
Some AAT members working in industry may have involvement in transformation drives of this kind across the in-house finance function, but it’s also likely that those working in practice may be called upon for advice from their clients from time to time.
Businesses may be looking to improve or implement automation in
payroll Accounts Payable and Receivable reconciliation processes financial reporting.
We asked UK accountants about client demand for app advisory and the support they’re providing clients around digital transformation. Here’s what they told us.
Clients want easy-to-use solutions around automating sales and real-time reporting for KPIs
Emily Rutterford FMAAT, Digital Solutions Manager, Knights Lowe Ltd
The trends we’re seeing from clients around app advisory and digitisation tend to be around automating sales from e-commerce platforms, real-time reporting for tracking KPIs and general easy-to-use solutions.
A lot of clients also need guidance and hand-holding, especially the set-up and advisory, including researching apps. This takes time. Many need advice and expertise on which solutions to use and the levels of integration between their apps, especially because some integrations work better than others.
I’m encouraging clients to use OCR technology. For example, submitting their source documents (receipts, invoices, statements, etc) via inlets such as in-app cameras, a unique email address or linking online platforms such as Amazon for automating upload of purchase invoices. This technology encourages paperless, real-time cloud accounting and means we can keep on top of the bookkeeping so there are no quarter-end peaks in our firms’ workloads.
Verdict: Clients want easy-to-use solutions around automating sales and real-time reporting for KPIs.
There’s now greater demand for full system reviews
Cara McGrath, Digital Solutions Manager, Mohans
As awareness around the benefits of digital transformation increases, or as software-savvy businesses begin to reassess their needs, we’re seeing a greater demand for full system reviews.
Common areas clients currently need support in include:
Managing cash flow: Many clients are still using spreadsheets, which is time-consuming and takes time away from running their business. Therefore, organisations are looking for ways to automate this process and/or for software that will integrate with the apps they are already using.
Managing payments and approvals: Many new open banking and payment app products incorporate new data capture options, to make the process seamless from start to finish. For example, enabling the user to photograph an invoice and upload it to accounting software, which will automatically add into onto the payment system. This provides full visibility and transparency for all users.
Apps like Stripe, PayPal, GoCardLess or Square meanwhile, allow clients to be paid instantly.
With invoice approvals too, there’s a lot of work involved with managing the process. We’ve had clients report they need to send five emails to get approval for one invoice payment. Apps can therefore be a game-changer in terms of speed, efficiency and accuracy.
Choosing the right apps/accounting software: There is no one-size-fits-all approach, so we often recommend the app stack (software choices) that we think would best meet that business’s needs and help them to build a realistic plan of how to implement them as part of a wider strategy.
Verdict: There’s greater demand for full system reviews – we help clients build realistic digital transformation plans.
Real-time reporting is required for payroll to comply with recent legislative changes
Stephen Slater, Director of Commercial Services, RMT Accountants and Business Advisors
Most clients are using some form of software like Xero or Quickbooks to do their accounts. Very few clients use manual systems, but there are still some! However, these types of clients/businesses are unlikely to change.
But in general, and thanks to the Making Tax Digital agenda, more clients are coming to us already up and running on digital platforms.
Clients tend to want to digitise and automate areas such as invoicing, business expenses and payroll. Some clients also require real-time information and reporting, especially in payroll, due to recent legislative changes and requirements.
RMT as a business is very well placed to support clients in these areas. We know core systems, and have a separate technology team.
On a more general level, this is what the role of the accountant is becoming. No one sits around, typing things into computers anymore. Accountancy is a changing role, where accountants should now be able to interpret data and give advice to clients.
Verdict: Clients often require real-time reporting for payroll to comply with recent legislative changes.
We’re integrating and automating systems across tax and finance functions
Andrew Burman, Principal and Global Practice Lead, transformation and automation, Ryan
We work with clients across their entire tax and finance functions to automate, standardise, and create ‘single versions of the truth’ for data and more real-time data insights.
This often includes the application of machine learning (ML) and artificial intelligence (AI) to help drive line-item level review, validation and reconciliation of data sets in real-time.
We’re currently creating a central data hub where tax data can be accessed on demand, along with a range of ‘engines’ to process and analyse real-time data.
This will transition the tax function from retrospective compliance processes to real-time data analysis and business partnership, with all standard tasks automated.
We are also working on the use of AI and ML for predictive purposes. We’re identifying issues as soon as data lands in the system and alerting or auto-correcting based on prior treatments.
This type of work requires a unique mix of skill sets. We need the tax and accounting knowledge to understand what needs to be done, why, how, and when; the IT knowledge to work alongside each client’s IT teams; and the transformation and change knowledge to deliver this value alongside other change projects, which may include organisational, operational and IT system changes.
Our clients are becoming more sophisticated, and our approach is to partner with them at every stage on their journey. We want to define the solution together rather than selling them a ‘product’ and that seems to be resonating very well in the market.
Verdict: Clients are becoming more sophisticated and our approach is to partner with them at every stage in their journey, defining digital and technology solutions together.
This article is sourced from the following link:
https://www.aatcomment.org.uk/audience/members/app-advisory-and-real-time-data/
