The latest Xero State of the Industry report found that despite the pandemic around 60 per cent of accountants and bookkeepers were preparing to grow their revenue this year and 27 per cent were looking to hire more staff.
More than 500 advisers were surveyed for the report that looked at how they have responded to the disruption, current industry trends, and the outlook for 2022.
The results of the survey found that those who were looking at expanding their business were considering offering additional services, as well as targeting specific small-business growth industries such as construction, professional services, and healthcare.
However, the report also detailed that although nearly a third of accountancy and bookkeeping businesses were looking to hire more staff, they also saw this as one of the biggest challenges, with 39 per cent of advisers saying it was their top concern.
Joseph Lyons, Xero managing director, Australia and Asia, said heightened demand for industries like construction and professional services is leading to a boom in small-business creation, generating even more demand for skilled advice.
The report also showed how advisers, alongside their clients, turned to technology to adapt, with 94 per cent of respondents revealing that adopting digital tools has had a positive impact including time savings, increased efficiency and improved client relationships.
Professionals reported that COVID-19 had been a catalyst for small businesses to consider how they use digital solutions, with 49 per cent of respondents saying they have seen a change in clients’ attitudes towards technology adoption.
“Alongside their clients, accountants and bookkeepers have explored the limits of flexible working enabled by tech, which has seen many practices expand into different regions,” said Mr Lyons.
“Over the next decade, bookkeepers and accountants will continue to play a critical role in Australia’s journey through the pandemic and beyond, providing services from advisory services to compliance and digitalisation.”
More than 90 per cent of advisers surveyed reported at least one positive impact from the pandemic such as embracing new ways of working, offering new services, and changing client attitudes to technological adoption.
Nearly three-quarters (76 per cent) of respondents said they felt confident they have taken the right measures to protect their practice and clients against the ongoing financial impacts of COVID-19.
The report also revealed the typical adviser is likely to play the dual role of business owner and small-business adviser, with 65 per cent of respondents owning their own business and 18 per cent being at a director or partner level.
Traditional accounting and bookkeeping service offerings still dominate, with bookkeeping, compliance, and payroll being the most common. But other services are also popular, with advisory services offered by over half (59 per cent) of the respondents.
