Bookkeeper sector trends in the UK is evolving, with the advent of new technology, bookkeepers are able to provide a more efficient and effective service to their clients. In addition, the trend towards outsourcing bookkeeping services is growing. This is due to the fact that businesses are increasingly looking for ways to save money and reduce their overheads. As a result, bookkeepers who can offer a cost-effective and efficient service are in high demand.
Furthermore, many businesses are now opting to use cloud-based bookkeeping software, which allows bookkeepers to access client data from anywhere in the world. This trend is likely to continue, as it offers considerable advantages for both businesses and bookkeepers
The bookkeeper’s services are always in demand because businesses must keep records of their financial transactions by law. A recession, on the other hand, leads to businesses closing down and those that survive trying to cut costs to the bare minimum. Outsourced services, such as bookkeeping, might be brought back in-house.
Bookkeeping industry trends to watch in 2023
Most businesses in the UK grew during the 2000s, increasing the potential customer base for bookkeepers. Hard-pressed proprietors also tended to outsource bookkeeping so they could focus on their core activities. Businesses that didn’t have enough bookkeeping work for a full-time employee hired an efficient and reliable bookkeeping company to handle the work.
With the growth of internet retailing, bookkeeping services have also grown in demand – keeping track of online transactions and ensuring that they are properly integrated into a company’s records.
Since 2008, there has been a decline in business activity, which has lowered demand for book-keepingservices. By the second half of 2013, the economy had picked up again, and growth accelerated in 2014. There was a strong push for new businesses to start up in the UK, resulting in the first time that five million businesses were registered during the year. There were nearly 5.4 million businesses in 2015, a continuation of the economic recovery.
According to government statistics, there were 5.5 million private businesses in the UK in 2016. Over the whole period, there was an increase of 59%, and the average annual increase was 3%. 5.7 million people are now registered, an increase of 0.7 million from 2016. Microbusinesses account for 33% of employment and 22% of turnover among these 5.5 million businesses.
There is still a lot of competition in the accountancy and bookkeeping market, despite an average annual increase of 3% in the number of private sector businesses. Therefore, it is extremely important to think carefully about whether:
- You will likely be required to provide services to enough businesses in your area.
- Bookkeeping businesses will find it difficult to compete with you
In contrast, it’s likely that many small businesses will require help making electronic VAT, PAYE, and tax payments to HM Revenue & Customs (HMRC). Making Tax Digital (MTD) requires businesses to keep digital records and submit quarterly returns, so they will also need bookkeeping services more to ensure that their quarterly returns are compliant with HMRC requirements by keeping digital records in a way that allows them to do so.
Since so many employers are required to enrol their employees into pension schemes and make contributions to them, you might also be able to offer pension auto-enrolment services.
Keeping up to date with developments
Keep up to date by joining a professional body.
In the UK and abroad, the International Association of Bookkeepers (IAB) represents the interests of bookkeepers. In addition to a bi-monthly publication, subsidies for courses, seminars, continuing professional development, and so on, it offers members a range of qualifications. Furthermore, it provides guidelines on how bookkeepers can comply with the Proceeds of Crime Act and the Money Laundering Regulations. In the absence of a supervisory body such as the IAB, anyone offering accountancy services must register with HM Revenue & Customs (HMRC).
In order to learn more about the IAB, you can contact them at Suite 5, 20 Churchill Square, Kings Hill, West Malling, Kent ME19 4YU or visit their website.
ICB offers a range of relevant qualifications to maintain professional bookkeeping standards. In order to be exempt from the ACCA Foundation Paper F3 in Financial Accounting, the ICB Level IV Certificate in Advanced Bookkeeping and Accounts must be obtained. A Bookkeepers Summit is hosted annually by the ICB, and it attracts members of the profession, software developers, government ministers, and leaders in the industry. You can download guidance material from the Institute’s website as well. Visit their website or contact them at 122-126 Tooley Street, London, SE1 2TU.
Trade shows
Accountex is the leading trade show for bookkeepers and accounting professionals. This annual event brings together accountants from all over the world to share best practices, learn new accounting software, and network with other professionals. The three-day event features keynote speeches from industry leaders, breakout sessions on hot topics, and an exhibit hall full of the latest products and services.
Whether you’re a seasoned pro or just starting out in the field, Accountex is the perfect place to learn about the latest developments in bookkeeping. If you attend a trade show such as Accountex for the accountancy and bookkeeping sector, you will gain a lot of useful information. You can meet suppliers and see demonstrations of a variety of useful software packages. You can find details of other trade shows on the Exhibitions website.
Conclusion
The bookkeeping industry is constantly evolving, and new trends are emerging all the time. One of the latest trends is the move towards cloud-based bookkeeping. This means that businesses are increasingly storing their financial records online, making it easier for them to access their data from anywhere in the world. This trend is being driven by the growing popularity of cloud computing, which offers a number of advantages over traditional on-premise solutions.
Cloud-based bookkeeping systems are typically more scalable and easier to use than on-premise systems, and they can offer considerable cost savings. Another key trend in the bookkeeping industry is the increasing use of artificial intelligence (AI). AI-powered bookkeeping software is able to automate many of the tasks that would traditionally be carried out by human bookkeepers, such as data entry and invoicing.
This can help businesses to save time and money, and it also frees up staff to focus on more value-added tasks. These are just a few of the latest trends in the bookkeeping industry, and it’s likely that we’ll see continued innovation in this area in the years to come.
Read more: Legal issues for the bookkeeping sector
Lee Jones is a seasoned Business Finance Specialist with over two decades of invaluable experience in the financial sector. With a keen eye for market trends and a passion for helping businesses thrive, Lee has become a trusted advisor to countless organizations seeking to navigate the complexities of finance.