State of the Accounting Profession, 2016: Fantastic & Huge

 

Now is a Great Time to Start Your Own Practice is reprinted from Intuit Accountants News Central 

I have traveled across the country since May, speaking and visiting many accounting firms, and have come to the conclusion that now is one of the better times to start an Accounting or Bookkeeping practice.

The entrepreneurial spirit is alive and well across the United States according to the State of the American Entrepreneur Report from Fast Company.

There are over 500,000 businesses started every year and they need accountants to guide them down the path of success. Every business needs accounting and tax advice whether they realize it or not. They need advisory services as well as compliance needs and this is why the opportunity is great as automation and AI enter the picture.

They don’t understand the difference between making a profit versus having cash or working capital. A large amount of accounts receivable usually means they have bad debts. Many of these businesses will fail without help.

There are approximately 28 million small businesses in operation with about 22 million of them with no employees. It is estimated that by 2020 50% of us will be self-employed. There is a need for professionals who understand the language of business or accounting. If you do not understand why this need exists, check out this video of a day in the life of an accountant.

The largest part of the profession is comprised of sole practitioners, either as accountants or bookkeepers. Check out these stats to see the future . The cost of starting up is inexpensive if you adhere to the principal of working via the cloud.   This eliminates the need for servers and applications are scalable to that first PC or tablet that you buy.

CPA’s are ranked first among financial professionals, and accountants who are not CPA’s are also well respected.

 

number 1 june blog

june blog chart(Source: Applied Research & Consulting LLC 2015)

With this said, many baby boomer accountants and bookkeepers are retiring, so now is a good time to take advantage of technology that will allow sole practitioners to compete with large firms. We are entering the world of the “Gig” economy, which means more and more people will be self-employed and small business owners. There is no better time to be offering assistance to people who are not equipped to deal with bookkeeping or accounting.

bls outlook june 2016

Occupational Outlook Handbook for Accountants Link

The link below for bookkeepers shows a decline rather than an increase. Bookkeepers aren’t going away, but those that don’t offer advisory services often do. This is because most of the mundane tasks of data entry and collection are easily automated and the business owner is able to do it. I am seeing smart bookkeepers doing consulting on setting up the books and educating their clients on the metrics associated with becoming more profitable, liquid and solvent.

 

bls outlook 2 june blog

Occupational Outlook Handbook for Bookkeepers Link

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