• links

Blog


Bookkeepers and the Bookkeeping services function – The role is changing rapidly

06 Feb 2022
Author: Neil Helps

Bookkeepers and the Bookkeeping services function – The role is changing rapidly.

The role of Bookkeeping and that of the Bookkeeper is changing rapidly. Cloud-Savvy accounting and bookkeeping professionals are not surprised as they have first-hand experience of this happening over the last couple of years. New developments in software and cloud technology are now automating tasks that were previously done manually, thereby increasing the amount of work that can be processed and with more accuracy. Bookkeepers no longer have to keep a written record of all financial transactions. Despite the shift from paper to electronic records, data entry is still a key competency for bookkeepers. Popular software like Sage, QuickBooks and Xero have however made it much quicker and easier for bookkeepers to keep accurate records.

This rapid change does not mean that bookkeepers will soon be replaced by robots, it is simply a signal that the role of a bookkeeper is developing into a new set of duties and responsibilities. The change should be seen as empowering not only for the bookkeeper but for the client as well. The transformation means that the Bookkeeper is still the "keeper of the books," but now that involves validation and verification of technology activities.

So is Bookkeeping in trouble? No, but it does need to evolve. To shift from a historical focus position to a real-time position.

Here are some of the areas that are most affected by the rapid change in the Bookkeeper role and the Bookkeeping function:

1) Data management instead of data entry

Large amounts of data can now be converted to financial statements in record time through the use of IA and Accounting software. For example, business owners can now connect their accounting software live to their bank accounts. This allows for a bank reconciliation to take place instantaneously, instead of being captured item for item.

Bookkeepers are now required to look at financial data not from a data entry perspective but more from a data management and compliance perspective. They have now become stewards of compliance, along with Accountants. Bookkeepers need to know and understand accounting fundamentals to be successful and will progressively move towards doing more fundamental accounting work previously done by Accountants.

2) Technical knowledge has become a necessity

As stewards of the information produced by an accounting system, bookkeepers have now got to have a deep understanding of the technology used as well as how data should be managed.

Client needs vary and are always unique. This requires a bookkeeper to have a deep understanding of the current technology and how best to arrange the tech stack for a client as there is no one size fits all anymore.

3) Customer service and educating your client is now required

As the role has changed so does the conversations with clients change. Instead of low-level conversations, the Bookkeeper now has a greater role wrt client relationship building and advice.

The customer service aspect has to be exemplary. Your client interactions need to be both value adding, supportive and memorable – you need to be seen as a true business partner.  Your clients need to become your highest priority. The relationships that you will develop will help retain clients and lead to new client referrals.

As bookkeeping tasks and responsibilities adjust, so do the type of conversations that you have with your clients. Clients now have the need to be educated especially as the compliance landscape becomes more and more complicated.

4) Be ready to adapt skills is a must

It might be frightening for a Bookkeeper that their role has changed so much and that their current skillset is becoming obsolete however, this is an opportunity to learn and grow into the new role that is expected of a bookkeeper. By staying educated and specialization a Bookkeeper can retain and enhance their skills in order to adapt to the changing environment.

The only thing that is certain is change. Unless you adapt to this change you will ultimately become redundant. Being able to adjust to evolving responsibilities is a strength and a necessity and will assist in building long term relationships. With new technology comes new opportunities, it is what you make of these new opportunities that ultimately matters!

Contact Zeelie Professional Accountants SA today to assist you with setting up your tech stack and automating your Bookkeeping and Payroll processes.

Disclaimer:  The views or opinions expressed on this site are solely those of the original authors and other contributors.  The material and information contained on this website is for general information purposes only and should not be relied upon as a basis for making business, legal, tax or other decisions.  Always consult with a professional first.  Whilst we endeavor to keep the information up to date and correct, we do not make any express or implied representation as to the completeness or accuracy of the information published.  Please note that tax legislation is updated annually, and any tax publications may be outdated.  Links in this website may lead to other websites outside of our control and we accept no liability in respect thereof.  Zeelie Professional Accountants SA (Pty) Ltd accepts no liability for loss or damage arising directly or indirectly from the use of any of the material on this site.