The mega-trends in accounting and bookkeeping and how to respond to them

Trends shaping your future

2017

Introduction

The game has changed. Forever. The future starts now

How we work, where we work.

The office is anywhere and everywhere

Changes driven by clients

What to expect in the next 5–10 years?Overview

General forecasts

On-demand accounting service

Chatbots

Super-powered Siri

Artificial Intelligence

Internet of Things (IoT)

Embeddable technology

Client-first relationships

Changing clients

Consumers

Expert knowledge

Government policy

Blockchain – data storage for ledger

Privacy evolved

Compliance and advisory work

Automation

Cashless society

Big data

How to future-proof your practiceTrajectory planning

Moving forward

Reformed roles

Digital business models

Maker economy

Sharing economy

Impact economy

How to become a successful advisorBuilding a connected practice

Conclusion

AppendixReport approach

Stakeholder survey

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Contents

Shining a light on the future, this first MYOB Radar report is a landmark study authored by futurist

Maree Conway and commissioned by MYOB to explore and discuss the various threats and

opportunities for accountants and bookkeepers for the next 10 years – and beyond.

By deep diving into future developments and mega-trends, MYOB Radar provides you with

information on how to best position your business to take advantage of the evolution of the industry,

and highlights the critical skills and tools you will need to future-proof your business.

New ways of viewing business are emerging, with the interests of staff, customers, communities and

the environment seen as essential to success rather than as trade-offs in the shareholder value game.

The socially accountable business – with people at its core and a longer-term view underpinning its

structure – is becoming more common. It’s a change that reflects the principles of the Millennials in

today’s workforce.

Your future is created by what you do today, not tomorrowTechnology is changing the world we live in. It is also dramatically changing the world we work in. Look around and you quickly see that technology is forcing the evolution of accounting and bookkeeping at an ever-increasing rate. Learning to adapt, adopt and plan a long-term strategy is crucial for success. That’s where MYOB Radar comes into play.

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MYOB Radar Report

The game has changed. Forever.  The future starts now.

Cast an eye over the current state of play within the accounting and bookkeeping industry and

you’ll discover three inescapable facets of business that are not only changing the way we work

but redefining the industry moving forward – exponential technology growth, automation, and cloud computing.

Let’s unpack these areas with a snapshot of how they are changing business now, and more

importantly, to what extent they will continue to impact accounting/bookkeeping practices in the future.

First, technology. On a broad level, the continuing increases in computing power, device connectivity,

generation of data and the impact of artificial intelligence are beginning to be felt within the industry;

but only at the edges. The growth curve here is going to get steeper over the next couple of decades.

As you would expect, digital technology is at the front and centre for all industries and companies.

Digital technologies have enabled us to take control of transactions such as travel bookings, bank

transactions and scheduling appointments. There is a move away from conventional face-to-face

professional interactions.

The shifts that digital is driving will see economic sectors declining or transforming. As the cost of digital

becomes low or free, businesses will need to adapt and innovate their processes and mindsets to respond.

Automating work is on the rise. Automating routine work is allowing accounting/bookkeeping practices

to focus on providing support to clients in ‘knowledge networks’, thereby promoting innovation

focused around cooperation, transparency and trust.

Cloud computing has enabled the growth of what is being labelled ‘the human cloud’ – freelancers

who offer services through companies like Upwork and Mechanical Turk. In companies, connecting

people with the right knowledge at the right time has always been a result of ‘who you know’. The

human cloud allows people to find the people with that knowledge using intelligent directories, social

networks, and present information to identify availability of tools and people.

Operating in the cloud reflects another trend around ownership versus access. In the future, owning

‘things’ will be less important than having immediate access to services, challenging the current

restrictive copyright and intellectual property laws.

MYOB Radar Report

McKinsey estimates that by 2025, around 540 million workers will have used ‘online talent platforms’ and could add $2.7 trillion to global GDP2.

Cloud accounting will be installed in up to 90% of small to medium businesses in the near future3.

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MYOB Radar Report

How we work, where we work.  The office is anywhere and everywhere.

Just as the nature of work is changing, so too are the places and spaces in which we work. Mobile

phones and computers have seen the rise of people working remotely, with offices and working spaces

adapting to the new flexible workforce.

The design of buildings and workspaces is changing as workers are increasingly freed from their

desks thanks to mobile technology that allows connection and collaboration. A workforce that can

work anywhere at any time is a reality today. The traditional 9am to 5pm workday and the large office

building are unlikely to remain in their current form in the future.

Across the entire workforce, it’s been estimated that around 1 in 4 people currently work from home at least once a week. It’s estimated that only 1 percent of those actually have a formal agreement with their employer5.

A recent survey of business owners in the UK found that 59 percent of SME business owners believe remote working is the future of business4.

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MYOB Radar Report

As suburbs creep farther from cities and commuter traffic crawls along clogged highways,

remote work has been heralded as the solution to improving employee morale and productivity

while simultaneously reducing operational overheads. New technologies enabling co-working and

remote working mean offices may change into places where people come together occasionally

rather than every day.

For smaller businesses that need to carefully manage their overheads, having fewer people in a physical

office can work to their advantage. They’re able to manage these unique arrangements much more

easily than a large enterprise.

The times are a changin’ and so are the clients Client expectations and the changing nature of clients are both shifting thanks to greater access

to information in the so-called ‘Google era’. Increasing connectedness via the internet has created

a network economy that provides the platform to enable people to connect, share, work and learn

easier than ever. Taking advantage of mobile connections with customers and clients will be essential

in the very near future. In what must come as a shock for industry leaders, business owners and

governments alike, these changes are driven by the clients themselves as they take the path of least

resistance towards value.

Here are a few of the changes that are being driven by clients:Digital empowerment The consumer is digitally empowered and expects to be able to access services in a hyper-efficient,

frictionless way, letting technology take care of the routine tasks and connecting with people for specific

and personalised advice.

One stop shops One stop shops deliver a range of services to clients. Increasingly, consumers are looking for a single

point of contact for professional services and combined accounting, financial advice, and legal services.

A World Economic Forum survey of HR managers found that 44% believed new technologies that enable co-working, remote working, and teleconferencing will be the biggest driver of change in the next decade6.

65% of children entering primary schools today will likely work in roles that don’t currently exist7.

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MYOB Radar Report

Diversifying The big four Australian accounting practices are moving into legal advice, driven by client expectations.

This is not a new strategy, but it is gaining momentum. This sort of integration challenges traditional

industry structures (increasing competition) and is likely to accelerate in the future.

Social media reputationIncreasingly, consumers are choosing social platforms to read reviews and make purchase decisions.

Trusted companies are identified via online reviews and peer sharing of experiences. Company

websites are no longer enough for the consumer; advice from their networks and online sources matter

more in their decision making.

Platforms that allow people to participate in networks and share information are unlikely to go away.

Instead, they will become a primary channel to accessing not only services, but information to help

them to decide what to buy and from whom. This will not only apply to services such as hotels and

restaurants, but professional services such as financial, legal etc.

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MYOB Radar Report

What to expect in the next 5–10 years?

OverviewThe way accounting and bookkeeping services will be delivered in the next 5–10 years is unlikely to veer

away from the digital pathway that is developing today. Continued development in artificial intelligence

– including machine learning and automation – social media, data and other mega-trends means we

need to look beyond today’s ways of operating and interacting with clients.

General forecasts + Using social media for brand and reputation management, advertising, and engagement will

become the norm

+ Every business will be a cloud or digital platform provider

+ Local delivery, personalised goods and services, and real-time delivery will characterise digital

business models

+ Organisations that can harness big data capabilities effectively will be able to create significant

value and differentiate themselves

On-demand accounting serviceAs consumers increasingly expect services such as movie and TV streaming to be on-demand,

accounting might be the next on-demand community. People will be able to use apps to identify

what companies specialise in services they require and connect the client with that company directly

from the app.

ChatbotsA chatbot is a computer program designed to simulate conversation with human users, especially

over the internet. The best example of this is Apple’s Siri. As artificial intelligence continues to develop,

providing routine advice will be an interaction between chatbot and client and will become more and

more prevalent.

Super-powered Siri

People will have access to a ‘super-powered Siri’. The digital assistant, embedded under the

ear, will be available 24/7 and able to help with everything from restaurant suggestions to

booking client meetings and gauging traffic flow.

Simon Raik-Allen, Chief Technical Advisor @ MYOB

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MYOB Radar Report

Artificial IntelligenceIt is possible that artificial intelligence will develop and reach the stage where machine intelligence

is greater than that of multiple human brains. Artificial intelligence may be able to quickly identify the

“smart” move, but how good is it at identifying the “right” move for the right client at the right time?

The emotional, social and contextual intelligence of accountants and bookkeepers is something that

you can never automate, never replace and never take for granted.

AI is already beginning to automate tasks such as data entry. Automation is occurring at the staff level,

but it will creep up the corporate ladder and begin to automate higher level tasks.

Internet of ThingsJust as the 20th century sought to electrify everything, the Internet of Things (IoT) will potentially

connect everything – physical, virtual, human, animal, inanimate, and natural. Anything that can have

a sensor embedded can produce data about behaviour and share that data on the internet. By 2020

we are likely to have 50 billion different devices connected to the internet, possibly more.

Embeddable technology

Embeddables, or ‘insertables’ as they’re commonly known, are tiny cylindrical chips about the size of a

grain of rice that can be inserted beneath the skin. These Radio Frequency Identification (RFID) implants

can be activated and scanned by RFID readers.

Embeddable technology is likely to form a key part of the workplace, helping us to train more

effectively, access and share knowledge quicker, and interface with highly complex and rapidly

evolving systems.

In Australia, companies that have deployed IoT solutions are reported to have cut costs by 28%, with most yet to engage with this technology8.

The first implantable mobile phone will become commercially available in 2025, following an increase in implantable technologies already being seen today9.

1 trillion sensors will be connected to the internet by 2022, and 10% of people will be wearing clothing with embedded chips that connects them to the internet10. Virtual reality technology could replace videoconferencing, further enabling remote working, and possibly lead to a major decline in commuting11.

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MYOB Radar Report

The need for client-first relationships as the need for interactions decreasesOne of the greatest fears about the future is the possible loss of personal relationships with clients

in the face of the push of technology. The idea of consumers seeking experiences over information

is gaining traction. It is therefore important to put the partner and client relationship first –

personalising interactions in the physical and virtual worlds will be a key factor in ensuring business

success in the future.

Relationships, not transactions, will drive the practice of the future. Technology will take an ever-

increasing role in processing data, while business advisors will be freed to focus on the client

relationship – exploring opportunities and nurturing long-term relationships.

Changing clientsA picture of who the client is will change over the next 5–10 years. The impact of changing traditional

family structures, more self-funded retirees and more economically empowered women because

of workforce participation, along with wealth transfer due to inheritances, will see different clients

emerging. Serving younger generations that are more digitally sophisticated will be important, too.

ConsumersConventional ways of tracking consumer preferences and creating services are becoming obsolete.

A new focus on working with consumers/customers/clients will be needed if services are to remain

relevant into the future.

Expert knowledgeInstead of the expert knowing best, the role will be more about helping clients find the information,

services, and products they need when they need it. Sharing knowledge becomes the core of expertise

rather than creating esoteric, protected niches which few can access. Clients will want access to services

on their terms, and increasingly they will want to use their mobile devices to get that access. Mobile,

voice and virtual, merged and augmented reality will be key elements of service delivery in the future

as well.

Government policyEnsuring the interests of the public and consumers are maintained while supporting technological

innovation means new forms of government policy development will be needed. These agile

approaches will allow governments to stay in touch with the changes they are regulating and their

impact of people and companies. Governments will need to be easier to deal with and more focused

on outcomes rather than process.

Blockchain – data storage for ledgerA blockchain is a data structure that enables a public digital ledger of transactions to be shared across a

distributed network of computers. Users can record transactions on the blockchain without the need for

a central authority.

In 2020, employees will have a design mindset, be media literate and cross-culturally competent and able to collaborate virtually12.

Brands will focus on mobile interactivity13.

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MYOB Radar Report

Blockchains are emerging as a way to make and verify transactions on a network instantaneously

without a central authority. The blockchain can handle complex transactions and maybe even reduce

the need for companies. People may be able to connect and work together without companies

and management.

Increased transparency for businesses is possible, as the blockchain becomes a global ledger storing all

transactions, which are all viewable by all users.

The evolution of privacyWhat we regard as private today will shift into the future, and there will be a balance between public

security and private information. At the same time, companies like teamdata.com will enable people to

control who has access to their private data. The end of privacy as we know it will be a future challenge,

as a range of ways to collect data about us become ubiquitous. Living a public life may be the default

state. It is predicted that by 2025 there will be an international consensus among internet organisations

on how best to balance personal privacy and security with popular content and services.

Compliance and advisory workAs compliance and advisory work continue to be unbundled, accountants and bookkeepers will be

providing consumable analytics and advice for clients – focusing on delivering actionable value.

This leads to two important points:

+ Business advisory services will generate more than 80% of revenue for accounting practices

+ Bookkeepers will manage and guide the data, not record it.

AutomationThe Committee for Economic Development of Australia (CEDA) identified the probability that 40% of

Australia’s workforce (more than five million people) could be replaced by automation within the next

10 to 20 years. This is a common prediction, and yet in the past new technology has not necessarily

destroyed jobs but rather created new ones. There will be more roles in the artificial intelligence

industry as that technology becomes more mainstream. Overall, jobs will be redefined.

Cashless societyWe will continue to see the

disappearance of cash. This

is speeding up as the finance

sector is being redesigned with

the rise of cryptocurrencies

(and the underpinning

blockchain technologies),

more contactless payments,

and increasing preference

for mobile/online delivery

of services.

By 2023 it is forecast that the first government will collect taxes using blockchain technology14.

By the end of 2017, blockchain will be used by 15% of big banks15.

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MYOB Radar Report

Big data Big data is a term that describes the large volume of data – both structured and unstructured – that

inundates a business on a day-to-day basis. But it’s not the amount of data that’s important, it’s what

organisations do with the data that matters. Big data can be analysed for insights that lead to better

decisions and strategic business moves.

The intersection of big data, cloud computing and the Internet of Things will create a new framework

for doing business. Capabilities to make sense of ‘big data’ will be a critical skill for all companies.

Big data is the growth area of the future, suggesting that the more data we have, the better our

decisions about clients and services will be. The trend towards personalised service depends not only

on collecting data about clients, but also having the skills to analyse that data.

Data volumes will continue to grow thanks to the ever-increasing Internet of Things. Ways to analyse

data will improve, and machine learning will be used for data preparation and predictive analysis.

Fast data and actionable data will replace big data. Specialised add-ons that help focus and improve

the efficiency of working with data within the practice will become essential.

This ‘Analytics of Things’ represents a huge opportunity for business advisors of the future.

By 2020, all businesses will be data-driven businesses or no businesses at all16.

It’s estimated that the amount of data stored is doubling every 18 months17.

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MYOB Radar Report

How to future-proof your practiceAs society and business experience rapid and ongoing change, the way for tomorrow’s accounting and

bookkeeping practices to survive and thrive is to reimagine and redesign the way it works today.

Responding to changes in the future will require combinations of technologies, reorganised structures

and business models, new skills and approaches, and changing views of expert and client roles.

Developing a future-ready capability will be essential to stay ahead of change. The rise of artificial

intelligence and big data will need new ways of thinking and new skills to analyse and identify insights

from the data.

A model for future planning in the face of increasing technologyAt MYOB we use trajectory planning to develop strategy.

As managers, we’ve all been trained to build strategies based on the world that we know – tools like

SWOT analysis and Porter’s Five Forces – to build from our knowledge of the world we live in today.

They are comprehensive, but they all focus on the world as it is today, and therefore work best in a

world that is moving in a predictable manner; where today’s reality is a good predictor of tomorrow.

In a world that’s moving fast, where things can come from left field and technology innovation is

accelerating, the better way to think about strategy is to throw a line out to the future and articulate

possible future scenarios. At MYOB we use 10 years – it is far enough for us to think that pretty much

anything is possible, but close enough to be relevant and require action today.

STEP 1

One starts by looking at the mega-trends that you believe are changing the world, including

those mentioned in this report such as artificial intelligence, virtual reality, big data, and the

Internet of Things.

Characteristic Brief Description

Business model A strong digital business model focused on networked structures

Platform thinkingTechnology-enabled platforms to manage workflow, deliver

hyper-efficient services and generate data in real time

Focus on the client

Defining relationships and interaction with staff and clients

using social media and similar platforms to build reputation,

engagement and connections

Job redesignRedesigning services and jobs focused on advice and value

generation to balance the loss of jobs through automation

Relationships at the core

of business

Co-creating services with clients, building a network with clients

and partners, helping clients make wise choices, and contributing

to the community where the business is located

Networks and connections

Developing new marketing approaches that have social media

and networks at their core to establish, promote and maintain

networks beyond the company

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MYOB Radar Report

STEP 2

The second step is to think about the impact of these mega-trends on your industry, and build

views of the future.

STEP 3

In step three, you assign probabilities to the different future states, and then narrow the list

down to those that are probable – most likely one or two, but no more than three.

STEP 4

In trajectory-based planning, the fourth step is NOT to build a 10 year plan for each view.

Instead you ask yourself: “If this is going to be the future, what are the two or three things

I have to get started on now?” They will often be the same first steps for each of the future

state scenarios.

And at the end of each year, follow the process again, taking into consideration the technological

advancements and predictions you’ve been tracking.

This report provides starting points for your research going forward. For more information on trajectory

planning, download the step by step guide.

Moving forwardReformed rolesThe role of the expert will shift away from traditional professional service provider as clients have

access to information that allows them to make decisions that previously required an accountant or

bookkeeper. The idea that the expert knows what the client needs – and that clients can’t be expected

to make informed judgements – is becoming obsolete.

With knowledge being distributed via the internet, the expert role becomes focused around helping

clients identify the information that matters for their issues, and how best to use that information in the

client context. This shift doesn’t mean that professionals won’t be needed in the future, but their idea of

what they do, their expertise, and how they share it will change.

Digital business modelsThree things will characterise digital business models:

+ Full digitisation of a company’s operations

+ Redesign of products and services so they can be tracked in real-time

+ Closer interaction with customers.

The global, social, economic and technological changes we are seeing now will transform business

models within a decade. As transactions are increasingly digitised, operational excellence will be less

important than choosing a digital strategy to connect with clients.

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MYOB Radar Report

Maker economy The maker economy enables people to use tools like 3D printing, robotics and open source

technologies to create new services and products, often using crowdfunding to finance development

and delivery. For advisers, identifying new services to help clients manage their routine financial affairs

themselves, identifying useful DIY apps or platforms – and personalising that advice – will be needed.

Connecting makers and accountants will be a future challenge.

Sharing economyThe sharing economy – exemplified by the likes of AirBnB, Kickstarter and Uber – uses the internet to

connect consumers to enable sharing or renting, selling or working. It’s only a matter of time before a

start-up brings a professional services app to the market that enables accountants and bookkeepers to

sign up for ad-hoc tasks for businesses.

Impact economyWhile government has traditionally been the source of funding for social works, in today’s modern

society there are many causes that simply don’t get the assistance they need. Enter the impact

economy, where private entities fund social initiatives for profit and purpose. This economy will only

grow as Millennials look for more meaning in their work and life.

These industry verticals – focused on healthcare, social services, the environment among others –

provide new opportunities for practices to move into.

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MYOB Radar Report

You must always be considering what new tech or opportunities are out there for the

client. The key is putting the client first and asking the right questions. What are they trying

to achieve?

Sit down with the client and ask them what they want to achieve annually; their goals,

ambitions, etc. I do a five-year strategic plan, succession plan, increase profitability, winding

down; whatever aligns with their goals in a cost-effective way.

Your aspiration should be to be the key advisor for your client. If the client is about to do

anything, you want them to think, ‘Oh, I better run this past my key advisor first’. They trust

in you and that’s how you deliver. Aspire to be the key advisor.

Accountant based in Victoria

You need to be able and willing to adapt, be innovative, be ahead with your abilities,

knowledge and experience. Be able to grow and provide better services for your clients.

Bookkeeper based in NSW

TRANSACTION PROCESSING: The business of running a business.

Making transactions that are carried

out efficiently and effectively and are

accurately recorded. This includes

invoicing and collections, receiving

and paying a bill, payroll etc.

COMPLIANCE: The process

of verifying and validating the

information that has been captured

and processed in Transaction

Processing, and then lodging with

the appropriate regulator in the right

form at the right time, accurately.

ADVISORY: There are three key

areas: tax and business structuring,

cloud tool enablement, and business

process improvement – all of which

have considerable room for growth.

Building a connected practiceThe Connected Practice is MYOB’s vision of the industry’s future. It’s the coming together of three

critical functions within a practice: transaction processing, compliance, and business advisory.

The concept of The Connected Practice seeks to leverage the time savings that automation brings to

transaction processing and compliance to enable new income streams for practices in business advice.

How to become a successful advisor

In the past, practices have focused closely on the first two functions. However, the advent and

popularity of cloud computing (and online accounting solutions in particular) has meant changes to

earning potential for compliance-focused practices.

And who is at the intersection of these three accounting functions? It’s you, the accountant

or bookkeeper.

Nowadays, with automation (bank feeds, for example) becoming more and more common, practices

must reconsider their business model and look at how they bill, the services they offer, and most

importantly, what value they can provide to their clients.

These changes will drive a different type of professional services firm. The challenge is how practices

will deliver a connected practice experience for clients and what needs to be put in place and enacted

upon to start taking action now.

Three of the mega-trends mentioned earlier in this report – artificial intelligence (AI), data and the

Internet of Things (IoT), people and the nature of work – will impact each of these processes. However,

the biggest effect isn’t the change within each individual business process, but the fact that these three

processes will eventually combine into one business process that will be done seamlessly in real time.

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MYOB Radar Report

You should be actively finding tools that help you best advise – technology enables

us to do this now.

Accountant based in NZ

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MYOB Radar Report

Keep checking myob.com/radar each month as you’ll have access to a new mega-trend with more

information on how this trend will evolve and what it means for you.

1 http://business.nab.com.au/wp-content/uploads/2016/07/2016-07-Forecasts.pdf 2 http://www.mckinsey.com/global-themes/employment-and-growth/connecting-talent-with-opportunity-in-the-digital-age 3 https://www.linkedin.com/pulse/12-predictions-profession-rob-nixon?articleId=9211449517289105412 4 https://www.myob.com/au/blog/the-future-of-working-remotely/ 5 https://www.myob.com/au/blog/the-future-of-working-remotely/ 6 http://www3.weforum.org/docs/WEF_Future_of_Jobs.pdf 7 http://www3.weforum.org/docs/Media/WEF_FutureofJobs.pdf 8 https://blogs.microsoft.com/iot/2015/02/25/chasing-iot-in-australia/ 9 https://flipboard.com/@flipboard/flip.it%2FPUpN3D-21-technology-tipping-points-we-will-re/f-ed3c140305%2Fbusinessinsider.com 10 https://flipboard.com/@flipboard/flip.it%2FPUpN3D-21-technology-tipping-points-we-will-re/f-ed3c140305%2Fbusinessinsider.com 11 http://www.wsj.com/articles/virtual-reality-takes-on-the-videoconference-1474250761 12 https://medium.com/the-mission/these-10-employee-skills-will-soon-be-in-huge-demand-50aaf32d95d7#.mn3yirte7 13 http://www.imediaconnection.com/articles/ported-articles/red-dot-articles/2014/may/5-predictions-for-the-future-of-social-media/ 14 https://flipboard.com/@flipboard/flip.it%2FPUpN3D-21-technology-tipping-points-we-will-re/f-ed3c140305%2Fbusinessinsider.com 15 https://www-01.ibm.com/common/ssi/cgi-bin/ssialias?htmlfid=GBP03467USEN& 16 The future for accounting and bookkeeping services, A report prepared for MYOB by Thinking Futures, December 2016 17 http://www.innovationexcellence.com/blog/2014/01/01/99-facts-on-the-future-of-innovation/

Sources

MYOB Radar Report

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MYOB Radar Report

Appendix

Report approachAn environmental scan explores the external environment for potential opportunities, challenges and

deeper change forces that are shaping an organisation’s future today. Scanning explores today’s trends

and the deeper forces of change directing those trends by identifying new and emerging issues, and

providing information and insights to inform strategic thinking and decision making today.

A scan is conducted at a given point in time and considers the resources found during that time.

This scan was conducted in September–November 2016.

The scan was informed by a survey of MYOB stakeholders who identified major changes affecting

their work and businesses today and in 5–10 years, and their ideas about the future for the industry.

The detailed results of this survey are available below. Analysis of the survey results was the starting

point for broader research on factors shaping how the accounting and bookkeeping industries will

provide services into the future.

A futures1 based scanning approach gathers information from both mainstream and more ‘fringe’

sources, considering the life cycle of a trend rather than only the manifestation of these trends today.

This approach is based on the principle that every trend visible today started as an emerging issue, a

fringe issue visible to those who identified the change first. The issue either gains strength and visibility

to the wider society, or wanes from view.

This report provides an analysis of the scan, identifying major areas of change likely to have an impact

on how the accounting and bookkeeping industry defines itself, how it operates, how it relates to

clients and how it ensures a sustainable future over the next 5–10 years.

1 Futures based scanning research is conducted with the long term in mind. It identifies relevant change today and explores how that change might evolve over time. This allows us to think about changes likely to shape our industries and companies both today and into the future. This additional futures thinking element is what allows companies to be futures ready.

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Stakeholder surveyA survey of MYOB stakeholders was undertaken in late 2016. An invitation to participate was sent to a

group of people selected by MYOB. There were 53 usable responses.

MYOB Radar Report

Question Top Three Responses

Three external changes

significantly impacting on

your industry today

Technology: automation, cloud, digital disruption

Economics: pricing, increasing costs for businesses, clients ‘being

squeezed’ by economy

Government: legislation/regulation/compliance

Changes not yet affecting

your work but which will

have an impact in the next

5-10 years

Technology: automation, artificial intelligence, machine learning

Economics: employment opportunities, changes in banking

industry, expectations of people entering workforce, impact

of global economy, rise of DIY economy/decline of ‘experts’,

overseas labour

Social changes: demographics, use of social media, ageing

population, cultural changes, generations (age), lack of privacy

Expectations about working in

your job in 10 years

Clients: working with clients in person and online, adding value,

problem solving

The Nature of Work: a shift away from transactions/data

processing to advisory services, education services

Technology: working with technology in the business and

helping clients use technology in their work

Fears about what might affect

your work in the future

Note: four responses to this question indicated they did not fear the future and focused on adapting to change.

Clients: not being informed, losing them through recession,

overcoming skepticism about technology, problems using

technology, thinking they can do it all themselves, not

being valued

Technology: overtaking the human aspect, automation, increasing

demand for instant answers, driving down margins, inability to

keep up with changes

Business: competition forcing us out of business, increasing costs,

staying the same or moving too slowly, maintaining standards,

work being done overseas

Most critical decision to be

made in the business in the

next 12 months

Staffing Issues: whether to employ more staff

Running the Business: finding a niche/focus, expansion,

diversification, keeping up with technology, managing legislation/

compliance, managing costs, deciding whether to outsource

Client Service: ensuring client satisfaction, helping build value

(not income) based businesses

GSMP213234-1116