No one’s in any doubt that the world of accounting is changing at a faster rate than it’s ever done before.

And for certain specialist roles – bookkeeping perhaps being the most prominent – there’s uncertainty about what the future looks like and not a little fear that many parts of the profession are increasingly being automated.

However – the reality is that the future of bookkeepers has never been sounder, as long as professionals embrace the changes, identify opportunities and seize the chances that present themselves. So how is the role changing – and how is technology enabling certain traditional accountants’ roles to become the bookkeeper’s?

“It’s true that as businesses increasingly go to digital products, the role of the bookkeeper will change,” says Karen Lowen, Director of Dod-dle. “Not only will some businesses want to keep their entire bookkeeping requirement with their bookkeeper, but others may want to move to having their bookkeeper oversee, or review, their digital efforts.  This may well involve checking the debtors and creditors at month end, reconciling the bank account or just checking that postings have been made correctly.”

Creating opportunities

Technology makes it easier for businesses to keep their accounting up to speed – with software like Dod-dle’s being designed specifically for ease of use by small companies – but this gives bookkeepers new opportunities, rather than replacing them. “Review what services you offer now,” Lowen advises. The key is to be flexible and adaptable. Technology – and particularly the move to MTD – “offers a chance to grow for all concerned. Businesses grow because they have increased information at their fingertips, and bookkeepers grow with the subsequent increase in demand for their services.”

Be tech-savvy, know what different platforms are available, and be able to demonstrate clearly what you do for your clients. A client won’t necessarily know (or want to know) the difference between Xero and QBO, or what Spotlight does. They don’t need to. They want to leave things to the bookkeeper to sort, and if you can be nimble about that, you will gain new clients and retain grateful existing ones.

The fact that bank reconciliations can now be done at the touch of a button does not mean the bookkeeper’s role is becoming piecemeal redundant. Rather, it frees you up to focus on other things – you can offer advice in real time, and less time spent on functional tasks means more time to grow the business.

If you have clients who are fearful or suspicious about cloud safety, see it as part of your job to reassure them

Working with, as well as for, your client

A customer-focused attitude is essential to achieve this, however. “I once spoke to an accountant who said they would only accept clients who use a certain package,” says Lowen. If you want to be a growth-oriented, solutions-focused bookkeeper, this isn’t the approach to take. “While that might be acceptable to someone with only large company clients, it won’t suit a practice who have sole traders or micro-organisations as their customers. It’s in the client’s interests, and therefore the bookkeeper’s, to consider the array of packages on offer and see what fits.”

Be proactive, and see yourself as a confidante to your client – not someone who works in isolation. For example, if you have clients who are fearful or suspicious about cloud safety, see it as part of your job to reassure them. Your key role as a bookkeeper is to support the business by building an accurate picture of financial activity. The technology that is increasingly available ensures you can build that picture more quickly, see long-term financial health at a glance, and become alert to problems as they arise. You can also see where money is going less efficiently than in other places, or which might be areas to capitalise on more.

Being dynamic

“Your focus should be on adding value,” says Brian Palmer, Brian Palmer, Tax Policy Adviser at AAT and CEO of Tax Policy Advice. “Yes, technology is going to make some basic parts of the job no longer necessary. But the work you can now do in interpreting figures – in helping to make adjustments that will feed through to increase profitability – is a far more interesting prospect.” You can help clients make changes to the business now that will really help them – “isn’t that better than pointing things out six months after year end, when it’s too late to do anything about it?”

And for the future? “If you’re not already, familiarise yourself with cloud-based products and their associated apps; see which best for you and which integrate with your software; and identify what’s going to work best with clients.” Additionally, Palmer says, “look at your training needs. Software is becoming much more intuitive,” he points out, so these training gaps often lie more in the ‘soft skills’ arena.

Finally, we have to accept that “technology does mean the death of certain jobs – but it leaves those who can adapt, in a place where they can work in a much more interesting place.” The quality of work has gone up, Palmer argues, “and the result is the removal of capacity constraint.”

Previously, bookkeepers would be spending all their time doing necessary but time-consuming jobs – and increasingly those jobs can be automated. Rather than looking backwards and trying to hold onto those roles, look at how you can be a value-generator, think about what your clients want from you, and communicate effectively. And think of how this ‘removal of capacity constraint’ could help you re-orient your business. “It’s a very interesting – and exciting – time.”

First and foremost, heed the early warning signs to make sure their money troubles don’t become your own.

According to Begbies Traynor’s red flag alert for Q1 2018, there has been a 33% increase in UK businesses reporting “significant” financial distress since Article 50 was triggered on 29 March last year.

Over 477,000 businesses across all sectors now struggle to stay afloat, especially those in support services, construction, real estate and property, and telecommunications. It’s therefore likely this is happening to one or more of your clients. What if they throw in the towel and go bust without paying your outstanding fees?

By the time your client enters into a formal insolvency procedure, it’s usually too late to recover what you are owed. As an unsecured creditor, you will be at the bottom of the pile and will receive little money, if any, once the banks and other lenders have been paid in full.

To mitigate any negative impact on your business, you need to act on the warning signs that indicate your client may be struggling.

Red flags

“People often disguise their financial challenges, but changes in payment patters of your invoices and not hearing from the client when you chase overdue fees are probably the most obvious signs,” says Simon Underwood, business recovery partner at Menzies LLP.

Receiving part-payments also suggests cashflow problems and that your client is paying you what they can, when they can.

And if they are behind paying you, it’s likely they are also not paying suppliers and HMRC. “With cloud accounting software, you can easily check if there’s an increase in aged creditors,” says Katie Young, director at insolvency firm Kewans.

Young adds that these are not always signs of financial distress. “They may simply be struggling with the admin or not have the skills to manage the company’s finances. In this case, some business guidance from you could help turn things around. Bringing in an external finance director might be the answer, too. Or if it’s just a cash-flow issue, for example in a seasonal business, then invoice finance could be just what they need.”

There has been a 33% increase in UK businesses reporting “significant” financial distress

Be proactive

But if the alarm bells are ringing loudly and it looks like the client may be at risk of going under, take steps to protect yourself.

“Offer to assist, but be very careful about speculating your time in anticipation that things will get better and that you will be paid when the problems have passed,” Underwood warns. “At the very least, agree regular payments to cover costs as they are incurred, perhaps a weekly standing order.” Or ask for payment in advance.

Obtaining a payment guarantee from the directors before carrying out any further work is another option.

Young says: “The directors will need to sign the guarantee in their personal capacity rather than as a director of the company, but first consider whether they have the means to pay you personally. Will they have any income if their business goes into a formal insolvency?” She adds that it’s worth asking a solicitor to draw up the document for you. “Incurring costs before the event is often a lot cheaper than trying to enforce it afterwards.”

The directors may also be willing to give you a fixed or floating charge over the company’s assets. “If the business ends up in a formal insolvency then it’s likely that the charge will be challengeable for old debts but it may give you some extra protection for any new invoices,” Young says. Again, she advises taking legal advice from a solicitor specialising in insolvency.

Calling in specialist help

If the client’s problems seem insurmountable, Underwood recommends speaking to an Insolvency Practitioner (IP) to find out if they can help. “Most will offer a free initial advice meeting and I’d suggest that you attend with the client – it’s a learning opportunity for all parties.”

It’s very important that you refer the client to an insolvency expert as soon as possible and not give advice yourself.

Underwood says: “Insolvency is a specialist subject and IPs are regulated by a raft of legislation and best practice. Giving the wrong advice can expose you and the client to various insolvency offences – wrongful trading, transactions at an undervalue and preferences, to name but a few. The advice may also be outside of the scope of your Professional Indemnity Insurance, exposing you to an uninsured claim.”

Seeking specialist advice early is also your client’s best chance of a business turnaround. “If the Insolvency Practitioner can save or restructure their business, you will have an ongoing, paying client,” Underwood adds.

But if the only viable option is a formal insolvency, the IP may ask you to prepare up-to-date accounts, for which you should be paid. “Make sure the fee is agreed in writing and that the payment is to take priority over their fees or other expenses of insolvency,” says Young.

Finally, Young warns against using unlicensed insolvency advisors. “If you or your client are unhappy with the advice given or the conduct of the IP, there is a formal complaints procedure that can be followed to resolve the situation. If you take advice from an unregulated advisor, you are unlikely to have any means of recourse.”

When the government introduced Shared Parental Leave (SPL) in April 2015 it was hailed as a pioneering (and some might say, long overdue) measure in tackling the gender divide and helping to create a more level playing-field for working parents.

Yet, recent reports suggest that SPL, which allows parents to split up to 50 weeks of leave between them after the birth of their baby, had a very low take-up amongst new fathers. Only around 2% are thought to have used it.

Financial concerns, cultural barriers and a lack of understanding were thought to be the main reasons.

Main pros and cons employers need to consider when implementing an SPL policy?

Alexandra Thompson, head of people and culture at Harvey Water Softeners, says: “At Harvey we spent time understanding the law around SPL and making sure that our policy accurately reflected it. But the real key is to ensure that your line managers understand the policy and its implications – they are the most likely people to have a ‘casual’ request put to them when an employee is sounding out the idea.’”

If a line manager is dismissive due to a lack of understanding, it may, says Thompson, make the employee feel as if they’ve been discouraged.

To avoid this, you need to educate and inform your team about SPL and make sure you use the right language. “There is still some stigma for father’s wanting to take time off so, if we are going to create fairer more inclusive workplaces, it’s essential that we make this a thing of the past,” Thompson notes.

Cost effective ways to access legal information

Putting a robust SPL policy in place doesn’t have to be too complex or costly, says Thompson. “There are lots of very cost-effective ways to access the latest HR legal information – the CIPDs website for one,” she notes. “Make space for conversations so everyone is clear about expectations – it’s a daunting experience for many parents and not something they’ll necessarily have all the answers to right away.”

Lisa Fincham, mum of two and founder of MBL Accountants, says that there are several benefits for small businesses when it comes to SPL. “The benefits are undoubtedly being a supportive employer to those with families and recognising the worth of those employees, which you would hope is returned in terms of loyalty and contentment,” she notes. “I think it can also, in turn, prevent the loss of valued and experienced workers.”

It can, however, create something of an administrative headache for SME’s too. “For small businesses, the rules on eligibility do have complications to them,” Fincham says. “The HMRC notes, for example, state that the employee needs to give a minimum of eight weeks’ notice to start SPL or change it, which is a very short space of time, when working to client deadlines.”

How to maintain capacity

It could also cause some staffing complications.

“I think the biggest downside for employers is maintaining capacity within the business and, as it would probably be a shorter period than traditional maternity leave, it will undoubtedly mean the use of temporary staff,” Fincham notes. “This comes with firstly the cost, and secondly the learning curve for them to understand the business/clients in a short space of time to be effective.”

Olga Fitzroy, founder of Parental Pay Equality campaign group, says that not all small business owners are entitled to SPL. “Directors of businesses who draw a salary qualify for SPL in the same way as PAYE employees, providing they meet the length of service and minimum earnings requirements. However, sole-traders and partners are not eligible for SPL.”

Thompson points out, however, that we need to look at the bigger picture and the long-term advantages. “Allowing staff to dial down their work responsibilities at different times in their lives is, in my experience the way to get the best commitment and loyalty out of them,” she notes.

“We need to move away from considering work-life balance as a binary decision – it’s about blend. Someone who feels supported to prioritise their home-life for a period (for a variety of reasons not just childcare) will be so much more committed and dedicated in the long run which will far out-way the cost of SPL.”

The pressure to reduce our environmental footprint is at an all-time high. Are you doing your bit to help the planet?

We spend most of our waking lives at work, so it’s important that we become more eco-friendly, both as businesses and as employees.

This doesn’t always require big changes to what we do at work.

“Little things do matter,” says Dr. Krista Bondy, senior lecturer in Corporate Social Responsibility & Environmental Management at the University of Bath. “This means turning off lights, shutting computers down over lunch and at night, and using less paper.”

She suggests that every time you use something, you ask yourself why you’re using it, if you can use less of it, whether there’s an alternative and if the alternative is better for the environment.

Ban plastic

Plastic waste is a hot topic right now. Earlier this year Theresa May announced an incoming ban on all single-use plastics in a bid to tackle Britain’s “throwaway culture”.

Among accountants, KPMG is leading the way in helping to reduce plastic pollution. The firm will stop using plastic water cups in all its UK offices by the end of the summer. Each employee will instead receive a metal bottle to refill at office water points.

“They can use it outside of work too,” says Sarah Lindsay, KPMG’s environment manager. “We encourage them to download the Give Me Tap app to locate free drinking water when they are out of the office.”

KPMG also plans to replace plastic cups from their hot drink vending machines with either paper or compostable alternatives.

Go veggie

Food is another area where small changes do count.

Dr. Bondy says: “Consider your lunch – where did it come from and how much packaging is there? Also, how high is the meat content?”

Meat production is bad for the environment. For instance, it’s estimated that over 50% of global greenhouse-gas emissions are caused by animal agriculture. “So, when entertaining, why not take your clients to a vegetarian restaurant for something a little bit different,” says Dr. Bondy.

Reuse or recycle

An entirely paperless office may be “as likely as a paperless toilet”. But we can at least reduce the amount of paper we do use, by copying on both sides and reusing one-sided copies for internal memos and drafts.

And when we’re done with it, it should land in a recycling bin, not a landfill. Recycling paper not only helps save trees, it saves water and electricity too. In fact, recycling one tonne of paper saves 30,000 litres of water and 3000 to 4000 kWh of electricity, enough to sustain an average three-bedroomed house for a year.

Reusing and recycling should extend to more than just paper.

Libby Sandbrook, head of circular economy at charity Business in the Community, points out that our offices are home to other resources that can be recirculated: “Why not support local charities through used office equipment, furniture and materials? You could donate used carpet to housing charities or IT equipment to prison academies.”

She also suggests holding “amnesty days” when everyone brings in unwanted personal items such as phones, suits or woolly hats to be redistributed to charitable institutions. She adds: “Organising these activities so they coincide with World Environment Day and Earth Hour will make you feel part of a wider movement.”

Buy recycled too, including recycled paper, second-hand office furniture and reclaimed wooden doors and flooring.

Beside lasting a long time, wood retains heat more effectively than other materials. “Air chambers within wood absorb and hold heat for longer, so if you introduce wood into your office, it will be naturally warmer and will require less energy to heat it,” says Iain Smith, managing director at specialist suppliers A Wood Idea.

Tackle air pollution

Look for other ways to consume less energy, too.

“Gas burnt for heating is a big contributor to air pollution, so lower the thermostat to reduce emissions,” says Chris Large, senior partner at environmental charity Global Action Plan, the organisers of Clean Air Day on 21 June. He adds: “Lowering the thermostat by just 1 degree can also reduce your annual heating bill by up to 8%.”

Large also recommends switching energy suppliers. “Opt for renewable energy tariffs to reduce the pollution produced by power stations.”

Business and employee travel is one of the areas where the environmental impact is the highest, says Dr. Bondy. “Flights produce significantly more greenhouse gasses than car trips, while public transport has a much lower environmental footprint overall.”

If public transport isn’t a viable option, car-sharing reduces the carbon footprint for both commuter and business-related travel.

“For business travel, employers should only approve single-car use in exceptional circumstances,” says Alan Price, HR and employment law director at business consultancy Peninsula. “Even better, why not eliminate the need to travel altogether and use video conferencing or conference calls instead?”

Cycling to work benefits everyone involved, and the environment.

“Through the government’s Cycle to Work scheme, employers can offer – at no extra cost – a valuable employee benefit in the form of tax-free bicycles and commuter accessories worth up to £1,000,” says Steve Edgell, director of independent Cycle to Work scheme provider CycleSolutions.

He explains further: “The saving to the employee is between 32% and 48% of the retail cost. The cost of the bike is covered through a salary sacrifice and because staff effectively reduce their gross pay, the employer then benefits by reducing their own employer’s National Insurance contributions by up to 13.8% of the value of the equipment supplied.”

Finally, let’s not forget indoor air pollution.

Large says: “If you’re thinking of revamping your office, avoid products containing high levels of VOCs (Volatile Organic Compounds) often found in paints, varnishes, carpets and sofas. Also, switch to fragrance-free or naturally-scented cleaning products, and stay clear of aerosols.”