Small- and medium-sized businesses (SMBs) are looking to invest $10,000 more in their suite of technology solutions this year than they were in 2022, a new study finds.
Business owners are willing to invest $45,000 to $142,000 on tech products that can help them focus on growth and financial stability, according to the newly released Intuit QuickBooks Small Business Survey.
With 39% of business owners reporting that they find managing finances and accounting a key challenge, there’s a great opportunity for CPAs to step into an advisory role and support entrepreneurs with tech tools.
AI Renews Focus on Digital Transformation
Recent developments in artificial intelligence (AI), such as ChatGPT, have renewed interest in software that can automate manual digital processes. Business owners are looking for tech solutions that give them more visibility into financial performance (37%) and streamline their operations (38%), according to the QuickBooks survey.
“As cloud apps move beyond just finance into operations, there is a great opportunity for accountants to help clients improve their business operations and ensure the smooth flow of data back to accounting systems,” said Donny Shimamoto, CPA.CITP, CGMA, managing director of IntrapriseTechKnowlogies.
SMBs are already planning to up their spend on AI-based technology. Over the next year, 32% of business owners plan to invest in AI tools that analyze consumer trends and behaviors, the study found. The investment makes sense to Kelly Vincent, vice president of Mid-Market Segment and Product at Intuit.
“AI helps reduce the operational burden and automate low-level tasks, leveling the playing field for businesses by giving owners more time and resources to focus on what really matters,” said Vincent.
There are clear payoffs in the works for business owners who let AI handle tasks that can be automated: time to focus on customer relationships (43%), and to develop more products and services (36%).
“This is true not just for business owners, but for accountants too,” said Shimamoto. “Automate the more repetitive and mundane work, and also leverage outsourcing to move some of that work offshore to lower operating costs. Then focus on the things that really matter and require humans.”
Easy Wins for CPAs Working With Business Owners
The great news is that there are already a lot of software technologies available that rely on AI to generate insights and complete tasks. Your practice can notch some easy wins by supporting clients with tools they most need for their technology stack.
The top five business operations that owners wish to automate are:
- Expense management (69%)
- Invoicing (68%)
- Completing payroll (51%)
- Running financial health reports (47%)
- Conducting customer communications (30%)
“Accountants need to reach out more proactively to clients to assess these needs and help determine which solutions may be the right fit,” said Shimamoto, who noted that there are plenty of tech options that tie back into a business’ accounting software.
By setting themselves up as experts in the AI-based business tools that can help a business grow and maintain financial stability, CPAs can provide additional value to their clients.
Become a Trusted Business Advisor
Last year, 54% of SMBs that experienced growth had invested in e-commerce technologies, according to the QuickBooks survey. Currently, 89% of all SMBs sell, or plan to sell, products or services on at least one e-commerce platform. Looking at the upcoming year, nearly half of those businesses plan to sell on more online platforms.
“This shows us that digital transformation is a huge opportunity area for accountants to deliver even more value for clients,” said Shimamato, referencing the QuickBooks data. “Digital transformation, including transformation of products and services so that they can be delivered electronically or via an app, is the future.”
CPAs who understand the technology landscape and how services integrate with one another are well positioned to guide clients. For example, knowing the differentiators among e-commerce platforms, and the way they integrate with accounting software to provide a full picture of the business is hugely valuable for business owners. And with a full picture of the technology landscape, accounting practices can guide entrepreneurs toward more success.
“If accountants help their clients understand and manage the risks associated with digital transformation, they can also help their clients be more successful in these initiatives and not just be a trusted financial advisor, but a trusted business advisor,” said Shimamoto.
Discover More Ways Business Owners are Looking for Support
The ways SMB owners are thinking about and adopting technology are quickly changing along with the tech landscape. Accountants interested in learning more about these trends, to better advise clients and meet changing needs, can find more highlights from the QuickBooks survey here.
====
The Intuit QuickBooks Small Business Survey is an online poll of 1,000 U.S. business owners at companies with up to 200 employees, conducted by Wakefield Research from May 1-10, 2023.
Thanks for reading CPA Practice Advisor!
Subscribe Already registered? Log In
Need more information? Read the FAQs
