I’m sure by now you’ve heard of the ‘gig economy’, an economy that relies heavily on independent contractors or freelance workers. There’s a growing trend in the marketplace for this type of work in western economies especially. It is estimated by some commentators that this type of work already makes up about 25% of the workforce, and is growing.
Have you heard the story of how to boil a frog? There are two ways, firstly you can boil a pot of water on the stove and when it’s boiling throw the frog in. However this generally results in the frog jumping straight out of the pot. The most efficient way to boil a frog is to put him in a pot of cold water and slowly turn the heat up, then bingo...your boiled frog sir.
We recently had the NZ Bookkeepers Association annual conference and the theme was the Future of Bookkeeping. I found this to be very interesting; particularly given some recent reports in the media suggesting that NZ would only require 18 accountants by the year 2030! There’s also been a recent article published suggesting that we should prepare for a less human future as business decisions will be more automated and more reliable due to artificial intelligence (AI).
Having transitioned from the recruitment industry into the bookkeeping market over the last few years, there are a few things I have observed when speaking to bookkeepers and clients about their bookkeeping needs. One of the major things I’ve seen is the many tools now available to bookkeepers allowing them to do their job much more efficiently. The landscape of the bookkeeping market is changing.
A small business owner, almost by definition, does a lot of their own admin, marketing, sales, operations and accounts, but is that really what they got into business for? Probably not, but in the beginning, it does make sense to keep costs down while getting the business off the ground. However, once you have some customers and your business becomes more successful, this work starts eating into your productive time.
From an outside perspective, if you don’t understand the difference between a bookkeeper and an accountant, it may seem odd that a number of chartered accountants refer their clients to us. But it’s actually in the best interest of the chartered accountant and their client. Here’s why.
Most small business owners understand that good record keeping is important. In many cases, they don't think they can afford a professional bookkeeper. Instead, they try to do it themselves. After all, if they can renovate a kitchen or complete electrical work for a new build, then how hard can bookkeeping be?
