Does technology eat the traditional business model for breakfast...?
The rise of tech-enabled accountants is leading to a transformation of the traditional business model and is significantly impacting the way accounting and bookkeeping firms operate and think. This can be read in our latest industry outlook on the influence of digital technology on the accounting market.
Tech companies see enormous opportunities in the accounting market
The demand from small and medium-sized businesses for accounting, tax, and payroll services is substantial and growing. For decades, this segment of the market has primarily been the domain of small and medium-sized accounting and bookkeeping firms. These firms often operate on an hourly billing model and generally achieve healthy returns. Customers are loyal, and due to market scarcity, there is more than enough work to go around. With increasing technological possibilities, however, tech companies are increasingly recognizing opportunities to offer these services at lower prices with higher customer service. The value proposition of tech-enabled accountants is focused on helping businesses simplify their accounting processes, save time, and obtain accurate financial data. These new players in the market are growing rapidly, attracting significant capital, and receiving high valuations from venture capital investors. We anticipate that these entities will further expand their market share in the coming years, supported by a wave of capital injections and innovative entrepreneurship.
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