The ancient profession of bookkeeping is undergoing a quiet revolution. Many of the changes are coming from within the accounting industry, while others connect with a wider set of socioeconomics. Either way, change is quickly approaching us.
If you work in the accounting industry, employ a bookkeeper or plan to pursue a bookkeeping career, our trends analysis will give you the information you need to understand the wider landscape and make informed decisions.
Bookkeepers in demand, or are they?
The number of employed accounting clerks and bookkeepers in Australia is projected at around 262,700 by 2026 with three main factors likely to drive the demand for bookkeepers in 2023 and beyond:
- Small businesses will keep using the services of bookkeepers, even as large companies use software more often to automate many of their financial and accounting functions. The expense of sophisticated software programs will be out of the reach of most small businesses for the foreseeable future.
- While there may be fewer jobs available, the demand for advanced financial analysis, advisory and software skills, will likely drive-up median salaries, a lesser cost to that of many sophisticated software programs, and see bookkeepers moving into wider roles. This will go some way to negating the 3,100 bookkeeping jobs that will be shed in the next three years. An additional factor is tightening accounting regulation which will increase the focus on corporate bookkeeping and transparency.
- Baby Boomers (born between 1946 and 1964) who make up about 33% of the global talent pool, have already retired or plan to in the next 10 years. In fact, the Australian workforce is bracing itself for a skills and knowledge crisis as the number of retiring Baby Boomers peaks in 2026 at 137,000 per year. The average bookkeeper in Australia is 48 years of age which means filling positions left by retiring Baby Boomers will present a challenge for businesses until at least 2030 when numbers begin to dip to around 105,000 retirements annually.
This is supported by the Director of Melbourne-based Future Advisory Jason Robinson, who says his firm is struggling to fill vacancies for bookkeepers, with a significant shortage of intermediate and senior talent.
Evolution of the traditional bookkeeping role
We expect to see in 2023, an increasing demand for bookkeepers who have certified qualifications and are registered with the Association of Accounting Technicians or the Australian Bookkeepers Association. Already there is a demand for certified and experienced bookkeepers, and it will get increasingly difficult for those without these credentials to find work.
One of the main reasons for the focus on industry qualifications is that bookkeeper skills can be transferred to other positions, or a wider remit, like financial, analyst or office manager roles. In addition, many bookkeepers run their own firms and typically use a much wider skills set.
Another important reason why the traditional bookkeeping role must evolve is the need to attract a younger generation to the profession. Millennials aged 25 to 40 place a greater emphasis on job fulfillment, opportunities for career advancement, higher pay, and a work-life balance, which is likely to see the role change significantly in the decade ahead.
The widening skills gap
According to the World Economic Forum, three-quarters of employers looking to fill positions in 2022 were unable to find the talent they needed – up 6% since the previous year. In 2012, the figure was 34% which means the skills shortage has doubled to 75% in the last decade.
Add to this the median age of bookkeepers in Australia: 48 years of age, and the fact that the largest portion, 28% of bookkeepers, are between 45 and 54 years of age, and one of the most important items on any firm owner’s agenda will need to be advanced planning around attracting new talent to their business or reskilling existing talent to move into the bookkeeping role in future.
Opportunities in the retention crisis
While many firms are finding recruiting the right people to their business a challenge, retaining top talent is even more so. In light of the skills shortage and women making up 91% of bookkeepers (43% above the all-jobs average of 48%), progressive firms are looking at ways to attract and retain bookkeeping talent by:
- Altering company policies and benefits to address the specific challenges faced by female employees.
- Introducing a mentorship program to overcome the roadblocks many women face in the industry.
- Rethinking capacity building programs that allow hard-working mums to advance in their careers.
Future-forward bookkeeper training
Bookkeepers who keep adapting and learning have a positive future ahead of them. They’re likely to be able to spend more time adding value to their employers and, with the right training, can contribute expert financial advice.
The ambitious bookkeeper should focus on growing their skills alongside the cloud and be encouraged to develop a deep understanding of the business and industry they work in. This way they will be able to find their niche and provide specialist skills to a business as the industry changes.
Today, 65% of employed bookkeepers have a Certificate III in Accounts Administration FNS30317, a Certificate IV in Accounting and Bookkeeping FNS40217, or higher. More than 41% of students are choosing to train with Private Training Providers like the Ab2 Institute of Accounting, which offers flexible, award-winning training designed by industry experts to give bookkeepers the skills and knowledge they’ll need to succeed in the industry.
With the Accounting Today 2022 Year Ahead Survey showing that 51% of firms list their biggest challenge as keeping up with regulatory change, and with the pace of legislative changes showing no sign of slowing, remaining compliant will continue to be an issue for many firms. This could make it harder for bookkeepers without industry-recognised qualifications to find employment in the years ahead.
Growth of bookkeeping software
The global accounting software market share will be worth around US$4.25 billion by the end of 2023 and just three years later will reach approximately US$19.59 billion.
Advances in accounting software are largely responsible for the evolving bookkeeper’s role, which has reduced time spent on routine tasks, allowing for a greater focus on strategic, value-add tasks. New technologies on the horizon like automation, machine learning and ERP (Enterprise Resource Planning) integration will continue to change accounting ecosystems in the year ahead.
This will make training in popular accounting software like Xero, QuickBooks or MYOB, a must for bookkeepers with their eye on the future.
A bright future for bookkeepers
There is little doubt that the bookkeeping industry is on the cusp of exciting change that will see the profession grow in scope and importance. There has never been a better time to either embark on an Introduction to Bookkeeping course or upskill with international and Australian accounting tech.
At the Ab2 Institute of Accounting we do more than provide finance qualifications, masterclasses, and short courses to aspiring bookkeepers and established industry professionals. We use the latest technology and education principles to equip you with a solid bookkeeping foundation that gives you a competitive edge for salary growth in both local and international bookkeeping careers. Talk to us today to find out how we can help you grow as a highly skilled bookkeeping specialist.
