In Summary

  • Kenyan businesses are deploying in droves business management solutions which conduct basic accounting procedures like HR and payroll.
  • This allows business owners to remotely work on their invoices and tax returns and assess their business performance in the office or at home without the services of professional accountants.
  • Accounting firms are also promising to deliver superior innovations that free up entrepreneurs from the rigours of hiring extra personnel to run their businesses.
  • Experts say among the advantages of automation is that they provide especially small businesses with additional time to concentrate on their core business activities.

Over the past decade, digital technologies have disrupted nearly every industry.

Kenyans have not been left behind by these advances and research shows that they are increasingly switching to online shops, are more likely to pay via mobile transfer services than use hard cash, and are increasingly quitting use of traditional taxis for online-based options.

One of the sectors facing dramatic shift thanks to technology is accounting. The profession has witnessed the advent of a host of accounting softwares that have automated basic tasks.

These developments have set the industry squarely on the path of digital disruption that has hit traditional industries such as transport, media, publishing and other industries.

Yet accounting firms may not necessarily be ready for the huge transformation, according to some analysts.

Already Kenyan businesses are deploying in droves business management solutions which conduct basic accounting procedures like HR and payroll.

This allows business owners to remotely work on their invoices and tax returns and assess their business performance in the office or at home without the services of professional accountants.

Accounting firms are also promising to deliver superior innovations that free up entrepreneurs from the rigours of hiring extra personnel to run their businesses.

“Business builders and entrepreneurs don’t go into business because they want to wrestle with red-tape and manage admin. Our vision is to make those tasks invisible by 2020 by automating the back-office functions so we can free business builders up to follow their dreams,” says UK-based accounting software giant Sage chief executive officer, Stephen Kelly, highlighting the new innovations that are radically changing the running of businesses and threatening the traditional roles of accountants.

To be sure, according to some players, accounting seems remarkably poised for a similar disruption that has been witnessed in the transport business with the popularity of online-based taxi hailing services.

Small businesses

But how is the world of new innovations in accounting and the day-to-day running of operations for businesses look like?

“Small businesses will have more time and less concern and ultimately that gives them freedom to do other things,” says Nick Goode, Executive Vice President, Product Management at Sage.

“Accountants will be there, there is no question about that. It is just that they will not be doing the same low level things they are doing today because they will be automated,” he projects.

The changing business landscape is being fuelled by businesses increasingly preferring to digitise their operations as a way of slashing costs at a time margins are shrinking.

Page 1 of 2

Latest from Nairobi News