Colin Timmis | Regional Director | EMEA | Xero | mail me |
It is incredible to witness the passion and optimism currently fuelling growth in the accounting profession.
The 2025 State of Small Business and State of Accounting reports show promising trends. A majority of firms (85%) have increased revenue in the past 12 months. Even more (88%) expect further growth in the year ahead. This success is not by chance. It is being driven by the adoption of new technologies and the expansion of service offerings.
Our research highlights how South African accountants and bookkeepers are embracing technology. They are doing this to stay competitive in an increasingly digital world. Artificial Intelligence (AI) is already playing a pivotal role in this transformation.
Firms are using AI for a wide range of tasks. These include summarising reports and meeting notes (65%), generating content (63%) and conducting data analysis (62%). These tools are improving efficiency and revealing new insights. In turn, firms can use this information to serve their clients better.
How digitisation is evolving accounting
Digitisation is no longer a future trend. It is a current necessity. Cloud-based platforms, real-time data access, and AI-powered automation are transforming the traditional role of accountants and bookkeepers. They are no longer expected to simply crunch numbers. Today, they interpret data, offer predictive insights and help guide clients through digital transformation.
We are also seeing increased use of integrated ecosystems. Accounting software now connects seamlessly with inventory systems, payroll, CRM tools and banking platforms. This integration streamlines workflows and reduces manual errors. It also helps accountants gain a full view of their clients’ businesses. That way, they can extract meaningful information and translate it into insights and action.
These changes are doing more than just improving productivity. They are enabling firms to offer higher-value services that go beyond compliance.
For those unsure how to adopt these technologies, our AI guide for accountants and bookkeepers provides a helpful starting point. It is designed to help professionals begin exploring the advantages of AI-powered tools.
Digitisation is evolving accounting, addressing the talent challenge
Despite optimism and growth, the profession still faces challenges. One of the biggest is the shortage of young people entering accounting as a career.
AI and tech advancements are increasingly seen as part of the solution. Many believe that greater emphasis on digital innovation, alongside more training and apprenticeship programmes, can help attract new talent. To bring in the next generation, the profession must continue reshaping its image. Digital tools are making accounting more dynamic, impactful and aligned with the future.
The future of accounting is digital, data-driven and deeply human. By embracing technology, firms can improve efficiency and reinforce their value as trusted advisors. This approach also makes the profession more appealing to young talent.
The evolving role of accountants
The research asked accounting and bookkeeping professionals how they currently support clients. It also explored services they aim to offer in the coming years.
Currently, support areas include tax and compliance (47%), technology advice (46%) and help with accessing capital or funding (42%). Small businesses rely heavily on this support. In fact, 80% of respondents consider their accountant or bookkeeper their most trusted business advisor.
Looking ahead, many professionals hope to expand into new areas. These include financial forecasting (50%), business strategy (46%) and digital strategy (44%). Encouragingly, most are already training themselves and their teams to develop these skills. This forward-thinking approach reflects the progressive mindset of many South African professionals.
Again, digitisation is evolving accounting by accelerating this transformation. Access to real-time data allows accountants and bookkeepers to deliver deeper insights and more proactive support. With better data, they help clients make faster and more informed decisions. As a result, data becomes a strategic asset.
Looking at the year ahead
The outlook for the coming year is bright. Many firms are planning to invest in key areas such as accounting and finance software, staff upskilling, expanding into new markets (both local and international) and adopting emerging technology.
South African small businesses are also optimistic. However, they still need strong support in areas like tax and compliance. At the same time, they seek guidance on business strategy and digital tools to achieve their goals.
We are focused on delivering smart tools and personalised support. Our aim is to help you and your clients make the most of the opportunities on the horizon.
