Accounting practice in the new millennium: a practitioner’s view

Abstract

The business environment is constantly changing and evolving, resulting in significant change on the nature of the accountants work in practise. Accountants are of vital importance to the efficient operation of the economy. They work with businesses of every size to set up and maintain the systems that collect and report information about business activity. The daily tasks of the accountant in practice include meeting clients, managing client expectations, accounts preparation, audit work and the supervision of junior staff. Beyond carrying out the fundamental tasks of their work many accountants are now required to possess a wide range of skills, including excellent basic technical ability and knowledge of the general business environment. The study has shown that the key driver of change for the profession is increased regulatory pressures. In contrast to literature Marriott & Marriott, (2000), the increase in the audit exemption threshold is not seen as a threat to the income of the small practice. Accountants are broadening the scope of services they offer to include financial analysis, tax and investment planning, and wealth management. This study has highlighted that the trainee accountant is not efficient in basic bookkeeping skills at college leaving them in a weak position when they start out in training. It is evident from this study that regardless of firm size, traditional accounting work such as audit and accounts preparation remains a substantial proportion of the work performed and continues to be an essential source of revenue. Accountants have embraced information technology and effectively incorporated it in to all core services. The image of the accountant as ‘bean counter’ although still existent is gradually diminishing. Finally a suitable title for the accountant in practice was identified as either business advisor or accountant and financial specialist.