The evolving role of accountants in supporting small businesses in the digital age
Abstract
The digital transformation is a reality with significant implications for both accountants and small businesses. This study analyzed the relationship between accountants and small businesses and the essential competencies and skills accountants needed to strive to develop in order to adapt and remain relevant in the digital era. The method utilized followed a structured yet adaptable approach, building theory directly from observed data through inductive reasoning. In-depth, semi-structured interviews were conducted with fifteen participants that included accountants, small business owner-managers, and other relevant stakeholders. This study adopted a qualitative research design with an inductive approach, utilizing grounded theory as the research methodology. Data was collected through fifteen in-depth, semi-structured interviews that were carried out with the research participants. The Conditional/Consequential Matrix developed by Strauss and Corbin (1998) was used to categorize codes into three main categories: contextual conditions, actions and reactions, and consequences and outcomes. The digital transformation has been challenging the sustainability of various professions, including accountancy. Yet, the findings suggested that small businesses still sought accountants who could add value by humanizing their service offering and who could prioritize business advisory services. However, results showed that accountants often failed to meet these expectations due to a lack of competencies and skills, as well as being overwhelmed by compliance work driven by increasing regulatory pressures. This dynamic adversely impacted the relationship between accountants and small businesses, ultimately affecting the relevance of accountants. This study highlights both the opportunities and challenges that digitalization presents for accountants. It emphasizes the need for accountants to reskill and upskill to maintain their relevance in a changing landscape. The study further underscores the importance of accountants adapting to new roles, focusing on the humanization of their service offering and expanding their advisory services, to become catalysts for value creation.
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