It’s incredible to see the passion and optimism that is driving growth in the accounting profession right now, writes Colin Timmis, regional director: EMEA at Xero.
Our 2025 State of Small Business and State of Accounting shows that a majority (85%) of firms have seen their revenue increase in the past 12 months and 88% expect to see further growth in the year ahead. This success is largely being fueled by the adoption of new technologies and expanding services.
Our research revealed that South African accountants and bookkeepers are embracing technology to remain competitive in an increasingly digital world. AI is already playing a pivotal role in this transformation. Practices are using AI to support them with tasks like summarising reports and meeting notes (65%), generating content (63%), and data analysis and insights (62%), in turn driving efficiencies and gaining new insights that can be used to better serve their clients.
Digitisation is no longer a future trend; it’s a present-day imperative. Cloud-based platforms, real-time data access, and AI-driven automation are transforming the accountant and bookkeeper’s role from number cruncher to strategic advisor. They are now expected to interpret data, provide predictive insights, and guide clients through digital transformation journeys.
We’re also seeing a rise in the use of integrated ecosystems, where accounting software connects seamlessly with inventory, payroll, CRM, and banking platforms. This interconnectedness streamlines workflows, reduces manual errors, and supports accountants and bookkeepers in gaining a holistic view of their clients’ businesses so they can extract information and turn it into powerful insights and action.
These shifts are not only enhancing productivity but also enabling firms to offer more value-added services that go beyond compliance. For those who aren’t sure how to leverage AI, Xero’s AI guide for accountants and bookkeepers is designed to help professionals within the sector start exploring the benefits of AI-powered tools.
Attracting and retaining talent remains a challenge
The acceleration of AI and advancements in technology are also being viewed as the answer to some of the most pressing concerns around talent.
While there’s growth and optimism for the future, the research identifies that one of the biggest challenges facing the profession right now is not enough young people choosing accounting as a career path. Many accountants and bookkeepers believe that a greater focus on technology and digital innovation in practice, as well as more training schemes and apprenticeships, are crucial steps in bridging this gap.
To continue attracting the next generation, the profession must continue to evolve its image – highlighting how digital tools are making accounting more dynamic, impactful, and future-focused. The future of accounting is digital, data-driven, and deeply human. By embracing technology, practices can not only improve operational efficiency but also strengthen their role as trusted advisors and attract new talent to the sector.
The evolving role of accountants
As part of the research, we asked accounting and bookkeeping professionals how they’re currently supporting their clients, and about services they might like to offer in the next few years. Today, the key areas of support are not surprising: tax and compliance (47%), technology advice (46%), and helping access capital or funding (42%). Small businesses are leaning on their support with 80% of those surveyed agreeing their accountant or bookkeeper is their business’ most trusted advisor.
But in the next five years, many said they would like to support their clients in areas like financial forecasting (50%), business strategy (46%), and digital strategy (44%). It’s encouraging to see the majority are already training themselves and their staff to help grow these skills. This is testament to the forward-thinking approach of so many accountants and bookkeepers in South Africa.
This evolution is being accelerated by digitisation, enabling practices to deliver deeper insights and more proactive guidance. With access to real-time financial data, accountants and bookkeepers can now help clients make faster, more informed decisions, turning data into a strategic asset.
Looking at the year ahead
It’s fantastic to see so many accounting and bookkeeping firms taking a positive growth outlook. Our research identifies the top areas where practices want to invest in the year ahead: accounting and finance software, upskilling current staff, moving into new markets (locally and internationally), and emerging tech.
The year ahead is bright, with a high level of optimism also seen amongst South African small businesses. But they need continued support in traditional areas like tax and compliance, as well as advice on business strategy and what digital tools are going to help them achieve their goals. At Xero we’re focused on providing smart tools and tailored support to help you and your clients capitalise on the optimism and opportunities on the horizon.