1. The future of accountants
and bookkeepers

2. “Smart machines and artificial intelligence
will compete with human labor for
knowledge work.”
—Dr. James Canton and the Institute for Global Futures, for CPA.com™

3. Trends impacting accountants today

4. Digital transformation enabled by new IT
Source: IDC
Cloud Mobility Social business Big data/analytics
First platform
(mainframe)
Late 1950s to present
Second platform
(client/server)
Mid-1980s to present
Third platform
(social, mobile, cloud, and
analytics, possibly IoT)
early 2010s to present
1950s 1980s 2010s

5. Increased cloud adoption
Mobile, real-time access to practice management and client data
Increased use of social media in B2B marketing
Business insights through data analytics
New business models
Shift from compliance to advisory services
Moving from time-based billing to value-based pricing
Changing workforce demographics
Third
platform
Leveraging the “third platform” and new business models

6. Software revenue growth rate through 2017
5.5x
Higher cloud SW
growth vs. packaged SW
Key software trends
Customers are purchasing services, not servers, and using SaaS
to extend or replace existing applications
Predicted cloud software market
size by 2017$76.1B
Cloud software market CAGR
through 201722.1%
More cloud ISVs (CSVs) by 20172.5x
Net new software will be built for
cloud delivery in 201591%
10x more discrete “software”
services available in 201710x
22%
4%
0%
5%
10%
15%
20%
25%
Cloud SW Packaged SW
Cloud is at the center of software industry growth
Source: IDC

7. 64% 54% 37% 36%
N=603, Source: IDC Software Channels Survey, Fall 2014
Cloud Mobility Social business Big data/analytics
The shift in practice offerings
Q. Does your practice offer . . .

8. N=603, Source: IDC Software Channels Survey, Fall 2014
Reasons for offering cloud solutions
59%
36%
35%
31%
26%
23%
18%
To respond to customer demand
To Increase our business growth rate
To improve our profitability
To increase or add recurring revenue
To respond to competition
Because our major software vendor has moved in that direction
To improve company valuation
% of respondents
Customer demand is primary driver of cloud adoption

9. 36%
43%
50%
48%
64%
57%
50%
52%
0% 50% 100%
58%
59%
50%
33%
42%
41%
50%
67%
0% 50% 100%
n = 98
n = 107
n = 95
n = 107
n = 203
n = 78
n = 73
n = 53
1-10 employees
11-49 employees
50-249 employees
250+ employees
Q: Do you currently use cloud-based accounting solutions in your practice?
Region Firm size
Accounting practices are moving to the cloud . . .
but not quickly enough
Source: Impact Research Report, January 2016
Be
bol
d!
Ch
an
ge
is
to
ug
h,
bu
t
yo
u’r
e
to
ug
he
r!
48% 48%
50% 50%
43% 57%
36% 64%
33% 67%
50% 50%
59% 41%
58% 42%

10. Around 6 in 10 practices offer advisory services across all markets surveyed
6%
4%
6%
4%
59%
64%
65%
63%
36%
32%
29%
33%
0% 20% 40% 60% 80% 100%
Complianceonly
Bookkeeping,Payroll,Personal Tax,Othertax
compliance,audits,businesstax,financial
statementpreparation,estateplanning,
financial planning
Advisory
Businessadvisory, consultingservices
Bookkeeping servicesonly
Few differences by
cloud/Desktop, or
Sage/Non-Sage/Size of
company
n = 98
n = 107
n = 95
n = 107
Accounting practices: services mix
Source: Impact Research Report, January 2016
63% 33%
65% 29%
64% 32%
59% 36%
4%
6%
4%
6%
Compliance only
Bookkeeping, payroll, personal tax, other
tax compliance, audits, business tax,
financial statement preparation, estate
planning, financial planning
Advisory
Business advisory, consulting services
Bookkeeping services only

11. Trends impacting accountants
over the next 5+ years

12. Artificial intelligence
Automated data collection
Machine learning
Automated, continual compliance reporting through direct connections
Always-on accounting
Blockchain and “smart contracts”
Automation—driving efficiency and growth

13. Leveraging technology, automation, and full integration across practice and
client systems, freeing accountant to deepen relationships and grow business
- Compliance
- Additional
services
- Analysis
- Insights
- Advice
Accounting
System
Bank import,
OCR
scanning
Future: automated-concurrent-continuous

14. While the focus of the software industry in recent years has been
on cloud computing and security, analytics and digitization are
seen as having the biggest future business impact.
The practice of the future will be shaped by analytics,
digitization, and cloud computing
Source: Deloitte University Press; Reimagining core systems: Modernizing the heart of the business; Feb 24, 2016
Analytics and intelligence
Digital (web, mobile, social)
Cloud computing
Cybersecurity and data privacy
Legacy/core modernization
Emerging technologies
Technology areas Percent of CIOs with high investment
77%
75%
64%
58%
47%
28%
Percentage of CIOs that anticipate
significant business impact
17%
19%
18%
8%
36%
Medium Low

15. A mobile, social, and collaborative business solution that is the “office of the future”
Accountants and their clients will increasingly need . . .
One real-time source
of information . . .
control their business
from the palm of their
hands.
so they can focus on
developing the business,
look ahead, and . . .
with data processing
automated from front
to back office . . .

16. Past perspective:
Financial statements, revenue
and cost analysis, tax and
compliance
What happened?
How many?
Current perspective:
Profitability of products,
customers, markets,
spending, operations, working
capital, pricing
Future perspective:
Forecasting, scenario planning,
investments, modeling,
analytics
Why did it happen?
What is being done
about it?
What will happen next?
What if?
Risks and
opportunities?
Practice personas aligned with client needs
Source: IBM Institute for Business Value; The New Value Integrator

17. Past Future
WHAT
TECHNOLOGY
First- and second-gen platforms:
Mainframes, client-server systems,
desktop software
Third-gen platform: Social,
mobile, cloud, analytics
FOCUS
Accounting and bookkeeping;
compliance
Advisory services
WHO
CUSTOMER Accounting Financial performance
ALLIANCES Do it ourselves Partner collaboration
HOW
SALES MOTION Transactional Ongoing relationship
MARKETING Traditional Digital
-4.8%
CAGR 12.7%
CAGR
2015-2020 growth
Transformation of how accounting will be conducted
Source: IDC, Sage

18. Integrated
apps and data
CRM
Single view of
client
Client
acquisition
and practice
growth
Automated
data collection
and
management
Practice and client management
Accounting practice essentials
Sources: Sage global survey of 407 accountants (Dec 2015) and CPA Practice Advisors Thought Leaders Symposium (Feb 2016)

19. Next steps

20. Determine your why
(vision, mission, purpose)

21. Evaluate the tools in your
toolbox (and whether or not
you’re even using them)

22. Evaluate all the things in your
business that haven’t changed over
time, and then ask yourself why

23. Ask your clients, “If I could do
one thing differently to better
meet your expectations next
year, what would it be?”

24. Determine “first steps”

25. Find an accountability partner to
encourage you along the way

26. Differentiate to win

27. Be bold! Change is tough, but
you’re tougher!

28. “Adaptability is about the powerful
difference between adapting to cope
and adapting to win.”
—Max McKeown

29. Global company
with over
13,000
employees
Revenue of
£1.4bn
Over
3m
customers
Sage is the market leader for integrated accounting, payroll,
and commerce systems, supporting the ambition of the
world’s entrepreneurs.

30. © 2016, The Sage Group plc or its licensors. All rights reserved. Sage, Sage logos, Sage product and service names mentioned herein are the trademarks of The Sage
Group plc or its licensors. All other trademarks are the property of their respective owners.
Thank you