In this article
What are the major barriers to efficiency in accounting practices? The most obvious factors include time-consuming manual processes, ineffective or disconnected software systems, and lack of training or resistance to change from staff. One barrier that’s often overlooked is the compliance burden.
In the recent MYOB Accounting Industry Monitor, we asked hundreds of Australian practices about their work, from tech adoption and AI to talent shortages and client services. Tech-driven transformation was a key theme, giving us real insight into the way accountants are navigating new technologies and increasing pressure on their businesses.
Throughout the survey, compliance and regulatory requirements emerged as significant barriers to change. The regulatory burden could be seen as the one structural barrier that undermines other initiatives.
Compliance as a structural barrier
Every industry has its own compliance challenges. In accounting, which is highly regulated, it’s particularly complex. AI is adding more complexity as governments and practices grapple with new technologies and how they fit into old rules. The upshot is rapidly changing rules that accountants must keep up with.
No wonder compliance challenges were the top two barriers to efficiency cited in our survey. 55% of practices said that ‘regulatory compliance and staying up to date with changing tax laws’ was a challenge, while 54% cited ‘finding receipts and documentation to comply with audits.’ Both answers show that compliance adds time-consuming manual work and complexity for accounting teams.
In some practices, compliance can become a huge burden, and a structural barrier to change. If your team is overwhelmed by compliance work, initiatives like new technologies, training or process changes struggle to find traction. Practices that solve this problem don’t just make life easier for their staff, they unlock capacity for real transformation.
Streamline compliance, reclaim capacity
The accounting sector, like many others, is going through a major transformation at the moment. As AI adoption goes mainstream, operations, hiring, and client expectations are changing[JM2] . The sector is shifting away from the ‘as needed’ service of the past and into an ‘always on, 24/7’ model, complete with personalised support and advisory. It’s both a turning point and an opportunity for practices.
Most practices know that this is happening and that they need to make changes. But the starting point matters. If practices start with AI adoption or automation before considering compliance, they may fail to maximise the potential benefits. By integrating workflows, simplifying key compliance tasks, and minimising manual work first, practices can unlock capacity for wider gains. Less repetitive work, more time for client-facing work and advisory services.
How growing practices handle compliance
In the MYOB Accounting Industry Monitor, we divided practices into four groups based on their growth and revenue. ‘Progressive’ practices are those with strong growth and profitability. ‘Optimists’ have moderate growth, ‘Sustain’ practices are holding steady, and those in the ‘Decline’ category are slowly shrinking.
While all the groups offered invaluable insights, the progressive group gives us some clues about the future of the industry. As it turns out, this group of practices seems to be aware of compliance and operational improvements as a sticking point, and they’re prioritising efficiency as a result.
According to the survey, a full 79% of progressive practices are focusing on continuous efficiency improvements, with regular assessments of processes. They’re investing in software that can connect workflows and simplify daily tasks, using automation to reduce repetitive manual work like reconciling bank feeds, employing AI to capture and import key information, and relying on accounting platforms to automatically update tax rules and calculations. It’s about streamlining operations and compliance work wherever possible.
Notably, these practices are most likely to use tech for deeper work. 69% reported using technology for real-time data access, data analytics and performance-based decision-making.
The key takeaway: successful practices are those that focus on workflow integration, particularly around compliance, before diving into other initiatives.
Compliance, efficiency and setting your practice up for change
In many accounting practices, compliance is seen as a burden. A must-do, but not something that helps build the business or grow revenue. As the sector changes and requirements shift with it, practices are finding ways of turning this obligation into an opportunity.
Instead of getting bogged down in time-consuming compliance work — and struggling with other initiatives as a result — they’re using technology to streamline compliance, work more efficiently, and do better by their clients. When less time is devoted to regulatory requirements, they’re able to invest more energy in adding new services, bringing in new clients, and implementing AI and other technologies.
With more and more practices adopting AI and automation, future firms will likely shift even more of the compliance burden onto tech platforms. Think connected workflows that manage daily compliance tasks with little human intervention, automatic updates when tax laws change, and teams with much more time for valuable, challenging work.
Want to know more about compliance and the future of the sector? Read the full MYOB Accounting Industry Monitor.
Information provided in this article is of a general nature and does not consider your personal situation. It does not constitute legal, financial, or other professional advice and should not be relied upon as a statement of law, policy or advice. You should consider whether this information is appropriate to your needs and, if necessary, seek independent advice.
This information is only accurate at the time of publication. Although every effort has been made to verify the accuracy of the information contained on this webpage, MYOB disclaims, to the extent permitted by law, all liability for the information contained on this webpage or any loss or damage suffered by any person directly or indirectly through relying on this information.
Contributors
MYOB Subject Matter Experts