The increased use of accounting and tax software has had an unexpected impact on at least one accountancy firm. And I suspect there are others in the same position.

The firm had assumed that they would reduce staff costs through increased use of junior staff.  The partners anticipated that using more sophisticated tax software would allow them to reduce salary costs as it would require less able and qualified staff than previously. In practice the firm has less need of unskilled staff. The software itself takes the drudgery out of the work and enables staff to focus more on value added and advisory services for clients.

Staff numbers are down – as one might expect. But staff costs are up as the firm is able to make better use of more qualified staff.

What’s been your experience?