"We're all using the same set of data, whereas historically clients have had their own versions of their accounting system. We had to take the client data from their system, fold it into our system, make our year-end adjustments, then go back to client to make the same charges in their system."
Added Mr Farrell: "Accounting is quite a traditional kind of profession, and account compilation, financial statements and tax returns formed quite a high proportion of many firms' work."
But much of that manual work had been automated, with automatic bank feeds, and information now going directly to shared software providers. These developments have significant implications for the accounting profession, as noted in a 2015 report on digital disruption published by Chartered Accountants Australia and New Zealand. (see box)
"We realised the core compilation work was going to decrease, so we've embraced cloud computing," said Mr Farrell. "What we've had to do is provide a lot more of a value-added service."
The changes have allowed companies that weren't big enough to have their own accountant, but were large enough to require guidance on issues such as buying assets or hiring extra staff, to get more timely and tailored advice from their external accounting firm, he said.
Shanan Symes, a senior manager for Staples Rodway, Tauranga, said the digital revolution had definitely affected the way the firm interacted with clients.
"Readily available information and being actually able to see it any time gives us opportunities to offer more advice," he said. "But also, looking beyond traditional accounting business tasks such as filing tax returns, we can look more at the strategic side of things, and their planning and forecasting."
Deloitte Rotorua partner John McRae said accounting firm services had evolved in response to the new technology, and their services were no longer just about basic compliance.
"Over the years I've seen a trend where it's become less about completing a profit and loss statement and a balance sheet, and more and more about working with clients to help make them more successful in understanding their market and where they're going strategically," he said.
"If you haven't kept yourself up to speed with how to advise your clients at that level, then you're definitely going to get behind. It has changed the expectations of clients. The real value of technology now is in us helping our clients map their future."
Staples Rodway's Shanan Symes noted, however, that there were still challenges in ensuring that clients had their business processes sorted as they moved to the cloud.
"A lot of our time is spent up front making sure the system they are looking at going on to will suit them now and in the future," he said.
KPMG Tauranga partner Tracy Preston-Lett echoed that sentiment.
"Certainly clients are becoming increasingly used to using technology within their business," she said. "But they still need advice."
While the technology had got better, the education around accounting understanding still needed to develop so that businesses could fully understand the implications of where they were coding different transactions, she said.
"We don't feel threatened by digital change. It's a tool that's allowing clients to spend better time in their business."
Nairn Fisher's Peter Farrell noted that even three or four years ago, partners did not involve themselves heavily in IT matters and were happy to delegate.
"Now IT is as core as tax. You really need to know a bit about it if you are going to look after your clients properly."
One consequence of digital disruption has been the change in some job profiles within the profession, with far less requirement for manual data entry. Several firms reported that staff were getting upskilled to provide more added-value work. And they noted that, despite the increased automation of manual activities, they firms had seen growth in employee numbers in recent years because of the booming regional economy.
"It's hard to find good employees these days," said Mr Farrell. However, another advantage of cloud computing was increased workplace flexibility, he said.
"We now have a number of young mothers who can also work from home."
[Box]
Accounting's challenges
A reported published by professional body Chartered Accountants Australia and New Zealand in 2015 found that all but two roles within the accounting profession (corporate treasurers and secretaries) were at high risk of automation.
"Such findings reinforce the need to continue to reposition the profession as trusted strategic business advisers, who can offer significantly more to businesses than pure accounts processing and financial statement preparation," said authors of the report "Disruptive technologies, risks, opportunities - can New Zealand make the most of them?" The report was based on research by the New Zealand Institute of Economic Research.
While the number of New Zealanders working as accountants had been increasing (by almost six per cent between 2012 and 2014, that trend was set to reverse in the coming decade as automation takes hold, the report said.
"As businesses endeavour to maximise the benefits of 'big data', data analysts are the number one professional service occupation predicted to flourish as a result of disruptive technologies.
"The ability of many professions, including accounting, to survive will depend on their ability to successfully combine a range of skill-sets, including technical knowledge, critical business thinking, strategic insight and relationship management."