Bookkeepers offer unpaid advice as tax demands grow

Research by the Institute of Certified Bookkeepers and Dext found that 64% of bookkeepers spend at least an hour a month advising clients without billing for it. It also found that 59% of clients now seek guidance beyond basic bookkeeping.

The findings come as more than one million additional sole traders and landlords are expected to be brought into Making Tax Digital from next April. Mandatory payrolling of benefits in kind will also begin, increasing demand for support with tax administration.

The survey of 349 ICB members suggests the role of bookkeepers has broadened beyond recording transactions and maintaining records. More than half, 57%, said they see themselves as trusted business advisers, while 84% said they proactively share insights with clients either as part of their regular service or when they notice something worth raising.

That advisory role is often informal. While 64% said they spend at least an hour each month on unbilled guidance, 28% said they spend three hours or more.

Many respondents said clients do not treat that support as a chargeable service. Just 27% said clients fully recognise and appreciate the informal guidance they provide, while 44% said clients value the advice but do not expect to pay for it. Another 23% said clients do not notice how much guidance they are receiving.

Advisory shift

The figures point to a profession in transition, as compliance work increasingly sits alongside requests for broader business support. Small firms often turn first to bookkeepers because they are already in regular contact and because bookkeepers understand the day-to-day position of the business.

This shift comes as tax rules become more complex for many smaller operators. The extension of Making Tax Digital and changes to payroll reporting are expected to create more questions from sole traders, landlords and small employers who may not have in-house finance teams.

ICB Chief Executive Officer Ami Copeland said bookkeepers have long played a wider role than basic processing.

"A bookkeeper's role has always been much more about recording numbers and keeping clean books. Business owners rely on their bookkeeper to understand what's happening in their business, flag when something doesn't look right and provide guidance. Whether it's spotting a change in cash flow or helping make sense of the figures, bookkeepers are often the trusted person clients turn to when they have a question," Copeland said.

Copeland also linked the findings to the regulatory changes facing smaller businesses. "Small business owners are facing the biggest changes to tax administration in a generation. Making Tax Digital is already live, a far bigger wave of businesses joins from next April, and payrolling of benefits arrives at the same time. No one should have to struggle through that alone, and with a Certified Bookkeeper they don't. Bookkeepers are the first line of defence for a small business - the calm, approachable professional who knows the business day to day, spots problems before they become crises, and explains what the numbers mean without the jargon. This research finally puts figures on what business owners have always known - their bookkeeper is the friendly trusted adviser they can call on," Copeland said.

AI effect

The research also examined how artificial intelligence is changing working patterns in bookkeeping practices. It found that 78% of respondents have adopted AI tools.

Among those using them, 20% said the change helped them provide more proactive financial insight to clients, while 15% said it gave them more time for client relationships. The results suggest automation is shifting time away from routine processing and towards direct advisory work.

Dext Chief Executive Officer Sabby Gill said the technology is changing how time is used rather than replacing client-facing judgement.

"AI is handling the heavy lifting of routine processing, giving bookkeepers back precious hours every week. But efficiency is only half of the story here. Our research with ICB shows that bookkeepers are already providing the trusted guidance and expertise their clients rely on every day. That human judgement and understanding of the client is irreplaceable. The opportunity is to make that value more visible and ensure the time and expertise they already give to clients is recognised and, where appropriate, paid for. AI tools can help by giving bookkeepers more time to focus on their client relationships and judgement, which are already such an important part of their role," Gill said.

Even so, the survey suggests turning informal support into a defined paid service remains difficult. More than half of respondents, 55%, said at least some clients would pay for structured advisory services, indicating there is a market for broader support if it is presented clearly.

Barriers remain. Some 42% said a lack of confidence in explaining the value of their work was a significant or major obstacle to charging for business guidance. Other factors included pricing the service, finding time to package it properly, and concerns about how existing clients would react.

The results offer a snapshot of a profession balancing compliance work, client expectations and new technology at a time when small businesses face fresh administrative demands. For many bookkeepers, the challenge is no longer whether clients seek advice, but whether that advice can be recognised as part of the job they are already doing.