As more and more people have taken it upon themselves to do their own tax returns each year, the popularity of accounting software has exploded. The reality is that most people would not be able to file their tax returns by themselves if they did not have the simple template that is provided in any accounting software package. The increase in usage of accounting software has had both positive and negative effects on accountants. Since they can easily use accounting software in their business, it allows them to be much more efficient in the workplace, which would let them take on more clients. If accounting software allows an accountant to service more clients, then they have the potential to increase their total earnings.
Conversely, since more people are doing their taxes themselves due to the use of accounting software, there are less potential clients for the existing accountants. Thus, accounting software has caused increase competition among accountants for the few available clients. In time, as with most industries, the supply and demand will find equilibrium, and the use of accounting software will become standard practice in the industry. In the mean time, however, the effects of the rise in accounting software are still being played out.
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