AVOID THESE 5 CLOUD BOOKKEEPING MISTAKES

Transcription

1 AVOID THESE 5 CLOUD BOOKKEEPING MISTAKES

2 INTRODUCTION Over the past five years we ve seen technology completely revolutionize some very traditional and seemingly stable industries. Hotels and taxis spring to mind. Who could have guessed that people would be renting out spare rooms to strangers or that cab drivers in Las Vegas would be holding numerous protests about a technology business that doesn t even own a single taxi? So what does this have to do with you? A similar thing has begun to happen in the accounting industry, with the advent of cloud accounting. Cloud platforms have completely revolutionized the way in which you are able conduct your business and service your clients. The ability to operate a cloud practice has opened up a raft of new opportunities. Now you can: Spend far less time on compliance work Add real value by focusing on added value services and business advice Expand into new service offerings Be more innovative with your business strategy Educate your staff and broaden their business skills Build deeper, more insightful business relationships with clients Create new packages and revenue streams Work from anywhere, as the cloud gives you 24/7 access to all of your clients financial data Take on clients that are based hundreds, or even thousands, of miles away from you What about bookkeeping? Accountants have always had a somewhat funny relationship with bookkeeping. Until recently, it was widely viewed as a low value, low profit, labor intensive process - a necessary evil. Over the last few years you ve no doubt experienced the feeling of dread as that client (or if you re really unlucky, many clients) trundled into your office with carrier bags full of receipts and invoices on January 28th, and you and your team literally worked round the clock to process them all, just so that you could submit their accounts by the 31st. The cloud changes all of that. You no longer need to worry about shoeboxes or carrier bags full of receipts no matter what the time of year! 2

3 Timely, effortless bookkeeping is both revolutionary and essential. In essence, if both your accounts receivable and your accounts payable are up to date, the financial decisions you make about your clients are better and more accurate. It s not all sunshine and roses However, something that most cloud-based platforms don t talk about is that the transition to the cloud can be daunting and for some, incredibly difficult. To truly leverage the power of cloud accounting and bookkeeping, you must: Change your way of thinking Change your business model Create new, robust systems and processes We truly believe that there s never been a more exciting time for an Accountant to be in business. In this short guide we ll reveal the five major mistakes made when moving to cloud bookkeeping, and how to avoid all of them. This will allow you to leverage the full power of the cloud so that you can make your practice more efficient, more scalable, and more profitable than ever before. The Five Mistakes Mistake 1 I ll get around to this later Mistake 2 Underestimating the level of change required Mistake 3 Allowing your clients to lead the transition Mistake 4 Not having the correct systems and processes in place Mistake 5 Insufficient preparation & training 3

4 MISTAKE 1 I LL GET AROUND TO THIS LATER It s becoming increasingly difficult to make the argument that there is no rush to move to the cloud. Here are three reasons why later is not an option: Tax authorities world wide are gearing up for the cloud On a macro level, governments are already working with cloud accounting and bookkeeping solutions to automate tax payments. What's happening overseas: By early 2016 five million small businesses and the first ten million individuals will have access to a secure, personalized digital tax account. By 2020 more than 50 million individuals and small businesses will have a secure, personalized digital tax account removing the need for millions to complete a tax return and simplifying the tax system for millions more. Source: Making tax easier: The end of the tax return Governments are making a concerted effort to implement digital tax accounts, because businesses will be able to pay their taxes regularly and consistently. Procrastinating on the implementation of a cloud bookkeeping service will put you behind the curve, not in front of it. Your clients want the benefits of cloud accounting and bookkeeping Closer to home, your clients are demanding more from you, and are increasingly using technology to improve every facet of their business. They want someone who will offer advice that will improve their business, and come to them with recommendations on such things as: How they can be more efficient Where they should be spending their money Spotting potential cashflow problems before they arise The crux of the matter is, when your accounting software and accounts payable are up to date, you can make better, more accurate decisions. Your competitors are offering cloud accounting and bookkeeping If you don t believe us, do a quick Google search for Accountants in your area and see how many are advertising services like Receipt Bank, QuickBooks Online, and Xero on their websites. THE SOLUTION Simply subscribing to the accounting and bookkeeping software is not enough. Here are some tips for embracing the cloud today: Contact the cloud software companies, or speak to your Account Managers about the best way to incorporate these solutions into your business. Your Account Manager has experience of helping dozens (if not hundreds) of other firms implement their solution, so will be very well placed to help you. Plus, the more frequently you use their services, the better it is for them, so it s in their best interest to provide you with all of the help and support that you need. Speak to other Accountants (who aren t in direct competition with you) that are already leveraging cloud bookkeeping, and ask them for tips on everything, from using the software to onboarding clients. Attend events such as Receipt Bank s Practice Exchange (held monthly) to discuss the opportunities and challenges your firm is facing, and to learn from others who are already on the journey. Make a conscious effort to learn and embrace the software. You can start by implementing it for your own accounting and bookkeeping needs. 4

5 MISTAKE 2 UNDERESTIMATING THE LEVEL OF CHANGE REQUIRED As we briefly mentioned in the introduction, cloud accounting and bookkeeping have radically changed the way Accountants do business. Therefore, doing things the same way you ve always done them is not an effective or viable way to adapt to the new business landscape. This is about far more than just changing the product you use, it s about changing workflows - first in your business, and then in your clients businesses. There are generally two reasons why Accountants underestimate the level of change that is required. The first is lack of time. You re already busy servicing clients and dealing with the day-to-day duties that come with running a Practice, and on top of that you now have one (or more) pieces of software you need to learn how to use. The second is something we all experience when facing change: inertia and a general concern that change is going to be more difficult than anticipated. In reality it s never as painful as we expect. Time is not best spent creating numbers on spreadsheets, it s better spent growing business and servicing clients. THE SOLUTION The first step is to accept that there will be significant change involved in moving to a cloud-based system, but that doesn t mean the move has to be difficult. Remember, you are investing in the long-term value of your clients and your firm. Embrace the new solution and invest the time to familiarize yourself with it. A relatively small up-front time investment will pay dividends for many years to come. The software will carry out much of the work for you, meaning you can grow your business without hiring any additional staff, and spend more time serving your clients as a Virtual CFO'.. Then you can do one or a combination of the following: spend more time acquiring new clients, upsell to existing ones... or even work fewer hours every week! Again, work closely with your software providers and Account Managers - they have lots of experience with helping many other practices implement their solution and will be able to help you implement it in the most efficient manner. Gabrielle Osborne 5

6 MISTAKE 3 ALLOWING YOUR CLIENTS TO LEAD THE TRANSITION? This may seem counter-intuitive, but in the experience we have working with thousands of different accounting firms, many have allowed their clients to exert too much control in the move to cloud bookkeeping. We re as excited as you about the revolutionary impact a cloud bookkeeping solution will have on your practice, as we ve seen it hundreds of times. We have clients who ve grown their practices 40% YOY, and increased their net profit by as much as 60%. One of the great advantages of the cloud accounting and bookkeeping solutions released in the last few years is that they have been built with Accountants in mind, and, as we ll discuss, you can build systems and processes that work perfectly with them. Your clients will also experience a number of major benefits when you move to cloud bookkeeping. For example: they no longer have to worry about keeping a physical copy of receipts and invoices, they can just take a photo and upload it to the cloud, and timely financial data means they will receive better advice and ultimately have an improved level of control over their finances. However, if you allow one or two clients to exert undue influence on the implementation, the solution may work well for them, but you won t see the full benefits for your firm and the rest of your clients. THE SOLUTION When implementing a cloud bookkeeping solution, think objectively and holistically about how the implementation can bring the maximum benefit to your firm and all of your clients. Take control of your relationship with clients, reframe this to a value-based one. Focus on implementing the solution in a way that suits your firm, your staff, and of course your clients, rather than letting one or two clients hold back the implementation unnecessarily. It s your job to ensure that the cloud meets the individual needs of each of your clients, so this will likely mean different clients will need to be integrated in different ways. Lean on the expertise of your Account Managers to discuss how you can implement a cloud bookkeeping solution that is optimal for your firm, all of your current clients, and any future clients that you onboard. 6

7 MISTAKE 4 NOT HAVING THE CORRECT SYSTEMS AND PROCESSES IN PLACE The right systems and processes can make or break any business, but before cloud accounting and bookkeeping, most practices could operate effectively without robust systems and processes in place. Cloud technology changed all of that. Without an end-to-end cloud solution, it s very difficult to scale your practice, effectively and efficiently service clients, and significantly increase your net profit. Merely having systems and processes in place is not enough, they must be fit for purpose, tested, robust and rigorously adhered to. This means they must be fully documented. In a recent webinar we carried out with Sharon Pocock, one of the attendees largest challenges in embracing cloud accounting and bookkeeping was how to onboard new clients. Yet 37% of the attendees had no onboarding process, and of the 63% that did, 58% did not have the process documented. Another challenge that almost all Accountants face is finding good staff, but it could be argued that good processes are just as important. They give your business and your team the parameters to operate within, and make everything more streamlined and efficient. (Plus, as we ve already mentioned, the cloud allows you to scale without hiring extra staff.) THE SOLUTION Start with the end goal in mind. In this case, what do you want to achieve with cloud bookkeeping? What do you want the client onboarding process to look like? How will you train new clients? What will the day-to-day management of their accounts look like? Then reverse-engineer by thinking about how you will achieve this, and what systems you need in place to get there. Listen to, or speak to, the early adopters of the cloud accounting and bookkeeping services, those who embraced the cloud early and are already reaping the growth benefits by already having implemented robust systems and processes. Speak to your Account Manager about choosing and implementing the best and most appropriate systems and processes for your practice. 7

8 MISTAKE 5 INSUFFICIENT PREPARATION & TRAINING This can be split into two distinct areas: training for your staff and training for your clients. Staff Training Let s first look at internal training for your team. Before you even consider offering this to your clients, your team must have a good level of expertise in using the cloud accounting and bookkeeping software, and there must be a clearly documented internal training process, or processes. Without this, it s very difficult to ensure that a minimum standard and level of understanding is met within your firm. As we mentioned earlier, your clients want to be led by you and your team, so they will expect a certain level of expertise when they speak to anyone in the firm. If they don t get this, they may lose confidence in your ability to deliver an effective cloud accounting and bookkeeping solution. Or, even worse, lose faith in cloud accounting and bookkeeping altogether! Client Training The second element is client training. If your clients aren t trained correctly, they may get frustrated with the platforms and make mistakes, which are costly for both of you. As well as having the basic training in place, it s very important they have a cloud solution that is tailored to them and the needs of their business. This will only happen if you re willing to invest the time up front in ensuring that you have enough expertise to make the correct recommendation, and take the time to look at each of your clients business requirements individually. THE SOLUTION Set an example as the leader of the organisation by really embracing the technology and taking the time to develop your expertise. Have a documented process that all of your staff can follow. It s usually a good idea to appoint one of the members of your team as the person in charge of training, the go-to person for staff and client training, although it s important to note that you shouldn t place too much reliance just one person, in case they leave the firm. Have a documented process for client training. Lean on your Account Managers for implementing internal and client training and the associated processes. 8

9 ABOUT RECEIPT BANK Our Account Managers Our goal as your Account Manager is to help you grow your business and be the subject matter expert you turn to, on cloud accounting and so much more. It is our mission to form a true partnership with you that goes beyond just software. This stems from our original belief about Receipt Bank, that it is not data entry software, but a productivity tool. To that end, your Account Manager is a productivity partner. And that is how we want you to think about us. As a team, we re able to help you in any number of areas, ranging from marketing, to process mapping, and pricing. We even helped one partner choose a new logo for his business! Please don t hesitate to ask questions beyond Receipt Bank. If we can t answer them, it s quite likely we know someone who can! So if you are undertaking any strategic initiative, or are considering making a change, there is no doubt one of us can add value to that discussion, even if just to act as a sounding board. Give us a call and let our versatile team know about your needs! We can advise you on how to best implement and leverage the power of cloud bookkeeping. Practice Platform Practice Platform brings key production data to one central location, enabling you and your team to prioritize your clients and workload. It provides real-time information on how and when your clients are submitting their documents to you, allowing you to measure your practice against industry-standard bookkeeping KPIs and become more productive. Practice Platform focuses on 4 key areas of the bookkeeping process: Outstanding bookkeeping, which analyses the number of source documents being processed and transactions waiting to be reconciled, and provides a time estimate to help managers plan their daily production. Urgency, which helps prioritize production against looming deadlines shows you how long items have been waiting to be published; Client efficiency, which, for the first time, puts emphasis on the client s efficiency in getting data to you, allowing bookkeepers to ensure they can, in turn, deliver on the agreed level of service; and Overall efficiency, which looks at how automated the client s bookkeeping is, to allow you to maximize the firm s efficiency. Apps for your clients Quick and accurate data entry Receipt Bank extracts the key information from your clients bills, receipts and invoices, removing the need for manual data entry. Receipt Bank then allows you to publish this data directly to their accounting software. Automated expense reports sent via Approved by tax authorities worldwide Accessible 24 hours a day, 7 days a week, 365 days a year Available on your desktop, laptop, mobile and smartphone Secure and safe online storage Receipt Bank seamlessly integrates with all major Cloud Accounting Software, including 9

10 SPEAK TO ONE OF OUR ACCOUNT MANAGERS TODAY Request a callback us at partners@receipt-bank.com