Are you a ‘Real time Accountant’ (RTA) or a ‘Redundant data Accountant’ (RDA)?
The vast majority of Accountants I meet have around 80% of their revenue coming from annual compliance services. That means once the financial year ends they start preparing financial information so it can be lodged with the various Government agencies. By the time they present their findings back to their clients it is 4, 6 and sometimes 9 months (or longer) late.
Seriously, what good is data 9 months after the fact? It’s redundant data. I cannot run my business based on redundant (albeit accurate) data that is chronically late. It’s useless.
It’s interesting that in these ‘annual presentation’ meetings (of the redundant compliance data) Accountants attempt to offer help. ‘Why did you do that?’ and ‘you should have done this’.
There is no point looking in the rear view mirror while offering me advice. I’ll probably hit the oncoming car whilst you’re giving it to me!
As a business owner (and all of my business owner friends say the same thing) I don’t want a RDA, I want a RTA. RTA’s do it differently. They actively promote ‘cloud accounting’ solutions so the data is real time and accurate. They don’t sit around and wait for things to happen. They visit clients. The have their team members trained in offering value added services – the ones that make a difference to my condition. They are connected to their clients through real time financial dashboard. They are alerted to the financial trends in the client site as it happens. They are truly useful!
Get your firm into a position where you are real time not redundant. Rise the Real Time Accountant.
I am well into my seminar tour of 14 cities right now. It’s called ‘Capitalising on the Cloud’ and it is getting rave reviews. 5 cities so far with 9 to go. We have record numbers attending and right up front I ask a question who is a Partner of the firm and who is a Team Member.
We are getting a dis-proportionate amount of team members versus partners. That means Partners of the firm are sending other people rather than themselves. I started asking the team members what the strategy is with cloud. The answers are typically ‘I am here as the product champion for cloud’.
Many Partners are treating this as a product discussion not a strategy discussion. It’s a strategy discussion not a product that needs implementing!
Cloud technology affects every area of the Accounting firm. Like:
- Your labour force. With 30-40% efficiencies do you need as many people and are they the right people in the future.
- Your firms systems. Cloud practice management changes the dynamics of how you work internally.
- Your client locations. You can have clients anywhere in the world.
- Your labour location. With internet based systems your labour force can be anywhere.
- Your services. With data that is real time, accessed anywhere from any device it means you can offer much much more value added services.
- Your value. By being a ‘real time’ accountant with real time information you are offering a tremendous amount of value.
The last point is the big one. Offering value 9 months after the fact has no value to the client. It’s redundant data and useless.
Get on the front foot and embrace the cloud as a strategy – not a product. My seminar is all about the strategy and the how to. If you are already registered looking forward to seeing you. Make sure the partners are attending. You can still register for the remaining 9 events. Go to www.cloudseminar.com.au for more information.
In the last 12 months there were approximately 25,000 Australian office jobs sent to the Philippines alone. According to experts this number is set to double this year. It can be a touchy subject with some people but it’s not going to go away. Clothing has been manufactured overseas for years and now its office jobs. When the labour costs are 1/5th to a 10th of what we pay locally it is a compelling opportunity for businesses to consider. There is also an abundance of people who are educated and very keen to work.
Although many Asian countries are offering outsourcing resources I am most familiar with the Philippines market. There are approximately 1.2M people currently hired and it is growing at 20% pa. They cannot build the office facilities fast enough to house them all. To become a qualified CPA it takes 5 years after university and you can hire them for around $4 – $7 per hour. This is considered a good salary.
When I first visited on an outsourcing study tour the following line got me: “any job that is done over the phone or behind a computer we can do for a 1/5th to a 10th of the cost”. So basically any non-customer facing role can be done cheaper and often better.
The use of cloud technology is critical to making this happen in Accounting firms. Instead of sending large data files backwards and forwards the off shore Accountants are working on the same file you are. If Accountants locally are not adding value to the work they are doing then their days are numbered.
The Accounting firm of the future will have local team members who are customer facing and adding value. Everything else will be done somewhere else. This is happening right now.
At my upcoming “Capitalising on the Cloud” 1 day seminar I am interviewing an Accountant who has hired 38 people in the past 3 months to work for his Australian clients. He has 28 people on the Gold Coast and now 38 in the Philippines. It’s a fascinating story. I am going to step you through all of the options on how you can capitalise on this opportunity. The seminar tour has 11 cities to visit from March 24 – April 16. For more information and registration details go to www.cloudseminar.com.au.
My “Capitalising on the Cloud” seminar tour is in full swing. Great feedback & engagement. Awesome numbers. Still got spots available – more info here.
Yesterday I presented day one of my Capitalising on the Cloud seminar in Newcastle. I am touring 14 cities in Australia and New Zealand. Probably coming to a city near you! Gold Coast tomorrow and Brisbane on Friday. Already 1,155 Accountants are registered which is awesome.
The feedback was amazing. The Accountants loved it and more importantly when I read the implementation forms they are going (at least they said so) to implement the ideas.
It’s a full day covering
- Cloud Accounting
- Cloud practice management
- Value Added Services
And loads of new tools, techniques, tips and hints. It’s all about the “How To”. I have 2 successful Accountants speaking at each event as well. You can still register. Check out the cities I am still to go to. Hope to see you there. More information and registration details here. Check out the highlights reel from yesterday.