From July 13-17 I am hosting our annual conference in Bali. This time we are opening it up to the world for any Accountant to attend. We already have 340 booked and paid which will make it our biggest most exciting conference ever. I recorded a short video a couple of weeks back. For more information and registration details click here.
I just returned from a visit to the Philippines. The purpose was to visit some Accounting firms (and interview them) and to meet my team for the first time. I filmed 3 Accounting firms who operate out of the Philippines into Australia. So their clients are in Australia and their Accountants are in Manila. What was fascinating was how easy it is to set up shop, find people, train them and get productive.
You can essentially set up shop 2 ways.
The first is to go through a “BPO” business (Business Process Outsourcing) where you lease the people from them and the BPO supplies the desk, chair, computer, supervision, office, software etc. Think of a labour hire business meeting a serviced office. There are around 200 BPO’s in the Philippines alone and it is governed by a professional association. That’s how I have done it with my current team of 3. They work directly for us yet they are housed in a BPO’s office. We like this method because it is simple and relatively fast. We’re currently hiring 4 more to take the team to 7. We pay them well, give them good conditions and the total (fully loaded) cost ratio is 4:1. That means we can hire 4 Filipinos to 1 Aussie. There is an abundance of labour, they are smart, eager to learn and this strategy has helped grow my Australian operation.
The second way is to incorporate your own company and then rent a space, fill it with desks, chairs, computers etc and hire the people direct. This is certainly a cheaper option (by about 50%) however the compliance and set up process is (I am told) very difficult. Having said that you are in complete control and if you want 10 Accountants then go for it.
The office you see below did not exist 3 months ago. In 3 months flat my friend who has a financial services firm on the Gold Coast of Australia has hired and trained 38 Filipino Accountants and admin team members. They are servicing Australian businesses with book keeping and compliance. Everything is ‘cloud’ based so no data is moving around and all the Australian clients know that their work is getting processed overseas.
Some people have a problem with this and that is their problem. I say just look at the clothing you are wearing and see where it was made! There is a lot of detail in how you do this. If you are interested in the topic then at my upcoming seminar “Capitalising on the Cloud”. I am touring 14 cities in March & April. Click here for more details.
Today we said good-bye to my 16 year old sons best friend who tragically passed this earth. The funeral service was just amazing. There was at least 1,000 people at the service. For someone so young he touched so many. His mother said that he was an angel and angels where not supposed to be on this earth forever. His father spoke of his love of music, gaming, eating and being the most pleasant person who always looked out for everyone else. His friends all had stories to tell of his humor, manners and friendship. He was a lovely young man in the truest sense. He had been at our home at least a dozen times and he was always the most polite, appreciative and friendliest. He always seemed more grown up than his 16 years.
The most heartfelt thing for me was when the appointed member of the ‘the group’ spoke on behalf of the group of 13. He named all 13 of the friends and mentioned how this young man had changed their lives in a special way. He signalled out members of the group of 13 friends and mentioned the impact that he had had. It was very moving as my son was in that group.
I have often thought about what people will say when I am gone. Hopefully they will say that I influenced lives and made a positive difference. It’s a big question but what will they say about you? What is your purpose for being here?
Aaron’s purpose was to make people happy. He did just that every day. We’ll miss you mate. RIP.
Although the detail might be quite complex (and hundreds of strategies around each one) improving the profit of an Accounting business is relatively simple.
- Get more clients of the type you want
- Retain the ones you already have
- Have each client buy more services (projects) from you each year
- Increase the top-line price of each service / product sold through Value Pricing
- Get super efficient and reduce your overhead structure
The table below could serve as a planning tool for you for point 1.