I have left my MYOB vs Xero blog post alone for 2 weeks. I wanted to see how many people viewed, shared, tweeted etc. So far around 500 shares, forwards and a thousands upon thousand of ‘views’.
Cloud accounting is clearly a hot topic right now.
I have got some other interviews coming up with other accounting software providers which will add to the first 2 published ones.
In the meantime I thought I would give my tuppence worth on this subject. Here goes:
- Cloud accounting is not a fad. It is not going away. It is a bit like where internet banking was 10-12 years ago. Many early adopters, many not sure, many a bit scared. Now…what’s a cheque book?
- A cloud system of some sort will be the main solution that SME’s will use for their accounting work in the future.
- These new systems will definitely improve efficiency at the SME and the Accountants end. Which means less time on the clock to do the standard accounting compliance work.
- If there is less time on the clock and the accounting firm does not price up front then expect to see a dramatic reduction in fees.
- Because business clients know that things are more efficient they will request a cheaper price for compliance.
- There will be a rise in ‘internet based’ accountants – no need for a physical location if everything is on the internet.
- Standard compliance will become a commodity. Repetition drives systematization, systematization drives commoditization and commoditization drives price.
- The ethical thing to do is reduce the price for compliance – if the data is real time at the SME end and the Accountant is checking and lodging then why is it so expensive?
- There is a massive opportunity to add value to the clients by knowing their numbers ‘real time’ and offering additional services.
- Once these systems are up and running and with great volume what is stopping the system interacting with the government agency? Why do I need an accountant to do what you currently do?
It’s time to embrace this new change. It’s not going away.
Around the world there are public (software) companies who need to re-invent to remain relevant. They are spending bongo bucks (technical term for a lot) to ‘cloudify’ their products. It’s a land grab right now.
Who’s going to win? The one with the best marketing, best products and the deepest pockets!
Cloud accounting is a game changer. Compliance heavy accountants need to change to remain relevant in the future.