the future of accounting. here. now
DESCRIPTION
The cloud debate is over for the accounting industry. It is not a matter of IF, it is a matter of WHEN and HOW. From broad trends to specific tactics on how to get your accounting firm ready for the future because it is here and it is now.TRANSCRIPT
The Future of Accounting. Here. Now.
Jamie Sutherland, President, Xero US@sutherlandjamie
www.xero.com
1. What’s going on in tech that’s important 2. Evolution of accounting 3. The rise of the tech accounting firm 4. Future proof your firm
Agenda
@sutherlandjamie
Are you using cloud accounting
software?
@sutherlandjamie
Percentage of accountants
6050403020
Hosted desktop
Cloud
Neither
0 70
Sleeter group—cloud accounting usage
@sutherlandjamie
1. What’s going on in tech that’s important
@sutherlandjamie
Computing power is increasing exponentially
@sutherlandjamie
One insect brain
One human brain
All human brains
1920 2000 2080
Exponential growth of computing
@sutherlandjamie Source: Ray Kurzweil
Entire industries being disrupted
@sutherlandjamie
Blockbuster → Netflix Borders → Amazon Yellow Cab → Uber Tower Records → Spotify, Pandora TV → Hulu, Amazon instant video Watches → Smartphones
@sutherlandjamie
Software is eating the world.
@sutherlandjamie Source: Marc Andreesen, Andreesen Horowitz
Mobile is eating the world
@sutherlandjamie Source: Benedict Evans, Andreesen Horowitz
Smartphone shipments dwarf PCs
0
50
100
150
200
250
300
Mar 95 Mar 97 Mar 99 Mar 01 Mar 03 Mar 05 Mar 07 Mar 09 Mar 11 Mar 13
QUARTERLY UNIT SHIPMENTS
PCs
iOS & Androids
@sutherlandjamie Source: Benedict Evans, Andreesen Horowitz
Government is paying attention
@sutherlandjamie
Vivek KundraFEDERAL CIO, UNITED STATES GOVERNMENT
@sutherlandjamie
“There was a time when every household, town, farm or village had its own water well.
@sutherlandjamie
Today, shared public utilities give us access to clean water by simply turningon the tap.
@sutherlandjamie
Cloud computing works in a similar fashion.
@sutherlandjamie
Just like water from the tap in your kitchen, cloud computing services can be turned on or off quickly as needed.
@sutherlandjamie
Like at the water company, there is a teamof dedicated professionals making sure the service provided is safe, secure andavailable on a 24/7 basis.”
@sutherlandjamie
Improving small business at scale
@sutherlandjamie
Days to get paid 2 years ago
@sutherlandjamie
Days to get paid in 2014
@sutherlandjamie
Client expectations have changed
@sutherlandjamie
What I want When I want it Where I want it
@sutherlandjamie
The cloud debate is over
@sutherlandjamie
2. Evolution of accounting
@sutherlandjamie
SMB accounting
Third-party apps
Client management
Practice tools
FinancialData + Docs
The modern practice
@sutherlandjamie
TODAY
Where we are at
Businessplatform
Connectedservices
Dataplatform
Change the game
Online accounting
Establish the platform to play
Full accounting
@sutherlandjamie
Externaldata
Smallbusiness insights
Core data
@sutherlandjamie
Big data for small business !
Coming early 2015
Cloud accounting Big data
@sutherlandjamie
Want a sneak peek?
@sutherlandjamie
@sutherlandjamie
3. Rise of the tech accounting firm
@sutherlandjamie
Harshman Phillips & Company@sutherlandjamie
275%growth
@sutherlandjamie
GARY BOOMER BOOMER CONSULTING
“Majority of growth for accounting firms will come from advisory services…”
@sutherlandjamie
Bookkeeping
$20-$60/hr
• Data entry • Bank rec
Virtual accountant value-chain
@sutherlandjamie
Bookkeeping
$20-$60/hr
• Data entry • Bank rec
Bookkeeping +
$40-$150/hr
• Data entry • Bank rec • Bill pay • Payroll
Virtual accountant value-chain
@sutherlandjamie
Bookkeeping
$20-$60/hr
• Data entry • Bank rec
Bookkeeping +
$40-$150/hr
• Data entry • Bank rec • Bill pay • Payroll
Accounting / Reporting
$80-$300/hr
• Data entry • Bank rec • Bill pay • Payroll • Reporting • Sales tax • Income tax
Virtual accountant value-chain
@sutherlandjamie
Bookkeeping
$20-$60/hr
• Data entry • Bank rec
Bookkeeping +
$40-$150/hr
• Data entry • Bank rec • Bill pay • Payroll
Accounting / Reporting
$80-$300/hr
• Data entry • Bank rec • Bill pay • Payroll • Reporting • Sales tax • Income tax
CFO advisory
$100-$450/hr
• Data entry • Bank rec • Bill pay • Payroll • Reporting • Sales tax • Income tax • Cashflow forecasting • Biz valuations • Risk management • Burn rate analysis • Strategic planning • Etc…
Virtual accountant value-chain
@sutherlandjamie
Bookkeeping
$20-$60/hr
• Data entry • Bank rec
Bookkeeping +
$40-$150/hr
• Data entry • Bank rec • Bill pay • Payroll
Accounting / Reporting
$80-$300/hr
• Data entry • Bank rec • Bill pay • Payroll • Reporting • Sales tax • Income tax
CFO advisory
$100-$450/hr
Virtual accountant value-chain
• Cashflow forecasting • Biz valuations • Risk management • Burn rate analysis • Strategic planning • Etc…
• Data entry • Bank rec • Bill pay • Payroll • Reporting • Sales tax • Income tax
@sutherlandjamie
Bookkeeping
$20-$60/hr
• Data entry • Bank rec
Bookkeeping +
$40-$150/hr
• Data entry • Bank rec • Bill pay • Payroll
Accounting / Reporting
$80-$300/hr
• Data entry • Bank rec • Bill pay • Payroll • Reporting • Sales tax • Income tax
Virtual accountant value-chain
Automated & connected@sutherlandjamie
Anything that can be automated will be
@sutherlandjamie
Technology creates new opportunities
@sutherlandjamie
https://www.xero.com/us/tv/video/?id=7012-aldridge-borden-grows-with-the-xero-ecosystem
@sutherlandjamie
VIDEO: Aldridge Borden grows with Xero ecosystem
From reactive to proactive
@sutherlandjamie
4. Future proof your firm
@sutherlandjamie
Start using a cloud accounting product
1
@sutherlandjamie
Appoint cloud champion & separate from core business
2
@sutherlandjamie
Don’t charge by the hour3
@sutherlandjamie
Valueis not connected to hours
@sutherlandjamie
Starter Medium Large Custom
$900 $2,500 $5,000 $xx,xxxper month per month per month per month
@sutherlandjamie
Focus on an industry Go narrow and deep
4 Develop expertise in a vertical
@sutherlandjamie
You are a business that sells accounting services
@sutherlandjamie
WINSTON CHURCHILL
Now this is not the end. It is not even the beginning of the end. But it is, perhaps, the end of the beginning.
@sutherlandjamie
Xerocon 2015 June 2-4
Denver, CO
@sutherlandjamie
Beautiful accounting software