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Editor's Notes
The big picture is that we are passionate Kiwi’s
In the past 3 years - we have invested over $15 million into tools within Xero at no charge to accountants. As at Sept 08: 2,000 clients – at Sept 09: 12,000 clients Customers in over 50 countries 450+ Accounting Partners
We want New Zealand to be a better place. It’s about productivity. As percentage of GDP: Government – about a third (33%) Corporate – 29% Small Business – 38% Government has policies in place to deal with public sector productivity Corporates have boards and shareholders to ensure they are productive The challenge is, how do we drive productivity across the fragmented base of small business owners?
The small business sector is massive. The upside is enormous for the country. You can’t talk to everyone. Therefore technology must play a big part in small business productivity. Lets review technology for small business.
The small business sector is massive. The upside is enormous for the country. You can’t talk to everyone. Therefore technology must play a big part in small business productivity. Lets review technology for small business.
The small business sector is massive. The upside is enormous for the country. You can’t talk to everyone. Therefore technology must play a big part in small business productivity. Lets review technology for small business.
We are beginning the 3 rd generation 1 st generation – few oldies in the room might remember the green screen computers. Electronic adding machines 2 nd generation – the Window’s phase 3 rd generation – we are already there and it’s moving quickly. Online has been around for 10 years now. Most are using online in other parts of their life. The big thing about on line is the data is moved into a central place where it is easy to access and everyone works on the same copy of the data.
Already we are starting to see the 4 th generation where you can access your financials from anywhere. Imagine a builder who does the books late at night. He can’t call a client to pay their bill at 9:30 in the evening. Now he can do during the day. Big impact coming from low cost NetBooks in 2010 This space is moving very quickly
Up to 35% of fees are related to client friction and ‘pick up/put down’ costs The client software has stopped you working on a monthly basis with your clients because it costs them $300-500 per month just to get the data The software has trained your clients not to use you Biggest opportunity is to help drive the business forward 80% of clients want more help from their accountants, working in a different way to help reduce costs Small Business Move the accounts out of the factory Xero changes the dynamic working with your clients Have a monthly relationship with your clients, see what they are doing now Advisors With client software you’ve lost the ability to talk monthly with your clients – you have an end of year relationship
Getting accountants and advisors involved with small businesses every month is the key to small business productivity. If you are involved with helping a business they are more likely to: Improve their cashflow Get a business loan for some new plant and equipment Add a new staff member Export some goods So we want to connect 440,000 SME’s with the 2500 accounting firms in NZ. You are the key to making NZ a better place.
For the last 20 years you’ve worked in a disconnected world that has forced you to have an annual relationship with your clients. By putting the data in the cloud you can easily collaborate on the same data set – we call it the dream ledger. We also knew we need to change processes and behavior. Automated daily bank feeds are the key to that transformation.
The old way Installed on a PC Master file The new way: Access to the clients’ accounting systems Ability to collaborate in real time Anytime, anywhere, any device Unlimited users with different user roles and permissions Extend the life of IT systems
This new time with your customers provides opportunities to upsell high value and high margin services
Accountants have a variety of customer with variety of capabilities. We’ve design the software to allow you to tailor how you work with your various clients.
Xero redesigns the business process The feedback we get is that people now love doing their accounting because it’s fun and easier.
This is to be used as an example as to why design matters.
Old Way Buy the software then pay a monthly fee for support and an annual upgrade fee
Old Way Accountant re-keys data Clients and accountant ledgers out of sync Time used to compile Annual billing Annual reports Compliance focus You own the clients accounting system (virtual CFO) Now’s the Time.
We has also delivered a new platform that will allow you to leverage that connection to all of your customers. Imagine seeing a list of notifications across your client base so that you can be proactive in the morning. Imagine knowing what customers have US dollar invoices to pay when the currency moves.
Productizing your service in a menu of monthly opportunities. Look for value added consulting opportunities. High value, high margin
As an online company – we don’t produce lots of collateral – but there are bits and pieces we do for Xero and for you, our partners. Plus we manage a range of merchandise that we use as giveaways at events etc.
Our marketing partners (BNZ/Telecom NZ and Telstra Australia) do a lot of that for us. They feature Xero in lots of their direct and public facing marketing activity like direct mail campaigns, in-branch/store collateral, catalogues, and Welcome packs. Everyday 1000’s of small businesses are introduced to Xero through our partners. Why do they promote Xero? They see us as a really important partner as we “bring to life” the value of their core propositions eg: broadband, mobile broadband, internet banking – we become the business application that small businesses need & want and require their services to enable. These intiatives mean more of your clients are hearing about Xero every day.
Explain how we engage with accountants Website – www.xero.com Watch the videos Online webinars Xero free demo Partner agreement – www.xero.com/accountants Training Test with client Identify clients to target Conversion process and timeline Get into the directory to receive new opportunities Give us feedback on what else we can do for you.
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