2. Welcome to XeroCon 2012
Mark Wright, MC

3. Rod Drury
CEO, Xero

4. XeroCon 2010
• First XeroCon kicks off in
Napier
• 75 attendees
• Feel the potential

5. XeroCon 2011
• Wairakei, Taupo
• 250 attendees
• Minister of Small Business
• Wayne Schmidt bungy
video goes viral

6. XeroCon 2011, Australia
• Crown Hotel, Melbourne
• 172 attendees
• 19 network partners
• Unveiling of the Chris Ridd Band

7. And now
XeroCon 2012
Viaduct Events Centre, Auckland
7 Keynote speakers
3 Streams
400 attendees

8. Update
• Over 170 staff spread across NZ, Australia, UK and USA
• Listed in 2007 – raised $70m
• 8th in Deloitte Asia Pacific Tech 500
• NZ Fastest growing exporter in Deloitte Fast 50
• 50TB of production data and backups
• 99.99% service availability and no security breaches

9. 60,000+
Customer acquisition record
Chasing a million customers
2007 2008 2009 2010 2011 Jan-12

10. 240,000 Xero users

11. 3,300 firms using Xero

12. 75 API partners
5,500 add-on connections

13. $75 billion processed

14. Customers in over 100 countries

15. Online accounting journey
payment graph
group buying
business network
smart
Electronic Data
Interchange
(EDI) notifications
invoicing portal
bank feeds
benchmarking Shared
connected data
multi-user
anywhere payments
leads and
opportunities
online anytime
mobile

16. The business of accounting
Banks
Telco
Business
Graph
Govt
Large
Biz
Advisors

17. In the cloud...
business software is not a
software business

18. Changing of the guard
• MYOB sold to Archer Capital in January 2009
for AU$382m
• Archer sold to Bain in August 2011 for AU$1.2B
• Deal funded with $575m debt
• Users revolting at community.myob.com
• Character and values of new owners Bain
Capital in focus with Mitt Romney bid
• Focussing on returns to a few,
not customers or partners
• Traditional VENDOR relationship

19. True partnership
• True belief that advisors drive small business productivity
• Client and Accountant software should be seamlessly connected
• The client pays - not the advisor
• Flourishing ecosystem
• Tools you need to drive your business
• Use our experience to commoditise your total technology spend
• Drive new revenue, opportunities and leads to you
• Have some fun, with style, quality and values

20. From vendor
to partner

21. Small Medium
Small Medium Large
Partner Edition
• Cashbook
• Ledger
Reporting
Practice Management/Tax
Website Document
e-Marketing Management Office/Email

22. The Modern Practice update
• First demonstrated at Xerocon 2011
• Aims to commoditise your back Document
Management
office spend
• We’ve been working with a number
of accounting partners and providers
• Results have been mixed
• Documents/File Management is hard

23. The problem
Your IT environments are a mess:
• Many practices have out of date hardware
• Ad hoc infrastructure
• All sorts of software running
Migration was too hard:
• Adding Document Management requires a clean up
• Implementation projects too long and frustrating
• Technology and vendors not quite ready

24. What you need to do
Start with an audit of what you have
Standardise your network with the right base technologies:
• Common desktop
• Remote service agents
• Implement a security model that syncs desktop with cloud storage
Plan for implementation:
• Initial remedial phase to get onto standard platform
• Transition from file to document management is non trivial
• Invest time to get the benefits

25. Two Document Management approaches
Do it yourself Project managed
• Self-service model • CodeBlue manage from
start to finish
• Setup and migration
through Provoke portal • Setup and migration taken
care of for you
• Online support
• More of your time involved • Onsite and phone support
• Low cost • Less of your time involved
• Larger investment

26. Practice management platform
Xero with WorkflowMax & Tax:
• Practice management platform
• Online tax filing in NZ
• Key Modern Practice component
• Accelerates growth in NZ & AU

27. Practice management
Add 20 clients
and it’s free
for life

28. Directory delivers you new clients
Association badges
LinkedIn profile

29. Delivering the
Single Ledger

30. Partner program update
A new program will be launching:
• Support you to build your modern practice
• Access to webinars and face to face consultancy
• Improved marketing resources
• Executive and advisory groups
• Focus on driving business opportunities to you
• Plus loads more

31. Key initiatives for 2012
• Completing the platform
• Driving network effects
• Linking customers together
• Online invoicing
• Single Business Number
• Demonstrating the power of the data
• More on mobile – apple sold 15.4m iPads last quarter
• Stunning partner solutions to chase verticals

32. Strong balance sheet
• Raised an additional $20m to continue to fund our growth
• Launched Share Purchase Plan
• Fair to all shareholders
• $2.75, up to $15k
• Shareholders as at 14 February 2012
• Funding used for
• More R&D
• Auckland development office
• Expansion in UK, AU and USA

33. Xero has two new homes
Xero House Xero Auckland
5 Market Lane 69 St George Bay Road
Wellington Parnell

34. Sticker the country

35. XeroCon streams
Stream 1: Stream 2: Stream 3:
Transform Modernise Educate
Focus on the bigger The beauty of Use Xero more
picture – the future implementing the efficiently, convert
of accounting, and Single Ledger and clients, Report Packs
profiting as a becoming a Modern
connected practice Practice
Hamish Edwards Leanne Graham Sue Pak

36. Xero
Roadmap
Andrew Tokeley, Craig Walker, Sara Goepel

37. Keeping us honest
What we said we’d do…
• Report packs
• NZ/AU credit card feeds
• Pre/Overpayments
• Discounts
• Inventory quantities – Farm accounts
• Budgets:
- Improved UI
- Multiple with Tracking
- Import/Export
• Cashflow forecasting
• Enhancements to Partner Edition

38. Keeping us honest
What we did…
• Report packs • Mobile Touch
• NZ/AU credit card feeds • NZ rural bank feeds
• Pre/Overpayments • Invoice/receipt attachments
• Discounts • Address lookup
• Inventory quantities – Farm accounts • Duplicate AP warning
• Budgets:
- Improved UI
- Multiple with Tracking
- Import/Export
• Cashflow forecasting
• Enhancements to Partner Edition

39. What’s in store
for 2012?
Headliners

40. What’s in store for 2012?
Report Packs
• Custom Report Fields
For example:
- Solicitor
- Banker
- Overdraft size
- Company secretary

41. What’s in store for 2012?
Report Packs
• Automatic schedules for Current Accounts and Loans
• Report Code Updates
• and more...

42. What’s in store for 2012?
The rest:
• Purchase orders
• Quotes
• Stock Lite
• Setup and conversion tools

43. What’s in store for 2012?
The rest:
• Multiple budgets
• Global search
• Online invoices
• Mobile
- Android
- Bank reconciliation
- Personal
• More Partner Edition enhancements
• More Personal

45. Cruising
on the Cloud
Trevor Schoenmaekers, Hansen Accountants

46. CRUISING ON
THE CLOUD
Presented by Trevor Schoenmaekers

47. The cost of compliance
• Hansens story
• Where we were
• Where we wanted to go
• Roadblocks
• Looking for a solution
• A leap of faith!

48. Fixed fees
• Value based billing
• Why it works
• Efficiencies and systems

49. Our Team
• The old generation
• The new generation
• Our roles that make us a TEAM
• Accountability
• Our new found culture

50. Motivation
= = =

51. Today on Cloud
• Our practice
• Sorry our Business
• Our clients
– Efficiencies & value
• The benefits for all
• KPI’s

52. Our future & vision
• Cloud solutions and integration
• Other cloud based solutions
–Tax
–Corp Secretarial
• Growth
• Abundance
• Satellite offices

53. Thanks for letting me
share our storey

54. Not your average needle
David Jessep, DJCA

55. Not$your$average$needle..

56. #eqnz$Feb$22$
6.3$Mag
2.0$x$force$of$gravity

57. The$Twisted$Hop

69. Some$of$us$got$drunk..

70. Others$tried$to$save$the$city

71. Three$days$later$we$
were$up$and$running

72. What$did$we$learn?

73. Rising$from$the$ashes$
#eqnz

74. A$Modern$PracMce$is$
the$only$way

76. Meet our exhibitors

77. Xerocon exhibiting sponsors
online inventory software

79. Profiting as a
connected practice
Hamish Edwards, Co-Founder, Xero

80. The Changing Environment
Challenging economic
climate for clients
v
Commoditisation of compliance
Increasing costs of labour
Your clients need your help

81. Efficient
Real Time Integrated
Connected Demystified
The cloud impact

82. What clients want
Know my game plan
Get my tax done right
Be proactive
Improve my cashflow
Return my calls
Save me tax
No surprise bills
Treat me well
Treat my staff well

83. Clients want to be
surprised once in a while

84. What do we want from our clients?
Understand how to use the software
Be aspirational
Have an open mind & listen
Be responsive
Have a plan
Have board meetings & management reports
Know your life goals

85. The Single Ledger
LEDGER CASHBOOK BUSINESS
BANK BUSINESS ANNUAL
FEEDS TRANSACTIONS REPORTING

86. Xero Connection
OLD WAY Friction NEW WAY No Friction
Ask client for datafile Login to Xero
Remind client to send the datafile Compile reports
Check email & save datafile to hard drive Review data & make adjustments
Remember client’s password & version
Upload to my copy of the software
Compile reports
Review data & make adjustments
Send file back to client
Explain & remind how to overwrite current file
Approx $300 No cost!

87. Frictionless process
50%
of fee
Draft
Pre-plan First draft Custom sent
the & workpapers questions
workflow for client

88. Frictionless process
100%
of fee
Send finals Meet with
Client Final to client
answers review client
auto-
update

89. 3 biggest efficiency gains for your practice
+ +

90. Demo Xero Annual Reporting

91. Demo Spotlight Workpapers

92. Demo WorkflowMax

93. Give me the numbers
Hamish Edwards, Co-Founder, Xero

94. The efficiency paradox
Efficiency
Efficiency ==Extra
Extra
Capacity
Capacity

95. The efficiency paradox
FIXED OVERHEADS
Efficiency
Efficiency ==Extra
Extra
Capacity
Capacity

96. How do we measure up?
Average hourly rate
Write offs
WIP/lock up days
Revenue : Salary ratio
Average fee per client
Debtor days
Net profit before tax %

97. The KPI Spotlight
Average
hourly
Average rate
fee per
client

98. The
$4800
Challenge

99. The practice manager’s
dilemma
1600HRS + $120 = $192,000
Annual
revenue
capacity

100. Bundling: The Desktop Way
Service Hours
Annual Reports 20
Tax Returns 1
Tax Management 1
2 Monthly GST 4
¼ly Management Reports 6
¼ly Meeting 6
Tax Forecast 2
40

101. Bundling with Xero
Service Hours
Annual Reports 10
Tax Returns 1
Tax Management 1
2 Monthly GST 2
¼ly Management Reports 2
¼ly Meeting 6
Tax Forecast 2
23

102. KPI: AVERAGE HOURLY RATE
$120 $209

103. ANNUAL REVENUE CAPACITY
$192,000 $333,913

104. How do we fill the void?
More clients
More compliance
or
More value for existing clients

105. The Answer
Efficiency Bundles Management
Magically
Reports
creates = Opportunity
more time

106. It’s not about time
Build in
efficiency
More Capacity
Services increase
Proactive 1/4ly Mgmt
Advice Report

107. Questions Before we break

108. Grow my bottom line
Hamish Edwards, Co-Founder, Xero

109. Bundling
1) Design 2) Create 3) Propose 4) Deliver

110. 1) Design
Full Bundles Proposal Terms
Services document
Menu

111. 2) Create
Proposal
FEATURING
SILVER
BUNDLE

112. 3) Propose
Proposal Full
All
FEATURING Services
Services
SILVER Menu
BUNDLE

113. 4) Deliver
Proposal
$

114. The best bundle
• Annual Report
THE
BEST • Annual Tax Return and Tax Management
BUNDLE
• Two Monthly GST
• Two Monthly Management Reports
• Quarterly Catch Up Meetings
• Xero

115. Let’s hear from Justin Keen

117. Management reports = more fees
Open management report demo

118. Value-added Services
Tax Minimisation Review................................................$500
Simple Cashflow Forecast...............................................$750
v
Review pricing, margins and product costings................$1500
Strategy day & draft Business Plan..................................$3500
Board meeting attendance..............................................$250
Build the financial model for the business......................$500
Review & recommend internal systems improvements....$2500
Review and recommend new software............................$500

119. Example 1: Upsell
Take the basic bundle. Then add:
Monthly management report
Monthly revised cashflow forecast
Attend board meetings “Become the
Annual strategic planning day Virtual CFO”
Annual budgets
Annual tax minimisation review
Monthly fee $2000+

121. Example 2
$250/month
Debtor
Xero + Daddy = debtor recovery
business
Add this to $4800 = $7800
average fee per client

122. Accountants: cloud tech leaders

123. My challenge to you
Stop billing time.
Become collaborative.
Build efficiency.
Sell value via bundles.
Use Xero.

125. Modernise

126. Agenda
Intro Leanne Graham
Modernise Brad Golchin
Guy Pearson
Margaret Holmes
Justin Keen
Moving to WorkflowMax Gavin George
Moving to Xero Matt Barnett
Office 365 Update Fred Piliu & Paul Bowkett
Wrap-up Leanne Graham

127. Wise Advice
Brad Golchin

128. Interactive Accounting
Guy Pearson

129. Engine Room
Margaret Holmes

131. 2001$New$Company$new$mindset $$
2003$Bank$Connect $$
Value$Pricing$
2007$Xero $$
Fixed$Price$ Website$
Agreements$ Online$Coding$&$ 4$Clients$on$full$Xero$
More$than$ reporFng$ Then$Us$
compliance$ CollaboraFon$ All$new$clients$to$
Xero$
Banklink$Workflow$

132. April$2009$–$gePng$clients$involved$
September$2009$–$mindshiT$to$new$technolgies$
Xero$Cashbook$
October$2009$
All$GST$clients$ iFirm$PracFce$
Upgrading$clients$to$ Management$ Going$paperless$
Full$Xero$ Double$screens$
Dropbox,$

133. April$2010$
June$2010$
All$clients$to$Xero$
iFirm$Tax$Management$ 2011_now$
New$Name$
New$premises$ Server$–$4$years$old$
E360$Website$ Spotlight$ReporFng$
Blogging$ Tech_talks$
TwiZer$(@engineroomnz)$ API’s$
Seminar$Series$ Office$365$
Workflow$Max$

134. What we learned…
• Change is hard
• Understand “Why”
• Internal innovation
• External focus
• Success not perfection
• Return on investment

135. “Without change, there is no
challenge, and without
challenge there is only the
status quo but no progress.”
Stanley Marcus,
Founder Neiman Marcus

136. Cloud Accountants
Justin Keen

137. Cloud Accountants
Xero Presentation
www.cloudaccountants.co.nz

138. Contents
• Introduction
• Cloud Accountants philosophy
• What is next?
www.cloudaccountants.co.nz

139. Introduction
• The profession
• Technology
• Clients are driving the change
• Where are we headed?
• And are we ready?
• Clients will demand value
• Online systems
• Inventory, payroll, workflow, CRM, skype, dropbox, etc
www.cloudaccountants.co.nz

140. Cloud Accountants
philosophy
• Streamline processing transactions and compliance
• No more headaches
• Agreed monthly fees
• Speak to the numbers on a regular basis
• Transparency
• Use technology, social media
• Guaranteed timeframes
• Innovative team
www.cloudaccountants.co.nz

141. What’s next?
• Simplification of tax compliance
• Looking to add more value over and above compliance work
• Examples
– KPI reporting on a regular basis
– Budgets, cash flow forecasts
– Real time tax management
– Other, keep innovating
www.cloudaccountants.co.nz

142. Moving to WorkflowMax
Gavin George

143. WFM Implementation
Process:
• Initial implementation meeting
• Data conversion
• Practice and Tax Manager configuration / setup
• Training

144. WFM Conversion
• Client data
• Tax data
• Documents
• WIP
• Recurring jobs
• System setup

145. Xero Integration
• Practice key
• Individual ledger link

146. Training
• System admin / setup
• Creating and managing jobs and clients
• Tax management
• Time sheeting
• Quoting and invoicing

147. Moving to Xero
Matt Barnett

148. Creating the plan
We will work with you to:
• Understand your practice and your clients
• Produce a project plan
• Outline expectations for the move

149. Preparing your data
Send us your client details ready for the move:
• Organisation details
• GST details
• COA type
• Bank accounts

150. Making the move
We take care of setting up your clients in Xero and uploading
their data so it’s ready to start using day-to-day.
We’ll send you pre-filled bank feed forms for your clients,
making it simple to get their bank feeds set up.

151. Letting people know
Moving to a new system is a big change so it’s important
to make sure everyone knows what’s happening.
We can help with:
• Letter templates
• Client introduction events
• Training and support

152. Good to go!
There’s still more information to bring over but Xero is
now ready to use for the day-to-day like GST filing and
sending invoices.

153. Completing the transition
To take full advantage of Xero and it’s powerful reporting
you’ll still need to enter:
• Fixed assets
• Conversion & comparative balances
• Any pre-coded bank data
• Create report templates

154. A lasting relationship
With new features and opportunities along the way,
we are always here to help:
• Training and events
• Ongoing support

155. Office 365 Update
Fred Piliu & Paul Bowkett

156. Wrap-up
Leanne Graham

158. Educate

159. Agenda
Reporting in Xero Sue Pak & Amy Victor
NZICA Professional Development Frank Owen
NZ Bookkeeper Association Melanie Morris
Case Studies / Client Scenarios Sue Pak, Melanie Morris & Jon Winter
Wrap-up Sue Pak

160. Reporting in Xero
Sue Pak & Amy Victor

161. Reporting trends
• Small business is driving innovation & trends
• The internet has given us cheaper alternatives for collecting business
information
• Business owners now expect up-to-date information
• Our job is to convert that data into something meaningful
• What does your client want? !

162. Reporting in Xero
• Introduction
• Thinking ‘outside the box’ – tips for efficiency
• Customising layouts – creating a ‘Trading Account’
• User Define Reports – building a ‘minutes’ report pack
• Schedules – building a standalone schedule (e.g. loans)
• Notes – full customisation verses using defaults in Xero!

163. Report Code Mapping
Delivery$Van$:$#2$
Management
6:2550$:$Travel$Mileage$
Reports
Petrol$Costs$ Vehicle
Expenses
241$:$Mileage$
EXP.VEH
240/01$:$Motor$Vehicle$Expenses$
Unit$Van$:$Travel$$ Financial
Statements
Dave s Truck !
Any$Chart$of$Accounts$ Report$Code$ Report$Packs$

164. Case studies &
client scenarios
Sue Pak, Amy Victor & Jon Winter

165. Case studies & client scenarios
• Anna’s Trust Property Investment / Rentals
• Boutique Kitchens
• General tips and tricks!