The Future of Accounting: Cloud, Automation and Expert Advisory Services
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The document discusses the future of accounting and how technology is changing the industry. It notes that computing power and cloud technology are growing exponentially and disrupting many industries. This allows accounting to move to the cloud and be provided as a service. It suggests accounting firms position themselves as technology firms that provide advisory services in addition to traditional accounting functions. Firms should adopt cloud accounting software, focus on industries, and charge flat monthly fees rather than hourly rates.
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The Future of Accounting: Cloud, Automation and Expert Advisory Services
- 1. The Future of Accounting. Here. Now. Jamie Sutherland, President, Xero US @sutherlandjamie www.xero.com
- 2. 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
- 3. Are you using cloud accounting software? @sutherlandjamie
- 4. Percentage of accountants 6050403020 Hosted desktop Cloud Neither 0 70 Sleeter group—cloud accounting usage @sutherlandjamie
- 5. 1. What’s going on in tech that’s important @sutherlandjamie
- 6. Computing power is increasing exponentially @sutherlandjamie
- 7. One insect brain One human brain All human brains 1920 2000 2080 Exponential growth of computing @sutherlandjamie Source: Ray Kurzweil
- 9. Blockbuster → Netflix Borders → Amazon Yellow Cab → Uber Tower Records → Spotify, Pandora TV → Hulu, Amazon instant video Watches → Smartphones @sutherlandjamie
- 10. Software is eating the world. @sutherlandjamie Source: Marc Andreesen, Andreesen Horowitz
- 11. Mobile is eating the world @sutherlandjamie Source: Benedict Evans, Andreesen Horowitz
- 12. 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
- 14. Vivek Kundra FEDERAL CIO, UNITED STATES GOVERNMENT @sutherlandjamie
- 15. “There was a time when every household, town, farm or village had its own water well. @sutherlandjamie
- 16. Today, shared public utilities give us access to clean water by simply turning on the tap. @sutherlandjamie
- 17. Cloud computing works in a similar fashion. @sutherlandjamie
- 18. Just like water from the tap in your kitchen, cloud computing services can be turned on or off quickly as needed. @sutherlandjamie
- 19. Like at the water company, there is a team of dedicated professionals making sure the service provided is safe, secure and available on a 24/7 basis.” @sutherlandjamie
- 20. Improving small business at scale @sutherlandjamie
- 21. Days to get paid 2 years ago @sutherlandjamie
- 22. Days to get paid in 2014 @sutherlandjamie
- 24. What I want When I want it Where I want it @sutherlandjamie
- 25. The cloud debate is over @sutherlandjamie
- 27. SMB accounting Third-party apps Client management Practice tools Financial Data + Docs The modern practice @sutherlandjamie
- 28. TODAY Where we are at Business platform Connected services Data platform Change the game Online accounting Establish the platform to play Full accounting @sutherlandjamie
- 30. Big data for small business ! Coming early 2015 Cloud accounting Big data @sutherlandjamie
- 32. @sutherlandjamie
- 33. 3. Rise of the tech accounting firm @sutherlandjamie
- 34. Harshman Phillips & Company@sutherlandjamie
- 36. GARY BOOMER BOOMER CONSULTING “Majority of growth for accounting firms will come from advisory services…” @sutherlandjamie
- 37. Bookkeeping $20-$60/hr • Data entry • Bank rec Virtual accountant value-chain @sutherlandjamie
- 38. Bookkeeping $20-$60/hr • Data entry • Bank rec Bookkeeping + $40-$150/hr • Data entry • Bank rec • Bill pay • Payroll Virtual accountant value-chain @sutherlandjamie
- 39. 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
- 40. 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
- 41. 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
- 42. 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
- 43. Anything that can be automated will be @sutherlandjamie
- 45. https://www.xero.com/us/tv/video/?id=7012-aldridge-borden-grows-with-the-xero-ecosystem @sutherlandjamie VIDEO: Aldridge Borden grows with Xero ecosystem
- 46. From reactive to proactive @sutherlandjamie
- 47. 4. Future proof your firm @sutherlandjamie
- 48. Start using a cloud accounting product 1 @sutherlandjamie
- 49. Appoint cloud champion & separate from core business 2 @sutherlandjamie
- 50. Don’t charge by the hour 3 @sutherlandjamie
- 51. Value is not connected to hours @sutherlandjamie
- 52. Starter Medium Large Custom $900 $2,500 $5,000 $xx,xxx per month per month per month per month @sutherlandjamie
- 53. Focus on an industry Go narrow and deep 4 Develop expertise in a vertical @sutherlandjamie
- 54. You are a business that sells accounting services @sutherlandjamie
- 55. 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
- 56. Xerocon 2015 June 2-4 Denver, CO @sutherlandjamie