Post on 26-Jun-2015
description
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
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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
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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
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4. Future proof your firm
@sutherlandjamie
Start using a cloud accounting product
1
@sutherlandjamie
Appoint cloud champion & separate from core business
2
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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
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You are a business that sells accounting services
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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