The Future of Accounting. Here. Now.

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

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1. What’s going on in tech that’s important

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Computing power is increasing exponentially

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One insect brain

One human brain

All human brains

1920 2000 2080

Exponential growth of computing

@sutherlandjamie Source: Ray Kurzweil

Entire industries being disrupted

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Blockbuster → Netflix Borders → Amazon Yellow Cab → Uber Tower Records → Spotify, Pandora TV → Hulu, Amazon instant video Watches → Smartphones

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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

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“There was a time when every household, town, farm or village had its own water well.

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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

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Days to get paid 2 years ago

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Days to get paid in 2014

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Client expectations have changed

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What I want When I want it Where I want it

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The cloud debate is over

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2. Evolution of accounting

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SMB accounting

Third-party apps

Client management

Practice tools

FinancialData + Docs

The modern practice

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TODAY

Where we are at

Businessplatform

Connectedservices

Dataplatform

Change the game

Online accounting

Establish the platform to play

Full accounting

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Externaldata

Smallbusiness insights

Core data

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Big data for small business !

Coming early 2015

Cloud accounting Big data

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Want a sneak peek?

@sutherlandjamie

@sutherlandjamie

3. Rise of the tech accounting firm

@sutherlandjamie

Harshman Phillips & Company@sutherlandjamie

275%growth

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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


Bookkeeping +

$40-$150/hr

• Data entry • Bank rec • Bill pay • Payroll


@sutherlandjamie

Bookkeeping

$20-$60/hr


Bookkeeping +

$40-$150/hr


Accounting / Reporting

$80-$300/hr

• Data entry • Bank rec • Bill pay • Payroll • Reporting • Sales tax • Income tax


@sutherlandjamie

Bookkeeping

$20-$60/hr


Bookkeeping +

$40-$150/hr



$80-$300/hr


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…


@sutherlandjamie

Bookkeeping

$20-$60/hr


Bookkeeping +

$40-$150/hr



$80-$300/hr


CFO advisory

$100-$450/hr


• Cashflow forecasting • Biz valuations • Risk management • Burn rate analysis • Strategic planning • Etc…


@sutherlandjamie

Bookkeeping

$20-$60/hr


Bookkeeping +

$40-$150/hr



$80-$300/hr



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

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VIDEO: Aldridge Borden grows with Xero ecosystem

From reactive to proactive

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4. Future proof your firm

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Start using a cloud accounting product

1

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Appoint cloud champion & separate from core business

2

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Don’t charge by the hour3

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Valueis not connected to hours

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Starter Medium Large Custom

$900 $2,500 $5,000 $xx,xxxper month per month per month per month

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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

The Future of Accounting. Here. Now.

Technology

Transcript of The Future of Accounting. Here. Now.