Accounting Tech Archives - Page 2 of 216 - The Latest on Accounting Tech For Future Focused Firms

3 Ways analytics is revolutionising ERP software and how we interact with it

February 13, 2019 by Inbal Rodnay Steinberg

How personalised would you expect your interaction with your ERP system to be? Turns out, our operational apps can be more adaptable, more proactive, and more insightful that we’ve ever imagined.

Oracle NetSuite ran its SuiteConnect conference in Sydney this week. Paul Farrell, VP industry product marketing and Jason Maynard, SVP global field operations, shared some exciting ideas about the future of ERP.

ERP will adapt itself to how we use it

Paul showed their Intelligent Form Assist. This enthusiastic helper identifies patterns in how I complete data entry forms, and then starts guessing what I will do to before I do it. For example, it will:

Identify that I usually only complete four out of the nine fields on the page when I record a new client, and highlight those fields for me
Notice that I typically tick the GST-free box for certain types of suppliers, and pre-tick it for me
Figure out the logic I intuitively apply when deciding order priority and suggest the priorities as I would

These are not rules that someone created in the system. It is simply the system watching my on-screen behaviour, identifying patterns, and predicting what I will do next.

My favourite part is that it marks every action it takes, and shows a little tooltip that explains the rationale behind it. It will be interesting to see what it teaches users about the workings of their own intuitive decisions.

I love this new sense of elasticity in a system category that we traditionally perceived as rigid and heavy.

Netsuite’s Form Assist suggests: You have set Order Priority of 1 to 84% of customers with industry Wholesale and Annual Revenue greater than $5M.

ERP will identify, think and act faster than us

What Paul showed next, gave me the same feeling I had when I first experienced a sports car from the driver seat: right, now we have power, let’s go! As background, we looked at how “analytics latency” drives “reaction latency”.

As a human:

It takes me time to know that there is a problem. Eg., a shipment is running late
Then it takes me time to understand why. Eg., that shipper has been slack recently
Next, I scramble around figuring out a solution
And finally, I need to actually go about fixing to the situation

So: Detect -> Analyse -> Decide -> Act.

Every step that requires a human, will take time. Any step that can be automated will shorten our time to resolution and minimise the potential damage.

Paul showed a live demo (recorded, but real working system) of Netsuite’s Predictive Risks page. It showed that a certain shipment is at risk of being late. At risk, but not late yet. We are predicting a problem before it actually happened.

Predictive risk: 78% chance of this shipment being late

It then goes on explaining (Analyse) that this is because 61% of the shipments by that shipper over the last week were late. It then suggests a solution (Decide). The ERP should fulfil the order from another location from which 89% shipments arrived on time in the last week and it also has excess inventory.

A one-time recommendation dynamically constructed by the ERP system

Finally, I can authorise the system to just go ahead and apply the fix. This saves me the hassle of updating orders across the system.

So we’ve seen the system convert ‘identifying that we have a problem’ to ‘predicting that we are at risk of having a problem’, explain the reasoning, suggest a solution, and carry it out.

The effect on reaction latency must be huge here. It turns the whole idea of reporting on its head. I don’t want to review reports. I want this enormous computing power to analyse, predict and really think for me.

Big Brother, but in a good way

Consider the colossal amount of business data that Netsuite has access to. More than 20 years of business data, across 40,000 Netsuite users plus access to (anonymised) Oracle data cloud.

That’s a lot of data.

Data + machine learning = better business results. Oracle Netsuite has a group of savvy data scientists fine tuning a bunch of sophisticated algorithms to draw business potential out of data.

Netsuite has access to a vast amount of business data

Privacy concerns aside, there is a lot to be learned from such a treasure trove of a dataset. NetSuite claims to be able to recommend business improvements and fine tuning, but more excitingly, opportunities for growth, based on machine learning algorithms analysing our business data, and the cohort of other businesses in our industry.

NetSuite can identify that one of its users is at a prime position to grow into a new market, optimise their pricing structure, or bring manufacturing in-house.

Speaking to Netsuite partners it seems that they still don’t have access to this knowledge to make growth recommendations for their clients. But assuming that the tools are being cut and sharpened now, the power of ERP systems for small business has just been supercharged, big time.

Disclosure: Inbal Rodnay Steinberg travelled to SuiteConnect in Sydney as a guest of Oracle Netsuite.

Firm of the Future 2018: Regional Business Services (AUS) – app stack and business model

November 6, 2018 by Sholto Macpherson Leave a Comment

Meet the other finalists:

Recommending apps is clearly one of the strongest ways to increase the relevance of your firm. Ian Yesberg of Regional Business Services, in Australia, has adjusted the composition of his staff by hiring more tech-savvy juniors to research apps and find recommendations for tradesmen and health professionals.

FIRM STATS

Name of Company	Regional Business Services Pty Ltd
Location of Company	Townsville, AUS
How long have you been in business?	18
Number of staff?	8
Number of clients?	0
Staff to client ratio	0
Do you outsource bookkeeping or accounting work?	No
What % of your clients are on value pricing/fixed fee?	50
What % of your clients are on cloud accounting software?	99
What % of your clients are on QBO?	95

Digital First: Why do think you are a finalist?

Yesberg: We’ve probably gone a little bit harder, a little bit faster, than other people that we come across in the ProAdvisor community. That’s the only reason. I see a lot of us are all on the same journey; we just seem to have got there a little bit quicker. You can count on one had those we don’t have on cloud accounting software. We do some advisory, and we get involved in social media, to expand our reach.

Digital First: With advisory, what exactly do you offer?

Yesberg: There’s the standard financial accounts and we use Fathom for that. I’ve been doing this for 18 years. Prior to that, I had 25 years in commercial finance in a bank. Back in those days we actually pulled apart financials. Since I left the bank we’re now creating the financials, so we’ve got a fair insight into that. We’ve always talked to our clients if we think things are moving not quite right.

We also take advisory to mean introducing small business productivity apps to help get their business more efficient.

Digital First: So what type of apps, and how many apps do you feel comfortable recommending?

Yesberg: We stick to a smaller number. The apps we use ourselves in our office environment, and then point of sales, mainly job management type software, point of sales, your Google Drives. ServiceM8 is a big one. They’re the main areas.

FIRM APPS

What apps do you use for productivity?	Office 365
What apps do you use for workflow?	Work
Tax and Statuory accounts?	QBO, Gov Reports
Electronic signatures?	Adobe
Document storage?	Google, One Drive, Hubdoc
CRM?	none
Time tracking?	QBO
Expense management?	Hubdoc
Credit Control?	none
Management reporting?	Fathom

Digital First: And how do you recommend apps? Do you have one person in the business who does it, or does everyone who’s client facing has some experience?

Yesberg: There’s three of us who get involved out of eight staff. One spends all their time in it. In term of the apps, we do a bit of research then go to the client, and offer them three packages. Which is really we’ll get you up and running and then you’re on your own, through to we will help you fully implement it, train you in it, and provide support for two or three months while you’re getting things going.

Digital First: How do you find the time to train yourselves in all these apps so that you can train your clients?

Yesberg: Not easy. The two or three of us who do it are probably all tainted with the same brush; we just like to fiddle with things. It’s more an interest, and probably more done outside of normal work hours. But if we come across someone who’s done something similar, we see things that work with other clients. We’ve got a couple of hundred clients, and they tell us about (a new app), and we then go away and focus on that or look at the alternatives that others are recommending.

Digital First: Do you focus on any specific industries?

Yesberg: Two or three. The health industry is our target for the next 12 months for bookkeeping, advisory or working with them on their KPIs. We’ve been working with that industry for 20 odd years, so we know it inside out. Then probably the tradie industry. We’re not specifically targeting that as such but we get a lot of referrals in that area. And that’s more your plumbers, using apps like ServiceM8 and simPRO or Tradify,, which are fairly common in that industry.

Digital First: Do you think that you’ll look for staff who are interested in technology more than accounting?

Yesberg: We’ve just started with a third year accounting student in the last couple of months. We’ve hired her specifically because she’s far more advanced in their knowledge and skills in tech than I will ever be. It’s native to them, where it’s not to me. We’re using that as a bit of a test, but if that works out, we’ll bring on more staff with those skills.

Digital First: And do you think this is a model for accounting firms, that clients would be turning to accountants for technology?

Yesberg: Yeah. We’ve had a deliberate strategy. Our staff are aged from early sixties through to Catherine who’s 20. And we find that that works really well because the clients I’ve got a rapport with are all starting to think about selling their businesses and moving on. The younger people can react far better on a day-to-day basis. So in some ways, it’s a deliberate strategy to make sure we’re remaining relevant to all sectors of the market, to all demographics.

Digital First: And in terms of automating the compliance work flow, what have you found has made the biggest impact?

Yesberg: Without a doubt, it was the bank feeds, that started with us. Then we started 18 months ago with Hubdoc. Even simple things like a rule in Outlook that when a statement or an invoice comes into the customer’s inbox, a copy is automatically sent straight through to Hubdoc. When an item comes into Hubdoc, it can automatically save a copy into the QuickBooks and the client’s Google Drive.

So when clients go looking for what used to be bits of paper – invoices, statements – they can actually access that in Google Drive without necessarily looking into QuickBooks, which we’re working on all the time. So the little things within the apps, if you really know the detail of what they can do, it can really make that automation experience that extra step.

So it’s really knowing your products intimately that we use in-house, that is what makes the difference.

Firm of the Future 2018: Reconciled (USA) – app stack and business model

November 6, 2018 by Sholto Macpherson Leave a Comment

Meet the other finalists:

Michael Ly is convinced that the rapid growth of his three-year-old firm to 18 staff is connected, at least in part, to the location of its head office. The firm, Reconciled, is in Burlington, Vermont, a city and state associated with the good life.

Not that all 18 staff live in Vermont. Reconciled has a distributed or remote team that communicates via video (Zoom, Google Meet) and chat (Slack). The work-at-home vibe contributes to a culture that flows through to better customer service, Ly says.

FIRM STATS

Name of Company	Reconciled
Location of Company	Burlington, Vermont USA
How long have you been in business?	3
Number of staff?	18
Number of clients?	100
Staff to client ratio	10
Do you outsource bookkeeping or accounting work?	Yes
What % of your clients are on value pricing/fixed fee?	100
What % of your clients are on cloud accounting software?	100
What % of your clients are on QBO?	100

Digital First: Why do you think you are a finalist?

Michael: The reason that we are a finalist is the Intuit is recognising the work that we have been doing over the past three years. We have 18 people, working in five states, and we have established ourselves as a pioneer in the online bookkeeping space.

We are a distributed virtual team and we leverage all the technology that Intuit has given us as a firm to serve our clients, as well as the app ecosystem.

(Other reasons for our selection include) the team that we have built here at Reconciled and obviously the growth that we have been having as a firm.

Digital First: How are you a pioneer?

Michael: I think we have built a brand that customers can trust. When our customers look at the landscape of what’s being offered to them with cloud based accounting firms they look for a brand story, a trusted brand that they resonate with. They see my story in starting Reconciled and it resonates with their own story as an entrepreneur.

Cloud based accounting firms might be the norm in the rest of the world but it’s not the norm in the US. it’s still a small percentage of firms that are cloud based and distributed.

Digital First: What is it about your brand that makes you trusted?

Michael: I think that they want a genuine, authentic person behind the brand. I moved to Vermont to raise a family and I wanted to find a way to build a business and a legacy for my family while doing it from a small state and city like Burlington, Vermont. Burlington is known for high quality products. When we talk to customers a lot of them say they like that we’re in Burlington, Vermont. Even though we’re not in the same state we resonate with the story and what Vermont represents – high quality products and services, progressive values, as well as a meaningful life.

You hear a lot of stories coming out of Silicon Valley but a lot of entrepreneurs desire the higher quality of life that Vermont has to offer.

Digital First: I don’t know anything about Vermont. What high-quality products does it produce?

Michael: Ben and Jerry’s, a famous ice cream brand. Seventh generation is a high quality cleaning brand. Lake Champlain Chocolates. We also have the highest amount of breweries per capita in the US. We have really high quality alcohol. A number of tech companies have come out of here.

Probably the most famous guy to come out of here is Bernie Sanders. He’s down the street from my house.

Digital First: So your clients are getting a slice of high-quality life by using you as their bookkeeping firm?

Michael: Yes, and they can see that our employees are not hurried or rushed. They work as a distributed team and from home so they are able to enjoy their lifestyle and work. Rather than getting in a car and driving to an office (every day) our employees can invest that time into their families and community. Our clients understand that they are much more fulfilled.

I’ve believed that if I could give quality of life for my team it would resonate out through their services. Because the work that they are doing can be repetitive work – reviewing financials and transactions. It can also be stressful. We built a work environment and we have given them a normal amount of work that a normal human being can do.

I really think our team is happier and fulfilled and that reflects in the way that they communicate with our clients.

Digital First: So culture is a big selling point?

Michael: Yes.

Digital First: Do you provide advisory and software implementation?

Michael: We have a standard software stack for clients. We use Receipt Bank, Bill.com and QuickBooks Online. Then about 25 percent of our bookkeeping clients sign up for advisory services. These would be anywhere from cashflow forecasting, estate planning, helping them raise money with a bank or investors, big debt negotiation and general management and advisory services. We also do app implementation and heavy research in apps when our clients request us to – it could be inventory or supply chain or e-commerce reporting. We demo the apps to the clients and implement the software.

FIRM APPS

What apps do you use for productivity?	G Suite, Slack, Zoom, QBOA Work
What apps do you use for workflow?	QBOA Work and Slack
Tax and Statuory accounts?	QBO
Electronic signatures?	Practice Ignition
Document storage?	Receipt Bank, G Suite, Sharefile
CRM?	Hubspot
Time tracking?	TSheets
Expense management?	Expensify
Credit Control?	N/A
Management reporting?	QBO

Digital First: How do you charge for the R&D?

Michael: Almost all of our work is done on value pricing. We can estimate the amount of time that it will take to do the implementation and the value it will bring to the client.

Digital First: You must have multi-skilled people to cover that range of apps?

Michael: We have technicians who understand not just the bookkeeping side but understand the apps. We designate our team specialists; they choose one or two specialty areas in their research. We have a person that is into e-commerce related apps, another on sales tax for multi-state sales tax reporting, we have somebody on our team who is a blockchain expert and a cannabis expert. There are a variety of different areas and we let our team members choose what are they want to specialise in.

Digital First: Isn’t that a strategic decision about which industries to go after? Why let teammates choose?

Michael: We have been able to define our strengths and skillset. We target e-commerce companies, digital marketing agencies, breweries, distilleries and wineries, so we have a few areas of expertise. We also actively work with cannabis companies. There are only a few accounting firms that will work with cannabis companies because cannabis isn’t federally legal on the hemp side. Some firms are avoiding working with them until it is federally legalised.

(It’s the same with blockchain.) Not many accounting firms understand the nuances and questions that blockchain companies have to deal with.

Digital First: What are those nuances and questions?

Michael: Some of the questions that come up – are smart contracts legal in the state I’m operating in? Will they be acceptable in a court of law? In an open blockchain who are the owners and partners of the company if you have miners that participate in creating a blockchain and making the blockchain bigger? Are miners considered partners or owners?

Do people exchanging coins on your blockchain receive 1089 forms or are they considered contractors? Should you do a coin offering or not and what are the tax implications?

Digital First: Do you have a larger R&D budget or training budget?

Michael: We require all our bookkeepers to receive their certifications before they can start working with the client. That usually takes them a week or two to finish them and start getting familiar with all the internal apps. We use Slack internally to do efficient communications as a team. Often we’re the first company that introduces them to tools like Slack or Zoom or Google Meet.

Digital First: Are you using QuickBooks Online Accountant and Slack?

Michael: We’re probably one of the largest firms using that integration. We have a private slack channel for every client that we’re working on. We can integrate QBOA’s work tab with that. It’s been very helpful as a reminder and a pulse of where bookkeepers are at with their work.

MYOB Doubles Down on Supplier Feeds: Accountech.Live 18

October 26, 2018 by Sholto Macpherson

Banks feeds were the killer feature that fuelled the rapid rise of cloud accounting software. But the bank rec is not fully automated yet. MYOB says it knows what will take it another big step closer – detailed supplier feeds.

MYOB is investing in higher quality, direct feeds to plumbing distributors Reece and TradeLink and office king OfficeWorks, with line item detail flowing directly into AccountRight and Essentials.

The idea is to create a “holistic” approach to expense management, says MYOB product manager Dale Dixon.

“We found that customers struggled to keep track of expenses on the job,” Dixon said. “The Reece integration brings in the (item) lines of what they purchased and also allocates to the job in the system.”

MYOB AccountRight can switch on tracking for reimbursables in each job. Tradies give a purchase order number at the point of sale which is added to the invoice. Then when the tradie invoices the customer the software automatically adds a selection or all expenses.

“In the past you got your paper copy of your statement and worked out which ones you have invoices for that work. Now you can integrate it end to end,” Dixon says.

MYOB is not the first to add feeds to major suppliers (Xero has OfficeWorks and Reece already) but it is the first to add line item detail. This one change will make a huge difference to the speed of bank reconciliation, says Dixon.

“We are working with a bunch of suppliers to automate those feeds. It’s not just about getting the bill in the system, it’s about automating the workflow,” Dixon adds.

The supplier feeds are one part of MYOB’s push to improve data processing. It has also switched from billsapp@myob.com.au to a unique email address for forwarding invoices to an “in tray”, similar to Xero’s Inbox.

Now a company can hand out the unique email to suppliers so they can send bills directly to the accounting software, or multiple staff within a company can forward invoices they have received.

MYOB Essentials can also store receipts as well as bills by attaching them to transactions in the bank reconciliation screen, Dixon says.

You can hear more about MYOB’s plans at Accountech.Live, November 13-14 at the Melbourne Convention and Exhibition Centre. Register for free now.

Session: The next killer feature in accounting? Holistic expense management

Presenter: Simon Dennis, head of partnerships at MYOB

When: 10:05am – 10:35am, Tuesday 13 November

Image credit: MYOB

Accounting goes niche with Rounded app: Accountech.Live 18

October 18, 2018 by Sholto Macpherson

Just when you thought there couldn’t be room for a new accounting software company, another appears. This time it’s going niche, and it is chasing the boom in self-employed or sole traders.

The first wave of these apps include famous brands such as FreshBooks in Canada and FreeAgent in the UK. Intuit is pushing the mobile-based QuickBooks Self-Employed in the US, the UK and Australia, among other countries. In an astonishing announcement, Saasu revealed earlier this year that it was winding back its SME efforts to focus on micro-businesses.

And now there is the Rounded app. Rounded has clocked up 1,500 active users in two and a half years and recently added an accountant portal for managing multiple accounts. It is one of the newest apps exhibiting at the Accountech.Live expo in Melbourne on November 13-14.

DigitalFirst.com caught up with Oliver Garside, co-founder and COO, to find out a little more about Australia’s latest accounting app.

DigitalFirst: Australia surely has more accounting software per capita than anywhere else. Why would you want to launch here?

Oliver Garside: The founder was a career freelancer, he worked as a graphic designer and filmmaker. He found that the options for managing a freelance business were not hitting the mark. He found it too complex, too expensive, and it didn’t deal with GST and BAS particularly well. So he solved his own problem and the feedback he got was that there was a broader application.

We are focused on Australia but it’s not going to be forever. We want to offer it in other markets as well. What makes this special is the focus on the use case. A lot of the more established solutions are really built for small business and offer a level of complexity and cost that freelancers and sole trader and self-employed don’t really need. One of the consistent bits of feedback is the design and simplicity and ease of use. It’s set up on a freelance use case and not a small business use case.

DigitalFirst.com: What are the differences between those use cases?

Garside: We don’t offer payroll. We can’t support anyone that has employees. That would be the main thing.

We also don’t have a general ledger or balance sheet. We have done a huge amount of work to use what you’d call friendlier terminology. Instead of a chart of accounts we have expenses. It’s just about making this as effective and un-intimidating as we can but still facilitating our customers in knowing exactly where they are at in their business at all times.

It is also producing professional invoices, which is huge, and using automation to give them time back in the day.

And when it comes to tax time it’s about connecting with the bookkeeper to remove the strife from going through the tax period. Our customers are organised much more effectively when it comes to tax requirements.

Left to Right: Grant McCall (Founder and Chief Product Designer), Nicholas Beames (Co-Founder & CEO), Oliver Garside (Co-Founder & COO)

Why did you personally join Rounded in 2016, when Xero was already growing so quickly?

Great question, especially when I had no interest in accounting. The first thing was how easy it was for me with no accounting experience to get how Rounded works. The beautiful design instantly appealed to me.

The other thing was that I felt the shift in the way that the world works. All the usual phrases like “future of work” and “gig economy”. That all boils down to the internet supporting people to work in a different way.

That freedom incents people to try different ways of working. Freshbooks isn’t built to deal with BAS or GST effectively. We felt we had identified a growing niche that didn’t need the cost or complexity of Xero or QuickBooks Online (QBO) but wanted effective, fit for purpose software. And I still think that is the philosophy that will make our business successful and has made it so successful today.

Funding and users

DigitalFirst: Have you taken on venture capital?

Oliver Garside: No, we haven’t had venture capital. We received a little bit of funding from an investor at beginning of the year but predominantly we are self funded.

And we are scalable in terms of development. So we do one deployment and it updates our three apps at the same time (browser, iOS and Android). We really make sure there is a consistent UX.

DigitalFirst: How many users do you have?

Oliver Garside: We have 1,500 active users right now and a few thousand people have downloaded the mobile app and had a look.

We have such a diverse range of customers. The thing that connects them all is that they are all sole traders. Musicians, journalists, tradies, small cafes and retail outlets, a variety of professional services such as doctors, dentists, consultants, architects.

Intuit is after the exact same market with QuickBooks Self-Employed. It is already selling heavily in multiple countries including Australia. What are your thoughts on that app?

We get a lot of customers that come to us from QBSE because their experience isn’t what they want it to be.

We think our app is better, of course. But we are at the opposite end of scale to QuickBooks we try not to lose too much sleep. All we can do is stand behind the experience that we provide.

We can’t position ourselves as the cheapest app in the market. Every now and then we lose out to $5 a month (QBSE’s discounted price) with new business but a significant number come back.

We take so much care over the design of the app and so much effort in the customer support they find that they are more than satisfied with the value the app provides. That’s the only thing that we can control and the one we focus it on.

Bank feeds and automation

DigitalFirst: What are you using for feeds?

Oliver Garside: We are using Proviso, they are used by Illion, previously Dun and Bradstreet Australia. They provide bank feed technology to lenders to make credit decisions based on personal loans, mortgages, and that kind of thing.

DigitalFirst: Why go with Illion and not Yodlee?

Oliver Garside: The price and the ease of integrating the API. We can offer 140 banks and institutions including credit cards. Feeds are hugely complex but a massive part of everything we offer. It’s pretty much impossible to have any credible accounting software these days without them.

DigitalFirst: You mentioned automation earlier. What have you built?

Oliver Garside: We will be rolling out some new automation features by the end of the year. We have a bigger development project due 1 January focusing on key areas of automation. One would be auto-categorization of expenses. If you have a regular direct debit that comes to your bank feeds that we can auto-categorise it.

DigitalFirst: Do you create the bank rule manually?

Oliver Garside: We will be able to use some AI in some instances. We are doing some work in the background doing some big data analysis of users’ records and building a list of the top 100 organisations for expenses. The more common ones we will use auto-created rules.

Everyone also has transactions that they categorise in their own way. So we will let people create their own rules as well.

DigitalFirst: Are these in-house AI skills? How can you afford that when you’re bootstrapping?

Oliver Garside: We are lucky that the people involved in the company from the beginning are some of the best engineers I’ve ever seen. We have a culture in the business that if you don’t know how to do something then learn how to do it. Everyone in our team works very, very hard to make this as good as it can be. We think we can do it.

DigitalFirst: What are the automations you have so far?

Oliver Garside: Recurring expenses, recurring invoices, a whole suite of smart reminders for when invoices have been paid and when they are overdue, and sending reminders to clients. It’s about making sure that things don’t fall through the gaps, especially when you have multiple invoices out at one time.

We have a stack of notifications as well. It helps our users keep on top of what’s happening in their business. When a BAS is overdue, that sort of ting. Our BAS is compiled on the fly. When our users submit a BAS at the end of the quarter it takes 30 seconds to pop into the ATO portal. It’s one of the features our users love the most.

Image credit: Rounded.com.au