CCH iFirm Archives - Digital First

CCH Opens iFirm to Xero Tax, MYOB and Microsoft Power BI

July 20, 2018 by Sholto Macpherson

In a sign of the times, CCH iFirm is adding connections to other vendors’ accounting software in a bid to improve efficiency for accounting firms. While accounting software for SMEs has long used API connections to integrate with hundreds of other business apps, practice software has tended to stay within its walled garden.

Xero and then Intuit were the first to open up their free practice management tools to third-party apps for notifications. But both tools are only suitable for very small firms. In Australia, iFirm is the cloud suite with the most potential to fit firms with hundreds of employees.

It’s a great move by Wolters Kluwer and one that couldn’t have come at a better time.

The dramatic statements revealed during MYOB’s aborted acquisition of Reckon APS showed that the two companies are years away from developing a full-blown cloud practice suite.

CCH iFirm, made by Wolters Kluwer, positions itself as next-in-line for the throne. It includes an online tax module, which neither MYOB nor Reckon have matched.

However, iFirm has lacked a major drawcard – a tightly integrated, cloud accounting app for SMEs. Xero’s rapid accumulation of market share has encouraged firms to consider the free Xero Practice Manager before iFirm. The software company could capitalise on this winning streak by expanding its practice tools to firms of all sizes – but it’s not interested.

Xero stated to the Australian Competition and Consumer Commission that it didn’t want to invest in making software for firms with more than 20 staff.

There are two interesting aspects to this development. How deeply is Xero prepared to integrate with iFirm? Initially the connection is just to Xero Tax; will it eventually connect client files to another vendor’s practice suite?

And then there’s the Microsoft Power BI integration. What exactly can you do with a BI tool when it is natively integrated with your practice software?

In this edited transcript, Russell Evans (CEO of Wolters Kluwer Asia Pacific) and Daniel Wyner (regional director) give a frank assessment of the market and where they intend to take integrations for iFirm.

Jump to:

Integrations with Xero

Russell Evans: What we’re hearing from particularly small and medium sized firms is that they’re looking for real efficiency gains in workflow. Let’s assume (firms are) moving toward fixed price engagements, if you’re only getting two and a half thousand for a job that you used to get 4000 for, that’s all about hours on the job. Now, given that Xero have captured a good slice of the market in the small and medium firms with their tax product, it makes sense for us to support our clients who want end-to-end efficiency. Xero Ledger into Xero Tax and running the job on iFirm practice management. We’re just starting to do that now. Initial indications are it’s going to be a winner for the market and therefore good for us.

Digital First: What exactly are you launching?

Daniel Wyner: Effectively it is an API connection. From within iFirm’s practice management screen, you will see the client database from Xero Tax. You can also launch that client’s tax return from within iFirm’s practice management screen. It will also show the relevant meta tax to say that a return has either been filed or lodged, signed, etc. You don’t want to be flicking between different products to see the status of what’s going on, so we’ve managed that workflow entirely within iFirm’s practice management solution.

Digital First: That sounds great.

Daniel Wyner: You can assign your staff to whoever needs to do the job, add all the necessary checklist programmes, procedures, jump out to Xero Tax and do your tax return by launching it from within CCH iFirm. That’s phase one. Phase two, which will come Q4 in Q1 next year, will be adding CCH iQ to Xero Tax. The myth that “I need to be with one provider” from the desktop days has been blown away. We want to facilitate whatever the practices want to do.

Digital First: Will there be deep links from workflow screens in iFirm to the Xero client files themselves?

Daniel Wyner: Just Xero tax.

Digital First: Do you think you’ll get to a point where you have deep links to say, Xero, QBO, MYOB? If you click on the file and just open that client’s cloud files – is that the vision?

Daniel Wyner: I think anything is possible. It comes down to us proving out that this is the right workflow and that value proposition. There’s no reason why we wouldn’t.

Russell Evans: It also comes back to the use case. There’s a lot of collaboration at the moment between the accountant and the general ledger. Rather than waiting for the end of the year to do the adjustments in June or waiting for a tax trigger, accountants are using it on a monthly basis.

When MYOB come to market with a cloud tax product, and accountants want an end to end MYOB ledger and MYOB Tax plugging into iFirm practice manager, if our clients start banging on the door and saying “We want to operate support in that open environment,” we’d absolutely be behind that as well.

Digital First: What’s the reason for not pushing the Xero integration globally? Is that an internal decision as opposed to a technical one?

Daniel Wyner: We’ve only focused our discussions with Xero locally and therefore it’s really been focused on the Australian market.

Russell Evans: I think it’s also a maturity curve decision as well. Look at the proportion of small businesses that have made the shift into a cloud based accounting application. Australia and New Zealand are a long way ahead of other markets, so therefore the customers that we’ve been engaging with have been far more vocal about that desire to work in an open environment, to be able to plug in different applications for greater efficiency.

Russell Evans: There is an intensity in our conversations (with firms). This is a kind of anecdotal number, 60% of accountants have a copy of the Australian master tax guide on their desk. Over the last six years we’ve had a very strong focus on digitising the master tax guide and getting it into the market and we’ve done that with CCH iKnow. Last year we plugged iKnow into Xero Tax. Our quest is really to provide accounting firms across the region with a digital experience. Plugging into providers like Xero makes sense for us because then we’re still relevant to accountants.

Digital First: What were the engagement stats like for iKnow with Xero Tax? That integration has been out about a year?

Daniel Wyner: I don’t know the numbers off the top of my head, but a significant number of firms have signed up to either a paid subscription or a premium offer. It’s well over the hundred mark. The next phase is making it far more actionable. That’s where IQ comes into the piece.

Digital First: You’re saying 100 firms? That doesn’t seem like a lot –

Daniel Wyner: It’s in the hundreds, I just don’t know.

Digital First: Okay. Enough proof to turn around and invest more in integrating CCH iFirm more closely with Xero. Are you intending to do that with any of the other products, like QuickBooks Online?

Daniel Wyner: Yes. We’ve had conversations with multiple providers about where we could look at that. Say accountants (use iFirm and) run their books on Xero or QuickBooks. At the moment you can run (your firm on iFirm and use Xero for the firm’s accounts). That integration’s been there since well before we acquired iFirm because of the old days of Acclipse and Xero starting out together.

Digital First: Clearly there’s overlap here between Xero Practice Manager and iFirm. What size firms are you targeting?

Daniel Wyner: When you’re over five staff, firms have a willingness to spend a little bit more money because they know that it’ll be something a little more sophisticated. Up to that 50 user mark, the politics within a firm, the number of partners and so forth, it’s an easy decision making circle. They can drive the change management. Changing the practice management solution, which is at the heart of a firm, it’s no small undertaking at all. Our data historically have suggested firms stay on a solution for about eight to ten years because they don’t want to go through that change management.

Azure Migration and Stability Issues

Digital First: I did hear some stability issues with iFirm over the past 12 months. I was wondering what the story was with that and if it’s been resolved.

Russell Evans: Yes. So in July last year we moved from our own data centres into the Microsoft Azure environment. We did a huge amount of pre-planning around that and we thought we’d anticipated everything. But some part of the transition didn’t go according to plan and as a result some customers experienced latency issues and performance issues. We’ve thrown everything at that and we’ve now stabilised that platform.

Digital First: Okay.

Russell Evans: And look, we’ve been very open with our customers. We’ve understood the frustration that’s caused to them. We’re past that now.

Digital First: Why did you move to Azure?

Daniel Wyner: It’s as much about scalability as different times of the year. In peak tax periods we have to scale the service up and down. We needed to have more of that flexibility Azure can give us. There are global Azure support teams that now manage “around the sun” everything that goes on on that platform. The relationships we have with Microsoft and to leverage that platform enables us to do some really great things for the client.

Power BI and Deeper Reporting

Digital First: Like what?

Daniel Wyner: One of the things that we’re focusing on for the back half of this year would be really tight integration with Microsoft Power BI over practice management data. Now that we’re in the Azure environment we can leverage off their technology stack. Microsoft is spending millions of dollars on making that a great tool that allows you to plan utilisation. Why would we waste our time trying to compete with that?

The biggest reason why bigger firms hold back (from moving to iFirm) is that they’re used to having the flexibility of slicing and dicing the data.

If you look at the legacy platforms they’ve got that ability to pull their own reports. We haven’t gone down that path until now. We give firms the ability to export data as and when required, but with (Power BI they can) work out how they want to build their own dashboard.

Digital First: When will this Power BI integration be ready?

Russell Evans: In Q4.

Daniel Wyner: Yes – that’s Power BI connecting to the practice management dataset, not to build it out for their clients’ data.

Digital First: What can you do with it?

Daniel Wyner: I can dig in to see the types of jobs that make me more profit, and the ability to manage workflow. The bigger firms are wanting to manage their staff more around KPI management. Power BI can give them a custom report about how they want to run their businesses.

Digital First: What’s the largest firm on iFirm?

Daniel Wyner: I think it’s about 160 users.

Digital First: Okay. Would you go bigger than that?

Daniel Wyner: At the moment, probably not.

Digital First: Why?

Daniel Wyner: The main reason would be that reporting.

Russell Evans: The more complex firms need to slice and dice their performance by partner, by director, by manager, by team member across different lines of business. At the moment iFirm isn’t designed to do that. By Q4 we’ll be able to support that.

Digital First: Will you launch a marketing campaign to sell iFirm to larger firms?

Russell Evans: Yeah, and look, I think we’ll be very successful demonstrating tangible business benefits in the connection with Xero. Then if we see the opportunity to roll out the Microsoft BI platform with a really strong offering for those firms with 100 to 300 staff, there’s nothing to stop us moving to that space.

MYOB, CCH iQ and Document Management in the Cloud

Digital First: What other integrations are you working on with competitors?

Daniel Wyner: Firms are saying to us CCH iQ’s great but to change their tax product is not a small undertaking, in particular for some of these bigger firms. So we’ve rolled out integration of the iQ functionality into the MYOB Accountants Enterprise database. Every time you lodge a tax return it is populated into the iQ database. We’re seeing some really nice results. Firms can move into compliance advisory without having to lift up their entire tax process onto a new platform.

Another thing we rolled out right at the beginning of this year which has taken off better than we initially thought is a cloud-based document management solution on Office 365, tightly integrated into iFirm as well.

Digital First: Has it done well?

Russell Evans: Can’t give you customer numbers, but I will tell you it’s going gangbusters. It has really exceeded our expectations.

Digital First: Why do you think that is?

Daniel Wyner: I don’t believe there has been a credible, fully functional cloud solution. MYOB document management solution had the full Sequel type functionality that depended on the way that you viewed it, it’s got folder structure and so forth. That functionality has not been available in the cloud until more recently. And there is the adoption of Office 365 by more and more firms. You have tight integration with email management and link all your emails to the relevant clients, with filtering and full mail merge functionality so that your engagement letters are automatically captured and sent out the right way.

Digital First: Would you say you have reached feature parity with MYOB Accountants Enterprise or Reckon APS yet? If not now, when?

Daniel Wyner: I don’t know that we’ll ever have feature parity because just replacing what is currently there on desktop is not the smart way of doing it. We want to look at what’s available and what the user needs and how we can facilitate a quicker outcome.

We can say, “You may be used to clicking these three times to get this type of report, but why do you need that report? You can make the same decision with a dashboard.”

Digital First: It is more use-case parity, isn’t it?

Daniel Wyner: Yes, that’s right.

Image Credit: Printable Party Kits

CCH Opens Sales of iFirm Practice Suite to Global Markets

November 21, 2013 by Sholto Macpherson

CCH Australia’s parent company, global publisher Wolters Kluwer, has begun selling the CCH iFirm practice management suite to Singapore, the US, Canada and the UK.

CCH Australia acquired iFirm in July as part of a strategy to expand the number of software programs it sold to accounting firms. Last week it acquired another local software company, Best Practice Solutions, which created the Paper Buster apps.

“We are delighted with the progress we are making” with iFirm, said Russell Evans, CEO of CCH Australia, although CCH said it didn’t release sales figures for its programs.

“When we initially acquired the business we thought the main attraction for iFirm would be from the smaller firms. We are now getting quite a lot of interest and sales from mid to large firms,” Evans said. CCH has sold the suite to several firms with over 100 staff.

Although CCH already sold a practice management suite CCH Access to medium and large accounting firms in the US, it was looking at taking iFirm into the small firm segment.

CCH was also working to integrate iFirm with its client accounting program Twinfield which was sold throughout Europe.

One of the drivers behind iFirm’s success was its job-based approach. “Rather than tracking time sheets, a partner can look at each job and see how it’s progressing versus the hours allocated to the job,” Evans said.

A large number of iFirm users found that moving to a job-based workflow had boosted profitability and reduced the amount of write-offs each year, Evans claimed.

Prominent Melbourne accountant Jason Cunningham had reduced his write-offs by $280,000 a year by ditching time sheets, according to CCH.

“It shows the difference that technology can provide. It’s an app that can deliver quantitative benefits to a firm so it’s not surprising we are getting very good growth,” Evans said.

“For a small business coming out of Christchurch we are now turning iFirm into a global success story.”

CCH’s Australasian accounting program, iBizz, was still in beta development but “going very well” with firms testing it in Australia and New Zealand, Evans claimed. CCH refused to reveal how many firms were participating in the beta program but said training sessions had been booked out.

A formal launch for iBizz was planned for February. CCH had software development teams in Christchurch, Melbourne, Malaysia and India.

Image credit: CCH

CCH Builds Global Software Empire with No. 3 Buy

May 27, 2013 by Sholto Macpherson

CCH parent Wolters Kluwer, which bought a third cloud accounting program in Brazil last week, would market its cloud software in other markets, including Australia.

“We will explore leveraging our platforms as appropriate across the globe, in different geographies, with solutions that are versioned to meet the local needs of customers,” said Russell Evans, CEO of Wolters Kluwer Tax and Accounting, which included CCH Australia in a statement to BoxFreeIT.

Practice management software CCH iFirm, part of the Acclipse acquistion last year, would soon be sold in other Asia Pacific markets, Evans confirmed.

“Wolters Kluwer Asia Pacific will soon be making a big impact with CCH iFirm in Singapore, Malaysia and India; we already have well over 300 cloud clients in India,” Evans said.

Last week Wolters Kluwer bought 250-employee Prosoft in Brazil, the world’s seventh largest economy. Brazil has seen strong demand for tax and accounting information, software and services since 2009 when the government cracked down on tax compliance.

Wolters Kluwer has already bought a swag of cloud software. The list included CCH Small Firm Services in the US which transmitted 36 million tax returns last year. CCH Small Firm Services has held the competitive contract to provide tax software to nearly 12,000 Internal Revenue Service offices for the past 16 years.

In Australia CCH sold CCH Collaborative Solutions (which included CCH iFirm and client accounting program iBizz) and CCH Integrator corporate reporting which it bought from Ernst and Young.

Wolters Kluwer sold Dutch cloud accounting program Twinfield in Europe.

Other programs included ARC Logics’ internal audit solutions, Transwide transport execution suite and ProSystem fx Suite.

Prosoft Brazil was Wolters Kluwer’s first purchase in South America and included a fully integrated suite of tax, accounting, payroll, document management, and filing software solutions and had over 150,000 businesss users.

“Tax and accounting software is a leading, growing business for Wolters Kluwer, and this acquisition further expands our global position in this area to one of the world’s faster-growing geographies,” said Nancy McKinstry, CEO of Wolters Kluwer in a press release.

“Prosoft allows us to rapidly establish a significant presence in Brazil while at the same time also advancing our move into cloud-based collaborative solutions,” said Kevin Robert, CEO of Wolters Kluwer Tax & Accounting in the release.

Image credit: Prosoft Brazil

CCH Launches Xero rival iBizz – to Firms Only

May 10, 2013 by Sholto Macpherson

Includes automatic bank coding, contacts, invoices and statements, GST, reports.
$5 a month, BankLink fees for feeds extra.
Only sold through accounting firms.

Financial information services company CCH Australia launched its Xero rival iBizz in New Zealand last month at a cut-price rate of NZ$5 a month. iBizz lacked key Xero features such as payroll and online invoicing but included online accounting, automatic bank coding, contacts, invoices and statements, and GST and reports.

The NZ$5 a month fee for unlimited users and access the cloud accounting program undercut Xero’s cheapest retail version which cost NZ$29 a month. However, access to bank feeds in iBizz was provided by BankLink and charged separately.

iBizz was targeted at cashbook-type clients, said Russell Evans, CEO of CCH Australia. Xero sold a basic ledger version without bank feeds to accounting firms for $5 a month, with discounts for firms transferring large volumes of clients from competing programs.

CCH had moved iBizz from beta to mainstream launch and was marketing it in New Zealand in conjunction with BankLink. “We’re getting a pretty good take-up of that product. It is not just about price point, it is about visibility of their clients’ position,” Evans said.
iBizz was only sold through accounting firms and couldn’t be bought by businesses directly from CCH.

“Our decision to give an accountant iBizz at $5 a month makes it very easy for an accountant and owner to work in a connected manner,” Evans said.

CCH planned to release the program to Australian accounting firms in June. CCH planned to be first to market with its cloud-based tax program in Australia the following month.

CCH was committed to selling iBizz only through accounting firms, Evans said. The low price would increase the adoption rate of cloud accounting software within firms, he added.

“By making it $5 it becomes a very easy conversation for an accountant to have with their small business owner. For us it wasn’t about being disruptive or undercutting the market. It was about empowering them,” Evans said.

iBizz also gave accountants a view of an SMB owners’ books in real time as both owner and accountant could look at the same account online from their own offices.

“The SME doesn’t want to pay any more for looking backwards. They want a trusted adviser so they can look forwards,” Evans said.
iBizz was tightly integrated with CCH’s cloud-based practice management system, CCH iFirm, which it acquired from New Zealand company Acclipse last year.

Both programs were designed to streamline the process of producing tax returns in accounting firms.

“CCH iFirm is absolutely aimed at helping accountants make the process of tax compliance far more streamlined yet still ensuring a high degree of quality assurance,” Evans said.

“By doing that it helps the accountants free up their time to provide advisory work back to their small business clients.”

CCH had designed iFirm to work with accounting software from other vendors. Accountants had been holding back from cloud accounting because they didn’t want to be stuck with one vendor, Evans said.

“If I go with Xero and can only promote Xero, accountants are objecting to that,” he said.

Cloud software was moving out of the early adopter phase to the early majority, Evans said. Eight of 10 accountants contacted by CCH wanted to talk about the cloud tomorrow, he claimed. “A third of conversations are looking to move straight away. The rest of them are contemplating a move in the next 12 to 18 months,” Evans said.

“We’re getting towards that tipping point. We will see a quantum shift in accountants moving some of their business into the cloud.”
CCH was holding a roadshow in June and July to promote its cloud software.

Image credit: CCH

Cloud-Based Tax Here in July: CCH

May 9, 2013 by Sholto Macpherson

Financial data and services company CCH claimed it would be the first accounting software vendor to launch a complete cloud-based tax platform in Australia.

“Beginning in July we’re coming out with a cloud-based tax application in Australia,” Russell Evans, CEO of CCH Australia, said.
The tax application will provide electronic lodgement of tax returns for individuals as well as companies.

“We’re replicating what we have in New Zealand for a number of years,” Evans said. The company had been working on it to satisfy Australian requirements over the past 18 months, he added.

The lack of a cloud-based tax platform has held accounting firms back from getting rid of their servers.

Xero-centric accounting firms using Xero’s cloud-based practice management software have had to keep using server-based tax packages from MYOB, Handisoft and Reckon to submit tax returns.

Xero announced it had decided to build its own a cloud-based tax platform which would be released in stages over the next 18 months.
CCH’s tax platform would be part of CCH’s cloud practice management suite, CCH iFirm. CCH bought iFirm from New Zealand company Acclipse last year.

An accountant could perform client accounting work in the general ledger, produce a tax return and lodge it electronically without leaving the iFirm interface.

“It doesn’t sound that sexy but for an accountant looking to streamline tax prep work, there’s a lot of downward pressure on prices at the moment. You need to streamline their processes,” Evans said.

CCH was determined to help accountants be more efficient at tax compliance and spend more time offering more profitable advisory services to clients, Evans said.