Xero Chat: BlueHub talk with personalities from th

Mel’s role in Xero is to champion the profession of Bookkeepers while representing them back to Xero to develop the product to reflect their needs and requests. She comes from a business background, having run a number of small businesses from technology to motorcycle sales. She had a traditional accountancy practice with manual data entry, labour intensive site visits and billed time that was exhausting. She sold this in 2006 and it wasn’t till 2012 that, on the sale day of the motorcycle dealership, her accountant showed her Xero. That night with a glass of wine she created a new bookkeeping business using Xero which she her business partner still operates while she is away with her Xero role. Mel explains the importance of bookkeepers within the accountancy process, it is the foundation and provides the information that everything else is built on. Now, bookkeeping can be more efficient and with cloud, the whole process can be kept in house as the service has greater profitability. Bookkeepers have the opportunity now to advise businesses on what is happening in real time with their businesses, rather than a historic perspective for the purposes of compliance. The big change within the profession has been the way bookkeepers are perceived. Their station has been raised as people realise the value they can bring to businesses and the experience and knowledge they have. So much so that Mel wants to change the name of Bookkeeper to reflect the giant shift in activity, suggestions to melanie.power@xero.com In the future the role will become even more advisory. Rod’d keynote speech at XeroCon South highlighted the significance of AI and the advancement of data automation. This will impact on the whole profession and importantly on the previously labour intensive role of bookkeeping. Find out more about partnering with Xero at: www.xero.com

Glen has been involved in technology for accountants for 12 years. He worked with practices to ensure they made the most of the technology available and provided services such as installations and sever management. After a coffee with Gary Turner 7 years ago, Glen joined Xero with his wealth of knowledge and contacts in the UK accountancy industry. He has been focused on educating practices on the benefits of cloud accounting and is pleased to move into a role where he can promote system benefits that improve both practice and client functions. He enjoys the opportunity to guide accountants though the partner journey. The process looks at where the accountant is now, where they want to be and creates a plan to get them there. Plans can cover years as the client to cloud transition is no two week event. Recent changes to the learning area have seen an improved Xero university and certification area, all of which are free to Xero partners. Due to the length of time Glen has worked in the accounting technology sector and with cloud, he has noticed a significant change in the way people approach it. It used to be about security but now people are used to using the cloud and aware of function, they are asking about the benefits. The ecosystem has also changed, with initial add-ons being all about the financial information, the receipt capture and reporting. Since then the market has changed, driven by the needs of the businesses rather than accountants, the ecosystem is now filled with industry specific apps. Xero have moved to the term app rather than add-on as Xero is only in the background of many programs now available. In the future, Glen sees the biggest development being in the use of data. The data being created from the use of cloud programs provides accountants with a great opportunity to help clients grow their businesses. To find out more about Xero partner program click here: https://www.xero.com/uk/partners/partner-program/  

Blake started out on the path to being a cellist in an orchestra. He was working in a music store and tutoring when the bookkeeper in the company left suddenly during the busy season. He saw an opportunity for a regular role and despite his lack of experience with the software, he stepped up and took the position. He found the flexible hours and the work and went on to study bookkeeping at UCLA. It was while studying that he was approached by Xero and invited to a certification event. Blake was looking for a better way of working. He wanted to get away from driving from client to client, writing cheques and all the manual data entry. He knew cloud was the answer, he did not realise he would be the second person in the US to gain the certification and he was soon contacted by various businesses in need of help. In 2012 he started his own company. Very quickly his practice had a number of clients. He built a company with 12 remote employees and was focused on creating a smooth and transparent onboarding process. He sold his business in 2015 and has since been working on his CPA and creating his weekly cloud newsletter. He has since been invited by Xero to join them as a Xero ambassador, assisting them in their education program, helping accountants understand the need to change their business model to maintain profitability. When he started out, Blake said he was using a desktop program, keying in transaction for hours every night. That is all over. In just five years he has seen the profession change significantly, leaving behind paper, ledgers and books, instead adopting technology to solve the time consuming tasks. His advice for practices is to employ a dedicated onboarder or team to oversee the consultation of technology. http://www.blakeoliver.com/

Steven has a varied background having started in bio tech and pharmeceuticals following a PhD in genetics. He went on to complete an MBA after discovering an interest in business information systems while consulting and this was the starting point for Satago. The app is designed to help small businesses improve capital and cash flow through credit control software. The automation of chasing debtors, using credit risk data with sales ledger information to provide warnings is a significant asset in financial control. Satago is free for cloud accounting users as the app also provides a dynamic finance option where it makes a small profit to offset the other functions of the software. Users can select specific invoices to gain finance through the app and the program will recommend the most effective financing options to avoid higher charges while freeing up cash. There is no commitment to take the financing at any point although due to the option being available, a credit agreement is required. When asked about the accounting industry Steven remarked that the charge to advisor is underway. The questions are often more ‘what can I do to make my business better’ rather than what can I do to reduce my tax bill’. The future is about information and the sharing of more data to allow apps like Satago to offer more flexibility to businesses to ensure success. They will be able to make better informed decisions as more systems connect and communicate in a real time context. https://www.satago.com/

Matt talked to David, the founder and CEO of Xero add-on Chaser, recognised at 2016’s add-on partner of the year. David qualified as an accountant through the Deloittes grad scheme and went on to head up SME finance teams in businesses that all sold on payment terms. When first exposed to cloud accounting and the Xero platform 3 years ago, David learned a little about software engineering and had the idea for Chaser. The app was launched in August 2014. Chaser is designed to help a business transform and carry out credit control using artificial intelligence and automation to improve cash flow. They are enjoying great working relationships though the Xero ecosystem, being introduced to key figures in the industry early on due to the apps strengths. David explains that Chaser can be configured by users to manage the credit control process, adjusting settings to be unique to the individual business. This can be set right down to individual invoices and creating templates that reflect the unique tone of the user or adapting to different customer types. Matt asked David about developments in the accounting profession, past, present and future. David said the biggest change he had seen in the last 12 months was moving away from compliance work and into an advisory capacity. Due to advances in the tools available to business owners and accountants, many of the manual data entry has been automated. By 2021 David sees the opportunities increasing as time goes on. There will always be a need for audits and tax legislation but the development of new tools will increase efficiency savings and give business owners the opportunity to be more reactive and adjust their activities to fluctuation in the market. https://www.chaser.io/

Garrat has been with Expensify for over 4 years, working up the ladder to Sales Lead for the UK, US and Australia. His describes Expensify as a tool for “expense reports that don’t suck.” Expensify aim to take the pain out of expense reporting by automating as much of the process as possible. They also help users to improve the process by providing pointers to improve data entry. The company have been operating since 2008 and were born from the frustration that founder, David Barrat was having with expense management. He created a great system but the timing with the market crash was awkward. Garrat has found that the transition to cloud accounting has been slow. They are still working on moving people away from the existing desktop based systems. The Expensify app for IOS or Andriod allows users to simply snap a photo of a receipt and the app will do the rest, sending the expense straight to Xero. You can capture mileage, time and trips as well as informing you if your planned flights are running late. Matt asked Garrat how firms engage with Expensify to promote their app to clients. Expensify have an approved partner program that provides education and discounts for continued success. There are special training materials, one-to-one sessions and support during on-boarding so partners are comfortable with the process. They have seen a great response from UK accountancy firms who are driving forward the move to cloud accounting and choosing the add-ons. As people hate expenses, they see great saving to be made and it leads to additional cloud services. Garrat sees the future being a development of the consultancy role as more automation makes compliance work less demanding. https://www.expensify.com/

Fresh Financials started out life as Platinum Numbers back in 1999, explains Emma. It was a very traditional bookkeeping service, on-site visits spent sifting through paperwork. Back in 2012 Emma started looking for an alternative way of working. Having used Quickbooks desktop program, she first tried Quickbooks online but didn’t suit her needs. She trialed Xero and found it so easy to use she signed up and moved her practice into the cloud. Although originally her clients were based in and around East Sussex, now Emma works with businesses around the country, with a couple of clients in Canada and France. The ability to work remotely has allowed her to grow her business, removing the limits set by traditional time-restrictive practice. Emma explains that her work has gone far beyond the basic data management. The saving that Emma has offered businesses in time, she has converted to providing business advice, helping businesses grow and make sound strategic decisions. Being specialists in the hospitality sector, Fresh Financials have focused on apps that reflect the needs of the industry. This has allowed them to learn and recommend a smaller number of specific apps rather than tack on the whole Xero marketplace. When Matt asks Emma about how businesses have responded to Fresh Financials offerings, Emma highlights a shift in the market. She explains that business owners no longer need persuading of the benefits to cloud accounting. They seek out support from professionals offering they services they are looking for, switching from existing provision in the search for greater efficiency and control. This drive from businesses is what Emma sees as the number one threat to practices not adopting cloud technology in the future. She says they need to switch or lose work, its that simple. https://www.freshfinancials.com/

Today’s guest was Matt Wilkinson from Bizink. Matt is originally from Liverpool and emigrated to New Zealand in 2010. Before leaving the UK, Matt gained experience in eCommerce, setting up his own business after university. He continued gaining experience in eCommerce, including website design and has worked with the Internet since the 90s. Matt explained how he first started working with Xero through Eclipse, his first employer in New Zealand. Eclipse were an accounting software firm that were eventually acquired by CCH which pushed Matt to set up on his own to avoid working for a large corporation. Bizink was created to bring together all the elements that Matt enjoyed during his career. This is a mixture of technology, online marketing, websites, small business advice and working in the accountancy industry. The purpose of Bizink is to help accountants become 'incredible online', generating more leads and converting these to valuable clients. In the same way the Matt outsources his accounting, he helps firms outsource their marketing to ensure they get the best service possible, saving them time and having an expert support them in this critical business area. During his time in New Zealand, Matt described a change in the expectations of business and the way accounting firms have reacted to the changing landscape.  Firms can now see the need to be more flexible, with different payment arrangements and taking an advisory role rather than providing a mostly compliance related service. In the future, Matt described this accountancy services as being 'a given'. Compliance and tax returns will be an assumed function, overtaken by the need for business advice. Firms will help with KPI setting and beyond this into marketing, websites and SEO services for the clients. http://bizinkonline.com/

Matt had a chat with Andrej Glezl, CEO of Datamolino. Andrej went into business with his brother after working in law. He is from a family of accountants so there is a great deal of knowledge of the industry and the pain points businesses need help to solve. Initially, they worked with banks to create a payment system. Through listening to their clients they identified a need to reduce data entry and Datamolino was born in 2013. Although they are based in Slovakia, the company has around 20 staff with offices in the UK and Australia. Datamolino started with customers from previous ventures and has seen a consistent growth from the beginning. The customer base now spans the globe, with the strongest uptake in the Asian Pacific and recent growth in South Africa. Andrej describes Datamolino as a ‘tool that takes away the pain of data entry’, saving time and human resources. This automation offers the opportunity for business growth by increasing capacity.  The add-on has an open API and they welcome integrations. They have an API for Xero as they find the program is by far the most supportive of their add-on community and strongly support developers. Looking at the cloud accounting industry, Andrej said the biggest change he has seen in the last 1-2 years is the attitude to the cloud. Companies that turned them away 12 months ago with no trust in the cloud are now seeing the cloud as the future of the firms. In the next 12 months, he sees expectations increasing. Users will see current options, like automated data entry, as a standard function. This will place pressure on developers to keep solving user problems through actively listening to business needs. The more the add-on ecosystem is developed, the more time accountants will spend providing real-time business advice. Andrej says that by 2021 accountants will no longer be involved in basic administrative tasks. They will be out meeting clients in coffee shops discussing business growth and helping harness development opportunities. Find out more at www.datamolino.com

Helen joined Matt to discuss Crunchboards and the accounting industry. Helen has been at Crunchboards since a few months after its launch nearly two years ago. Her back ground was initially in recruitment for the accountancy sector but while on maternity leave she set up her own retail business. These experiences gave Helen an understanding of the role of accountancy from both sides of the fence. She was able to see how important the advisory role of an accountant is and the importance of having someone to guide your targets and monitor your performance. Crunchboards was founded to do just that. Co-founder Hannah needed access to up to date information to help her see the financial performance of the pub she was running. Due to a lack of add-ons in the Xero ecosystem, she created Crunchboards. Hannah continues to run the product development from the Brighton base while Co-founder Amy runs the sales team and focuses on the marketing from the London office. Despite being a UK company, Crunchboards first launched in Sydney due to the higher levels of adoption in Australasia. Helen has seen the rapid development of other markets, particularly in the UK as more firms see the undeniable switch to cloud accounting. Over the last two years firms have moved from wondering, 'Should I move to the cloud?' to asking when and how to make that change. Crunchboards is helping accountants become the business advisors that they aspired to be when they set out on their careers. They have the information at the touch of a button to forecast business performance and offer advice on how to be more profitable. Helen sees the role of Business Advisor over accountant being standard for the industry in the future. As businesses are used to other types of data being at their fingertips, firms will have a greater need to support businesses in being dynamic and efficient with little lag in their response to market forces. Technology is bringing about change so that all businesses can access forecasting at an affordable price and will expect their accountants to guide them to success. https://www.crunchboards.com/

Joining Matt today was Rebecca from Receipt Bank. Rebecca has worked for Receipt Bank for a year but due to the speed of change and the evolution of the product it feel like significantly more. She is in the marketing team as a community manager overseeing the Xero community and looking for ways to resolve pain points for users. Rebecca explained that Receipt Bank was born from the same frustrations as the users they have today, the need for one of the co-founders to improve his expenses management and not be out of pocket from lost receipts. After identifying an agency to manually process his expenses he purchased the company having seen the potential for automation and integration with the cloud accounting programs.  Receipt Bank was born and now offers users a seamless automation service, using optical recognition technology for a highly accurate data entry system. The Xero add-on reads the totals, VAT, currency and tax from invoices, expenses, receipts and bills and updates the corresponding information in the integrated cloud accounting program. They store the data for 7 years along with the original image for HMRC compliance. They now have offices in four locations, the original office in the UK and additionally in Sydney, the US and France. As Receipt Bank solves such a common problem for any small business, Rebecca says that it the company has seen a natural uptake of the add-on. They now have over 40k users globally and it is growing exponentially as more people move to the cloud. Rebecca has seen a change in how accountants and bookkeepers value their business model. Receipt Bank is increasingly being contacted by firms looking to improve their profitability. Firms are also addressing their clients requests for a higher level for service, looking for ways to increase accessibility and ease of use through mobile apps and automation.  https://www.receipt-bank.com/