Author: Vipul Sheth

Posted on by Vipul Sheth

Don’t get angry, get even, says Vipul Sheth, as accounting practitioners ponder investment in an inflationary period.

There has been much reporting about accounting tech providers upping their prices – much to the consternation of accounting practitioners.

Some sympathy is due – it’s hard for practices to manage client pricing, particularly when their key software partners have taken a ‘fluid approach’ to pricing structures.

We are a tech-focused outsourcer, and therefore anything that might put doubt into accountants’ minds about the importance of technology – or that discourages adoption – is negative for us. That’s because we work with practices that have strong processes and, inevitably, that means they lean on technology to help them manage workflow and operations.

The harsh reality 

But there are some stark truths that practitioners must face. Firstly, software companies, as well as practices, are looking to make a profit. Price increases are a natural part of a functioning economy – sadly, they’re also inherently linked to an inflationary one, too. Another issue is that the tech providers often make ‘too good to be true’ offers to early adopting practices – and these offers never last.

We’ve also gone through what some might call a ‘wasted’ period, where the accounting tech industry has looked to drive automation and workflow to help practices and their clients surmount MTD – which has of course been watered down and delayed again.

Not only are tech providers having to cover their costs, but practitioners have encouraged clients to improve their record-keeping – which also needs paying for. So, practices have had to make several changes: they’ve increased prices for their clients; evolved the client offering; and possibly changed their pricing structure. Therefore, if software providers move the financial goalposts by more than expected, that has led to some difficult discussions between the practitioner and the client base.  

Look to the future

My worry is that accountancy firms will look in the short-term at the cost of adopting tech, without considering the longer-term view. And this longer-term view isn’t simply that ‘tech is important’, but appreciating what you want your firm to be in five years, and how it will offer a great service, will require IT investment.

I’d also hope that practitioners are working hard on both their pricing strategy and their client communication – there are two fundamental aspects to running a profitable firm. Having good technology and processes in place gives you the potential to broaden a client offering – whether it’s tax mitigation, cashflow or forecasting to name but a few examples.

And the more that’s automated and outsourced, the easier it is to set in place a value-driven pricing structure – you will also have more time to communicate with your clients. Finally, value pricing is an opportunity to split out client software subscriptions from your main billing.

None of this is easy or straightforward. But I hope that the software pricing discussion moves towards a more sober and value-driven assessment of your technology needs, rather than a knee-jerk dismissal of its benefits.

Vipul Sheth is MD of AdvanceTrack Outsourcing

If you’d like to talk to us about your firm’s approach to tech, outsourcing and offshoring, please get in touch by clicking here.

Posted on by Vipul Sheth

Myths are circulating about outsourcing and GDPR. Here are the facts.

If an outsourcing provider is accessing your servers from India then this, on its own, does NOT mean ‘GDPR compliance’.

Without other security measures and protocols in place then the Information Commissioner’s Office (ICO) could find what your practice is doing is illegal.

The ICO states that a restricted transfer takes place if “you are initiating and agreeing to send personal data, or make it accessible, to a receiver who is located in a country outside the UK” – note the part marked in bold.

You must also be aware that most accounting firms handle ‘special category’ personal data – such as healthcare invoices, records of union fees paid, or political/religious donations. So, if your outsourcer experiences a data breach and your controls are inadequate, you have a big problem.

So, what do you need to make sure is in place?

  • Firstly, there needs to be appropriate risk assessment of, and contracts in place, with the overseas legal entity.
  • Secondly, your client engagement letter needs to reflect the possibility of transfer.
  • Finally, the data being transferred needs to be treated securely, both on your network and on the network of anyone accessing it.

At AdvanceTrack we work with a top legal firm to ensure that we have the correct contractual measures in place. You contract with our UK legal entity and we handle the transfer to India.

We have also made considerable investment in security measures and controls around use of personal information, and have been assessed on this by numerous top accounting firms.

Additionally, we are certified by BSI against ISO27001:2022 Information Security and ISO27701/BS10012 Personal Information Management. More detail on our security can be found by clicking here.

AdvanceTrack give data protection the investment in time and resources that it needs. We need to sleep soundly at night – and so do you. Which is why data security and protocols receive our highest priority.

If you would like to speak to us about outsourcing and offshoring, please click here.

Posted on by Vipul Sheth

Believe the GDPR myths, and you could see the information regulator come down on you and your firm.

There are a few myths circulating in the accounts outsourcing industry about what is required to make outsourcing legal from a GDPR perspective. Chief among these is the idea that if someone is accessing your servers from India then this, on its own, is GDPR compliant. Without other measures in place this is actually illegal, and you can get into a lot of trouble with the ICO as a result. The ICO makes it quite clear that this is the case – they say that a restricted transfer takes place if “you are initiating and agreeing to send personal data, or make it accessible, to a receiver who is located in a country outside the UK” – note the part marked in bold.

To make this worse, you may not be aware that most accounting firms handle ‘special category’ personal data – such as healthcare invoices, records of union fees paid, or political/religious donations. So, if your outsourcer experiences a data breach and your controls are inadequate, you have a big problem.

So, what do you need to make sure is in place?

  • Firstly, there needs to be appropriate risk assessment of and contracts in place with the overseas legal entity.
  • Secondly, your client engagement letter needs to reflect the possibility of transfer.
  • Finally, the data being transferred needs to be treated securely, both on your network and on the network of anyone accessing it.

At AdvanceTrack we work with a top legal firm to ensure that we have the correct contractual measures in place. You contract with our UK legal entity, and we handle the transfer to India. We have also made considerable investment in security measures and controls around use of personal information and have been assessed on this by numerous top accounting firms. Additionally, we are certified by BSI against ISO27001:2022 on information security and ISO27701/BS10012 on personal information management.

AdvanceTrack give data protection the investment in time and resources that it needs. As a result, we are not the cheapest in the market, but you need to ask yourself how much it is worth for you to sleep soundly at night!

If you’d like to talk to us about planning for outsourcing, or getting a better understanding of the regulation that both you and Advancetrack must comply with, get in contact by clicking here.

Posted on by Vipul Sheth

As the sun sets on the city of Sydney, accounting and bookkeeping professionals from across the globe gathered at the ICC Sydney for the much-anticipated annual event – Xerocon Sydney 2023. Coined the ‘Coachella for accountants’, this year’s conference lived up to its reputation, delivering a power-packed experience that left attendees inspired and equipped with invaluable insights.

From August 23 to 24, Xerocon Sydney transformed the ICC Sydney into a hub of innovation, collaboration, and excitement. AdvanceTrack’s team had the privilege of attending this transformative event once again, and we’re thrilled to share our reflections on the highlights and takeaways.

The event opened with the charismatic presence of Sukhinder Singh Cassidy, Xero’s CEO, making her first-ever appearance on the Xerocon stage. In her engaging talk, she emphasised the pivotal role of the advisory community in shaping the future of small business success. With just six months at the helm, Sukhinder’s passion for purpose and partnerships resonated deeply with the audience, setting an optimistic tone for the entire conference.

A major highlight was the introduction of Diya Jolly, Xero’s new Chief Product Officer, who provided insightful glimpses into the latest products and connections that amplify collaboration, efficiency, and value across the platform. This showcase marked a departure from the norm, presenting Xero’s offerings in a reimagined format that captivated both newcomers and returning partners.

The event’s lineup of guest speakers was nothing short of exceptional. Julia Zemiro, the iconic Australian TV personality, charmed the audience as the host, bringing her signature wit and warmth. Lisa MacCallum, former Nike Vice President, took the stage on day one, delivering a talk that melded business acumen with sustainability. Her insights on driving ethical business practices left a lasting impression, emphasising small businesses’ pivotal role in fostering environmental responsibility.

The second day brought a thought-provoking session by Sam Elsom, an environmentalist and entrepreneur who delved into the realm of sustainable practices and ethical manufacturing. Mark Pesce, a distinguished futurist and entrepreneur, rounded off the event with a captivating exploration of AI’s influence on the accounting industry. His decades of experience in the digital revolution space illuminated the challenges and opportunities that lie ahead.

One of the most anticipated aspects of Xerocon Sydney has always been the legendary wrap party. This year, the ‘Paradiso’ theme transformed Sydney’s ivy bar into a tropical oasis. Attendees donned neon ensembles, embraced inflatable flamingos, and danced the night away to the beats of Sneaky Sound System. The poolside venue and vibrant atmosphere created a night to remember, fostering connections and memories that will last long after the event concludes.

Reflecting on Xerocon Sydney 2023, the sense of community and collaboration was palpable. We at AdvanceTrack found the event to be an invaluable resource for gaining insights into the latest trends, technologies, and best practices. The emphasis on sustainable practices, technological innovation, and the evolving role of finance professionals left us inspired and excited for the future of the industry.

Looking ahead, Xerocon 2024 is already on the horizon, this time happening closer to home in London and promising another immersive experience of learning, networking, and celebration. As we continue our journey to become the leading outsourcing partner for accounting firms in the UK, Australia and worldwide, industry conferences serve as essential touchpoints for staying informed, inspired, and connected with industry leaders and peers.

Xerocon Sydney 2023 surpassed all expectations, standing as a beacon of innovation, collaboration, and visionary thinking. Boasting an extraordinary array of speakers, reimagined showcases, and an indelible wrap party, the event instilled attendees with a rejuvenated purpose and a palpable enthusiasm for what lies ahead. As the curtain falls on this year’s conference, we’re counting down the days until the next Xerocon, sparking anticipation for the multitude of opportunities it holds to elevate the accounting and bookkeeping industry across the ANZ region and beyond.

Posted on by Vipul Sheth

We’re headed down under to Xerocon Sydney 2023, where inspiration, connection, and innovation come alive in one electrifying event! Like you, the AdvanceTrack team is excited to be a part of this incredible two-day gathering of like-minded accountants, bookkeepers, and the wider Xero community.

We all know Xerocon is a conference like no other; it’s an experience that leaves you inspired and equipped with valuable insights to apply back home and with memories of never-ending parties to boot! This is your chance to uncover the full potential of your accounting practice and stay ahead in the ever-changing market.

Why Are We Excited about Xerocon?

For us, Xerocon is a unique opportunity to connect with a vibrant community of professionals who share our passion for accounting and technology. We look forward to sharing our success stories and hearing about the exciting developments coming to Xero, which will undoubtedly shape the future of accounting practices worldwide.

Insights from Visionaries

The lineup of keynote speakers at Xerocon Sydney 2023 is nothing short of extraordinary. These visionaries will shed light on diverse topics that are pivotal to the accounting industry’s future. Here are a few you won’t want to miss:

Diya Jolly: Xero’s Chief Product Officer, an experienced leader passionate about small businesses. Her insights into Xero’s product vision will empower you to leverage the platform effectively.

Sam Elsom: CEO of Seaforest, an environmentalist and entrepreneur with a focus on sustainability. His thoughts on how small businesses can make a difference through ethical practices are invaluable in today’s world.

Mark Rees: As Xero’s Chief Technology Officer, Mark is an expert in scaling platforms and driving innovation. His talk will illuminate new technologies and their impact on the industry.

Mark Pesce: A renowned futurist, inventor, and educator who clarifies complex topics like AI and fintech. Prepare to be inspired and enlightened.

James Bergin: Xero’s Executive General Manager for Technology Strategy & Integration. James will explore the implications of AI, ChatGPT, blockchain, and crypto for your practice and clients.

Louise Southall: A seasoned economist and Xero Economist with three decades of experience, Louise will share her insights on macroeconomic trends and their impact on small businesses.

Wrapping that up, Xero’s new CEO, Sukhinder Singh Cassidy, will also be onstage for the first time this year. We’re excited to hear what her plans are to steer Xero’s growth and development as a multi-billion dollar global business into a future filled with the promise and challenges of automation.

Tips to Navigate the Conference

Whether you’re a seasoned Xerocon veteran or a first-timer, here are some tips from the AdvanceTrack team to make the most of this year’s Con:

 

  • Prepare and Research: Understand who will be present and identify key sessions and exhibitors that align with your interests.

 

  • Dress Comfortably: Leave your formal suits at home; Xerocon is all about a warm and welcoming atmosphere. Opt for a casual yet professional look.

 

  • Network and Connect: Take advantage of the community spirit and network with like-minded professionals. Organise meetings with potential partners and clients, and don’t miss the App Partner side events. By fostering these connections, you not only expand your network but also gain valuable perspectives and ideas that can shape the future of the accounting profession. The #IgnitionPrecon party is our top choice. See you there!

 

  • Explore Breakout Sessions: Attend breakout sessions, especially those with App Partner exhibitors, to discover cutting-edge solutions to enhance your practice. 
  • Don’t forget to have fun! Prove that it won’t be all numbers and tech; accountants can party too! 

Find us at the ICC Sydney from August 23 to 24, 2023. We’d love to chat with you about our journey and how we can help your practice reach new heights. Relive the story of how we helped a 15-partner regional practice deliver 600 personal tax returns and boost their revenue by a staggering $300,000 during the tax season.

The clock is ticking, and the anticipation is building! Secure your spot at Xerocon Sydney 2023 by registering on the website. This is your chance to experience the future of accounting, network with industry experts, and explore groundbreaking solutions that can revolutionise your practice.

Let’s make Xerocon Sydney 2023 an unforgettable event together. We can’t wait to see you there! 

Posted on by Vipul Sheth

In our latest FAQ, AdvanceTrack MD Vipul Sheth sets out the firm’s ‘elevator pitch’.

In some ways this question is difficult, because I believe we have numerous outstanding traits that make us a brilliant outsourcer and offshorer.

But, if pushed to provide a three-pronged elevator pitch, this is the response:

Why we do what we do

My parents ran a business that, without the support of their fantastic accountant, wouldn’t have got to where it did. His advice and insight has proved inspirational to me and, as I developed as an accountant, I saw an opportunity to develop a business that would be a critical business partner to the advisers themselves – you.

This forms the start of my elevator pitch because I feel that it sets out the stall, the foundation, for everything we do at AdvanceTrack. We want to make lives better, and we want our practice clients to want the same for their clients. Our relationship is formed on this basis. Read our FAQ on how we begin working with practices.

Technology as a foundation, led by people

We are a technology-driven business. We’ve been paperless from the start, developing and evolving our cloud platform for many years. The tech enables us to keep our promises around the most robust security combined with good workflow and processes. How do we prove that?

Firstly, we have case study material – our most recent case study is here. Secondly, and much more fundamental to our operations is the consistent high-level external audits that we face every year. Our many BSI certifications covered international standards on security, data privacy and business continuity. We recently broke ground by achieving a UK-first security standard – details of which can be viewed here.

Honesty

We’re an ethical business, which includes a company-wide commitment as an ICAEW member firm (and for me as an ICAEW-qualified chartered accountant). Honesty and complying with the law are things we do as a matter of course. Proving this is not so straightforward – again, the quality and long-term nature of our client base is probably the best evidence in providing demonstration.

If you’d like to chat to us about helping you develop your practice, please get in touch by clicking here.

Posted on by Vipul Sheth

Our latest FAQ looks at the typical qualities and attitudes that pervade the firms we typically work with at AdvanceTrack.

Technology and culture

We see that firms are proficient with technology. More importantly, there is usually a culture that is open to change – to adopt new processes and workflow – and by definition, this means the embedding of new technology. When a practice begins working with us then there are inevitably some changes in how the work is undertaken and tracked – but the vast majority of practices are open and proactive and looking to make the venture succeed.

Investment

Making any change, particularly in an accounting firm, is viewed as a risk: ‘We could perhaps be more efficient and improve profits and service, but why ruffle feathers when we do OK?’ But there are firms that do try different things, and crucially, understand that these won’t always work. These firms will try something and, if it fails, then they learn to fail ‘quickly’. 

This requires an investment of time and money. But, with a risk-based approach, driving change can bring about huge benefits – certainly in a climate where many practices have an opportunity to improve. Which leads to…

ROI

Practices that can deliver change, make improvements, are usually good at project management. And a key aspect of the out-turn of a project is using metrics that allow you to track the impact of the changes made. For firms that work with us, they will eventually look at the impact on their bottom line. But, beforehand, we see them use client service measures, including job turnaround. And, if we can help client work be undertaken quicker and more efficiently, then cashflow and lock-up improves. Firms that work with us certainly measure – and see – improvement in the revenue per head.

Ambition

Finally, the firms we work with usually have leaders with a clear ambition – and these revolve around practical targets such as gross margins. But that is normally tied into running the firm better, offering clients more, upskilling team members – which all creates a more saleable asset. They see that improving the firm’s value is the ultimate goal.

FAQs for you

We’ve produced a number of FAQs – and here they are. Just click on them to view:

If you’d like to speak to us about how we could help your practice, please get in touch by clicking here.

Posted on by Vipul Sheth

Whether you’re planning for the summer holidays with kids in tow, or you’re trying to get away before the summer term price-hikes, we at AdvanceTrack thought it a good idea to help you put your ‘going away’ checklist together. Here goes:

  • Passport (important)
  • Sun-tan lotion
  • Toothbrush (very important)
  • Sunglasses
  • Phone chargers
  • Clients’ tax returns…?

Well, who else is going to do the work?

However, if you can automate data exchange between your firm and its clients, keep on top of workflow, utilise resources support (such as that offered by AdvanceTrack) where required, there’s no reason for your focus to be on anything else but deciding whether to have a fry-up or continental breakfast every morning while you’re away.   

Bear in mind that it might not be you going away, but your team will be. Is your firm structured so they can be left to sunbathe without checking their work emails? Mental health, in the current climate, is a critical issue.

Cruel summer

The irony, as you will well appreciate, is that workflow and productivity often grind to a halt in the summer. So, rather than worrying about bringing work away with you (or not being able to take a break because you’re too busy), instead what happens is… very little. This is worse, because the holiday period is spoilt knowing that, from September onwards, it will be a huge slog to turn everything around for 31 January.

Not everything is automated – the reality is that clients very often still need to send data across to their accountant. So, something else to bear in mind is finding ways to incentivise them to provide info earlier than normal. Can you offer them a 10% discount? Or… add 10% for information filed after 1 September (we appreciate that this is a bit punchy).

Ultimately, some clever marketing (i.e. prodding) could pay dividends.

Wouldn’t it be great to check your phone and, rather than wince at your emails each day, you receive a report that tells you there are 50 tax returns ready to be signed off? Or even better, that your team has signed them off for you?

If you’d like to chat to us about supporting your practice’s workload, please contact us by clicking here.

Posted on by Vipul Sheth

This blog is not about technology… no really. OK, I will talk about technology, but more as a scene-setter than anything else.

Instead, this blog is about you and me. Humans. Or to be more precise, humans that undertake accounting and tax work (and the subset that provide broader business advice).

But the tech first.

QuickBooks/TurboTax/Mailchimp group Intuit has filed some 700 patents focused on AI. Its CEO Sasan Goodarzi announced earlier this month that it is embedding AI into a new operating system (GenOS), which will ‘solve tax, accounting, marketing, cashflow and personal finance challenges’.

There is no mention of accountants, tax advisers or business consultants and their role is this new model.

So, is that it for the accountancy profession? Certainly not. Is it the end for it in its current iteration? Perhaps yes.

AI works by aggregating data and making a ‘best fit’ case for a request from us, humans, to provide us with an ‘answer’. This data is quantitative or qualitative. We have seen AI tools produce some very clever ‘scripts’ upon request though, in truth, most of these don’t quite fit the bill – and require us humans to further interpret and edit.

Perhaps the ‘clear-cut’ nature of numbers will be a different story then? Well, we’ve had computational equipment for decades, and the profession is still alive and well.

Technicians and advisers

It could be argued that the profession is evolving – that as tax and accounting becomes more complex, and businesses require more hand-holding and advice, that we will see a greater distinction between ‘technicians’ and advisers’. This is true, but there is a tension – that relationships have often been borne from initial compliance work. In other words, for the technician/adviser distinction to be made, there will have to be changes in practices’ structure and approach.

The other thing to consider is: micro and small businesses are messy. They’re driven by people with skills and ambition, for whom the numbers, marketing and ‘rules’ get in the way of what they really want to do. They also operate in subtly different ways to each. That’s a lot of lifting and transactional automation for AI to comprehend.

Finally, and back to us as humans doing business. It can be very lonely. And accountants are in a wonderful position to not only manage compliance, but to provide insight on all the information that automation and AI has formed on OUR behalf. Business owners want advice and support. Ideally, from a wise head (that has the rest of a human attached to it). That wise human could (and probably should) be you.

Vipul Sheth is founder and MD of AdvanceTrack Outsourcing

If you’d like to talk to us about preparing your practice for the future, please contact us by clicking here.

Posted on by Vipul Sheth

Our latest FAQ details our team in India, from the perspective of MD Vipul Sheth: who they are, their working environment, and why they’re critical to our outsourcing and offshoring offerings.

In 2005 we had five people operating in one of our locations – now our team number is in the hundreds. One of those original five was Rajni, who has been a constant for us and has helped to set the culture and tone of our much-enlarged group – hopefully in my mirror of being honest; decent people wanting to do a good job.

It’s also a place where people must feel safe to make it their own – certainly when you don’t have the big boss watching over things every day.

The office

If any of our client firms had an office like ours then I think they’d be proud to call it their own. It’s spacious and paperless (the exception being HR’s printer – some formal documents HAVE to be printed). It’s contemporary and modern.

We have meeting rooms, smaller breakout spaces and canteens across all our four offices. We want our people to step away from their desks during breaks – we don’t want too much of a production line-style way of working.

Protocols

No mobile phones are allowed in the office for security reasons – that even means guests. Recently the IPL cricket was reaching its crescendo, and people on their break would watch it in the canteen and relay the scores when back at their desk.

There are metal detectors to pass when you arrive, along with lockers for valuables (such as the mobile phone) – for visitors and staff.

Holiday

We have very happy and productive teams, and recently we took our longest-serving members to Dubai (click here to read more).

Even though our team numbers are growing quickly, we have plenty of people to help them settle into our way of working. It’s incredibly calm, and make sure the work’s done. But it’s important to appreciate and represent the social side of things too.

Vipul Sheth is founder and MD of AdvanceTrack

If you’d like to speak to us about your practice, and how it would work with the AdvanceTrack team, please contact us by clicking here.

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