Many firms know that AdvanceTrack help drive efficiency into theirs and their client firms’ process. We also help clients move to the cloud. We are a migration partner for Xero as Xero Partner firms want to move their client to Xero at scale.

One of our long-standing clients, MHA Carpenter Box recently approached us as they had two large companies to move from Sage onto Xero. Whilst there are tools that help “standard” clients move to the cloud, these companies were international in their nature.

The biggest challenge that both the end client and MHA Carpenter Box faced, was the need to move a large volume of transactions across multiple years. The most complex part of the migration was dealing with foreign transactions. These were not just bank transactions, but purchases and sales with the exchange differences needing to be allocated correctly in line with the financial statements.

Across the 2 entities that needed moving across, there were 1000’s of transaction lines that needed migrating across and reconciled.

Our Xero trained teams were given access to the data before starting work. They agreed a plan to move the data using technology and their knowledge of using Xero effectively.

Once the data had been moved from Sage into Xero, our teams carefully reviewed the data and ensured that the client data had been transferred effectively and accurately. With trained accountants and bookkeepers overseeing the process, the migration was delivered cost-effectively and accurately.

Clean, quality data which the client and firm will benefit from in the future as the reports will be meaningful with cloud tools that can now be connected using Xero.

Client feedback

There are great tools like MoveMyBooks to move client data to the cloud. Where there are complexities such as Foreign Currency, we’d certainly use AdvanceTrack again to help us transfer the data.

Does your client need help moving data to the Cloud? Get in touch with the AdvanceTrack Cloud team.

A lot of our recent discussions have been about practices’ strategic approach to clients, staff and management. It seems a good time to put the key UK tech providers under the spotlight. What are they focusing on, and where do they see their relationship with accountants impacting on tech development in the future?

 

Wolters Kluwer/CCH

Wendy Rowe, commercial director TAA, Wolters Kluwer UK&I

Q: What is your latest/impending launch?

A: We were proud to launch CCH OneClick in April. CCH OneClick delivers complementary cloud tools to the CCH Central on-premise suite supporting accountants around GDPR, digital data collection, accounting efficiencies and new cloud tools to support new filing regulations being driven through HMRC’s Making Tax Digital (MTD) programme. One of these tools is VAT filing, supporting the mandatory VAT filing for businesses from April 2019.

 

Q:What developments can we expect from you in the next 12/24 months?

A: Our focus for the next 24 months will be around how we support practices becoming digital and in helping accounting practices to embrace and navigate the new digital world.

Areas of interest are:

  • Providing tools that help with digital data collection and aggregation of digital data– helping practices to reduce the volume of manual data entry but also collating useful data that can be leveraged across multiple activities. For example, how transactional bookkeeping data can be used to support quarterly reporting compliance needs but can also be leveraged to create a set of accounts and then for forecasting cashflow projections for business advice.
  • Delivering compliance more effectively– with HMRC bringing in new regulations around MTD, practices will need to review their current processes. It is highly likely that these will change to ensure compliance work remains efficient.
  • Advisory– Wolters Kluwer is exploring solutions and services that help accountants to be more proactive and responsive in their client interactions.

 

Q: How will conversations with practitioners develop over that period – what will you be discussing with them in 12/24 months’ time?

A: I see the following as key themes over the next two years:

  • Efficiency/automation– how technology can make compliance more efficient.
  • Advisory and data– the use of technology to help advisers to become more proactive.
  • Client collaboration– how the advisor changes their traditional collaboration approach in light of the millennial generation and a digital world (mobility and so on).
  • New technologies (eg. machine learning, BI and so on)– how these technologies can assist the practitioner of the future while simultaneously protecting the profession.

QuickBooks

Alex Davis, business development manager, Intuit QuickBooks

Q: What is your latest/impending launch?

A: Making Tax Digital is part of the UK tax authority’s plans to become one of the most digitally advanced tax administrations in the world, and a topic on everyone’s mind as we look to make the process as easy and straightforward as possible for our accountant customers.

QuickBooks Online is already MTD-ready, which means the product is fully compliant with the requirements set by HMRC. Companies will be able to submit VAT filings directly from our software through to the UK tax authority. We’ve already completed successful filings from a number of our accountancy customers through our beta programme.

 

Q: What developments can we expect from you in the next 12/24 months?

A: Our teams are focused on helping our customers earn more money, make better decisions and develop greater confidence about their finances. Bringing together siloed data is one important way we help save customers and their advisors time, and reduce the risk of manual errors. For example, we have direct bank feeds with three major retail banks in the UK, covering 60% of the UK market. Direct bank feeds automate much of the time-consuming data entry associated with bookkeeping. Tax prep is an area in which we continue to add value for accountants who spend an excessive amount of time gathering data for a single client on an annual or quarterly basis. A recent example is our release of the option to import bills and invoices to QuickBooks.

 

Q: How will conversations with practitioners develop over that period?

A:There is little doubt that over the coming months practitioners will be focused on first identifying which of their clients need to be migrated to MTD-compliant software. Then, they will put the plans in place to manage those migrations efficiently. This will involve the transfer of critical financial data, along with educating staff and clients on how to use the software efficiently. Once these building blocks are in place, we expect the conversation to move towards how these insights can be put to use.


IRIS

Nick Gregory, chief product & marketing officer, IRIS Accountancy Solutions

Q: What is your latest/impending launch?

A: IRIS continually develops products to help practices evolve beyond compliance services to deliver more lucrative advisory-based services. This includes Accountant Go, a practice-branded app that enables accountants to engage and communicate with their clients.

We’ve also launched IRIS Analytics, an analytics tool for large accountancy practices to obtain comprehensive insights into business performance. We are due to launch IRIS AI, a new AI tool that enables accountants to address skill shortages and deliver new risk and fraud assurance services.

We are also adding more GDPR enhancements across our product range, and launching IRIS GDPR Advisor, a new service designed to help accountancy practices maintain GDPR compliance.

 

Q: What developments can we expect from you in the next 12/24 months?

A: IRIS is 40 years old this year and our heritage allows us to see the industry in a unique way. IRIS continues to heavily invest in developing its product portfolio to help accountants’ grow their businesses and deliver new services, enabling them to thrive in the new digital economy.

The next strategic announcement will be at IRIS World in October with the launch of ‘Darwin’ which will help liberate desktop IRIS compliance suite data and offer new apps, all available via a cloud platform. We also want to make MTD (VAT and personal tax) as easy and as seamless as possible for customers so will continue to enhance new digital ways of reporting into the existing products and workflows.

 

Q: How will conversations with practitioners develop over that period – what will you be discussing with them in 12/24 months’ time?

A: Without a doubt, MTD – and especially MTD for VAT and personal tax – will continue to be at the forefront of discussions. Traditional assurance and core compliance services are evolving, so our job in the next few years is to ensure practitioners get it right, first time and succeed every time through integrated, efficient and automated processes and workflows.

As the industry transforms, discussions advance beyond compliance services to business advice.


Sage

Michael Office, VP Accountants, Sage

Q: What is your latest/impending launch?

A: We’ve just launched exciting new services for accountants and bookkeepers in practice:

  • Sage Accountant Cloud– the platform to run your practice – brings together all your client information, important dates, documents and interactions to help you keep on top of tasks and jobs. It also gives one-click access to client bookkeeping in Sage Business Cloud Accounting, and an automated workflow to Accounts Production and Compliance/Personal Tax.
  • Sage 50cloud Payroll Online Bureau– we’ve given the 6,000 practices running payroll on behalf of clients the very best benefits of the cloud: automation. With secure online employee details and hours entry, payslips, payroll documents and reports – all with an automated workflow to and from payroll.
  • Accountants and Bookkeepers Hub– this has brought together all the expert advice and support we offer (from help with MTD to growing your practices, from toolkits to webinars) into one place, dedicated for accountants and bookkeepers.

 

Q: What developments can we expect from you in the next 12/24 months?

A: Our mission is to make admin invisible by 2020 for accountants, bookkeepers and their clients. Our roadmap for the next 12 months across both Sage Business Cloud (featuring accounting, payroll and payments) and Sage Accountant Cloud (featuring client/practice management and compliance) is focused around automation, efficiency and AI/machine learning driven proactive capabilities. A great example of this is automatic bank reconciliation and bank rules launching this autumn across Sage Business Cloud Accounting and Sage 50cloud.

 

Q: How will conversations with practitioners develop over that period – what will you be discussing with them in 12/24 months’ time?

A: We talk to more than 1,000 accountants and bookkeepers (face to face) every month through our expert field team and at events. We know that MTD is something that is on the minds of accountants and that together we can unlock the potential that digitisation presents.

Taking 60 days out for tax year-end and Christmas, there are just 90 working days to go until the MTD deadline next April. The average practice has 112 clients, so already that’s more than one client per day that practices need to get ready for MTD now. Our focus is therefore helping, supporting, enabling and driving practices to be ready for MTD.


Xero

Damon Anderson, director, partner & product, Xero UK

Q: What is your latest/impending product launch?

A: Most recently, we launched the all-new Xero Expenses. This has been one of our oldest features in Xero but it was overdue some love, so we’ve worked closely with our accounting partners to reimagine it from the ground up. It now offers businesses a more efficient way to manage expense claims and is smarter, easier to use and designed to benefit both the small business and their employees.

 

Q: What developments can we expect from you in the next 12/24 months?

A: Artificial intelligence has a fundamental part to play in all our product developments over the next two years.

Further proof of our commitment to improving productivity for small businesses is through our recent acquisition of data capture solution Hubdoc, offering our customers another powerful solution for better workflow efficiency.

Machine learning is paving the way to high-integrity accounting. Our Find and Recode software has already saved small businesses and their advisers in excess of 307 hours of time in the first year alone, and the next two years could see the elimination of data entry and coding entirely – a really exciting prospect for business productivity.

 

Q: How will conversations with practitioners develop over that period – what will you be discussing with them in 12/24 months’ time?

A: Making Tax Digital is having a major impact on the accounting profession, and supporting accountants through this change is our priority. And a modernised VAT returns experience will mean a better understanding of business financials as well as enable improved levels of efficiency and productivity.

There are the pacesetter firms that will have no problems in the coming 12/24 months. But many others might be faced with the daunting prospect of getting their clients’ finances online in a short amount of time, and we will be helping them navigate these waters.

It doesn’t stop there. Once MTD has been fully implemented, we then want to support practitioners as they build new service offerings or fuel their growth. We don’t see the conversations dying down any time soon.

The changing practice landscape, the impact of MTD, investment into the cloud by the major software companies, and how AdvanceTrack® is helping support practices be fit for the future. The company’s founder Vipul Sheth talks to former Accountancy Age editor Kevin Reed about these key topics, and more

Vipul, what are the pressing issues for practices in the next 24 months?

Technology is the number one issue. Knowing which tech companies will be the winners – that’s a very big unknown. They have made a lot of investment, but we don’t know which will stand the test of time. I do think Xero and QuickBooks will be the two global cloud platforms… I can’t see Sage being there. Unless Sage come up with something amazing, they’re not in the game – as a Brit, I feel disappointed about that.

The profession is losing skilled staff through retirement and mergers, leaving a gap in experience and advisory skills. Younger staff like to use tech but are not always so proficient or experienced in client engagement – that’s not true of everybody, but many naturally communicate through devices. The next generation don’t always want to take the risk of running a firm, with the responsibility and financial exposure. Firms must consider how to provide work/life balance.

Back to tech-based communication: this will be ne for 90% of scenarios, but there will be an element of the client base that wants to engage, to meet up face-to-face. The next generation of practitioner needs to be able to ‘press the flesh’, and gain the confidence of the client in a one-to-one situation. As such, succession planning is an issue that’s never far away.

Is Making Tax Digital (MTD) the game-changer, and if so, why?

MTD is absolutely front and centre for everyone, but my view is ‘never let the government write your business plan’. Build a business that goes beyond dealing with numbers; build a business that clients feel they can’t do without.

MTD is concertinaing the time window to migrate people to the cloud to do things effectively. It’s important that MTD is making firms visit this – but they should look beyond it. The law will make us help clients be compliant, but what do you do with that information? MTD will ‘help’ you keep clients out of jail – but it won’t help you make more money. What will enable that is how you use that information to make clients run their business better.

What about longer-term for practices?

Everything comes down to client service. Moving to the cloud is an essential part of providing advisory services – keeping them compliant but using other tools to give better insight to what will be increasingly operational data. By offering clients insight, you can use data to justify where you are and what decisions you’re making.

There will continue to be a market for compliance business but, over time, technology and self-service will replace those firms – if that’s all you’re delivering to clients.

Automation and AI – what should practices consider with regards their strategy, and staff levels?

Our top clients have already started moving staff to client-facing roles. When they recruit people today, the type they recruit are those they think could be partners in 10-15 years’ time. If you have enough coming through with that skillset, you’ll automatically have in-built succession… practices forget they’re running businesses.

Tech is used in young people’s everyday lives. So practices must look at the range of skills they will need. You will rarely find someone that can be an accounting technician, fully IT-literate, can run a practice and serve clients. Teams will need to be built to cover the bases.

Is it tough for firms to serve clients while everything is changing so quickly around them?

Forward-thinking firms have a small group of people running change programmes. They’re the ones most successful at implementation, and some with non-accountants going into the technological change roles.

We all need to re-skill and keep developing. I’ve had several professional roles in my career, and am doing something very different to what I did 15 years ago. We must recognise that in ourselves, and also give people the time and framework to adapt.

What types of practice are impressing you, and why?

Some cloud-only firms are very impressive. They have no shackles, and are not wedded to a particular technology. Staff can work anywhere (which comes back to staff wanting work/life balance).

There are a handful of ‘traditional’ firms that have impressed me by having a big client and team base, looking after SMEs and using AdvanceTrack® and other technologies to service a much wider cross- section of clients than they would have in the past – regional practices operating on a national or international level.

Where does AdvanceTrack® fit into all this change?

We have been a tech-first supplier/provider to the profession. We will adopt tech that’s developed by third-parties, or develop our own. Where we have really continued to progress is our need to be efficient, particularly in collecting and processing data efficiently – to help our practice clients deliver an amazing service.

Off the back of MTD and the need to keep clients compliant, we’re able to give scalable bookkeeping solutions to practices and enable them to work with real-time data. This solution feeds into practices’ other advisory- led and insight services.

What do potential clients ask you about AdvanceTrack’s services, and what is your response?

The questions have hardly changed over the years! First, quality – how do you maintain it? How do you keep clients’ data secure?

Our biggest challenge is those in the industry that have offered bad service, which makes it much harder for practices to revisit the option of outsourcing.

Some clients have come to our offices. They want to ensure that if working with a provider, we’d also look after our staff when working on their projects – part of their due diligence is to visit our offices and ask our team members any questions they want.

“We have used AdvanceTrack since 2014, and we have been pleased with the outcome.”

Like so many new relationships, it takes a little while for both sides to understand clearly what each other wants and is able to give; in the early months, we found that we had not explained clearly enough what our expectations were, which led to some misunderstandings.

However, in my opinion, the mark of a good business is not necessarily what goes awry, but how they deal with it once it has. In this respect, I cannot fault Vipul – he came promptly to our offices to listen to and understand our challenges, and since then, the process and outcomes have improved dramatically, and we now get good quality work in the format that we want from them.

They are also very attuned to using IT to help make the process easier – we are avid users of Xero and Xero work papers, and they are quite happy to work with us using this technology. Looking forward, I think Vipul has some great ideas on using Xero to help support us accountants, and I am keen to explore how we can do this better – once we are through our busy season!

In a sentence: they are a good bunch of guys, dedicated team, flexible, competent, and a good cost; a worthy additional resource for us which we use month in, month out. Try them.

It is interesting to observe the changes in the profession as a result of technology. As a technologically advanced accountancy outsourcer, we understand the changes and are driving the biggest changes in the profession. Cloud accounting is transformational.

What is surprising is that there are a significant proportion of firms who have yet to develop an integrated approach to cloud accounting and bookkeeping.

Receipt Bank contribute their thoughts on making bookkeeping pay for the professional firm. This is available to read on our website.

Many accounting firms have steered away from bookkeeping in the past due to the relatively low value and the large volume of paperwork. Consider how much work you passed to local bookkeepers in the past? Consider how inconsistent the quality of these bookkeepers has been over that time.

So what are your options today?

No change (The Do nothing strategy)

That is a strategy of sorts. The long-term impact of such a strategy is to reduce the long-term value of your practice, as few new entrepreneurs will buy your firm’s services if you don’t demonstrate cloud capability.

Half-baked cloud strategy (Partial cloud strategy)

There are many firms that fit this profile. Consider how many of you have clients that use Sage, Xero or QBO (and many others) and because your client has introduced you to them, you do support them, but it is almost accidental?

In this instance, you support anything as long as you win the client.

Full cloud strategy

This is where the firm has a clear strategy as to which products it will support and how they will transition appropriate clients to their chosen software products and how they will attract new clients using their expertise in the chosen products.

A truly professional outsourcer like AdvanceTrack® can deliver cost-effective and efficient delivery of bookkeeping and other compliance services. This strategy can also help deliver a cloud strategy faster than in-house staff.

Outsourcing should help you focus on what you do best – deliver better service and advice to your clients.

AdvanceTrack® is run by UK based ICAEW Chartered Accountants and are certified by BSI in the UK for ISO9001:2015 (Quality Management) and ISO27001:2013 (Information Security Management) and operating since 2003.

Call us today to arrange a meeting to help you develop and deliver your cloud strategy on +44 (0)24 7601 6308

“It is interesting to observe the changes in the profession as a result of technology. As a technologically advanced accountancy outsourcer, we understand the changes and are driving the biggest changes in the profession.”