accounting practice growth – Page 2 – Cooper Mann Consulting

March 9, 2017March 30, 2017

Hosting QuickBooks Desktop Editions – The Good and the Bad – Accountex Report

published on Sleeter.com blog, now Accountex Report, January 22, 2013. This is an oldie but a goodie… perhaps more relevant now than ever.

With the accounting industry moving towards cloud computing and fully online working models, users of Intuit QuickBooks desktop editions may believe that their best option is to migrate to a web-based edition of the software rather than continuing to use the version of QuickBooks they have come to rely on. While QuickBooks Online Edition may seem like the best option for anytime, anywhere access to financial applications and data, it might not provide the functionality or features that QuickBooks desktop edition users need. When the business needs the full capability of the desktop edition product, hosting that solution with an application hosting service provider may be the right answer.

“Hosting” QuickBooks desktop editions means that a hosting service provider installs and manages the QuickBooks software and the company data files on their own cloud-based servers. Users don’t have to install QuickBooks on their PC, because they use the Internet to connect to their QuickBooks software and company data hosted by the service provider. Whether the service is accessed by clicking on an icon on the local PC desktop or by logging in via a web page or portal, the underlying technology is still Windows and QuickBooks.

Continue reading Hosting QuickBooks Desktop Editions – The Good and the Bad – Accountex Report

check out MyQuickCloud for QuickBooks Remote Access and Managed Cloud Hosting

September 8, 2015March 26, 2019

The Cloud, The Desktop and QuickBooks

subtitle: Just When They Told You the Desktop Was Dead…

along comes another desktop app.

Everything is moving to the cloud! Everything is going online! At least, that is what they’re telling you. And, to a certain extent, it is true that a lot of things are moving to the cloud; just not everything. And some of what has moved in is moving right back out. Use of the cloud and cloud services is increasing, but that certainly isn’t proving that the desktop is going away anytime soon. The only thing we can be certain of is that things are going to continue to change fairly rapidly, yet the lion’s share of business users will retain working models they have come to trust and rely upon until they are forced to do something else. Today, many accounting and business professionals feel that they are being forced out of the software they have known and worked with for years: QuickBooks desktop software.

I was recently asked to present to a group of accounting and tax professionals, the topic being “alternatives to QuickBooks Online”. I thought it was interesting that this would be a topic of such interest, as QuickBooks has long been recognized as the market leading application for small business bookkeeping and accounting. Accountants and bookkeepers, as well as tax professionals, have worked with QuickBooks for years – many having even styled their practices around the QuickBooks brand and offering QuickBooks-specific training and other services. Why are these professionals now asking to learn about alternatives? Well, it is an alternative to the online version of QuickBooks that these folks are seeking, and they have been given the impression that the desktop editions of their beloved QuickBooks are no more and their businesses are being forced to change.

Due to Intuit’s focus on promotion of the QuickBooks Online edition as THE QuickBooks to buy, there is a growing belief that the desktop products are going away. Many professionals who have worked with the product line for years are now operating under a belief that their only future with QuickBooks is with the online edition, so they are searching for alternatives for their clients and their own practices. The QuickBooks Desktop editions aren’t being eliminated (2016 editions and certifications coming!), but any real mention of them in the direct marketing is gone, because Intuit isn’t pushing these solutions to new customers. It is no wonder the accounting and tax pros are looking at alternatives – and their customers are, too.

QuickBooks has always been a direct-to-consumer solution and was pretty much the only thing a small business owner would find if they shopped for software at the local computer or office supply store. The high-value desktop editions continue to be available, but it is difficult to tell a business owner they need to purchase licensing and then pay for mobility for QuickBooks desktop editions while QBO sounds much cheaper and they can get it on their tablet or PC for that cheap price. Also, there is more shopping online – from phones and tablets as well as PCs – so consumers are being exposed to other brands and the plethora of new online solutions. Now that they are considering buying or changing accounting/bookkeeping software… they could just as easily elect to use something completely free and not spend anything with Intuit or anybody else.

The small business owner isn’t focusing on the qualities of the accounting solution or how it impacts their accounting professional’s processes – they are focusing on monthly price of the solution. Accounting professionals are now recognizing that the software isn’t (or shouldn’t be) the basis for their practices, it is simply a tool. And there are a LOT of tools available to work with, not just QuickBooks, so the value of aligning solely with that solution is perhaps not as good an idea as it once was, but it is not gone. There is still a tremendous volume of work to be done with businesses using the QB desktop products – you just wouldn’t know it from the marketing hype around QBO.

The thrill of exploring SaaS (software-as-a-service) and online application models has introduced new competition in markets where the dominant player once felt secure (small business accounting, for example). While Intuit’s QuickBooks products were a defacto standard and essentially owned the smb accounting market, the diminished response to the QBO product has created opportunity for many newcomers. Xero, for example, has been able to make great progress, even recruiting long-standing QB ProAdvisors as Xero advisors and promoters. gnuCash, once a bit of an outlier, is getting new business because it IS desktop based (some people like that!) yet it doesn’t require an an ongoing commitment to internet connectivity or to pay fees to the developer. NolaPro, Wave, Freshbooks and more are growing in popularity as more freelancers and small business owners begin using applications other than spreadsheets to manage their business finances. The generation that grew up with online banking is now readily adopting computerized bookkeeping, but they aren’t necessarily interested in QBO. Still, a great many move to QuickBooks desktop editions because QBD is a recognized and respected solution.

It also remains to be seen what happens with usage of some of these online smb accounting solutions when the business reaches some size or complexity. While they may be highly useful for startup or freelance business, many are not likely to satisfy business requirements far into the business lifecycle. This is when the going concern and growing business demands more functionality and performance, which often becomes the catalyst for seeking faster and more powerful software and systems and has been a driving force for businesses returning to locally-installed or hosted accounting and ERP solutions. Along with QuickBooks desktop editions, Sage is positioned extremely well here. The Sage 50 solutions (good old Peachtree!) can scale and also have very strong accounting functionality. These were actually the preferred solutions for most accounting pros for a time, but the momentum of QuickBooks pushed them to the side. With the attempt to now leverage the QB user base to the QB Online solution, Intuit has created the opportunity for Sage to regain a position with accounting professionals and their clients who demand more.

As these software and systems have (in some part) migrated from the local infrastructure to the web, we have also seen a lot of hybrid or “tweener” approaches come about. These approaches, just as cloud service of any type, come in many varieties and exist to solve different problems. The problem of browser-based functionality and modality is among the issues identified with QBO. The browser-based app doesn’t allow for multiple operating windows – you have to use browser functionality for that. And it is relatively slow – performing data updates and screen refreshes like with a website and not as one would require of a business application. The solution provided is a great example of a hybrid approach. The desktop app for QuickBooks Online (yeah) is a software app that comes in a flavor for Windows and Mac, and which provides more of a desktop user experience even though it mimics the interface and connects to the data of QBO. It is faster, and multiple windows can be used, and more… which are some of the great benefits of running software on the local device and why desktop software is so great a performer. This hybrid model simply allows for desktop software to work with cloud-stored data and back-end processes, and potentially delivers some of the best of both technology models: cloud and localized.

If you consider how much of the actual QuickBooks desktop product has been turned into web service (payroll, merchant processing, etc), it seems like QuickBooks desktop is already beginning to be a bit of a hybrid approach. And when QB desktop is run with a hosting service provider, the whole thing becomes available anytime/anywhere. Hosting is the way to provide the management and mobility aspects of QuickBooks and other desktop software. The hosting model delivers benefits of cloud service – providing users with all the features and functionality of the desktop solution – and introduces the system management and mobility that is part of the underlying value of a web-based or SaaS application approach.

The real discussion, I believe, is not about the death or near death of the desktop and locally installed applications – that’s just silly. Even phones are now being touted as possible desktop replacements, as the processing and storage capacity has increased to rival the most useful portables and laptops. Clearly, devices continue to be more powerful and capable, and these advancements aren’t done solely to make web browsing more enjoyable.

pendulum Devices are more powerful so that they can run more applications – fast – and deliver more useful functionality to the user. Maybe the data will be in a cloud, and maybe even some app functionality will be delivered via a cloud, but it is very unlikely that everything will be in the cloud. Complexity and cost drove developers to seek out alternatives, and advancements in technology will introduce new options that change everyone’s thinking again. While the pendulum did swing to one extreme (move it all to the cloud and off the device!), we are now seeing it swing back in the other direction a bit and those who didn’t swing all the way the first time are in a position to reap some benefit.

Joanie Mann Bunny Feet Make Sense?

August 12, 2015

Skinny Isn’t Just for Jeans: Lean Business and the Service Sector

Doing more with less is the mantra of today’s business. Hiring more people or throwing money at a problem is almost never the best way to solve it… even if there are people and dollars to throw. Businesses are feeling the crunch today more than ever, in some part due to advancements in technology and the emergence of retail and “self-service” service. Once upon a time it was OK to be a fat dumb and happy business, but those days are long gone. With competitive pressures increasing – and emerging from new sources – just about every business is feeling the need to trim some fat – cutting costs and streamlining processes even as customer demand increases.

Lean and efficient business isn’t of concern just to manufacturing sector, even though that is where you most frequently hear about initiatives relating to process improvements tied to quality management. Professional service firms should also seek to identify areas where cost or time efficiencies could be gained while at the same time preserving (or improving?) quality of service delivery. Price of service isn’t necessarily the largest factor in meeting the competition, but quality of service for the price and delivering on customer expectation are right up there as top priorities for buyers.

Quick: What do legal professionals and assembly-line workers have in common?

More than either one might think, apparently. After all, the “lean” approach to manufacturing—a concept which rolled off the Toyota Production System, only to be delivered to ailing U.S. auto giants in the late 1970’s—wouldn’t immediately seem applicable to workplaces where the heaviest lifting involves leather briefcases. As for paring resources, such as inventory, down to a minimum—it seems like overkill when applied to pens, yellow pads, laptops and file folders.

But the lean concept long ago roared out of manufacturing and parked its principles in service industries: lean accounting, lean healthcare, lean startups.

http://performance.cfo.com/2015/05/11/the-real-skinny-on-lean/

Professional service firms are being compelled to reduce costs just to compete, and are finding that cost-cutting isn’t all that is required. Rather than doing more with more people, firms have begun to recognize that getting more done with fewer human resources is the goal – a goal which must be achieved without sacrificing quality of service. In fact, most firms are now actively seeking ways to increase production and improve service levels, and to do it without increasing headcount and cost. Client needs are changing and demands for higher levels of service continue to increase as society more fully embraces social computing and DIY. Technology is impacting how businesses do business, and sometimes is the basis for establishing a new standard by which all competitors are then measured.

Technology advancements are among the primary drivers moving service firms to explore leaner and more efficient ways of working. As more sophisticated tech and the resultant capability it delivers is made available in the market, more businesses begin to recognize that the “traditional” providers of certain services may no longer be the most cost efficient suppliers. Competition often emerges from some of the most unlikely of sources, and this new reality is impressing itself upon even the sturdiest of professional service firms who find themselves facing new threats to the status quo.

Like all customers, legal clients seem to have grown fussier than ever. One study estimates that about 60% of large clients replaced one of their top two law firms last year—citing mediocre service. As is true across industries, the cost of acquiring new clients only heightens the appeal of retaining existing ones.

via The Real Skinny on Lean: It’s out of the Factory and into the Service Sector – Performance.

There is much talk among accounting and legal professionals as to what the “firm of the future” might look like. Are these firms highly efficient producers of service that rival the lean manufacturers, leveraging insight and innovation to deliver more value? Or are they adopting technology simply for the sake of change? There is a difference between change and improvement, and not all changes result in the desired improvements to operations, efficiency or quality of service. For the firms seeking to increase their competitiveness in a rapidly changing market, applying measurements to the various processes the business performs can reveal the secrets to improving not only process performance and product quality, but resultant profitability. https://coopermann.com/2013/03/18/philosophy-of-process-improvement-todays-cfo-focusing-on-operations/

Make Sense?

February 24, 2015

Trusted Advisor is About the Work, Not the Title

Many accounting professionals believe they are THE trusted advisor the client comes to for advice and guidance on business financial matters. Having fully bought into the messaging about the value of the accounting and tax work, these professionals are feeling pretty relaxed about their client engagements. They believe the client will come to them with questions and provide the opportunity to deliver advice or work. And each year many clients return to get their taxes prepared or financial statements produced, and even new clients may appear. But the work remains largely the same – financial statements and tax returns, and addressing additional needs only when the client brings it up, which isn’t all that frequently.

happy_client On the other hand, there are professionals who recognize that a proactive approach to helping clients results in better and richer client engagements and better-performing client businesses. These professionals are truly the business advisors to the client – the trusted partners who understand the variety of conditions which impact business performance and care to make sure they are properly addressed. This advisor not only reports but makes recommendations and provides guidance on certain situations or processes which are essential in the business model. These professionals recognize that the bookkeeping and operational information collection is not simply a means to an end; these professionals understand that these foundational processes and the information they encompass are the important details which reflect the true performance of the business… details which no summary report can fully describe.

Having more direct participation in clients’ financial systems is a highly successful component of practice building, helping the firm to mine opportunities that may be hidden in current or new client engagements. This does not mean that the accounting professional becomes part of client operations or workflows. Rather, it suggests that the accounting professional understand these aspects of client operations and assist in the development of necessary controls and processes involving data collection or validation. It may include the implementation of KPI and benchmarking solutions to help identify problems and map improvements, or it may involve the installation of a solution to improve the importing of orders and other transactions into the system, improving the efficiency in processing the information while at the same time reducing the potential for manual data input errors.

Regardless of the depth of direct involvement in client systems, professionals can more fully benefit from every client engagement by providing some level of training, consulting or supporting service in addition to compliance and reporting work. Services may be aligned toward helping clients set up or support their own in-house bookkeeping and controllership responsibilities, or they may be more suited to providing real-time guidance and review of client business performance data. Either way, the quality of the financial information derived is generally far better and requires less work to adjust and report on.

The key is recognizing that the work involved – whether it is through training, regular process and data reviews, or more direct participation – is not intended to simply streamline reporting on outcomes. The work the trusted advisor performs is intended to help the client save money and improve business and financial performance, and the practice is rewarded with higher value billable services and a much increased opportunity to engage the clientele in other efforts.

jmbunnyfeet Make Sense?

December 11, 2014September 25, 2018

Audit or Advice? Small Accounting Firm Practitioners and Small Business Clients

When a small business owner needs advice about running the business or strategizing on financial matters, one would think that the business owner would engage their accountant in the discussion. Following along with that logic, many small firm practitioners believe that their small business clients will ultimately engage with them for this advisory work and move beyond statutory audit and compliance work. For a great many firms, however, there remains a struggle to achieve more work and greater opportunity from client engagements; the firm remains relegated to performing mechanical functions of accounting and reporting and fails to gain the additional work which is truly desirable. There are a number of elements which present themselves in this discussion – considerations that the small firm practitioner may not be addressing – and which are likely contributing to the firm losing the opportunity to deliver more and deeper services to the client.

First, let’s consider why small business owners initially engage with their accounting professionals. More than with larger businesses, smaller businesses tend to rely more heavily upon the involvement of outsourced accounting professionals simply because the business isn’t able to justify the cost of staffing the position full-time. Needing office managers and bookkeepers or data entry operators is often a more evident need to the business owner, where assistance with daily operational and information management processes are more urgently required. Functions considered to be “accounting” could effectively be outsourced to a 3^rd party and handled in more of an after-the-fact basis. For many small business owners, accounting is something which can be performed after all the real work is done, and presents the information necessary for payment of taxes, processing of payroll reports and the like. The accounting professional is typically engaged because the business owner knows this work must be done by somebody, and believes the selected practitioner to be competent and trustworthy, and they’re also probably local.

With the convergence of market environment changes, regulatory and jurisdiction conditions, as well as changes in behaviors (cultural, sociological, technological), a new level of demand has been created for business and financial advisory services. Yet small business owners often remain reticent to approach their local small firm practitioner for the service. Why is it that the client doesn’t often approach their small firm practitioner with requests for advice and advisory services?

Part of the problem is perception. Small business owners often believe that their needs require specialized knowledge and experience to address, and that the skill and experience can only be derived from a larger firm. Particularly if the smaller firm is not presenting itself in a manner that suggests that business advisory services are not only offered but are a specialty, the firm may simply lose to competitors who communicate the ability more effectively (something larger and more established firms are able to do via referral and reputation as well as through marketing).

A possible way to address the competency and perception issue is partnering, where firms join to collectively deliver solutions to the client. Where one firm may specialize in an aspect of the engagement and the other firm addresses other areas, the delivery of full service to the client is ultimately the goal, and sharing the work and the revenue is often a more agreeable approach than losing out on the engagement altogether.

Another factor presenting itself in the equation is the “entrepreneurial spirit” from which many small businesses are fueled. A small business owner is often somewhat of a superman, taking on multiple roles and performing a variety of functions in the business. It is this DIY (do-it-yourself) attitude that contributes to the business growth and success, but it is also sometimes the barrier to achieving a higher degree of success. Believing more in the personal power of critical thinking than in the reliance on the professional’s education, experience and insight, the business owner simply refrains from asking for advice because they don’t think they need it.

Frugality is another factor playing into the small firm/small business relationship. Small business owners may want advice, but they don’t want to have to pay for it. Anyone selling products or services to small business recognizes that there is a certain amount of consulting and advice that accompanies most sales. For some, this is simply a part of the sales process; helping the customer determine that this is the best choice and they should buy it. It’s not so simple with accounting and finance, however. There’s a big difference – and perhaps large risk associations – in giving advice versus performing accounting and compliance work. Certainly, advisory services aren’t something the firm would elect to give away, so it becomes essential that the value of the advisory service be expressed in a way that the client can understand and believe.

I once heard a financial planner address this same argument, where a prospective client suggested that they couldn’t really afford to pay for the advice. The financial planner countered with the argument that a good financial plan will increase the return, which then recoups the cost of the advice. If you pay $100 for the advice, and you earn $500 more than you would have without the advice, then it kind of feels like you’re getting paid to get advice because you gain more than you spend. It’s the same with accounting, finance and business advisory services: sound advice should improve the rate of return, which would more than compensate for the cost of the advice. The trick is getting the client to view the service as something real and valuable and not as snake oil, and to make a commitment to following the advice. Real value must be communicated and tangible results measured and delivered, not smoke and mirrors. Otherwise, the client return isn’t there, and the advice proved valueless.

As regulatory requirements increase – and become increasingly complex – the demand by small business for outside help also increases. It is this ever-expanding demand which represents opportunity for small firm practitioners to capture more (more interesting and more profitable) work from their small business clients. But competition is also growing from new providers and systems delivering advice, forcing adjustments to how the small firm must present its offerings and services, as well as change how they deliver and support those offerings.Whether through partnering and referral models, the development of new competencies and capabilities, creation of new workflows and methods, or some/all of the above, small firm practitioners must adapt in order to get that opportunity.

While the small firm practitioner may recognize that the small business client is greatly in need of advisory services, what they may not recognize is that the traditional approach has turned around, and it has become more likely that the client will seek advice first and statutory audit work second. For small firm practitioners, it is time to recognize that relationships are changing and how business is done must evolve to meet and advance that change.

jmbunnyfeet Make Sense?

October 23, 2014

9 Growth Hacks Any Small Business Can Implement

In 1996, an email company named Hotmail launched with a small group of users. By the end of 1997, that company had 12 million users.How did they grow so dramatically in just year and a half? Well, they looked at their initial numbers and saw that approximately 80 percent of new users came by referral from current users.

To make the most of referrals, Hotmail created their iconic email postscript: “PS. I love you. Get your free email at Hotmail.”

That single line, added at the end of every email sent through Hotmail, drove millions of new users in an ever-widening ripple effect. Hotmail successfully created one of the first documented growth hacks.

via 9 Growth Hacks Any Small Business Can Implement.