outsourcing – Page 2 – Cooper Mann Consulting

May 13, 2014March 26, 2019

QuickBooks and Dropbox? Yeah… no.

Having your data available from anywhere is awesome. Storing files in the cloud and being able to sync them with files on the computer is a great way to make sure the files are centrally available regardless of which machine you use to access them with. Dropbox is among those favored solutions which provide users with the cloud drive storage and an ability to seamlessly sync those files to various computers. It’s pretty cool, but let’s face it: not every type of file loves living in a Dropbox or sync folder. Particularly for folks who want to be able to store and sync their QuickBooks and other business files to the cloud, there are a few things to be aware of when using these nifty sync solutions.

A file is not always just a file. What do I mean by this? Well, there are lots of different types of files an application might store and use, and not all of them work the same way. For example, Word documents are files that only one person can actually work on at a time – there’s no actual “multi-user” functionality when it comes to a Word doc. You either get the file in a state that allows you to make changes to it, or you get it in ready-only mode. Document files like this – Word docs, Excel spreadsheets, PDFs and text files – work great with sync solutions. This is because the type of file being sync’d is designed to allow only one person at a time to have it open and editable. You sync it to your computer, work on the file, and then sync it back. It’s pretty straightforward.

The file that isn’t just a file is a database – a file or series of files that make up a complete data set, and which have some type of database manager or other framework keeping track of things. It’s this type of solution that often has problems working in a sync folder or system. An Outlook data file (a .PST file) is a type of file which fits into this category. While the Outlook file isn’t generally viewed as a multi-user data file or a database file, it is being communicated with and written to by various processes while the application is running. There is information being added to the file as emails are received, even while the user may be writing an email or entering a calendar appointment. The point is that there are multiple types of data elements being updated all the time and by various processes. This type of file is always in use and getting changes, so there really isn’t a point in time when it’s closed and available to make copies of, which is what has to happen for a proper sync. And, because the sync solutions often try to sync incremental file changes, there is a big possibility of ending up with a damaged file because some changes were properly written where others might not be, ending up with file conflicts and corrupt data.

A QuickBooks company file is also a database file, so the same issues around syncing an Outlook data file exist with QuickBooks. When the QuickBooks software is open and a company file is being worked on, the file may get incremental changes throughout the work session. As each of these little changes happens, the sync program may attempt to copy those changes to the file in the cloud. Because the QuickBooks file is constantly being updated, the attempt to incrementally sync updates to the file in the cloud can easily cause damage and corruption to the file. Folks who have attempted to fake a sort of multi-user access to QuickBooks data files by using Dropbox or other sync services quickly find that the system isn’t going to work for them that way. Further, they often find that the QuickBooks data files can get pretty screwed up trying to manage the live company file in this manner.

The only way to use QuickBooks, Outlook and similar types of data files with Dropbox is to recognize that the sync folders are only viable as a backup storage location for the files, not the place where the actual, working data files can be stored. If using an application such as QuickBooks, businesses should store the “working copy” of the file in the documents area on the machine, and then backup or copy the data file to the sync folder periodically. Placing the backup files or file copies in the sync folder allows them to sync to the cloud, storing them as offsite backups in case you need them, and allows the file to remain where it can be used by the application.

Businesses who need access to QuickBooks applications and data from different computers or locations may want to consider checking out hosting services as an alternative to a sync solution. Hosting solutions can help businesses get their software and data available anytime, anywhere either from their own PC or from a secure environment so they can access their QuickBooks applications and data from any Internet-connected device.

When a company wants to keep backup copies of their information in the cloud, a sync service might be an okay solution. For folks who need to be able to access a live file and applications from a variety of locations, or if multi-user access is required (especially if those users are in different locations), then a full hosted solution might be the better answer. Hosting the applications and data in the cloud is a great way to get the company connected, and it’s a far better alternative to pretending the system can be multi-user when it really can’t.

jmbunnyfeet Make Sense?

April 29, 2014December 7, 2017

The CPA for Small Business: Proactive, Responsive, and Helps Paint a Beautiful Picture

I once read an article written by Doug Sleeter which describing the findings of a published report titled What SMBs Want from Their CPA. The report was a summary of results from a study conducted by The Sleeter Group, and was intended to help accounting professionals understand the factors in the market which influence business use of professional accounting services. While adoption and use of technology was not named as the top item on the list, capabilities which can be rendered only if such adoption occurs were. In short, it’s not the technology that clients demand, but the level of service that professionals can only deliver by embracing advancements in technology and applying them to the client engagement.

The report and article placed a specific focus on trends relating to technology adoption and use in the professional practice, and establishes a foundation for firms to understand why technology is and always has been a key factor in the success of the CPA-client relationship. It’s not that the accounting professional must become a skilled technologist and promote high technology to the client. Rather, the success factor rests with the firm’s motivation to implement technologies and tools which will improve their ability to deliver more (and more valuable) service to the client in a more direct and timely manner.

The survey’s two critical questions posed to small business owners who use the services of a CPA were 1. What factors played a role in your decision to leave your former CPA?, and 2. What types of services would you like to receive from your CPA? Both questions are pretty straightforward, and the top responses from surveyed SMBs were equally unambiguous.

To the first question (factors playing into a decision to leave former CPA), the top two answers indicated that reactive and/or unresponsive are the problems which ultimately cause a small business owner to change accounting professionals. The top response was “Former CPA didn’t give proactive advice, only reactive”. The close second response was “Former CPA had poor responsiveness”.

Unfortunately, these responses more than accurately describe many professional firms and their approach to client service. These firms are perfectly content with waiting for clients to deliver after-the-fact information, delivering reports long after their relevance has past, and providing no sense of urgency in helping clients address business issues facing them here and now. These firms are content to work with their write-up and trial balance solutions, depreciation and amortization and tax products – and give little consideration to how they could adjust their operation to a better, more relevant and rapid delivery of service and insight to the client.

The second question, “What services do SMBs want from their CPAs?”, was met with the same responses professionals have been hearing for years; small business owners need help with business planning and business strategy and they wish the help would come from their CPA. It is surprising how many accounting professionals list business planning and strategy among the services they promote on their websites, and then just sit back and wait for clients to ask. Communication with clients remains relegated to annual reminders for tax information, or maybe slightly more frequent notes about other tax or compliance work to be done. It may be a bit unfair to place all the blame on the professional. Regulatory and reporting impacts on business are increasing and are increasingly complicated. Many professionals find it challenging enough simply to keep up with changes relating to the services they currently and regularly provide.

This is where practitioners should seriously take notice, and accept that the ability to meet changing market and customer demands is by intelligently leveraging technology to accomplish what people and process cannot do alone.

It takes information technology to speed up the bookkeeping, accounting and reporting processes; technology is required to help turn information into useful and relevant data;
technology facilitates the faster collection of information from and the delivery of information to clients;
technology is applied to reflecting numbers as pictures and helping users visualize the meaning of the data, and
technology enables the collection and analysis of “big data”, which leads to AI advancements and greater intelligence delivered through the applications businesses use.

The Sleeter Group report clearly demonstrated that small business owners continue to need and want more than just tax returns and post-facto reports from their accounting professionals, and that the lack of attention in these areas pose a direct threat to the small business/CPA relationship. Professionals can remove the threat by working closer with their small business clients, applying technology and process controls to get better information in a more timely manner, and returning the result with greater insight. Be proactive and be responsive, and apply the necessary technologies and business philosophy to get there before the client base looks for satisfaction elsewhere.

I’ve said before that small business owners don’t care about the numbers, they care about the picture the numbers paint, and they care about getting to a place where the picture is absolutely beautiful. With the right tools in place, their CPA can help guide them there.

jmbunnyfeet Make Sense?

September 9, 2013

Intuit QuickBooks 2014: Another Move Towards Unification of Features and Software as Service

Intuit QuickBooks is the recognized standard for small business accounting, and the introduction of the QuickBooks Online Edition was a testament to Intuit’s understanding that users are looking for SaaS solutions as well as traditional desktop products. While it may seem that the entire market is moving to online applications and everything-as-a-service, the Intuit desktop products remain the leading business computerized accounting tools. Intuit does seem to recognize that many things can be done better with a “software-as-service” model , and that the number of businesses seeking purely web-based solutions is growing, and this is evidenced by the fact that many features and presentation elements in the Online edition are making it into the desktop editions. Creating consistency throughout the product line makes sense for users, and leveraging the benefits of shared service makes sense for Intuit.

In a previous blog article entitled Changing How We See Software: QuickBooks 2013 interface frustrates power users, I had suggested that many of the interface changes introduced with the 2013 QuickBooks desktop editions were a step towards unification of interfaces (to the degree possible) between desktop and Online editions. Additionally, integrations with various connected services, Intuit payroll and payment solutions, and other online service elements clearly demonstrate that certain functionality and service offerings will be provided consistently through either solution set. Another new “unified” feature announced for QuickBooks desktop is the Income Tracker, a feature that originated with the QB Online edition.

The Income Tracker provides you with a fast way to see the status of your unbilled and unpaid transactions, and provides you with features to improve billing/collections as well as perform a number of batch procedures… This feature was first developed in QuickBooks Online, and this year Intuit has brought it into QuickBooks Desktop

http://www.sleeter.com/blog/2013/09/quickbooks-2014-income-tracker/

The introduction of a purely subscription licensing model for the desktop products is yet another move towards enabling the pay-as-you-go subscription model for purchasing software. Businesses are able to purchase “plus” subscriptions, which provide not only perpetual most current version software but also deliver support for the life of the subscription. This is another change from the more traditional boxed software approach, where the product was a one-time purchase and came with short-term or limited support.

It seems that many of the changes introduced with 2014 indicate that online service and subscription pricing models will continue to introduce themselves into the QuickBooks desktop products, and users who change from one solution to another in the product family will find more familiarity and consistency in the attached Intuit services they also use.

Many independent software vendors and developers of business applications are recognizing the value of subscription service models and the benefits of leveraging web-based applications and shared services within their solutions. For software companies, turning a one-time sale into a recurring revenue stream is highly desirable. From a development perspective, one project could service the entire product line, rather than efforts being divided among multiple products. From an operational perspective, infrastructure and personnel are able to centrally service the functional requirement, providing the same benefits of shared service that users of SaaS solutions experience (it may simply be internal rather than external customers being served).

The point of the discussion is that, while QuickBooks desktop editions may not be going away any time soon, there is wisdom (and business necessity) which is likely to drive even more subscription model SaaS inclusions in those products that were once purely and firmly planted on the desktop. Even good old QuickBooks must change, and for the most part, users are seeing benefit in those changes.

Make Sense?

August 12, 2013August 14, 2013

The Language of Accounting: Disconnect between Accountants and Bookkeepers

There are a tremendous number of bookkeeper training programs developed over the years which propose to deliver the essential bookkeeping knowledge (e.g., double entry accounting) required in order to properly service business bookkeeping requirements. Particularly as the CPA profession stepped away from traditional bookkeeping in favor of performing “higher level” and more profitable work, there was and continues to be a great need for skilled and experienced bookkeepers. While it seems that accountants and bookkeepers would be a natural fit for partnering to serve small business client needs, there is often a disconnect between the two which causes the working relationship to not always prove as beneficial as it could. What is the cause of this disconnect? In many cases, it is due to the fact that the bookkeeper training educated the operator on the use of a software product, and not on the fundamentals of accounting and bookkeeping.

Over the past few years, I have had the opportunity to look through a lot of bookkeeper training programs, and the thing that stands out is that many of these programs aren’t really training bookkeepers on accounting principles. More frequently, the training is focused on teaching users how to use software (usually QuickBooks). With the number of users of the QuickBooks product, it is obvious that there is a need to educate users on the solution because people need to know how to use their software properly. But it happened at some point in time that a majority of the industry came to believe that learning QuickBooks (or Xero or Freshbooks or Kashoo or whatever) was somehow synonymous with learning bookkeeping.

When I first started working with my father in his accounting practice, I had to use a manual general ledger, check register, etc. It was all manual – computers didn’t come along for a while (yes, I am that old). It was time-consuming, but it taught me the fundamentals. I know what a subledger is. In consumer-friendly software like QuickBooks, you don’t work in the AR subledger; you push the button that says “customers” or maybe “invoices”. QuickBooks, in many ways, doesn’t speak accounting. It speaks record keeping. And this is where the disconnect begins.

An old school accountant will recall the green eye shade days and working with book ledgers and 13-column pads, but even “new” school accounting professionals know that the fundamentals of accounting aren’t available for re-invention. A debit is still a debit and a credit is a credit. Yes, there are intimacies involved which speak to specific treatment of items for reporting and tax purposes, etc., but the essentials of double entry and other basic accounting principles are consistent and unchanging.

The “language of accounting” includes certain precise terms with specific meaning, and this precision in the use of terms simply doesn’t exist in many bookkeeper training programs. Rather than focusing on the fundamental accounting training bookkeepers truly need in order to be of maximum value to the business, these programs focus on helping users become experts in using the software product, or even to become experts at teaching others how to use the solution. While this software expertise may be beneficial in terms of helping accountants work with their clients who use the software, it doesn’t add enough value to the relationship to warrant partnering. What accounting professionals need are bookkeepers who understand bookkeeping and who can apply basic accounting principles to the task. Which software they operate is secondary to that purpose.

Professional bookkeepers, accountants, and the business client are all in a position to benefit tremendously when the service providers team up to provide comprehensive service. The key to making these connections lies with the professional bookkeeper who must not only understand basic accounting principles, but must also be able to speak to the accounting professional in their native language.

Make Sense?

Accounting Professionals, Software as Service, and DIY

The question begs to be asked “how did we get here?” (with “here” being the current state of information technology and the accounting industry). There is confusion in the market; there is still significant debate as to the underlying value of Internet technologies and online application services, and the “managed enterprise approach” has yet to return the benefit and cost-efficiency that is expected.

The accounting industry is experiencing continued change, and understanding the progression of events and technology developments can provide significant insight into where the industry is today and where it will likely be tomorrow. Most professional accounting firms recognize the need to implement technology and solutions that will help the firm and its clients compete in today’s market. Understanding the options available and imperatives that drive the need is key to making the right choices

Technology to manage general business and financial processes has evolved tremendously in the past 20 years, and history clearly reveals that those who have successfully adopted such technologies have done so in stages. Bridge technologies and services (which I fondly refer to as “tweeners”, like cloud hosting of legacy applications) provide a means for safe and low-risk adoption of online working models and managed IT services.

Application hosting solutions have achieved a high level of acceptance in the market, and these are the services that have assisted in garnering online users for the purely Web-based (SaaS and cloud) applications. Providers delivering their “legacy” applications using terminal servers, Quest, Citrix and similar technologies offer the full capability of the Windows application along with the rich Windows interface, as well as the benefits of ASP service and Internet accessibility similar to the Web- app (e.g., the “software as a service” model). This familiarity in functionality and presentation has made adoption of hosted deliveries of these applications a harmless and often seamless transition from localized IT models.

Once a business has adjusted to working online and outsourcing the management of the general IT service, taking the step towards a “true” SaaS solution is much less of a step.

However, trends in the software industry indicate that the concept of “software as a service” has been taken several steps beyond simply providing online access to applications, and are offering outsourced support and finished product deliverables rather than just the software application. For example – an accounting professional may obtain a “finished client tax return” rather than simply purchasing the tax preparation software.

For many emerging Web-based applications, this is the positioning and model which is selected to bolster adoption of the solution. There has been a great deal of success in offering business users access to a solution, and then providing the actual business service behind it as users find it easier and more efficient than doing the work themselves. This activity has focused on the direct customer and consuming market, where business applications are not sold separately, but as a function of getting the business process facilitated. CRM and helpdesk services are frequently offered this way, as are HR administration and payroll services. The technology has matured to a point where the outsourcer can facilitate the internal business process on behalf of a business fairly transparently, including business bookkeeping and accounting.

All of this serves to devalue the knowledge required to perform the business and accounting processes. There is a belief that has been marketed very well to the small business sector – “if you can write a check, then you can do your own books”. This concept has not proven as realistic as many would choose to believe. But it earned – and continues to earn – market share. With the trend in software becoming the transparent outsourcing of the processes, is the consuming market likely to recognize the expertise required to manage the outcome? Retail providers of accounting, tax preparation, and other services (H&R Block, as an example) have quite successfully marketed against the need for businesses to engage with a skilled credentialed professional. Accounting professionals who do not view this as a threat to their value are simply not paying attention.

Today’s accounting professional must address the realities of Internet technologies, outsourcing, and retail or consumer-direct competition, and the potential impact it will have on the businesses (the client business as well as the professional practice). Recognizing that accountants (by trade) are not typically technologists, it is important to understand that involvement with the financial processes causes a necessary level of involvement with the technology, as well. Professionals who understand and embrace the appropriate use of technology and outsource models are the professionals who will continue to demonstrate their value and expertise to their client businesses and to the market.

With the industry generally moving towards an online, enabling model, those who do not embrace such technologies will rapidly find themselves attempting to compete. As the trend continues to devalue the backoffice processes by essentially hiding them from the consumer (the client business), the position of the accounting services provider is also devalued.

By embracing the technology/enabling model now, the professional service organization positions itself to function as seamlessly with the market as the online service. A clear example of such activity is the emergence of free e-filing of tax returns and the prevalence of low-cost do-it-yourself business bookkeeping and accounting solutions online. Reports indicate that there continues to be a marked decrease in the number of returns prepared by professional organizations as compared to the significant increase in volumes of online do-it-yourself return processing. This has clearly devalued the tax preparation service in the eyes of the consuming market, bringing it down to a level where price is the sole differentiation.

The solution is to fully “enable” the professional services organization, and provide the foundation for seamless delivery of services to the consumer. Once an online working model is adopted within the professional service organization, it gains the opportunity to change and reconstruct internal systems without concern for direct client impacts.

Just as the online application can render the computing platform irrelevant, so can the professional service delivery render the supporting applications irrelevant. This offers the professional service provider the flexibility and freedom to use or develop systems that create differentiation through the underlying process rather than forcing frequent change upon the client.

Make Sense?

Joanie Mann Bunny Feet

Have questions about hosting business applications (like QuickBooks)?Are you looking for help developing your IT-enabling model? Need assistance convincing clients to use the cloud, or onboarding clients to cloud services?

We can help.

May 9, 2013September 25, 2018

What’s Motivating Small Businesses to Move to the Cloud?

When information technology professionals tell their small business clients about cloud computing, it often sounds even more complicated, risky and expensive than in-house networks and business Internet access once did. Business owners are faced with discussions about hosted or SaaS or hybrid and ask what will I do when the Internet goes out? and how secure is it? and will it work with my iPad?… and often get one of two responses from their local IT guy:

The cloud is just a way for software companies to make more money. I can keep your IT running better in your office and save you a lot.
If you move to the cloud you have to do a lot to make sure it is secure, and you won’t be able to run all your applications (but we’ll back up your data to the cloud so it’s safe).

Now, you can’t really blame the local IT guy for being a little bit wary of some cloud solution offerings because these local IT guys really are (in many cases) trying to operate with the best interest of their client in mind. It’s just unfortunate that sometimes a lack of information causes them to revert to their comfort zone, which is selling servers and performing on-site installation and break-fix work. What information are these folks lacking? An understanding of the various options and capabilities available with hosting services and cloud solutions, and how the IT provider can continue to be the advocate and IT manager for their clients even as those clients move their primary information technology to the cloud.

For many years business owners have relied upon their trusted local IT professional to help them find solutions to various business problems. Answering questions and helping procure and implement computers and networked systems, software applications, backup solutions and more, the IT professional serving a small business customer base has necessarily become the one-stop-shop for everything related to computers. Smaller IT service companies often rely upon regular sales of server equipment and network installations to pay their bills. It’s no wonder that these companies have a hard time accepting hosted solution models, as they see their revenue potentials dwindling as fewer servers and networks are sold to small businesses.

The interesting trend being viewed these days is that more business owners are looking beyond their IT professional to find solutions to the problems they deem as high priority for business technology: mobility and remote access. It is not necessarily that the self-service technology model makes more sense for small businesses (businesses can still benefit tremendously by getting training and implementation support from their local IT guy), but simple and affordable cloud solutions have addressed many of the small business IT challenges that were previously big revenue streams for local IT service providers. Savvy business owners will find solutions that work for them, and will look beyond their immediate advisors if those advisors aren’t providing the right answers.

When a small business owner talks about mobility and is looking for answers to the remote access question, they are not thinking about GoToMyPC or other remote control technologies and simply connecting to an office PC. Small business owners today are talking about central access to information at any time from any place and with whatever computing device they happen to have available at the time. For a small business owner, the benefit of the cloud is a largely emotional benefit – being able to stay in touch with the business at all times. The real benefits may be improved security, simplified management of information resources and pay-as-you-go pricing for business applications, but these are often value statements which fall on deaf ears just as the cost/benefits of upgrading the server every 2 years did.

It is tempting to focus on logic and reason, discussing the tangible benefits of any business information technology model or approach rather than how it makes us “feel”. Productivity metrics, best practices in security, total cost of ownership… these are all the right areas to pay attention to when selecting any technology solution for a business. But really, when it comes to selecting technology for small businesses, the business owner is in the driver’s seat, and that owner wants one thing: to see what’s going on all the time.

Make Sense?

Joanie Mann Bunny Feet J

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Intuit QuickBooks 2014: Another Move Towards Unification of Features and Software as Service

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The Language of Accounting: Disconnect between Accountants and Bookkeepers

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