Wow, the last couple of weeks have certainly caused a stir around client data ownership, Xero subscriptions and who holds them.

At Cloud Accountants we have made the decision to give our clients (both existing and future) the choice of whether they hold their Xero subscriptions or if we do.

We believe this is the right thing to do.

Yes we do receive a discount for being a gold partner with Xero, that we pass directly onto our clients as a part of our agreed monthly fees.

But we do not like the idea or perception that the accountants or bookkeepers are, or can hold the subscription to ransom if a dispute arises.

We pride ourselves on open communication lines at Cloud Accountants so for a dispute to get as far as it did with an article in the Sydney Morning Herald is a little beyond me.

All Chartered Accounting firms should have signed engagement letters in place which would cover such issues, and outline the scope of any engagement.

This would cover the holding of client records, and not just the subscription to any online service.

A great post by Guy Pearson of Practice Ignition explains this well and we are rolling out their system here at Cloud Accountants for both engagement letters and client proposals.

Xero do need to take some responsibility and they have indicated that they are doing so. This would cover two areas:

• Clear guidelines and updated Terms of Use around the subscription and ownership of information
• Partner pages and the order of the list depending on how many Xero subscriptions you hold

Xero, by presenting the partner list in this way, have created an ‘order of merit’ based on the numbers of subscriptions the accountants or bookkeepers hold.

Firms start to get precious and want to protect their position on the list.

This is not healthy in my view.

Blog post response from Xero here and BoxFreeIT here with plenty of comments.

We will be in touch with our existing clients shortly to discuss further.

With the new financial year literally just around the corner, there are the usual pieces of information that we need as ‘bean counters’ at 31 March for standard balance date businesses.

This year end we are encouraging our clients to use Xero Files for uploading these important documents.

Files for Xero is another game changer with Xero and again will improve the efficiencies with preparing year end financial statements and tax returns for us at Cloud Accountants and you.

We recommend setting up a ‘Cloud Accts’ folder and start to put the necessary docs into this folder. These would include:

• Confirmation of bank and credit cards balances at 31 March
• RWT interest certificates
• ACC invoices
• Fixed asset invoices
• Legal fee invoices
• Stock takes
• Loan documents, statements
• Hire purchase documents, statements
• Home office details
• Wages details if you do not use an online system

For all you need to know check these links to the Xero blog:

http://www.xero.com/blog/2013/10/attach-files-financial-data/

http://www.xero.com/blog/2013/12/emailing-files/

http://www.xero.com/blog/2014/03/files-run/

Bad debts to be written off, review of Accounts Receivable

Before March 31, you need to review your Accounts Receivable and determine whether any of your invoices outstanding are recoverable or not.

If they are old and you have made every step to recover these, you must write them off as a bad debt expense before the end of this financial year.

For guidance there is some help from Xero here – http://help.xero.com/nz/#Q_BadDebts Of course please contact the Cloud Accountants team for guidance.

Stock takes

If you hold stock in your business, it is important to prepare a stock take on 31 March. If you do not use a stock system (that ideally links to your Xero organisation!) we can process this stock take for you in your year end financial statements.

We have a few changes coming at Cloud Accountants which we will be communicating with you soon, including an introduction to our favourite add ons to Xero that we and our clients are using and loving!

Happy New Financial Year!

Bright and early last Saturday morning, like minded souls ventured out to Ormiston in south east Auckland to participate in ‘Gather – The Unconference.’

What is an Unconference? An unconference is a participant-driven meeting, a conference organised, structured and led by the people attending it. Instead of passive listening, all attendees and organizers are encouraged to become participants, with discussion leaders providing moderation and structure for attendees.

Labelled as the creative community’s big day out, Gather is an opportunity to collaborate, learn and share your latest works-in-progress, tech toys, and side projects with interesting awesome people.

Gather is the brainchild of Ludwig Wendzich, and with many helpers including Su Yin and Rochelle, they have created an event that sells out every year and has something for everyone.

The sessions are run by the participants and range from raising money for your start up, web design, approaches to community management, home beer brewing, playing Ukulele to learning to fly an RC plane!

The Gathering interlude featured presentations from Ben Gracewood - the tech guy, Sacha Judd - the not evil lawyer, and Phil Fierlinger - Xero – head of design. All very different, interesting and inspiring.

The sessions I attended included; community management, running a business in NZ -which I hosted with Sacha Judd and Glen Barnes; 18 Tips to avoid procrastination – very enlightening! and a couple of sessions where attendees pitched their new ideas. Vend founder Vaughan Rowsell talked on funding a start-up which was an honest insight into the early beginnings of Vend.

Some launches of note at Gather:

Check out companybox.co.nz – a companies office administration tool that Cloud Accountants will be rolling out to our clients in the near future.

Your share register is NOT on the companies office website!

Company Box will allow you to keep all your shareholder, directors and interest registers online and up-to-date. Store your documents securely in the cloud and never worry about finding that faxed copy again. Easily shared, it will allow you to add your team and advisors so everybody can access the same information in one place.

Do you have an Interests Register?

Here at Cloud Accountants we’re looking forward to a TrustBox or similar too…

Backofanapkin.co.nz – From law firm Buddle Findlay – This newly launched website is intended to help people collaborating on new projects. For instance you think about and agree some key issues that might arise in the future. The website quickly allows you to enter in five key pieces of information, which you then download as your agreement between the two parties. Just like writing it down on the back of a napkin!

Gather Workshops - Gather has launched Student and Teacher Workshops.

The Student Workshops have been created to introduce students to the industry and ignite their lifelong love for IT.

Teacher Workshops are designed to equip ICT teachers with real-world skills to meet the demands of teaching future IT professionals.

Workshops for Schools are written by industry professionals. Gather compiles these tool kits and distributes them online. Anyone is free to use them however they like.

Though it was not launched at Gather but very cool all the same – check out triage.cc – ‘First Aid for your inbox’

Triage is an iPhone app for busy people who struggle to stay on top of their email.

Triage doesn’t try to replace your desktop email client, but it lets you use your downtime to quickly remove the noise and stress.

The greatest take away that I have from the event (this was my second) is the meeting of such a diverse range of people; tech geeks, design and creative types, Xero’s and Vends (on recruitment drives!), angel investors and advisors. Speaking with people from all walks of life with such a great vibe and in such a great setting. Myself, like many attendees, are always fizzing after spending the day among such excellent company.

Until next year, Ludwig and team – we salute you!