There has been a lot of talk on LinkedIn and other forums around the use of bookkeepers with accountants, when the businesses are using an online accounting system such as Xero.

I believe that it is a misconception that bookkeepers will become redundant, if a business was to move to Xero.

At Cloud Accountants we are a 100% Xero practice. We use bookkeepers (we call them Xero Consultants!) with many of our clients, and they (the Clients) tend to fit into one of the following groups:

• ‘We love Xero, and the way we can access real time information around who owes us money at anytime. But we would prefer your team to process all of the transactions, GST and Payroll for us. Our time is better spent focusing on marketing initiatives and growing our business’
• ‘We are happy to process transactions in Xero, but we would like a ‘checks and balances’ around GST return filing time to make sure that we have coded the transactions correctly’
• ‘Can you assist with setting us up in Xero, and ‘hold our hand’ for a period of time until we become familiar with the system’

I would make this point as well:

Although Xero is a simple system to use, we have not been afraid to communicate to some clients that they are probably better off letting our Xero consultants assist with (or process completely ) the transactions, GST and Payroll for their business. Because after all, the cleaner we receive the information at year end (or for periodic reporting) the more efficient we can be at completing with accurate statements!

And we are all about working smarter and more efficiently!

Our chief Xero Consultant, Emma Laing (pictured), says that clients are loving working closer with us in Xero.  ‘It gives them piece of mind knowing that transactions are processed correctly and especially getting that green reconciled tick!’

We work very closely with Glennis and the team from Katalyst Office Management with many of our clients, and the partnership works very well!

And the work that Melanie and the team are putting in with the NZ Bookkeepers Association is great for further collaboration with accounting firms.

So is Xero negating the need for a bookkeeper?

We don’t think so here at Cloud Accountants.

What I enjoy the most about Xerocon is the chance to not only hear about what is on the horizon with the system and add-on’s, but to rub shoulders with like minded accountants that are using technology to provide a better and smarter service to our existing and potential clients.

[Although far too many are still coming up with excuses with why they have not embraced Xero and other online systems, shame on you!!]

It was a surprise to be awarded the Partner Innovation Award, with the calibre of nominations in the category – very proud to say the least! Congratulations to all of the winners and nominees, you are leading the charge!

I enjoyed presenting in the Modernise stream alongside Margaret from the Engine Room, Brad from Wise Advice, and Guy from Interactive Accounting in Australia. It is great to give some insights into the way we operate in an online accounting firm. Also a Q & A with Xero co-founder Hamish Edwards around agreed monthly fees.

There was plenty to take away from Xerocon this year, but these are the 3 that we are most excited about at Cloud Accountants:

Workflow Max practice management + Tax

With the announcement just prior to Xerocon (good timing!) that Xero had purchased Workflowmax, Rod proceeded to announce that accounting firms would receive it free for their practices for life! We just need to add a few clients to Xero. Very cool! We are in the process of moving all of our clients to the Tax system and are looking forward to a tighter integration between Xero and WFM.

Xero Report Packs

We are looking forward to having new and improved year end reports straight out of the Single Ledger in Xero. Better notes, and the ability to customise and standardise across our client base will be excellent! We do use the reports for our end of year statements currently, but it will be a big advantage to have standard reports that all of our team members will have access to, to apply to each client. We will also be able to upload custom spreadsheets or text straight into the reports for making each unique with external data when required.

Spotlight Workpapers

This was a ‘Wow’ moment for me! We continue to improve our internal processes at Cloud Accountants using technology to do things smarter and more efficiently. Old crappy checklists and excel workpapers are archaic and clients despise them. We have used an online information grab in the past which has filled a gap, but seeing Richard and team demo Spotlight Workpapers with a full integration with Xero was awesome! We are looking forward to the roll out for March 2012!

You can see Xero’s wrap of the event here.

Big thanks to Barnie (for his patience) and Samuel!

You can listen here:

There are 2 parts to this:

• Transparency when it comes to your financials
• Transparency when it comes to your accountant

Financials

Do you know how your business is performing right now? In real time?

The technology is available now for you to keep a constant eye on how you are going. And now, not in 3 or 6 months time. This is important for your business so you can take the necessary steps now to change if you need to. If you find out that there are problems occurring in your business, it may be too late!

This also impacts on your cashflow and tax projections and keeping on top of your IRD obligations.

Because you will be connected constantly with your accountant, they should be advising on a regular basis. Analysis of aspects that are important to your business so there are no surprises!

Your Accountant

Do you have a clear and predetermined scope of engagement with your accountant? And also agreed timeframes on work?

You should do!

At Cloud Accountants we provide a clear proposal for engagement that is specific to our clients’ individual needs. We make sure that we take the time to outline exactly what is involved so that there are no surprises. (We don’t like surprises!)

It is made crystal clear that anything outside of this agreed monthly fee will be estimated and billed for separately. This way our clients know exactly what they are getting and when they will be getting it.

Our clients value the transparency and honesty, and they thank us for it.

Next up – Are you over the GST changes yet?

So what do you do? It may sound like a personal question….and maybe it is!

Do you relax by playing/watching sport? Spend time with the kids? Maybe DIY is your thing? Read or go to the movies?

These are the activities that you should be involved in, doing the things that you want to do!

But for many small business owners, they are spending their spare time preparing quotes and invoices, processing their business transactions and accounts, or at GST time – spending the whole weekend going through receipts and processing their data!

All small businesses (and freelancers and contractors for that matter) need to create efficiencies in their transaction processing, invoicing and dealings with the tax department!

The technologies are there (Xero, Smartpayroll, Workflowmax, Unleashed, and many many more) for you to make the financial part of your business life a breeze, and leave you free to do the things that you want to do. This could be the suggestions above or working more on growing your business.

Now there is a thought!

For many, the online world can seem a pretty scary place. Cloud Accountants can step you through the process with ease.

It is time to take back some control!

Next up – Transparency

In the early stages of setting up Cloud Accountants, I wanted (needed!) a website that was not the norm in the accounting profession. I was after something fresh, and easy on the eye! For too many firms in the profession, their websites are too wordy, and did not (to me anyway) reflect what current and potential clients required to see from their accountant’s website.

The types of clients that Cloud Accountants wants to engage anyway.

Being a big fan of Xero, and because I religiously follow the Xero blog, I came across website developers, Mogul, and liked what I saw.

Clean and fresh websites, and being able to give them an (almost) free license to develop a website for an accounting firm that was not your typical accounting firm, George and the team accepted the challenge!

The true test was that I am in Auckland and they are in the Hawke’s Bay.

Excellent (I thought), this will be a challenge.

To this day I have not met the Mogul team in person, but they have still managed to build (in my opinion!) an amazing website.

I personally believe that, in this age of the internet and online services that are readily available across numerous service industries, your geographic location should not be a barrier to doing business. As long as you have access to the internet, you can communicate across Skype and other mediums. You do not actually need to meet face to face.

And by using Xero, the online accounting system, you can access your financial information anywhere, anytime. But more than that, Cloud Accountants as your advisers, can offer you advice on your financial information, whether you are in Auckland, Taupo or Invercargill!

Thank you the team at Mogul for proving that business can be done remotely!

We are excited to introduce you to our accounting firm that will be attempting to provide you with the best possible accounting service efficiency.

• We pride ourselves on real time processing (We love Xero!), reporting and advice. We respond in a timely manner, so less reactive and more proactive.
• We use fixed price agreement structures, so no surprise fees!
• We guarantee timeframes for preparation of your year end financial statements so you can make the decisions for your business now (when it counts), not in 6 months time.
• We can introduce you to the technologies that can create the efficiencies in your business. Xero, Smart Payroll, Workflowmax, Unleashed.

So have a look around the website, sign up to our blog feed, follow us on Twitter, and contact us for an obligation free chat.