Disruption in the accounting profession

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Disruption in the Accounting Profession






1. Accountants are the natural trusted advisers

Our beliefs and why we exist!

2. Cloud is not a fad, it is here to stay and it will fundamentally change everything

3. Accountants who add value don’t earn enough for how smart they are

4. Accountants can make a massive difference to their clients condition.




Convergence of technology


Heavy data vs light data









../Capitalising on the Cloud/Interview with Nick Sinclair Wealth Farm_SD.mp4




Accountants salaries in the Philippines

Qualifications / Experience Annual Salary

PH Peso* Annual Salary

AUD$ Per Hour AUD

(1800 hrs)

Newly Grad Accounting (non CPA) P130k – P156k $3,200 - $3,800 $1.77 - $2.11

Accountant (non CPA) few years experience

P182k – P260k $4,400 - $6,300 $2.44 - $3.50

CPA Accountant (just qualified) P234k – P286k $5,700 - $6,900 $3.16 - $3.83

CPA Accountant (5 years experience + can supervise)

P286k – P390k $6,900 - $9,500 $3.83 - $5.27

CPA Accountant (CFO, Head of Audit level)

P390k – P585k $9,500 - $14,200 $5.27 - $7.88

* These salaries are what the team member is paid as at February 2015

* Plus BPO (business process outsourcing) “seat fee” costs of approx. AUD$500 - $750 per person per month


1 2 3 4 5

Y E A R S

The effects of disruption on compliance

C A

PA

C I

T Y

H

O U

R S

10,000

8,500

7,000

5,500

4,000


1 2 3 4 5

Y E A R S

The effects of disruption on compliance

C A

PA

C I

T Y

H

O U

R S

10,000

8,500

7,000

5,500

4,000

$10,000

$8,500

$7,000

$5,500

$4,000

P R

I C

E


The future of employment – how susceptible jobs are to computerisation

– C Frey & M Osborne 2013



Wh

at a

re y

ou

go

ing

to

do

?

Service

Team Marketing

Pricing

Sales

Cloud

Real

Train your

Improve client

Promotion

Time

Every day

Increased

Differently

Skills


Redundant or Real time? Redundant Data Accountants Real Time Accountants

Offers advice late or not at all Offers advice before it happens

Processes work and administration Value added services that help

Waits for things to happen On front foot making it happen

Majority of revenue in compliance Majority of revenue in VAS

Prices in arrears Prices every project upfront

Doesn’t visit / call me Visits and calls on systematic basis

Doesn’t follow up Follows up on every opportunity

Doesn’t promote the latest thing Always promoting

Most clients on ‘hard drive’ accounting Most clients on ‘cloud’ accounting

Numbers power with the client Numbers power with the Accountant


The Awesome 8

profit


1. Cashflow analysis, forecasting & monitoring

2. Revenue / Profit Improvement Program

3. Debt re-structuring

4. Interest reduction service

5. Receivables / Inventory management service

6. Virtual Management Accounting

7. Cloud conversions

8. Sort out the numbers

9. Planning session

10. Monitoring & Accountability program.

Cloud & the numbers






1

2

3 1 2 3





#1 Compliance

Commoditised

#2 Cloud

for >90% SME’s

#3 Cloud

for >90% Accts

#4 Coaches taking clients

#5 Clients more

transient

#7 Compliance

price down by >50%

#6 Off-shore prevalent

#8 Marketing and sales

skills firms

#9 Young people will not buy into staid &

boring

#10 No time based billing

#11 Value Added

Services >80% of revenue

#12 Clients finally served

properly

12 predictions




THANK YOU

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Disruption in the accounting profession