MGI Conference The New World - Opportunity or Threat? 2 December, 2011

MGI ConferenceThe New World -Opportunity or Threat?

2 December, 2011

2

Introductions

Simon Crompton – Managing Director – CCH Software

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Wolters Kluwer’s corporate structure

Wolters Kluwer £3.1bn

Legal & Regulatory

£1,325 million

Tax & Accounting£809 million

Health & Pharma Solutions

£716 million

Financial & Compliance

Services£270 million

2010 revenues

UK c£50m

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Trends – the world we are living in!!!!

C:\Documents and Settings\simon.crompton\Desktop\Did You Know edit.mp4

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Key trends affecting the profession

1. Listening Tough market – but huge opportunity Use Social Media

Average growth rate for companies in US with highest level of social media activity = +18%

Average growth rate for companies in US with lowest level of social media activity = -6%

Learn lessons Do CCH get it right?

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PETER WINTER

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2. Commoditisation — Workflow driven

— Repeatable, consistent process

— Automated

Automated data recognition

Collection point

Single workflow engines

Risk management

Client Requests

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Workflow example; the new client

Create new clientA

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New client form received Enter CCH and

create client

Email MLO requesting checks

Enter client record and extract data

Request documents from

client

Review documents

provided by client

Undertakes checks

Email Admin confirming checks

passed

Enter client record, create

engagement letter and post to client

Signed engagement letter

received from client

Enter client record and create 2011

tax return

10

Workflow example; the new clientCreate new client

Ad

min

Mo

ne

y

La

un

de

rin

g

Off

ice

r

New client form received Enter CCH and

create client

Email MLO requesting checks

Enter client record and extract data

Request documents from

client

Review documents

provided by client

Undertakes checks

Email Admin confirming checks

passed

Enter client record, create

engagement letter and post to client

Signed engagement letter

received from client

Enter client record and create 2011

tax return

11


3. Collaboration — With staff (e-mail, social media, face-to-face)

— With clients (e-mail, social media, portal, face-to-face)

— Virtual v Face-to-face – what is the right mix?

On-line accounting

Portals

Where does this lead?

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Accountant/Client collaboration – what are 386 SMEs saying?

On-line accounting - 75% of SMEs expect their accountant to offer this within five years

Uploading softcopy files – 63% of SMEs expect their accountant to offer this within 2 years

Viewing, approving or downloading final accounts, tax returns and similar – 72% of SMEs expect their accountant to offer this within two years

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And the big question!!

Thinking of all the information that your business must send to your accountant, including copies of hardcopy documents and forms, within the next two years how much of this would you like to be able to submit electronically?

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And the answer?

• More than 75% (24%)

• All of it (38%)

Nearly two thirds of SMEs want 75% or more of their information submitted electronically

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1. Listening

2. Commoditisation

3. Collaboration

4. Single database— To leverage opportunities, the goal must be a single database— Segment clients – differentiate service— Profile clients

Identifies cross-sell opportunities Ensures advice is relevant

— Business Owner

— Pension advice

— Dividend/Salary remuneration

— Trusts

— Overseas property

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The Vision

Part 1—Automate collection of (compliance) data

Part 2—Template drive processing of data and deliver results

on-line

Part 3—Create one database of clients – segment and profile

Part 4—Identify information that is of value to client

Communicate via portal, SMS, e-mail (virtual comms) Create interest, then deliver value via face-to-face comms

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And the final dilemma?

Technology is freeing accountants from day to day compliance tasks

Technology is allowing opportunities to be more readily identified

The skills of young accountants need to be more communication than technical

Yet is the social media world creating the complete reverse of what we need?

http://www.youtube.com/watch?v=6-wfeYN8XH0&feature=related


