Enter the age of tech-enabled accounting. An advisor of cutting edge solutions. A strategic partner for business-building initiatives. The SMB and accounting tech ecosystems are booming, to say the least. Even experts in the field struggle to keep up at times, so it’s not surprising that small business owners lack the time to take into account all of the solutions out there, much less to put them into place.

Given that you’re a trusted advisor entrenched in the financial well-being of your clients, it’s a logical conclusion that this responsibility would fall into your hands.

There’s a long-held perception (or stereotype, perhaps) about the accounting industry -- one which involves massive physical ledgers,

stacks and stacks of paper, calculators, filing cabinets, a sea of manual data entry, and constant questions about how to code charges on a company credit card. While some of these are still in play, the profession as a whole finds itself in a unique position.

It’s evolving, and in a big way. The days of stoic bean counting alone are on the way out, and have been replaced with heightened expectations and more opportunity within engagements.

IN SHORT, YOU’RE BEING TASKED WITH BUSINESS

TRANSFORMATION.

THE TECH-ENABLED

PRACTICEENTERING AN ERA OF HIGHTENED EXPECTATIONS

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That’s cool. That’s sexy. For some it may be a challenge to connect the dots between tech solutions and practice growth, but the relationship is very real and quite direct. If you fall into that camp, step back and ask yourself if you can find internal and external opportunities to:

• Integrate software solutions

• Streamline and centralize processes (e.g. bill payments)

• Decrease turnaround times

• Increase internal efficiencies

• Increase data accuracy

• Migrate to cloud solutions

• Enhance data security and integrity

• Train your staff or clients on the tools they already use

• Improve client satisfaction and retention

• Shift away from billable hour pricing models

• Migrate to high-value services Chances are you checked the box to at least one of these, but how does technology come into play? And is this something that your clients actually want?

CLIENT EXPECTATIONSYou’re an accountant. You do accounting. You keep books clean and file client tax returns, right? Not so fast. SMBs are becoming increasingly reliant on technology to manage and grow their own businesses, and their expectations of you follow suit. In fact, 60% of small businesses attribute increased revenue to technology, and another 60% feel that technology allows them to compete with larger companies (Source: Office.com).

Feel that technology allows them to compete with larger companies

Of SMBs attribute increased revenue

to technology

60%

&

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Sure, you’ll still find yourself doing the accounting essentials for your clients - tax returns, audits, payroll, etc. But businesses are increasingly looking for their accountant to extend their services into the realm of tech.

Not only does it benefit you to take advantage of this opportunity, but it also may not be a choice in the future. Young accountants and current accounting students are pushing the industry in this direction, and will bring with them the skills of digital natives. This means that your firm will need to up its game to remain competitive and relevant.

University curricula are adopting technology as a core educational competency, and with the arrival of credentials such as the CITP, not only do current practitioners need to be mindful of the upcoming professionals, but also shift focus to attracting such talent to their firms.

If you’re still skeptical, you may be surprised to learn that according to an Accounting.org study, Information Technology Accountant has the 3rd highest median salary in the accounting industry, behind only corporate controllers and accounting professors. You can bet that those studying accounting and have a knack for technology will flock to such lucrative sub-disciplines.

According to AccounTemps, CFOs rank information technology as the 2nd most desirable attribute for potential accounting and finance hires, so it’s a safe assumption that ambitious graduates will bring spades of this to the interview table when they enter the workforce.

NEARLY 80% OF BUSINESSES HAVE CHANGED THEIR PRACTICES TO ACCOMMODATE A

TECHNOLOGY-BASED ECONOMY.- SurePayroll

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THE BUSINESS REALITY Small businesses are experiencing firsthand the benefits of technology, with 60% attributing increased revenue to technology. Another 60% feel technology allows them to compete with similar size and/or larger companies.

They see the opportunities for streamlining operations and extending their reach, but they also see technology as an equalizer. Large companies used to have the advantage of technology and tools unavailable to the SMB market, but with the advent and proliferation of affordable SaaS solutions, these benefits are increasingly slipping away.

Within this new reality, what are companies actually looking for in an accountant? According to the Sleeter Group, of clients already utilizing accounting services:

70% Believe their accountant is current or behind the technology curve45% Require or prefer an accountant proactive in planning and implementing tech changes 76% Said their accountant isn’t proactive in helping plan and implement technology changes55% Want technology recommendations from their accountant

SMBs are taking note of the capabilities of technology, and for those lacking in tech savvy, you’re the ideal person to help bring their business into this century. For those already ahead of the curve on adoption, their expectation would be that you meet or exceed their expertise in order to guide them into the new ecosystem of emerging technologies and business models.

Clients currently utilizing accounting services

Prospects NOT utilizing accounting services

THE ERA OF RISING EXPECTATIONS

Require or prefer an accountant proactive in helping plan and implement technology changes

Want technology recommendations from their accountant

80%

55%

85%

45%

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THE WIN-WIN ECOSYSTEMOne of the awesome byproducts of the tech solutions available is the mutually-beneficial nature between client and practice.

The primary crux of most tools available is the digitization and automation of previously manual processes. Not only were the old processes cumbersome but they were packed with inaccurate data, walking approvals, bottlenecks, duplicate payments, vendor phone calls, and other time-consuming chores.

Once you find ways to remove these inefficiencies, what’s left? It frees up your employees and clients to focus on more valuable initiatives. And what’s even better is the fact that your service level isn’t just maintained via technology, it’s enhanced.

This migration from physical to digital is one of what Dr. Geoffrey Moore refers to as “microtrends” which categorize the 3 primary components of accountant cloud migration. For more detail, you can find a fantastic presentation of this idea in the Accounting Services: Harness the Power of the Cloud whitepaper.

GOING BEYOND QUICKBOOKS & EXCELAccounting software is important. Excel is important. Email is important. These aren’t going away, but the definition of tech-savvy extends far beyond these tools. If you haven’t looked around lately, the growth of fintech and SMB software has exploded - it’s a massive ecosystem that is actually becoming a daunting and intimidating beast.

As you can imagine, for a busy business owner or manager, finding the right tools to help their businesses can be the proverbial needle in a haystack.

The difference is, these days the haystack keeps getting bigger. Now imagine being able to tell your clients that you know the precise tools they need to solve their pain points and you can also implement the tool and/or migrate their data accordingly.

That’s a solid service. Most businesses aren’t averse to transforming their company for the better, but rather it’s the objections, fears, and roadblocks to the process that keep them from doing so.

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You know better than anyone the pain points or hidden opportunities within your engagements. Maintaining a current view of the tech ecosystem can help you more quickly make recommendations and help guide you toward the best decision for your clients.

SOLUTION ADVOCACY

It’s one thing to advocate a tool, but it’s another to get it up and running. Implementation is a huge roadblock for companies, so why not take the initiative and incorporate this into your offering?

IMPLEMENTATION

I’m sure you’ve seen clients using tools from the (relative) dark ages, and wish upon wish that they’d upgrade to more modern tools. Maybe you’re trying to get clients to migrate their desktop applications to cloud versions. These types of projects, while beneficial, generally fall by the wayside when weighed against the day-to-day needs of a business.

LEGACYMIGRATION

Have you ever cleaned up a client’s QuickBooks data? Sure you have. So where else can your services be used to optimize and manage content into a usable form?

OPTIMIZATION & MAINTENANCE

People are creatures of habit, with a natural aversion to change. If you identify and implement new tools for your clients, it makes sense to ensure they are comfortable using them and proficient at using them in a way that best works for your firm.Otherwise, usage will suffer and the time spent getting them up and running could turn into wasted effort.

TRAINING

You may have clients that offer products at a local retail location. And for certain industries (artisans, craftsmen, etc.) it may make sense to expand their presence and market reach by offering their wares via e-commerce.

By identifying the best sales platform for their needs, implementing the procedural requirements (shopping cart, pricing, sales tax, etc.) and incorporating transaction data into their accounting software, you can essentially transform their entire business.

AUGMENTATION & GROWTH

So how does one go about categorizing and prioritizing the tech-enabled product offering? It helps to break down the question into common areas where your clients struggle. Examples include:

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KICK YOUR TECH-SAVVY UP A NOTCHThe current state of the fintech and small business software environment is staggering in scale with a combination of product suites and hyper-focused offerings alike.

Accounts payable. E-commerce. Payroll. Sales Tax. Point-of-Sale. Estimating. You name the function, and chances are there’s a handful of apps designed to solve your needs.

There are dozens (more like hundreds) of app repositories out there. Some, like apps.com, are niche in that their marketplace is specific to the Intuit partner ecosystem, while others are more inclusive, covering off both business and consumer tools.

If this is all a bit new to you, you’ll inevitably come across some terminologies or frequently-used terms associated with technologies. Some are more of a marketing/positioning play, while others carry significant weight in their impact to both you and your clients. The section below outlines some of the more commonly used terms with modern apps, along with a simple overview of how and why these matter to your business.

• Apps.com• ProductHunt• GetApp• Find Accounting Software

• TechnologyAdvice.com• CPA Practice Advisor• SoftwareAdvice.com• Toptenreviews.com

CLOUD WORKFLOW

WHY YOU CARE WHY YOU CARE

WHY YOUR CLIENTS CARE WHY YOUR CLIENTS CARE

This provides access to client informa-tion at any time, and also allows you to offer your services beyond your local geography.

Workflow allows you to enforce processes and best practices within areas of your clients business operations.

Cloud allows businesses to extend their access and productivity beyond their office walls. This removes many issues associated with approvers and decisions makers on- the-go or in the field.

By following defined paths, commonly erroneous practices can be reduced, while reinforcing a repeatable and beneficial process.

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AUTOMATION

ROLE-BASED PERMISSION

INTEGRATED

SCALABILITY

WHY YOU CARE

WHY YOU CARE

WHY YOU CARE

WHY YOU CARE

WHY YOUR CLIENTS CARE

WHY YOUR CLIENTS CARE

WHY YOUR CLIENTS CARE

WHY YOUR CLIENTS CARE

Previously cumbersome tasks (e.g. data entry) can be automated, freeing internal resources to pursue higher value services.

This allows you to interject your activity within a client’s business based on your agreementand client needs.

This reduces client push back in that it allows for the introduction of new capabilities within their existing workflow and toolkit.

Solutions can grow or contract with your client, making platform replacements less frequent.

Client inputs and outputs can be more easily executed, removing process bottlenecks and activities which previously distracted from primary operational objectives.

This allows a client to specifically provide access into areas of their business where their accountant can provide the most value.

They can continue to use the tools they are familiar with, and learning curves are limited to new solutions rather than a complete workflow replacement.

Scalability allows clients to choose a solution that can accommodate immediate needs while allowing movement up or down based on the business objectives.

“TAKE STOCK OF WHERE YOU ARE AND DEVELOP A PLAN TO GET YOU

WHERE YOU WANT TO BE.” - DARREN ROOT

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Yes, it’s easy to get overwhelmed by not just gaining software expertise, but finding out how to monetize it within your practice. Like anything else, approach it in phases and follow a plan. Even if you implement one or two new software integrations a year, the internal and client-facing results could be substantial. As put by RootWorks CEO Darren Root, “Take stock of where you are and develop a plan to get you where you want to be.”

So where are you? Are you an accounting software ninja, or are you still getting the hang of the interwebs? Here’s some interesting findings (Courtesy of The Journal of Accountancy) to see how you compare:

Even for expert users, the challenge of keeping up-to-date with the latest and greatest is very real. Rather than get intimidated by that reality, just know that’s there’s an enormous amount of tools online to help get you up and running. Some offer subscription pricing models, others are charged per course, some are free. And oh yeah, YouTube is an excellent resource as well.

A few resources to get you started: • Udemy • Seth David • Grovo • Lynda

Have an Active Website

25%

48%

14%Blog

Use Cloud-based Software

Use Skype or Similar Services

77%

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CONCLUSIONThe face of accounting is changing, not just in terms of technology but also expectations. Short-lived are the days remaining for the simple commoditized service so many practices have offered over the years. While there may be learning curves and growing pains along the way, the good news is that there are countless resources available to help take your practice to the next level. The benefits inherent to this shift open up new efficiencies and capabilities within your firm, not to mention the ability to allocate your time better to truly providing your clients with valuable service.

Collectively, accounting professionals adopting and embracing these new frontiers will serve to advance the profession itself, and emphasize the importance of the accounting function well into the future.

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XTBills was created to provide small and medium-sized businesseswith the tools they need to harness the power of an automated andonline bill pay workflow. It is our goal to offer a solution that is affordable to any business, while not compromising on technology or features. With XTBills, we have developed a solution which allows users to streamline processes, enhance data quality, tighten AP controls, and consolidate bill management into a single interface.

Toll Free: 1.844.XTBILLS (844.982.4557)Email: contact@xtbills.comWeb: www.xtbills.com/contact