XeroCon 2012_3Feb2012

Welcome to XeroCon 2012Mark Wright, MC

Rod DruryCEO, Xero

XeroCon 2010

•First XeroCon kicks o! in Napier

•75 attendees

•Feel the potential

XeroCon 2011

•Wairakei, Taupo

•250 attendees

•Minister of Small Business

•Wayne Schmidt bungy video goes viral

XeroCon 2011, Australia

•Crown Hotel, Melbourne

•172 attendees

•19 network partners

•Unveiling of the Chris Ridd Band

And now

Viaduct Events Centre, Auckland

7 Keynote speakers

3 Streams

400 attendees

XeroCon 2012

Update

• Over 170 sta! spread across NZ, Australia, UK and USA

• Listed in 2007 – raised $70m

• 8th in Deloitte Asia Pacific Tech 500

• NZ Fastest growing exporter in Deloitte Fast 50

• 50TB of production data and backups

• 99.99% service availability and no security breaches

Customer acquisition record

2007 2008 2009 2010 2011 Jan-12

60,000+

Chasing a million customers

240,000 Xero users

3,300 firms using Xero

75 API partners5,500 add-on connections

$75 billion processed

Customers in over 100 countries

Shared data

online

Online accounting journey

multi-user

anywhere

anytime

bank feeds

payments

mobile

Electronic Data Interchange

(EDI)

payment graph

connected

smart

benchmarking

leads and opportunities

group buying

business network

notificationsinvoicing portal

Business Graph

The business of accounting

BanksTelco

Large Biz

Govt

Advisors

In the cloud... business software is not a

software business

Changing of the guard

• MYOB sold to Archer Capital in January 2009 for AU$382m

• Archer sold to Bain in August 2011 for AU$1.2B

• Deal funded with $575m debt

• Users revolting at community.myob.com

• Character and values of new owners Bain Capital in focus with Mitt Romney bid

• Focussing on returns to a few, not customers or partners

• Traditional VENDOR relationship

True partnership

• True belief that advisors drive small business productivity

• Client and Accountant software should be seamlessly connected

• The client pays - not the advisor

• Flourishing ecosystem

• Tools you need to drive your business

• Use our experience to commoditise your total technology spend

• Drive new revenue, opportunities and leads to you

• Have some fun, with style, quality and values

From vendor to partner

Partner Edition• Cashbook

• Ledger

Document Management

Websitee-Marketing O!ce/Email

Reporting

MediumSmall

Practice Management/Tax

Medium LargeSmall

The Modern Practice update

• First demonstrated at Xerocon 2011

• Aims to commoditise your back o"ce spend

• We’ve been working with a number of accounting partners and providers

• Results have been mixed

• Documents/File Management is hard

Document Management

The problem

Your IT environments are a mess:

• Many practices have out of date hardware

• Ad hoc infrastructure

• All sorts of software running

Migration was too hard:

• Adding Document Management requires a clean up

• Implementation projects too long and frustrating

• Technology and vendors not quite ready

What you need to do

Start with an audit of what you have

Standardise your network with the right base technologies:

• Common desktop

• Remote service agents

• Implement a security model that syncs desktop with cloud storage

Plan for implementation:

• Initial remedial phase to get onto standard platform

• Transition from file to document management is non trivial

• Invest time to get the benefits

Two Document Management approaches

Do it yourself Project managed

• Self-service model

• Setup and migration through Provoke portal

• Online support

• More of your time involved

• Low cost

• CodeBlue manage from start to finish

• Setup and migration taken care of for you

• Onsite and phone support

• Less of your time involved

• Larger investment

Practice management platform

Xero with WorkflowMax & Tax:

• Practice management platform

• Online tax filing in NZ

• Key Modern Practice component

• Accelerates growth in NZ & AU

Practice management

Add 20 clientsand it’s free

for life

Directory delivers you new clients

LinkedIn profileAssociation badges

Delivering the Single Ledger

Partner program update

A new program will be launching:

• Support you to build your modern practice

• Access to webinars and face to face consultancy

• Improved marketing resources

• Executive and advisory groups

• Focus on driving business opportunities to you

• Plus loads more

Key initiatives for 2012

• Completing the platform

• Driving network e!ects

• Linking customers together• Online invoicing• Single Business Number• Demonstrating the power of the data

• More on mobile – apple sold 15.4m iPads last quarter

• Stunning partner solutions to chase verticals

Strong balance sheet

• Raised an additional $20m to continue to fund our growth

• Launched Share Purchase Plan

• Fair to all shareholders• $2.75, up to $15k• Shareholders as at 14 February 2012

• Funding used for

• More R&D• Auckland development o"ce• Expansion in UK, AU and USA

Xero House5 Market LaneWellington

Xero has two new homes

Xero Auckland69 St George Bay RoadParnell

Sticker the countrySticker the country

XeroCon streams

Stream 1: TransformFocus on the bigger picture – the future of accounting, and profiting as a connected practice

Stream 2: ModerniseThe beauty of implementing the Single Ledger and becoming a Modern Practice

Stream 3: EducateUse Xero more e"ciently, convert clients, Report Packs

Hamish Edwards Leanne Graham Sue Pak

Xero Roadmap

Andrew Tokeley, Craig Walker, Sara Goepel

Keeping us honestWhat we said we’d do…

• Report packs

• NZ/AU credit card feeds• Pre/Overpayments

• Discounts

• Inventory quantities – Farm accounts

• Budgets:- Improved UI- Multiple with Tracking- Import/Export

• Cashflow forecasting

• Enhancements to Partner Edition

Keeping us honestWhat we did…

• Report packs

• NZ/AU credit card feeds• Pre/Overpayments

• Discounts

• Inventory quantities – Farm accounts

• Budgets:- Improved UI- Multiple with Tracking- Import/Export

• Cashflow forecasting

• Enhancements to Partner Edition

• Mobile Touch

• NZ rural bank feeds• Invoice/receipt attachments

• Address lookup

• Duplicate AP warning

What’s in store for 2012?

Headliners

What’s in store for 2012?Report Packs

• Custom Report FieldsFor example:

- Solicitor- Banker- Overdraft size- Company secretary

What’s in store for 2012?Report Packs

• Automatic schedules for Current Accounts and Loans

• Report Code Updates• and more...

What’s in store for 2012?The rest:

• Purchase orders• Quotes• Stock Lite• Setup and conversion tools

What’s in store for 2012?The rest:

• Multiple budgets• Global search• Online invoices• Mobile

- Android- Bank reconciliation- Personal

• More Partner Edition enhancements• More Personal

Cruising on the Cloud

Trevor Schoenmaekers, Hansen Accountants

CRUISING ON THE CLOUDPresented by Trevor Schoenmaekers

The cost of compliance

• Hansens story• Where we were• Where we wanted to go• Roadblocks• Looking for a solution• A leap of faith!

Fixed fees

• Value based billing• Why it works• Efficiencies and systems

Our Team

• The old generation• The new generation• Our roles that make us a TEAM• Accountability• Our new found culture

Motivation

= = =

Today on Cloud

• Our practice • Sorry our Business• Our clients

– Efficiencies & value

• The benefits for all• KPI’s

Our future & vision

• Cloud solutions and integration • Other cloud based solutions

–Tax –Corp Secretarial

• Growth• Abundance• Satellite offices

Thanks for letting me share our storey

Not your average needleDavid Jessep, DJCA

Not$your$average$needle..

#eqnz$Feb$22$

6.3$Mag

2.0$x$force$of$gravity

The$Twisted$Hop

Some$of$us$got$drunk..

Others$tried$to$save$the$city

Three$days$later$we$were$up$and$running

What$did$we$learn?

Rising$from$the$ashes$#eqnz

A$Modern$PracMce$is$the$only$way

Meet our exhibitors

o n l i n e i n v e n t o r y s o f t w a r e

Xerocon exhibiting sponsors

Profiting as a connected practice

Hamish Edwards, Co-Founder, Xero

v

The Changing Environment

Challenging economic climate for clients

Commoditisation of compliance

Increasing costs of labour

Your clients need your help

The cloud impact

ConnectedReal Time

Demystified

E!cientIntegrated

Know my game plan

Get my tax done right

Be proactive

Improve my cashflow

Return my calls

Save me tax

No surprise bills

Treat me well

Treat my sta! well

What clients want

Clients want to be surprised once in a while

Understand how to use the software

Be aspirational

Have an open mind & listen

Be responsive

Have a plan

Have board meetings & management reports

Know your life goals

What do we want from our clients?

LEDGER CASHBOOK BUSINESS

The Single Ledger

ANNUAL REPORTING

BUSINESS TRANSACTIONS

BANK FEEDS

Ask client for datafileRemind client to send the datafileCheck email & save datafile to hard driveRemember client’s password & version Upload to my copy of the softwareCompile reportsReview data & make adjustmentsSend file back to clientExplain & remind how to overwrite current file

Login to XeroCompile reportsReview data & make adjustments

Approx $300

Xero Connection

OLD WAY NEW WAY No Friction

No cost!

Friction

Pre-plan the

workflow

Frictionless process

First draft & workpapers

Custom questions for client

Draft sent

50% of fee

Client answers

auto-update

Final review

Send finals to client

100% of fee

Meet with client

Frictionless process

3 biggest e!ciency gains for your practice

+ +

Demo Xero Annual Reporting

Demo Spotlight Workpapers

Demo WorkflowMax

Give me the numbersHamish Edwards, Co-Founder, Xero

= Extra Capacity

E!ciency

The e!ciency paradox

= Extra Capacity

E!ciency

= Extra Capacity

E!ciency

The e!ciency paradox

= Extra Capacity

E!ciency

FIXED OVERHEADS

Average hourly rateWrite o!sWIP/lock up daysRevenue : Salary ratioAverage fee per clientDebtor daysNet profit before tax %

How do we measure up?

Average fee per client

Average hourly

rate

The KPI Spotlight

The

$4800Challenge

Annual revenue capacity

$192,000$1201600HRS + =

The practice manager’s dilemma

Annual ReportsTax ReturnsTax Management2 Monthly GST!ly Management Reports!ly MeetingTax Forecast

Service Hours

20114662

40

Bundling: The Desktop Way

Annual ReportsTax ReturnsTax Management2 Monthly GST!ly Management Reports!ly MeetingTax Forecast

Service

Bundling with Xero

Hours

10112262

23

$120 $209

KPI: AVERAGE HOURLY RATE

ANNUAL REVENUE CAPACITY

$192,000 $333,913

How do we fill the void?

More clientsMore compliance

More value for existing clients

or

E!ciency BundlesMagically creates more time

Management Reports = Opportunity

The Answer

It’s not about time

Build ine!ciency

Capacityincrease

1/4ly MgmtReport

Proactive Advice

More Services

Questions Before we break

Grow my bottom lineHamish Edwards, Co-Founder, Xero

Bundling

1) Design 2) Create 3) Propose 4) Deliver

BundlesFullServices

Menu

TermsProposal document

1) Design

Proposal

SILVER BUNDLE

FEATURING

2) Create

AllServices

Full Services

Menu

Proposal

3) Propose

SILVER BUNDLE

FEATURING

4) Deliver

Proposal

$

The best bundle

• Annual Report

• Annual Tax Return and Tax Management

• Two Monthly GST

• Two Monthly Management Reports

• Quarterly Catch Up Meetings

• Xero

THE BESTBUNDLE

Let’s hear from Justin Keen

Management reports = more fees

Open management report demo

http://blog.xero.com/wp-content/uploads//2012/01/infinate-holdings-ltd-management-report-Jan12.pdf

http://blog.xero.com/wp-content/uploads//2012/01/infinate-holdings-ltd-management-report-Jan12.pdf

v

Value-added Services

Tax Minimisation Review................................................$500

Simple Cashflow Forecast...............................................$750

Review pricing, margins and product costings................$1500

Strategy day & draft Business Plan..................................$3500

Board meeting attendance..............................................$250

Build the financial model for the business......................$500

Review & recommend internal systems improvements....$2500

Review and recommend new software............................$500

Monthly management reportMonthly revised cashflow forecastAttend board meetingsAnnual strategic planning dayAnnual budgetsAnnual tax minimisation review

“Become the Virtual CFO”

Example 1: Upsell

Take the basic bundle. Then add:

Monthly fee $2000+

Xero $250/monthdebtor recovery business

=

Example 2

Debtor Daddy

Add this to $4800 = $7800 average fee per client

+

Accountants: cloud tech leaders

My challenge to you

Stop billing time.Become collaborative.

Build e!ciency. Sell value via bundles.

Use Xero.

Modernise

Agenda

Intro Leanne Graham

Modernise Brad Golchin

Guy Pearson

Margaret Holmes

Justin Keen

Moving to WorkflowMax Gavin George

Moving to Xero Matt Barnett

O!ce 365 Update Fred Piliu & Paul Bowkett

Wrap-up Leanne Graham

Wise Advice Brad Golchin

Interactive Accounting Guy Pearson

Engine Room Margaret Holmes

2001$New$Company$new$mindset $$

Value$Pricing$Fixed$Price$Agreements$More$than$compliance$

2003$Bank$Connect $$

Website$Online$Coding$&$reporFng$CollaboraFon$

2007$Xero $$

4$Clients$on$full$Xero$Then$Us$All$new$clients$to$Xero$Banklink$Workflow$

April$2009$–$gePng$clients$involved$

Xero$Cashbook$All$GST$clients$Upgrading$clients$to$Full$Xero$

September$2009$–$mindshiT$to$new$technolgies$

iFirm$PracFce$Management$

October$2009$

Going$paperless$Double$screens$Dropbox,$

April$2010$

All$clients$to$Xero$

iFirm$Tax$Management$

June$2010$

New$Name$

New$premises$

E360$Website$

Blogging$

TwiZer$(@engineroomnz)$

Seminar$Series$

2011_now$

Server$–$4$years$old$

Spotlight$ReporFng$

Tech_talks$

API’s$

Office$365$

Workflow$Max$

•  Change is hard •  Understand “Why” •  Internal innovation •  External focus •  Success not perfection •  Return on investment

What we learned…

“Without change, there is no challenge, and without challenge there is only the status quo but no progress.”

Stanley Marcus, Founder Neiman Marcus

Cloud Accountants Justin Keen

Cloud Accountants Xero Presentation

www.cloudaccountants.co.nz

Contents

•  Introduction •  Cloud Accountants philosophy •  What is next?


Introduction

•  The profession •  Technology •  Clients are driving the change •  Where are we headed? •  And are we ready? •  Clients will demand value •  Online systems •  Inventory, payroll, workflow, CRM, skype, dropbox, etc


Cloud Accountants philosophy

•  Streamline processing transactions and compliance •  No more headaches •  Agreed monthly fees •  Speak to the numbers on a regular basis •  Transparency •  Use technology, social media •  Guaranteed timeframes •  Innovative team


What’s next?

•  Simplification of tax compliance •  Looking to add more value over and above compliance work •  Examples

–  KPI reporting on a regular basis –  Budgets, cash flow forecasts –  Real time tax management –  Other, keep innovating


Moving to WorkflowMax Gavin George

WFM Implementation

Process:

•  Initial implementation meeting

•  Data conversion

•  Practice and Tax Manager configuration / setup

•  Training

WFM Conversion

•  Client data

•  Tax data

•  Documents

•  WIP

•  Recurring jobs

•  System setup

Xero Integration

•  Practice key

•  Individual ledger link

Training

•  System admin / setup

•  Creating and managing jobs and clients

•  Tax management

•  Time sheeting

•  Quoting and invoicing

Moving to Xero Matt Barnett

Creating the plan

We will work with you to:

•  Understand your practice and your clients

•  Produce a project plan

•  Outline expectations for the move

We�re here to help with this, and will provide:

• Letter templates

• Training and support for you and your clients

Preparing your data

Send us your client details ready for the move:

•  Organisation details

•  GST details

•  COA type

•  Bank accounts




Making the move

We take care of setting up your clients in Xero and uploading their data so it’s ready to start using day-to-day.

We’ll send you pre-filled bank feed forms for your clients, making it simple to get their bank feeds set up.




Letting people know

Moving to a new system is a big change so it’s important to make sure everyone knows what’s happening.

We can help with:


• Client introduction events

• Training and support

Good to go!

There’s still more information to bring over but Xero is now ready to use for the day-to-day like GST filing and sending invoices.




Completing the transition

To take full advantage of Xero and it’s powerful reporting you’ll still need to enter:

•  Fixed assets

•  Conversion & comparative balances

•  Any pre-coded bank data

•  Create report templates




A lasting relationship

With new features and opportunities along the way, we are always here to help:

•  Training and events

•  Ongoing support

O!ce 365 Update Fred Piliu & Paul Bowkett

Wrap-up Leanne Graham

Educate

Agenda

Reporting in Xero Sue Pak & Amy Victor

NZICA Professional Development Frank Owen

NZ Bookkeeper Association Melanie Morris

Case Studies / Client Scenarios Sue Pak, Melanie Morris & Jon Winter

Wrap-up Sue Pak

Reporting in Xero Sue Pak & Amy Victor

Reporting trends

•  Small business is driving innovation & trends

•  The internet has given us cheaper alternatives for collecting business information

•  Business owners now expect up-to-date information

•  Our job is to convert that data into something meaningful

•  What does your client want? !

Reporting in Xero

•  Introduction

•  Thinking ‘outside the box’ – tips for e!ciency

•  Customising layouts – creating a ‘Trading Account’

•  User Define Reports – building a ‘minutes’ report pack

•  Schedules – building a standalone schedule (e.g. loans)

•  Notes – full customisation verses using defaults in Xero!

Financial Statements

Any$Chart$of$Accounts$ Report$Packs$Report$Code$

Vehicle Expenses EXP.VEH

Delivery$Van$:$#2$

6:2550$:$Travel$Mileage$

Unit$Van$:$Travel$$

Dave’s Truck !

240/01$:$Motor$Vehicle$Expenses$

Petrol$Costs$

241$:$Mileage$

Management Reports

Report Code Mapping

Case studies & client scenarios

Sue Pak, Amy Victor & Jon Winter

Case studies & client scenarios

•  Anna’s Trust Property Investment / Rentals

•  Boutique Kitchens

•  General tips and tricks!

XeroCon 2012_3Feb2012

Technology

Transcript of XeroCon 2012_3Feb2012