TODAY S CLIENT ACCOUNTING SERVICES: NEW NAMES FOR THE SAME SERVICE? June 23, 2015

Transcription

1 TODAY S CLIENT ACCOUNTING SERVICES: NEW NAMES FOR THE SAME SERVICE? June 23, 2015

2 Kalil Merhib Enterprise Business Development Manager, CPA.com 7+ years of experience in tax and accounting technology industry Consultant on technology evaluation, implementation, and deployment

3 TODAY S CLIENT ACCOUNTING SERVICES: NEW NAMES FOR THE SAME SERVICE? Presented by: Kalil Merhib Enterprise Business Development Manager CPA.com

4 Today s Discussion 4 Defining Client Accounting Services (CAS) The Value Driving Forces Tools

5 What are Client Accounting Services? 5 Client Advisory Services

6 Which Business Line Does it Belong in? 6 Accounting Consulting

7 Wide Spectrum of Service Levels for Client Accounting Advisory $ Firm Service Spectrum Transactional Write-Up Business Process Outsourcing Virtual Controllership Collaborative Advisory Services Virtual CFO Historical Compliance oriented Daily operations Real time information Consulting on business decisions

8 Wiss & Company s Approach 8

9 THE VALUE

10 Value for Your Firm 10 Reduces price pressure Develop specialized knowledge More connectivity to clients creates stickiness

11 Changing Firm Value Proposition Value Trusted Advisor Transactional Bookkeeping Today Automation Trusted Advisor Growth Automation Of Services Transactional Decline Tomorrow Specialization Business Insights Higher Margin Commoditization of low end Low margin/fee pressures

12 Communicating the Value 12

13 13 Communicating the Value Insights Real-time data Convenient access What else will you say? o How will you specialize?

14 Specialize in Client Industry Verticals Technology Retail Professional Services Franchises Healthcare Property Management Not-For-Profit Charter Schools Start-ups

15 DRIVING FORCES 15

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18 Disintermediation Removing the middleman a popular buzzword used to describe how Internet based businesses are using cloud and mobile technologies to reach customers. These companies provide products and services cheaper and faster. These technologies are revolutionizing the way products and services are bought and sold, and disintermediation is the driving force behind this revolution.

19 Peer Lending Technology Is the Easy Part Non Profit > 1 million lenders > $500,000,000 in loans / 99.01% Repayment rate Friends and Family Regulation and litigation Prosper (Wells Fargo execs) >$1 billion in loan originations to date Technology Executives Loans being > $250M / month Interest paid to investors: ~$500M to date Technology & baking Direct ties to cloud based accounting platforms Investment bankers True crowd sourced loan funding

20 AVAILABLE TOOLS

21 Cloud-based Tools Make it Happen 21 Accounting software Bill management software o Accounts payable o Accounts receivable o Expense management Industry specific add on s o I.e. manufacturing, inventory, fund management Sales and local use tax (SALT) o Increasing area of complexity you may want to add to your service Workflow management o Changes in responsibilities as part of the process o Track progress

22 Your Feedback Needed go.trustradius.com/cpa

23 New Standard for Client Accounting Services Most Significant Non Audit Standard Change of Past 35 years (SSARS 21): Creates a bright line between accounting (preparation) and reporting (compilation and review) services Adapts the older standards for the current electronic and cloud based environment Very significant change for Firm Client Accounting/BPO Practices

24 Copyright 2013 American Institute of CPAs. All rights reserved. 24

25 New Thinking Required Key Areas: Revise Positioning and Services Write-up & Compilation Service Client Accounting & BPO Services Value of CPA Firm Updating of Engagement Letters Updating of Service Delivery Legend requirement is an OPPORTUNITY to highlight firm value

26 A PRIMER 26

27 Pathway to Client Accounting Services WHAT? WHEN? Future Smart Canton Harness the Power Moore The Big Switch Carr WHERE? Start with Why Sinik WHY?

28 Your Decisions 28 Level of service(s) to offer Work on communicating the value differently Acknowledge the driving forces as part of your plans Select the right tools and leverage standard changes to your benefit

29 Additional Resources 29 CAS 2.0 report o digital/cas html Accounting Services Harness the Power of the Cloud whitepaper o By Geoffrey Moore o Digital CPA Webcasts o 2 Emerging Services for Trusted Business Advisors o July 16, 2015; 2-3pm ET Case Studies: Client Accounting o s/28_12/accounting-technology/casestudies-client-accounting html Client Advisory Services Workshops o Slideshare.net/CPAcom

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31 Contact Information 31 Kalil LinkedIn: