Let’s Tap into Fear for the Scariest Night of the Year (not April 14th, October 31st)

Fear: You’ve wasted your limited time on Earth working on meaningless tasks.

 

Fear: You made mistakes that cost you and you will always regret it.

 

Fear: You missed your deadline.

 

Fear: You develop Chrometophobia as a finance professional

 

Fear: You develop Samhainophobia and it’s October 31st

 

Fear: You could’ve gotten that promotion but you didn’t budget for the right tools and time to

            be somebody.

 

Fear: Your Excel spreadsheet rounded as it was calculating for revenue recognition.       

             what started as pennies lost added up to be hundreds and thousands lost and

             your boss knows it.

 

Because scary movies and particularly creepy, older trick-or-treaters don’t do it for you anymore.

Why Accountants are on Cloud Nine with Cloud Computing: Cloud Accounting and Automated Revenue Recognition

Do you ever wonder if people have over-hyped the benefits of cloud accounting solutions and the future of accounting?

 

Among the cited reasons for shifting to cloud accounting solutions are added functionality, mobile device access/ease of accessibility, co-working opportunities, scalability, sped up processing, quickly manipulated databases, automation features, and robust reporting.

 

Needless to say, many of these functions have pros and cons. Only you will know how these functions will impact on your business. The overall finding, however, is that cloud accounting solutions are by far the best for the modern business.

 

We agree.

 

A quote written by Andrew Marder: “The tectonic shift of all the data we generate is also undergoing automation. We talk about removing double-entry issues to cut down on errors, but let’s be honest – this is data that was sometimes being entered into five different places anyway. Manual entry is the bane of clean data and we’re basically eradicating it from the process.”

 

That last phrase “the bane of clean data” so aptly describes why a business should automate and why automation of accounting processes acts as a tool that enhances the abilities of the finance professional. Processes like revenue recognition, to which one client referred to as ‘donkey work,’ are plagues on clean data. Cloud accounting solutions allow for those added functionalities such as automated revenue recognition to integrate with your current accounting software so that clean data is a promise and not a goal.

 

Sources:

http://www.accountingweb.com/technology/trends/the-truth-behind-todays-biggest-accounting-trends?source=pe091616

http://www.smb-squared.com/5-reasons-to-try-quickbooks-online/

When Software Becomes a Platform: Learning From History

As I’ve said before, huge fan and supporter of Intuit’s launch of the app store. It will increase the functionality of QuickBooks and shift them from software to a platform. I was on the phone the other day and listened to a gentleman at length discuss his skepticism of the app store. He stated too much was going on with too many products. The app store in this case being yet another mistake. He cited the app store as proof that QuickBooks leadership is and was both scattered and ill-prepared to lead their business.

 

     While I sat in silence and listened, I found that based on history, I couldn’t disagree more. It was not the time or place to share that. Today, I would like to share my reasoning with you guys and would love to have a discussion.

 

    The Current Setting: Intuit professionals were rumored to be working on as many as 800 new features a year and still falling behind for their QuickBooks software both Online and Desktop. This rate of feature development by one development team and project team is not doable. It’s not sustainable. How do you keep up with the demand of functionality for an excellent software solution?

 

    The History: Once upon a time, a two smallish companies that go by the names of Salesforce and Adobe found themselves in a similar predicament as QuickBooks Online/Desktop. But the features were crucial. These companies could not succeed as merely software companies anymore. It was a disservice to their customers and an unrealistic expectation for their team, thus, their business models made a dramatic shift: Salesforce and Adobe were no longer software companies.

 

   They became platforms.

 

   As we now know, their app stores were indisputably successful in continuing to build the companies’ value to their consumers. As platforms, not only did they create jobs, create wealth, and create a trailblazing model for SaaS companies, but also, they were finally able to provide the functionality their consumers needed at a record rate.

 

   As Intuit QuickBooks Online and Desktop users become further and further disgruntled and distraught, looking for features Intuit developers could never hope to stay ahead of, It is safe to assume Intuit took a look to the history of other greats and like all great leaders, learned from that history. The QuickBooks Online app store was established and the app offering growing rapidly. Some customers, fractional CFOs/CPAs, and other financial professionals might be trying to hedge their bets on the success of the app store and their apps: look no further than Salesforce and Adobe for your answer.
   Welcome Intuit QuickBooks as a platform.

How-To Shift to Annual Based Subscriptions Without Driving Your Accounting Staff Up a Wall

The deferred revenue ‘problem:’ that issue that arises when you move away from monthly subscriptions, is now long gone thanks to automated revenue recognition solutions. With automated revenue recognition, the deferred revenue “problem” is similar to that annoying additional step to have sliced bread by actually cutting it up – 1928 we have sliced bread. In 2016, we have ProRata, an automated revenue recognition solution for QuickBooks Online users. ProRata is literally the best thing since sliced bread 😉

 

    With the deferred revenue “problem” solved, the question remains, in a time where “accounting firms are pushing for subscription revenue,” why not push for the annual subscription?

 

      It is key to note that in the same article citing the push for subscription revenue by accountants followed that statement by mentioning that this push leads them right into the cloud (where software exists to support such a model). They are doing more with less and saving time for clients. The article can be found below under “Quote Source.”

 

    MarketingExperiments by MEC Labs found that annual subscriptions even at a discounted rate of about 40% the monthly rate are sizably more profitable than their monthly counterpart. Tucker Dawson at Price Intelligently shares that a combo of both monthly and annual optimizes income through ensuring lower customer acquisition cost in a calendar year, boosts customer retention thus lower churn rate AND his findings were for businesses that have monthly customers as their bread and butter as far as pricing. It’s no secret to the business world that annual is gold but it is also important to remember when shifting to annual, offering both prices as mentioned by the sources above is an important option for those balking at the idea of commitment elsewise you might be spending too much on sales.

 

    Automating your revenue recognition will simplify for accountants what just makes sense for your business model.

 

Sources:

http://www.marketingexperiments.com/improving-website-conversion/subscription-revenue.html

http://www.priceintelligently.com/blog/bid/194370/Boosting-MRR-Annual-Vs-Monthly-Subscriptions-in-Your-SaaS-Pricing-Strategy

Quote Source:  (http://www.accountingweb.com/technology/trends/the-truth-behind-todays-biggest-accounting-trends?source=pe091616)