REMAINING RELEVANT: Future Proofing Your Firm

Future Proofing Your

Firm

REMAINING

RELEVANT

B U S I N E S S A D V I S O R Y S O F T W A R E F O R A C C O U N T A N T S

Rob Nixon Colin Dunn

W W W. P A N A L I T I X . C O M

W W W. P A N A L I T I X . C O M

The 10 Chapters of your future

1. The way of the dinosaur

2. A new plan is needed

3. The Real Time Accountant

4. People are still needed

5. Over-delivering on the service

6. Productising what you know

7. Making targeted noise

8. Noise without follow up is just noise

9. It’s a business that makes money

10.It’s all about you.

W W W. P A N A L I T I X . C O M

W W W. P A N A L I T I X . C O M

W W W. P A N A L I T I X . C O M

Promise

Chapter 1:

The way of the

dinosaur

B U S I N E S S A D V I S O R Y S O F T W A R E F O R A C C O U N T A N T S

W W W. P A N A L I T I X . C O M

THERE’S A STORM BREWING!

W W W . PA N A L I T I X . C O M

W W W. P A N A L I T I X . C O MW W W . P A N A L I T I X . C O M

W W W. P A N A L I T I X . C O M

New Zealand – cloud since 2009

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www.indinero.com

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www.indinero.com

Chapter 2:

A new plan is needed

B U S I N E S S A D V I S O R Y S O F T W A R E F O R A C C O U N T A N T S

W W W. P A N A L I T I X . C O M

Business by Design

Your business

life

The numbers

Services offered

Your culture

Your clients

Chapter 3:

The Real Time

Accountant

B U S I N E S S A D V I S O R Y S O F T W A R E F O R A C C O U N T A N T S

W W W. P A N A L I T I X . C O M

REDUNDANT OR REAL TIME

Redundant Data Accountants

Real Time Accountants

Offers advice late or not at all Offers advice before it happens

Processes work and administration

Value added services that help

Waits for things to happen On front foot making it happen

Majority of revenue in compliance

Majority of revenue in Business Advisory

Prices in arrears Prices every project upfront

Doesn’t visit / call me Visits and calls on systematic basis

Doesn’t follow up Follows up on every opportunity

Doesn’t promote the latest thing

Always promoting

Most clients on ‘hard drive’ accounting

Most clients on ‘cloud’ accounting

Numbers power with the client Numbers power with the Accountant

Chapter 4:

People are still

needed

B U S I N E S S A D V I S O R Y S O F T W A R E F O R A C C O U N T A N T S

W W W. P A N A L I T I X . C O M

The future of employment – how susceptible jobs are to computerisation – C Frey & M

Osborne 2013

W W W. P A N A L I T I X . C O M

Accountants salaries in the Philippines

Qualifications / ExperienceAnnual Salary

PH Peso*Annual Salary

USD$Per Hour USD

(1800 hrs)

Newly Grad Accounting (non CPA) P130k – P156k $2,900 - $3,500 $1.60 - $1.95

Accountant (non CPA) few years experience

P182k – P260k $4,000 - $5,800 $2.22 - $3.22

CPA Accountant (just qualified) P234k – P286k $5,200 - $6,300 $2.88 - $3.50

CPA Accountant (5 years experience + can supervise)

P286k – P390k $6,300 - $8,600 $3.50 - $4.77

CPA Accountant (CFO, Head of Audit level)

P390k – P585k $8,600 - $13,000 $4.77 - $7.22

* These salaries are what the team member is paid as at February 2014

* Plus BPO (business process outsourcing) “seat fee” costs of approx. US$600 - $850 per person per month

W W W. P A N A L I T I X . C O M

What can your virtual team do?

Administration

Your internal finance team

Marketing team – all functions

Sales coordinators

Client Services assistants

Technology creation and support

Accounting processing team

Bookkeepers

Para-planners

Product & systems developers.

Chapter 5:

Over delivering on

service

B U S I N E S S A D V I S O R Y S O F T W A R E F O R A C C O U N T A N T S

AGM PANALITIX

6 monthly Visits

Phone calls –3-4 times per year

No Charge email /

phone calls

What if planning

ServiceNew OppsAdd value

Sporadic emails / letters

SeminarsCAB’sSocial Media

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What clients need – the Awesome 8

Growth

Profit

Cashflow

Asset Protection

Tax minimise

Financial Retirement

Succession

Estate planning /

legacy

Clients

Chapter 6:

Productising what you

know

B U S I N E S S A D V I S O R Y S O F T W A R E F O R A C C O U N T A N T S

W W W. P A N A L I T I X . C O M

20 new products1. Revenue growth program2. Cash flow analysis, forecasting &

monitoring program3. Profit improvement program4. Debt re-structuring program5. Receivables management service6. Inventory management service7. Bookkeeping (serviced from lower cost

countries)8. Virtual Management Accounting9. Cloud conversions10.Sort out the numbers program.

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20 new products11. Monitoring & Accountability program

12. Webinar / Seminar / Workshops / events

13. Planning sessions – face2face, group or remote

14. Boxed product (DVD, etc.) for a niche market

15. Books / Manuals / Podcasts / Video subscriptions

16. Software or online learning –subscription based

17. Challenges – 100 day / 6 week, etc.

18. Leveraged training or consulting

19. Group coaching

Chapter 7:

Making targeted

noise

B U S I N E S S A D V I S O R Y S O F T W A R E F O R A C C O U N T A N T S

W W W. P A N A L I T I X . C O M

Niche markets• Geographic niche – we are the small

business experts in New Zealand

• Services niche – we help business owners to be financially retired

• Behavior niche – we help Entrepreneurs start and then exit their businesses

• Industry niche – we help Restaurateurs to grow and develop their businesses

• Mixed niche – Entrepreneurial Restaurants in New Zealand.

W W W. P A N A L I T I X . C O M

Niche market criteria

1.Are there lots of them?

2.Do they have the ability to pay?

3.Can your IP make a difference to them?

4.Are they enjoyable to work with?

W W W. P A N A L I T I X . C O M

Leveraging the Internet

Chapter 8:

Noise without follow

up is just noise

B U S I N E S S A D V I S O R Y S O F T W A R E F O R A C C O U N T A N T S

W W W. P A N A L I T I X . C O M

W W W. P A N A L I T I X . C O M

Sales system – step by step process

Chapter 9:

It’s a business that

makes money

B U S I N E S S A D V I S O R Y S O F T W A R E F O R A C C O U N T A N T S

W W W. P A N A L I T I X . C O M

Key Area Now

Partners

Accountants

Administration & Marketing

Client numbers - groups

Average client project value

Number of client projects per year

Average fee per client group per year

Revenue

Salaries – excluding partners

Office overheads

Total costs

Profit before partner salaries

Profit per partner

Productivity / Utilization – Partners

Productivity / Utilization – Accountants

Average hourly rate / Net firm billing rate - client hours

Average hourly rate / Net firm billing rate - all hours

2

10

4

600

$1,750

4

$4,200,000

$1,280,000 (30%)

$920,000

$2,200,000

$2,000,000 (48%)

$1,000,000

30% (506 hours)

75% (1265 hours)

$307

$155

$7,000

W W W. P A N A L I T I X . C O M

Packaged Pricing

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www.panalitix.com/remainingrelevant

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www.panalitix.com/remainingrelevant

Chapter 10:

It’s all about you!

B U S I N E S S A D V I S O R Y S O F T W A R E F O R A C C O U N T A N T S

W W W. P A N A L I T I X . C O M

It’s all about you!

Co

re p

urp

ose

Thirst for learning

Self b

elief

Fun every day

W W W. P A N A L I T I X . C O M

It’s all about you!

Co

re p

urp

ose

Thirst for learning

Self b

elief

Fun every day

W W W. P A N A L I T I X . C O M

It’s all about you!

Co

re p

urp

ose

Thirst for learning

Self b

elief

Fun every day

W W W. P A N A L I T I X . C O M

www.panalitix.com/remainingrelevant

W W W. P A N A L I T I X . C O MW W W . P A N A L I T I X . C O M

www.panalitix.com

rob.nixon@panalitix.com

colin.dunn@panalitix.com