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Webinar originally aired February 2014 Join Encompass' Steve Karro in a meta-analysis of key industry reports from 2014 and learn practical tips accounting professionals can use to gain a competitive advantage today.
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• 341 firms • Sole practitioners through to multi-office
and multi-partner firms – City, suburban and regional
Good, Bad, Ugly (Business Fitness)
“For firms to flourish in this fast changing environment they must embrace new technologies, lower costs and resources to achieve greater levels of efficiency yet deliver more value to clients”
• Revenue – Maintained at 6% – WA, VIC larger than other states
• Profitability – Net Profit per partner (excluding salaries)
• Lower Quartile $214,983 • Upper Quartile $449,012 • Median $326,835
– Apply a salary of $200,000 per partner
• 26% of firms were not profitable
KPI’s
• Leverage – Key driver to revenue and profitability – Top 25% had leveraged 8 people per
partner • Partner Return on Effort
– Return a partner receives for each hour worked exc salary
– Increased to $175
KPI’s
Area of Focus 2013 2012 2011 2010 2009
Partner return on effort $175 $156 $157 $151 $145
Total hours worked per partner 1,920 1,958 1,923 1,925 1,887
Produc@vity of partners 48.1% 49.8% 48.4% 48.6% 51.4%
The result of this information together with Write-offs was summarized as “If you make a concerted effort to focus on ‘creating more time’, you will solve the number one challenge for accountants. And you will never have to worry about growth again.”
KPI’s
• Work in progress – A strong focus has seen these reduce.
• Debtors – Debtor days have reduced to
• high of 76 days • low of 44 days
• Expenses – Total expenses and salaries as a percentage
of revenue increased • High 65.5% • Low 38.9%
KPI’s
2013 2012 2011 2010 2009
Growth Growth Growth Growth Growth
Efficiency of process Efficiency of process Key person of dependence
Profitability Profitability
Key person of dependence
Management of workflow
Productivity Cashflow Cashflow
Getting new clients* Getting new clients Profitability Productivity Productivity
Cashflow Key person of dependence
Efficiency of process Introducing new services
Write-offs
Challenges for the future
• Increase in demand for technology and especially cloud technology
• Accountant still seem more inclined to recommend cloud software to their clients than adopting it themselves
• 1/3 of accountants now provide tax returns and financials in a digital format.
• Looking for efficiency in job turn around times
Efficiency – The report
• Adopting the right technology is required to remain competitive
• Improved processes and procedures are required for efficiency and quality of work
• It cant only be about processes and procedures, it needs to improve professional understanding too
Technology in Professional Services Today
Trends in Professional Services Tech
Two main technology trends within Professional Services today:
Automation
• Bank feeds sharing data • High volume, high risk of human error • Repetitive and mind numbing • Taking the professional out of the picture
Internal Business Management
• Practice management, Accounting, time billing,
workflow, document management • These tools, in most cases make the same
task take longer than it did 10 years ago • Timesheets, classifying documents, scanning,
filing - add time today but save us tomorrow
• Technology is adopted because of what is on offer.
• We are all limited to what is available.
• Maybe we are just not looking for the right things.
What is the point?
What are you trying to fix?
How do I convert the problem of
information overload
...Into a competitive advantage?
• Instant Advice
• Be able to proactive not reactive
• Communicate in a universal language
• Offer additional services based on a more complete understanding of your client
• Add value to your hours saved, benefitting everyone - including your client and bottom line.
Using information to drive real growth
Turn This Single Extract,
Into This
And Add All This
To Create This
Imagine taking even a single document That looks like this...
A single click turns it into this
Learn to Swim Not Sink
Recognise your needs and find the solution to address:
– Searching – Volume of information – Communication...with
everyone – Access the data not
just the paper