CHANGING THE WAY YOU DELIVER YOUR PRODUCT TO YOUR CLIENTS

RUSSELL EVANSCEO, CCH ASIA PACIFIC

WHAT IS DIGITAL DISRUPTION?

Digital Disruption

Changes enabled by digital technologies that occur at a pace and magnitude that disrupt established ways of value creation, social interactions, doing business and more generally our thinking.

- The University of Sydney

Daily distribution of Australian screen minutes

TV; 125

PC; 102

Tab; 37

Phone; 132

Source: Milward Brown AdReaction, 2014

Key Findings

1. Proliferation of SME cloud solutions

2. Services Impacted by cloud computing

3. Lack of understanding of Governments actions

4. Education not prescription

Proliferation of SME cloud solutions

• 69% of accounting firms in Australia currently use cloud computing (SaaS) based accounting applications

• 59% of Accountants operating cloud based software, use 2 or more cloud apps

Proliferation of SME cloud solutions

Services Impacted by cloud computing?

I told them advisory was the future!

1…2….3….

Compliance

Accountant

Compliance!

Don't Know

Business Mentoring and Executive Board Services

Corporate Financing, lending access and advisory

Personal Financial Planning

Technology strategy and enablement advisory

ASIC Reporting and Corporate Secretarial

Self Managed Super Fund Establishment and Compliance

Business Establishment and Structuring

Business Planning, Forecasting and Cashflow support

Business Advisory

Tax Planning

Financial Reporting and Taxation

0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 30.0% 35.0% 40.0% 45.0%

Which Accounting Business Processes Impacted by Cloud Computing – Remembering it is considered positive

No CloudCloud

Compliance 72% Advisory

26%

Don't Know2%

Services impacted positively by the cloud- Cloud users

Lack of understanding of Governments actions

Is government concern over red tape a threat to Accountants?0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

60.0%

Is Government Red Tape Reduction a Challenge?

Consider it a signifi-cant negative impact

Consider it a slight negative impact

Neutral/No Opinion

Consider it a slight positive impact

Consider it a signifi-cant positive impact

Negative Impact12%

Neutral48%

Positive Impact40%

Is Government Red Tape Reduction a Challenge?

What Changes?

• Automation of Individual tax returns (iReturns)• “…developing a light touch or no touch income tax experience”

• ATO no longer sends Cheques on iReturns• BAS & IAS changes

• If you lodge via ELS or Portal say bye bye to paper BAS/IAS

• 12 months away from no physical NOA’s to Tax Agents

Privacy Act 1988 - Tax File Number Guidelines 2011Guideline 6 Storage, security and destruction of TFN information

6.1 TFN recipients must take reasonable steps to:a) protect TFN information from misuse and loss, and from unauthorised access, use, modification or

disclosure, andb) ensure that access to records containing TFN information is restricted to individuals who need to

handle that information for taxation law, personal assistance law or superannuation law purposes. Computer and network security – by adopting logical barriers and measures to protect computer systems and networks from unauthorised access, modification and disclosure such as: • user identity checks and password controls• separately storing, processing and transmitting TFNs from other information handled by the TFN recipient• systems including audit trails to detect unauthorised access.• Communications security – by protecting communications via data transmission, (including email and voice communications), from interception, and preventing unauthorised intrusion into computer networksOffice of the Australian Information Commissioner http://www.oaic.gov.au/privacy/privacy-resources/privacy-fact-sheets/other/privacy-fact-sheet-6-the-binding-tax-file-number-guidelines-2011-and-the-protection-of-tax-file-number-information

CCH Paper Buster + Client Portal

Paper or Electronically

ATODocument eg. NOA,

BAS

ATO

Steps 1 – 3 takes about 30 seconds!

YourDatabase

Go Button on Paper Buster

Draft Email to Client

@Draft

Letter to Client1

Secure Online Client Portal3

Document Filing

2

Respondent Someone Within Organisation Accountant Third Party 0%

10%

20%

30%

40%

50%

60%

70%

Who Makes the Cloud Decision?

Key Findings

1. Proliferation of SME cloud solutions

2. Services Impacted by cloud computing

3. Lack of understanding of Governments actions

4. Education not prescription

Cloud Tax Free Until JUNE 30*

Contact us for more information

• Email: ifirm@cch.com.au• Phone: 1800 836 869• Website: www.cchifirm.com.au

@cchifirm CCH iFirm