We've been running Cloud Accounting quality audits with firms for over 12 months and we have seen a worrying trend...
Cloud Accounting is being implemented in a poor manner and is essentially becoming advanced bridging software for Making Tax Digital (MTD).... Having discussed this with many firms over this period, they hadn't realised the risk they have with this type of setup - they are generating leads for other firms, we call it the HOPS (Helping Other Practices Succeed) syndrome.
So what do we mean by quality? Cloud Accounting system in place with:
This level of quality setup gives the accounting firm the foundation to offer their clients comparative reporting, forecasting and offer App Advisory services such as Virtual Credit Control - essentially a much more real-time experience which can promote more relevant conversations and opportunities with clients.
I have run many audits... Here is an example of the outcome I have seen based on a firm with 250 clients on cloud:
Very statistical but let's break this down into some real terms:
Final result out of 250 clients only 11 clients ticked the box of all 3 areas which leaves 239 clients at risk of another cloud advisor showing the client a lot of improvements to their cloud accounting estate with minimal effort.
Not sure if this is your firm? Here are some symptoms that accounting firms feel if they have adopted Cloud Accounting in the above manner:
Normally the underlying issues to the above are lack of communication (staff & clients), lack of new process adoption, lack of understanding as to where the firm is trying to head with cloud adoption and lack of accountability with an overarching lack of planning.
Is your firm suffering from HOPS Syndrome??
We facilitate over a free group with over 200 members that discuss elements of Cloud Adoption quality & building their App Advisory function. Join here - we don't even ask for your email details.
Until next time!