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.

2. Good, Bad, Ugly
(Business Fitness)
• 341 firms
• Sole practitioners through to multi-office
and multi-partner firms
– City, suburban and regional
“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”

3. KPI’s
• 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

4. KPI’s
• Leverage
– Key driver to revenue and profitability
– Top 25% had leveraged 8 people per
partner
• Partner Return on Effort
Area
– Focus
of
Return
2013
2012
a partner receives2011
each hour
for 2010
2009
Partner
return
on
effort
$175
worked exc salary $156
$157
$151
$145
Total
hours
worked
per
partner
1,920
1,958
1,923
1,925
1,887
– Increased
Produc@vity
of
partners
to $175 49.8%
48.4%
48.6%
51.4%
48.1%

5. KPI’s
The result of this information together with Writeoffs 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.”

6. 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%

7. Challenges for the future
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

8. Efficiency – The report
• 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

9. Technology in Professional Services Today
• 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

10. 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

11. What is the point?
• 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.

12. What are you trying to fix?
How do I convert the
problem of
information
overload
...Into a
competitive
advantage?

13. Using information to drive real growth
• 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.

14. Turn This Single Extract,

15. Into This

16. And Add All This

17. To Create This

18. Imagine taking even a single document
That looks like this...

19. A single click turns it into this

20. 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