IT Trends... Process as a service?
Technology to manage general business and financial
processes has evolved tremendously in the past 20
years, and history clearly reveals that those who have
successfully adopted such technologies have done so in
stages. Bridge technologies and services, which I
fondly refer to as "tweeners", provide a means for safe
and low-risk adoption. These are the services which
have achieved a good level of acceptance in the
market, and these are the services that will assist in
garnering online users for the purely Web-based
applications. Providers delivering their applications
using Citrix and similar technologies offer the full
capability of the Windows application along with the
rich Windows interface, as well as the benefits of ASP
service and Internet accessibility similar to the Web-
app (e.g., the "software as a service" model). This
familiarity in functionality and presentation has made
adoption of hosted deliveries of these applications a
harmless and often seamless transition.
Trends in the software industry indicate that the
concept of "software as a service" is being taken a
step further, offering outsourced support and finished
product deliverables rather than just the application.
For example - an accounting professional may obtain
a "finished client tax return" rather than simply
purchasing the tax preparation software. In some
cases, this is the method of marketing that is chosen
to help bolster adoption of Web-based application
services. This activity could easily translate to the
consuming market, where business applications are not
purchased separately, but as a function of getting the
business process facilitated. CRM and helpdesk
services are frequently offered this way, as are HR
administration and payroll services. The technology
has matured to a point where the outsourcer can
facilitate the internal business process on behalf of a
business fairly transparently.
Does this mean that there is a potential to devalue the
knowledge required to perform the business process?
There is a belief that has been marketed very well to
the small business sector - "if you can write a check,
then you can do your own books". This concept has
not proven as realistic as many would choose to
believe. But it earned market share. And, with the
trend in software becoming the transparent outsourcing
of the processes, is the consuming market likely to
recognize the expertise required to manage the
outcome, or will it simply buy-in to the concept of "if
you subscribe to our system, you get 'done books'"?
Today's accounting professional must address the
realities of Internet technologies and outsourcing, and
the potential impact it will have on the businesses (the
client business as well as the professional practice).
Recognizing that accountants (by trade) are not
typically technologists, it is important to understand
that involvement with the financial processes causes a
necessary level of involvement with the technology, as
well. Professionals who understand and embrace the
appropriate use of technology and outsource models
are the professionals who will continue to demonstrate
their value and expertise to their client businesses and
to the market.
YOU deliver the service; YOU deliver the value...
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The question begs to be asked "how did we get
here?" (with "here" being the current state of
information technology and the accounting industry).
There is confusion in the market; there is significant
debate as to the underlying value of Internet
technologies and online application services, and
the "managed enterprise approach" has yet to return
the benefits and cost-efficiencies that were expected.
The accounting industry is experiencing broad change,
and understanding the progression of events and
technology developments can provide significant insight
into where the industry is today, and where it will likely
be tomorrow. You need to implement technology and
solutions that will help your business and your clients
compete in today's market. Understanding your options
is key to making the right choices. We've been here
since 1997, and we can help you find the reality behind
the hype. Visit www.CPA-ASP.com and get the insight
you need to keep your practice moving forward.
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| The Reasons for IT Improvements: Key Goals and Objectives of Professional Service Firms | | |
 Today's professional services organization understands
that technology is required in order to do business.
However, many of these organizations still view
technology as an expense - a costly tool rather than a
valuable source of innovation and revenue. But there
are many who know otherwise. These are the e-
Accountants.e-Accountants use technology to their advantage and
to the advantage of their clients. e-Accountants
implement technology in areas of the business where
the right systems or hardened processes can have a
dramatic positive impact:
· Increasing profitability of core business
engagements by reducing the costs of providing
services,
· Improving client service capability,
· Improving client communication and retention,
· Increasing brand and image visibility,
· Diversification, moving into new or niche
service areas,
· Differentiation, establishing "domain expertise"
and alleviating competitive concerns.
Learn more... | | |
| Retaining Your Value | | |
 With the industry generally moving towards an online,
enabling model, those who do not embrace such
technologies will rapidly find themselves attempting to
compete. As the trend continues to devalue the back-
office processes by essentially hiding them from the
consumer (the client business), the position of the
accounting services provider is also devalued. By
embracing the technology/enabling model now, the
professional service organization could position itself to
function as seamlessly with the market as the online
service. A clear yet recent example of such activity is
the emergence of free e-filing of tax returns and the
prevalence of low-cost do-it-yourself software.
Reports indicate that just this year there was a marked
decrease in the number of returns prepared by
professional organizations as compared to the
significant increase in volumes of online do-it-yourself
return processing. This has clearly devalued the tax
preparation service in the eyes of the consuming
market, bringing it down to a level where price is the
sole differentiation.The solution is to fully "enable" the professional
services organization, and provide the foundation for
seamless delivery of services to the consumer. Once
an online working model is adopted within the
professional service organization, it gains the
opportunity to change and reconstruct internal systems
without concern for direct client impacts. Just as the
online application can render the computing platform
irrelevant, so can the professional service delivery
render the supporting applications irrelevant. This
offers the professional service provider the flexibility
and freedom to use or develop systems that create
differentiation through the underlying process rather
than forcing frequent change upon the client.
e-Accounting is enabling professional practice... | | |
| The Increasing Value of Outsourcing | | |
 Using technology to improve the efficiency of service
can have a significant positive impact to the bottom
line. But engaging new clients may become difficult if
the practitioner is unable to find the skilled workforce
needed in order to keep up with market demands. In
many cases, CPA clients probably outsourced their
accounting or bookkeeping functions because they,
too, find it difficult to hire and keep good workers.As the available pool of trained accounting
professionals decreases, the increased pressure on
technology will naturally generate an increase in the
use of outsourcers. The small business market is the
economic growth sector, and the number of
opportunities being presented to smaller firms is
increasing significantly. This, coupled with the decline
in the production of trained professionals, only
increases the value of outsourcing.
more... | | |
| The View From Down Here | | |
 The SMB (small-to-medium business) market segment is
nothing to ignore if you're a professional accounting
practice. Small businesses are just big businesses
getting started. And you can be the difference
between success and failure. Imagine working with
that little one-man shop and helping him to create an
empire. It's been done, and usually with a lot of
guidance from a good accountant and financial advisor.The biggest problem that we typically see when a
large, prestigous firm attempts to serve their small
business (growing business) clients is that there is
frequently an attempt to apply "big business" processes
and methodologies, and introducing too much
complexity when trying to solve simple problems. The
KIS principle (keep it simple) is still the very best
approach with your SMB clients. Solutions for small businesses | | |
| Marketplace | | |
 Link to online license purchasing for QuickBooks or ACT!
Obtain access to Web-based tools and services.
Get discounts on check stock and printing solutions.
Marketplace... purchase licenses, supplies and more! | | |
| Past Issues of Practice Development News | | |
 Read the April 2003 edition... how to get started NOW
with your online strategy. Eliminate the effects of time
and distance in your business, and build profitability and
efficiency into every engagement.Read the March 2003 edition... how outsourced
accounting can be a practice-development tool for your
business, and why e-Accounting is ENABLING THE
OUTSOURCE MODEL.
Read more... | | |
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