As business and personal finances are becoming increasingly cloud based, keeping up with what software is available and which versions are needed is becoming a painstaking task for many business owners. Adviser spoke to Ryan Pearcy, Business Advisory Director, to talk about the ways in which professional advisers can help their clients navigate the digital maze.
As a business advisory professional, how have you seen the landscape change for businesses with the introduction of things like cloud accounting? We’ve seen at first-hand how many of our clients have been benefiting from using digital technology to improve their data capture and management, but we have also listened to their feedback that they were just too busy, or not properly informed about the other tools which are available to them. Where would a business even start when thinking about digitalising its processes? The transition from the traditional paper based or desktop business processes can be easier than you’d think. Most of us are already using a wide range of apps and cloud-based software in our personal lives without even thinking twice about it. For example, office 365, LinkedIn, Facebook, Amazon, these are all cloud-based service which help us access and manage our data. As a firm, Scrutton Bland firmly believe that over the next ten years all businesses will need to manage their accounting and business processed in the cloud. As I said, many businesses of all shapes and sizes have already adopted accounting systems and are starting to see the benefits of having live data. From being able to send invoices out and getting paid faster, through to being able to prepare accurate reports in order to support applications for lending - there are so many benefits. Where we think the next big development will be is the add-on style apps which can integrate into packages such as Xero and which are tailored to specific sectors or business types. That sounds very exciting, but to the layman what does an add-on app mean? Most software now operates with open APIs, or application programming interface. In short, APIs allow software developers to write programmes which allow other pieces of software or apps to talk to each other. APIs have been in use for some time now in cloud accounting packages and so the logical next step is for software developers to start to create apps which are tailored for specific businesses, but which will all feed back into one data source. Imagine that you work in construction for example, you may already be using Xero, but if you had an app which spoke to Xero and could automatically collaborate with Xero to calculate your Construction Industry Scheme (CIS) payments on each job? The time saving benefits could be huge.
You mentioned earlier that you’ve noticed clients just don’t have time to understand all this, so how can advisers help? There are currently thousands of cloud-based applications available, which is a lot for a business owner or financial director to have to wade through on their own! By using the services of a cloud software expert, you will save a huge amount of time and money, and have the peace of mind in knowing that the system you have chosen is the best fit for your business, and is compliant. We listened to the feedback from our clients and the overwhelming message was that whilst many of them wanted to engage more with digital technology, they just didn’t have enough hours in the day. Our answer to this was to introduce a new type of digital advisory service. Internally nicknamed the SAS (not balaclavas and jumping out of planes here) our Systems Advisory Service supports clients from helping them decide what software they need through to meeting digital change in their daily business processes. How does the service work? Firstly an adviser will work with you to review the systems that you currently operate. After this you will be given a data map, showing how your financial data currently flows from one part to the next. This enables us to provide you with an independent evaluation of where your systems can be improved and to suggest the software that can help you do this. The second stage is the conversion process to implement the new software and to assist businesses in transitioning their data to the cloud. We know from experience that it is the first three months after a new software system is in place that is the most crucial to ensuing that the business can operating without disturbance, so we work alongside our clients to assist and advise them should they need support.
Isn’t all this digitalisation only appropriate for digital or technology businesses? Absolutely not, no. The introduction of Making Tax Digital, for example, means that businesses operating in all sectors will need to be able to submit their records and returns digitally. We have been testing our Systems Advisory Service for a few months now, and are already seeing how digitalising their processes and introducing better software can increase efficiency and profitability for many of our clients. All businesses should be looking at their systems and identifying areas where they can use technology - whether they already have transitioned to the cloud but want to grow and develop their business, or are yet to take the first leap into cloud software. In terms of the size of the business who would need systems advisory help, I’d suggest any firm with a turnover between £500k and £20 million should be looking for professional advice, although smaller businesses may well also benefit. Find out more Ryan heads the Digital Advisory team at Scrutton Bland, if you are considering investing in new technology or simply don’t know where to start, call or email the team who can tell you more about how they can help you review your current systems and controls, to advising you on the best software for your business. Call 0330 058 6559 or email ryan.pearcy@scruttonbland.co.uk
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