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Wolters Kluwer 2014 Accountants research

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Daniel Wyner
Daniel Wyner

Digital disruption refers to changes enabled by digital technologies that disrupt established ways of doing business. The document discusses how digital disruption through cloud computing is impacting the accounting profession. It finds that 69% of accountants surveyed use cloud-based accounting software and view the impact of cloud computing as overwhelmingly positive. While security concerns remain a drawback, current cloud users plan to increase their investment and usage of cloud computing.

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DEALING WITH DIGITAL DISRUPTION
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
Wolters Kluwer 2014 Accountants research
Wolters Kluwer 2014 Accountants research
TV, 125 PC, 102 Phone, 132 Tab, 37 Daily distribution of Australian screen minutes Source: Milward Brown AdReaction, 2014
Wolters Kluwer 2014 Accountants research
Wolters Kluwer 2014 Accountants research
Wolters Kluwer 2014 Accountants research
Can the Accounting Profession keep up with clients and the cloud
11 Key Takeaways and Themes ______________________________________________________________________________________________________________________________ Embrace, not fear, the cloud. Current business transformation is more than the cloud. Emerging digital experiences will define you and your clients business 69% of accountants surveyed use a cloud computing platform for accounting software The overall impact of cloud is quantifiably beneficial for the accounting profession. Your SME clients are net positive, but need more convincing
12 Methodology Quantitative and Qualitative ______________________________________________________________________________________________________________________________ Quantitative Methodology 200 Australia wide telephone interviews of SME organisations 300 Australia wide telephone interviews of Small to Mid Sized Accounting/Tax firms Qualitative Methodology 12 in-depth or one-to-one interviews of SME organisation employees 12 in-depth or one-to-one interviews of Small to Mid Sized Accounting/Tax firm employees
13 Quantifying Cloud Usage for Accountants ______________________________________________________________________________________________________________________________ 69% of accounting firms in Australia currently use cloud computing (SaaS) based accounting applications (sample size = 300 Accountants in Australia)
14 Quantifying Cloud Usage for Accountants ______________________________________________________________________________________________________________________________ Australian accountants use an average of 1.9 cloud accounting apps 59% of Accountants operating cloud based software, use 2 or more cloud apps Xero and MYOB dominate the market. 98% of accountants using cloud use at least one of these brands. 49% of accountants using two cloud apps use both of these brands (sample size = 300 Accountants in Australia)
15 Regional vs Urban Accountants ______________________________________________________________________________________________________________________________ 26% of accountants were located in regional centres, the remaining 74% in the state and territory capitals 60% of accounting firms in regional areas are using cloud based accounting applications with their clients 72% of accounting firms in urban areas are using cloud based accounting applications with their clients Overall whilst uptake in regional areas is lower than urban, there is limited defining behavioural patterns differentiating the two locations This reinforces the universal client driven demands to go to the cloud (sample size = 300 Accountants in Australia)
16 Is There an Accounting Age Divide? ______________________________________________________________________________________________________________________________ Average age of an accountant using cloud accounting applications = 36 75% of accountants under the age of 50 are currently using cloud accounting packages Average age of an accountant NOT using cloud accounting applications = 40 Just 45% of accountants over the age of 50 are using cloud accounting packages (sample size = 300 Accountants in Australia)
17 Baby Boomers vs Millennials ______________________________________________________________________________________________________________________________ This issue is clearly critical to how you communicate with your clients and co-workers older and younger You cannot use a one size fits all approach across the age divide. Younger accountants understand the technology and the benefits A critical qualitative issue is the way in which the cloud is sold to Millennials. Everyone is trying to sell cloud to our parents, not to us Dont sell us the cloud - Tell us why I should use MYOB not Xero Help us sell to our clients, and create a cloud ecosystem for the SME (sample size = 300 Accountants in Australia)
Depth of Impact of Cloud Computing on Services provided to SMEs ______________________________________________________________________________________________________________________________ 18 Will Services Provided to SMEs Be Impacted by the Shift to the Cloud Consider it a significant negative impact Consider it a slight negative impact Neutral/No Opinion Consider it a slight positive impact Consider it a significant positive impact (sample size = 300 Accountants in Australia)
Depth of the Impact of Cloud Computing on Services provided to SMEs ______________________________________________________________________________________________________________________________ 19 50% 40% 30% 20% 10% 0% Consider it a significant negative impact Consider it a slight negative impact Neutral/No Opinion Consider it a slight positive impact Consider it a significant positive impact Cloud Users Non Cloud Users (sample size = 300 Accountants in Australia)
Depth of Impact of Cloud Computing on Services provided to SMEs ______________________________________________________________________________________________________________________________ On the scale of 1 (significant negative) to 5 (Significant Positive) Users of cloud computing rated the impact of cloud on the accounting 20 profession as 4 Non-Users of cloud computing rated the impact of cloud on the accounting profession as 3.5 A clear indication that the adoption of Cloud Computing is seen as overwhelmingly positive The cloud is the most exciting invention for the accountant since the abacus. It will make our job easier and allow us to add real value for our clients Cloud will find out poor bookkeepers, but for most it is a very positive part of the industry as it allows us to focus on supporting the client
Which Accounting Business Processes Impacted by Cloud Computing Remembering it is considered positive ______________________________________________________________________________________________________________________________ Financial Reporting and Taxation Tax Planning Business Advisory Business Planning, Forecasting and Cashflow support Business Establishment and Structuring Self Managed Super Fund Establishment and Compliance ASIC Reporting and Corporate Secretarial Technology strategy and enablement advisory Personal Financial Planning Corporate Financing, lending access and advisory Business Mentoring and Executive Board Services 0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 30.0% 35.0% 40.0% 45.0% 21 Don't Know No Cloud Cloud (sample size = 300 Accountants in Australia)
Which Accounting Business Processes Are Impacted by Cloud Computing ______________________________________________________________________________________________________________________________ Overwhelmingly the number one accounting process impacted by the cloud is Financial Reporting and Taxation. This was cited by over 40% of respondents. This is regardless of whether the respondent is a current cloud user or not. Other key processes impacted include: 22 Business Planning Forecasting and Cash-flow support Business Advisory Tax Planning In general there is an alignment between cloud and non-cloud users in terms of their perception of impacts
23 Key drawbacks for Accounting firms when Using Cloud ______________________________________________________________________________________________________________________________ Security Concerns 17% Client Concerns 15% Downtime Other 1% Being Tied 15% to One Supplier 13% Loss of Client Integratio n 9% Data Location 11% Lack Of Support 11% Overall Cost 8% (sample size = 300 Accountants in Australia)
24 Key drawbacks for Accounting firms when Using Cloud ______________________________________________________________________________________________________________________________ Whilst the accounting profession is very positive about the cloud, there is a range of drawbacks for use of the cloud Security Concerns were the number one drawback of cloud for 17% of respondents Client Concerns was ranked second. Qualitatively and anecdotally we also know that the client concern is largely security related. Data location is only an issue for 11% of organisations Cost is a non-issue
Is Government Red Tape Reduction a Challenge? Accountants say NO!! ______________________________________________________________________________________________________________________________ 25 60.0% 50.0% 40.0% 30.0% 20.0% 10.0% 0.0% Is government concern over red tape a threat to Accountants? Consider it a significant negative impact Consider it a slight negative impact Neutral/No Opinion Consider it a slight positive impact Consider it a significant positive impact (sample size = 300 Accountants in Australia)
26 Future Cloud Investment ______________________________________________________________________________________________________________________________ Current users of cloud computing are very confident that they will increased usage of cloud computing in their business 76.3% of current users are very likely to increase their expenditure on cloud computing A further 19.8% are quite likely to increase their expenditure on cloud computing Increased investment in cloud is anticipated across all age groups There is no way back for cloud computing. We are embracing it all the way We are partnering with a firm who provides CRM SaaS support to enhance customer outcomes (sample size = 300 Accountants in Australia)
27 SME Investment in the Cloud for Accounting Services ______________________________________________________________________________________________________________________________ 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% Are you, or your Accountant using a Cloud Computing Based Accounting system for your Financial Management? Currently Use a Cloud Based System Have Considered Using a Cloud Based System Have Not Yet Considered Using a Cloud Based System (sample size = 200 SMEs in Australia)
28 SME Investment in the Cloud for Accounting Services ______________________________________________________________________________________________________________________________ Currently 27% of SME organisations are using cloud based accounting services 60% of organisations have not yet tried to shift to the cloud. This is a significant untapped opportunity We embraced the cloud a couple of years ago after our accountant suggested it to us The real benefit for us is the improved software. Cloud was secondary We will likely go to the cloud at some stage as these are the firms who are innovating. It is hard to avoid Xero, they must be doing something right (sample size = 200 SMEs in Australia)
29 Who Makes the Cloud Decision? Not the Accountant ______________________________________________________________________________________________________________________________ Respondent Someone Within Organisation Accountant Third Party 70% 60% 50% 40% 30% 20% 10% 0% (sample size = 200 SMEs in Australia)
30 Brand of Cloud Accounting Package Used ______________________________________________________________________________________________________________________________ MYOB Xero Saasu Reckon CCH Intuit/Quikbooks Other (sample size = 200 SMEs in Australia)
31 Key Drivers of Cloud Investment by SMEs ______________________________________________________________________________________________________________________________ Key Drivers of Cloud Investment Security 44.4% Functionality 42.6% Price 5.6% Pricing Flexibility 3.7% Scalability 1.9% Quality 1.9% Data Location 0.0% Frequency of Updates 0.0% None / don't know 0.0% Cloud investment for SMEs is all about focus on security and functionality Get this correct and your clients will thank you (sample size = 200 SMEs in Australia)
32 Perception of the Security of the Cloud Platform ______________________________________________________________________________________________________________________________ 35.0% 30.0% 25.0% 20.0% 15.0% 10.0% 5.0% 0.0% Cloud much more secure than current office system Cloud a little more secure than current office system Current office system a little more secure than a Cloud system Current office system a lot more secure than a Cloud system SME Accountants Using Cloud
If you dont transform you will be SMACD by clients ______________________________________________________________________________________________________________________________ Mobility Digital Business Engagement Cloud Social Business Analytics 息 2014 capioIT 33
What your Clients will demand from SMACD ______________________________________________________________________________________________________________________________ Cost Scale Hustle Secure Agility 息 2014 capioIT 34
A successful Accountant has to build a business around these ideas ______________________________________________________________________________________________________________________________ Business Outcomes based opportunities Drive Business Agility Transform Business and Technology Engagement SMACD Cloud based Scalable/Cost removal Cross Industry Business Outcomes based opportunities Business Platforms 息 2014 capioIT 35
______________________________________________________________________________________________________________________________ Embrace, not fear, the cloud. Cloud and emerging digital experiences will define you and your clients business 息 2014 capioIT 36 (
Daniel Wyner Head of Strategy, Mergers & Acquisitions Asia Pacific
What are the top 3 challenges that technological advances are creating for your accounting practices? 38
Three Emotions
Key take outs 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
Services Impacted by cloud computing? I told them advisory was the future! 12.3.
Which Accounting Business Processes Impacted by Cloud Computing Services impacted positively by the cloud Remembering it is considered positive Financial Reporting and Taxation Tax Planning Business Advisory Business Planning, Forecasting and Cashflow support Business Establishment and Structuring Self Managed Super Fund Establishment and Compliance ASIC Reporting and Corporate Secretarial Technology strategy and enablement advisory Personal Financial Planning Corporate Financing, lending access and advisory Business Mentoring and Executive Board Services Don't Know 0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 30.0% 35.0% 40.0% 45.0% No Cloud Cloud Compliance 72% Advisory 26% Don't Know 2% - Cloud users
Lack of understanding of Governments actions 60.0% 50.0% 40.0% 30.0% 20.0% 10.0% 0.0% Is Government Red Tape Reduction a Challenge? Is Government Red Tape Reduction a Challenge? Is government concern over red tape a threat to Accountants? Consider it a significant negative impact Consider it a slight negative impact Neutral/No Opinion Consider it a slight positive impact Consider it a significant positive impact Nagative Impact 12% Neutral 48% Positve Impact 40%
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 NOAs to Tax Agents
Privacy Act 1988 - Tax File Number Guidelines 2011 Guideline 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, and b) 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 networks Office 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
Respondent Someone Within Organisation Accountant Third Party 70% 60% 50% 40% 30% 20% 10% 0% Who Makes the Cloud Decision?
Key take outs 1. Proliferation of SME cloud solutions 2. Services Impacted by cloud computing 3. Lack of understanding of Governments actions 4. Education not prescription
Wolters Kluwer 2014 Accountants research
Wolters Kluwer 2014 Accountants research
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

More Related Content

Wolters Kluwer 2014 Accountants research

  • 1. DEALING WITH DIGITAL DISRUPTION
  • 2. WHAT IS DIGITAL DISRUPTION?
  • 3. 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
  • 6. TV, 125 PC, 102 Phone, 132 Tab, 37 Daily distribution of Australian screen minutes Source: Milward Brown AdReaction, 2014
  • 10. Can the Accounting Profession keep up with clients and the cloud
  • 11. 11 Key Takeaways and Themes ______________________________________________________________________________________________________________________________ Embrace, not fear, the cloud. Current business transformation is more than the cloud. Emerging digital experiences will define you and your clients business 69% of accountants surveyed use a cloud computing platform for accounting software The overall impact of cloud is quantifiably beneficial for the accounting profession. Your SME clients are net positive, but need more convincing
  • 12. 12 Methodology Quantitative and Qualitative ______________________________________________________________________________________________________________________________ Quantitative Methodology 200 Australia wide telephone interviews of SME organisations 300 Australia wide telephone interviews of Small to Mid Sized Accounting/Tax firms Qualitative Methodology 12 in-depth or one-to-one interviews of SME organisation employees 12 in-depth or one-to-one interviews of Small to Mid Sized Accounting/Tax firm employees
  • 13. 13 Quantifying Cloud Usage for Accountants ______________________________________________________________________________________________________________________________ 69% of accounting firms in Australia currently use cloud computing (SaaS) based accounting applications (sample size = 300 Accountants in Australia)
  • 14. 14 Quantifying Cloud Usage for Accountants ______________________________________________________________________________________________________________________________ Australian accountants use an average of 1.9 cloud accounting apps 59% of Accountants operating cloud based software, use 2 or more cloud apps Xero and MYOB dominate the market. 98% of accountants using cloud use at least one of these brands. 49% of accountants using two cloud apps use both of these brands (sample size = 300 Accountants in Australia)
  • 15. 15 Regional vs Urban Accountants ______________________________________________________________________________________________________________________________ 26% of accountants were located in regional centres, the remaining 74% in the state and territory capitals 60% of accounting firms in regional areas are using cloud based accounting applications with their clients 72% of accounting firms in urban areas are using cloud based accounting applications with their clients Overall whilst uptake in regional areas is lower than urban, there is limited defining behavioural patterns differentiating the two locations This reinforces the universal client driven demands to go to the cloud (sample size = 300 Accountants in Australia)
  • 16. 16 Is There an Accounting Age Divide? ______________________________________________________________________________________________________________________________ Average age of an accountant using cloud accounting applications = 36 75% of accountants under the age of 50 are currently using cloud accounting packages Average age of an accountant NOT using cloud accounting applications = 40 Just 45% of accountants over the age of 50 are using cloud accounting packages (sample size = 300 Accountants in Australia)
  • 17. 17 Baby Boomers vs Millennials ______________________________________________________________________________________________________________________________ This issue is clearly critical to how you communicate with your clients and co-workers older and younger You cannot use a one size fits all approach across the age divide. Younger accountants understand the technology and the benefits A critical qualitative issue is the way in which the cloud is sold to Millennials. Everyone is trying to sell cloud to our parents, not to us Dont sell us the cloud - Tell us why I should use MYOB not Xero Help us sell to our clients, and create a cloud ecosystem for the SME (sample size = 300 Accountants in Australia)
  • 18. Depth of Impact of Cloud Computing on Services provided to SMEs ______________________________________________________________________________________________________________________________ 18 Will Services Provided to SMEs Be Impacted by the Shift to the Cloud Consider it a significant negative impact Consider it a slight negative impact Neutral/No Opinion Consider it a slight positive impact Consider it a significant positive impact (sample size = 300 Accountants in Australia)
  • 19. Depth of the Impact of Cloud Computing on Services provided to SMEs ______________________________________________________________________________________________________________________________ 19 50% 40% 30% 20% 10% 0% Consider it a significant negative impact Consider it a slight negative impact Neutral/No Opinion Consider it a slight positive impact Consider it a significant positive impact Cloud Users Non Cloud Users (sample size = 300 Accountants in Australia)
  • 20. Depth of Impact of Cloud Computing on Services provided to SMEs ______________________________________________________________________________________________________________________________ On the scale of 1 (significant negative) to 5 (Significant Positive) Users of cloud computing rated the impact of cloud on the accounting 20 profession as 4 Non-Users of cloud computing rated the impact of cloud on the accounting profession as 3.5 A clear indication that the adoption of Cloud Computing is seen as overwhelmingly positive The cloud is the most exciting invention for the accountant since the abacus. It will make our job easier and allow us to add real value for our clients Cloud will find out poor bookkeepers, but for most it is a very positive part of the industry as it allows us to focus on supporting the client
  • 21. Which Accounting Business Processes Impacted by Cloud Computing Remembering it is considered positive ______________________________________________________________________________________________________________________________ Financial Reporting and Taxation Tax Planning Business Advisory Business Planning, Forecasting and Cashflow support Business Establishment and Structuring Self Managed Super Fund Establishment and Compliance ASIC Reporting and Corporate Secretarial Technology strategy and enablement advisory Personal Financial Planning Corporate Financing, lending access and advisory Business Mentoring and Executive Board Services 0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 30.0% 35.0% 40.0% 45.0% 21 Don't Know No Cloud Cloud (sample size = 300 Accountants in Australia)
  • 22. Which Accounting Business Processes Are Impacted by Cloud Computing ______________________________________________________________________________________________________________________________ Overwhelmingly the number one accounting process impacted by the cloud is Financial Reporting and Taxation. This was cited by over 40% of respondents. This is regardless of whether the respondent is a current cloud user or not. Other key processes impacted include: 22 Business Planning Forecasting and Cash-flow support Business Advisory Tax Planning In general there is an alignment between cloud and non-cloud users in terms of their perception of impacts
  • 23. 23 Key drawbacks for Accounting firms when Using Cloud ______________________________________________________________________________________________________________________________ Security Concerns 17% Client Concerns 15% Downtime Other 1% Being Tied 15% to One Supplier 13% Loss of Client Integratio n 9% Data Location 11% Lack Of Support 11% Overall Cost 8% (sample size = 300 Accountants in Australia)
  • 24. 24 Key drawbacks for Accounting firms when Using Cloud ______________________________________________________________________________________________________________________________ Whilst the accounting profession is very positive about the cloud, there is a range of drawbacks for use of the cloud Security Concerns were the number one drawback of cloud for 17% of respondents Client Concerns was ranked second. Qualitatively and anecdotally we also know that the client concern is largely security related. Data location is only an issue for 11% of organisations Cost is a non-issue
  • 25. Is Government Red Tape Reduction a Challenge? Accountants say NO!! ______________________________________________________________________________________________________________________________ 25 60.0% 50.0% 40.0% 30.0% 20.0% 10.0% 0.0% Is government concern over red tape a threat to Accountants? Consider it a significant negative impact Consider it a slight negative impact Neutral/No Opinion Consider it a slight positive impact Consider it a significant positive impact (sample size = 300 Accountants in Australia)
  • 26. 26 Future Cloud Investment ______________________________________________________________________________________________________________________________ Current users of cloud computing are very confident that they will increased usage of cloud computing in their business 76.3% of current users are very likely to increase their expenditure on cloud computing A further 19.8% are quite likely to increase their expenditure on cloud computing Increased investment in cloud is anticipated across all age groups There is no way back for cloud computing. We are embracing it all the way We are partnering with a firm who provides CRM SaaS support to enhance customer outcomes (sample size = 300 Accountants in Australia)
  • 27. 27 SME Investment in the Cloud for Accounting Services ______________________________________________________________________________________________________________________________ 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% Are you, or your Accountant using a Cloud Computing Based Accounting system for your Financial Management? Currently Use a Cloud Based System Have Considered Using a Cloud Based System Have Not Yet Considered Using a Cloud Based System (sample size = 200 SMEs in Australia)
  • 28. 28 SME Investment in the Cloud for Accounting Services ______________________________________________________________________________________________________________________________ Currently 27% of SME organisations are using cloud based accounting services 60% of organisations have not yet tried to shift to the cloud. This is a significant untapped opportunity We embraced the cloud a couple of years ago after our accountant suggested it to us The real benefit for us is the improved software. Cloud was secondary We will likely go to the cloud at some stage as these are the firms who are innovating. It is hard to avoid Xero, they must be doing something right (sample size = 200 SMEs in Australia)
  • 29. 29 Who Makes the Cloud Decision? Not the Accountant ______________________________________________________________________________________________________________________________ Respondent Someone Within Organisation Accountant Third Party 70% 60% 50% 40% 30% 20% 10% 0% (sample size = 200 SMEs in Australia)
  • 30. 30 Brand of Cloud Accounting Package Used ______________________________________________________________________________________________________________________________ MYOB Xero Saasu Reckon CCH Intuit/Quikbooks Other (sample size = 200 SMEs in Australia)
  • 31. 31 Key Drivers of Cloud Investment by SMEs ______________________________________________________________________________________________________________________________ Key Drivers of Cloud Investment Security 44.4% Functionality 42.6% Price 5.6% Pricing Flexibility 3.7% Scalability 1.9% Quality 1.9% Data Location 0.0% Frequency of Updates 0.0% None / don't know 0.0% Cloud investment for SMEs is all about focus on security and functionality Get this correct and your clients will thank you (sample size = 200 SMEs in Australia)
  • 32. 32 Perception of the Security of the Cloud Platform ______________________________________________________________________________________________________________________________ 35.0% 30.0% 25.0% 20.0% 15.0% 10.0% 5.0% 0.0% Cloud much more secure than current office system Cloud a little more secure than current office system Current office system a little more secure than a Cloud system Current office system a lot more secure than a Cloud system SME Accountants Using Cloud
  • 33. If you dont transform you will be SMACD by clients ______________________________________________________________________________________________________________________________ Mobility Digital Business Engagement Cloud Social Business Analytics 息 2014 capioIT 33
  • 34. What your Clients will demand from SMACD ______________________________________________________________________________________________________________________________ Cost Scale Hustle Secure Agility 息 2014 capioIT 34
  • 35. A successful Accountant has to build a business around these ideas ______________________________________________________________________________________________________________________________ Business Outcomes based opportunities Drive Business Agility Transform Business and Technology Engagement SMACD Cloud based Scalable/Cost removal Cross Industry Business Outcomes based opportunities Business Platforms 息 2014 capioIT 35
  • 36. ______________________________________________________________________________________________________________________________ Embrace, not fear, the cloud. Cloud and emerging digital experiences will define you and your clients business 息 2014 capioIT 36 (
  • 37. Daniel Wyner Head of Strategy, Mergers & Acquisitions Asia Pacific
  • 38. What are the top 3 challenges that technological advances are creating for your accounting practices? 38
  • 40. Key take outs 1. Proliferation of SME cloud solutions 2. Services Impacted by cloud computing 3. Lack of understanding of Governments actions 4. Education not prescription
  • 41. Proliferation of SME cloud solutions
  • 42. Services Impacted by cloud computing? I told them advisory was the future! 12.3.
  • 43. Which Accounting Business Processes Impacted by Cloud Computing Services impacted positively by the cloud Remembering it is considered positive Financial Reporting and Taxation Tax Planning Business Advisory Business Planning, Forecasting and Cashflow support Business Establishment and Structuring Self Managed Super Fund Establishment and Compliance ASIC Reporting and Corporate Secretarial Technology strategy and enablement advisory Personal Financial Planning Corporate Financing, lending access and advisory Business Mentoring and Executive Board Services Don't Know 0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 30.0% 35.0% 40.0% 45.0% No Cloud Cloud Compliance 72% Advisory 26% Don't Know 2% - Cloud users
  • 44. Lack of understanding of Governments actions 60.0% 50.0% 40.0% 30.0% 20.0% 10.0% 0.0% Is Government Red Tape Reduction a Challenge? Is Government Red Tape Reduction a Challenge? Is government concern over red tape a threat to Accountants? Consider it a significant negative impact Consider it a slight negative impact Neutral/No Opinion Consider it a slight positive impact Consider it a significant positive impact Nagative Impact 12% Neutral 48% Positve Impact 40%
  • 45. 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 NOAs to Tax Agents
  • 46. Privacy Act 1988 - Tax File Number Guidelines 2011 Guideline 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, and b) 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 networks Office 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
  • 47. Respondent Someone Within Organisation Accountant Third Party 70% 60% 50% 40% 30% 20% 10% 0% Who Makes the Cloud Decision?
  • 48. Key take outs 1. Proliferation of SME cloud solutions 2. Services Impacted by cloud computing 3. Lack of understanding of Governments actions 4. Education not prescription
  • 51. Cloud Tax Free Until JUNE 30*
  • 52. Contact us for more information Email: ifirm@cch.com.au Phone: 1800 836 869 Website: www.cchifirm.com.au @cchifirm CCH iFirm

Editor's Notes

  • #5: Pope Benedict
  • #6: Pope Francisis