Riding the wave of the latest killer apps

I started my career in accounting just when the the last big ‘killer app’ arrived. 

The spreadsheet. 

We can’t live without them now and Excel has become the ubiquitous market leader as part of the Microsoft Office suite. 

Before the spreadsheet arrived ‘number crunching’ was a big part of accountants’ lives. Checking column and row totals in their clients’ manual records. Cross-casting on their own large analysis sheets. Lots of time spent checking and adding up lots of numbers. This time spent added no value at all to their clients but was a necessary part of work to ensure accuracy.

The spreadsheet changed all that and perhaps more importantly it allowed for rapid analysis and ‘what if?’ modelling. As a management accountant this was my bread and butter. Spreadsheets enabled me to prepare budgets, forecasts, investment appraisals and complete ad hoc analysis, rapidly and accurately.

It’s a tool we still use and can’t do without. It changed the way accountants work and enabled them to provide more value, rather than removing the need for accountants altogether. Undoubtedly some clerical jobs were lost but accountants continued to thrive.

There are new killer apps now transforming the accounting sector in the form of scanning software and cloud accounting software with links to  banking transactions.. 

Accountants ignore these at their peril. 

They have changed and are changing the landscape in 3 major ways:

• Removing the need to key in invoices and receipts into an accounting package
• Increasing the speed with which accounts can be processed and made available
• Access anywhere, any time

These are transformative changes on the scale of those we saw with the spreadsheet. As with the spreadsheet I don’t think these changes will bring about the demise of accountants. They will however limit the careers and prosperity of accountants and accountancy firms who do not embrace the change and adapt to new ways of working.

There is an opportunity to deliver greater value to clients through more timely reporting and analysis and providing more proactive advice and support..

There is a huge benefit for clients and accountants alike if we ride the wave together with these latest killer apps.

www.base52.co.uk

Ch-Ch-Ch-Ch-Changes

‘Turn and face the strange’, as Bowie said.

I’ve lived through and played a small bit part in some big change programmes in my former life as a management accountant at a large food retailer.

Big consultancy firms were involved, large PowerPoint presentations, lots of jargon and buzzwords and backing from the Board. Some went better than others. Key aspects were engaging those affected and ultimately the whole business on why the changes were needed and communicating, communicating, communicating.

Some of the changes implemented like effective meetings, project management tools and process improvement became part of the DNA of the company and helped it stay ahead of the competition for a sustained period of time.

What about managing change in a smaller company - say with 10, 20 or 50 employees? Processes and ways of working tend to be more informal and centred around people and their likes and dislikes rather than a company style. Budgets are small and people (including the owner) are normally working at capacity so there is little time to consider and actively engage with change.

But sometimes change needs to happen.

Small businesses evolve and from time to time they reach a plateau. Perhaps they have become too dependant on the owner. Perhaps the owner is nearing retirement age and wants to move away from doing 50/60 hours weeks. Perhaps the business has become a bit stale and is not focussing on their customers.

Making a change can be difficult but it can transform a business if the owner and key employees commit to the change and focus intently on delivering it.

The same principles of communication and engagement are critical as with a larger organisation.

I strongly believe that an external facilitator of some kind is important if not essential. This could be the company’s external accountants or a business consultant of some description. Their key attributes should be that they are experienced in managing change and ideally with specific experience in the areas you are looking to transform.

Another essential component in my view is to have a programme manager or project manager whose responsibility is to oversee and facilitate the change. This would probably involve freeing up one of the team from their day job for a period of time to manage the change programme.

So you have a plan and the objectives you want to achieve. It’s worth bearing in mind Mike Tyson’s quote, ‘Everyone has a plan until they get a smack in the mouth’. You will probably get several smacks in the mouth to veer you off plan and will need to keep the objectives in mind and try to steer back on track.

With luck, effort and resilience the plan can be achieved and the business taken to a much better place.

Good luck if you decide to embark on your own change journey.

www.base52.co.uk

Early Adopters, Laggards and those in between

I used to work with an Early Adopter. 

No, I mean a real Early Adopter. He loved the newest of new technology. Whether it was the latest phone, the latest palm pilot (as it was back then), he was first in. It didn’t matter that it was pricey or still in Beta version with all the glitches. He had to have it. So he did.

It must be nearly 20 years ago now since we were working together and he was taking notes using a writing gadget on a rudimentary tablet. They are now mainstream with Smart Pencils and other tools and Apps but he was well ahead of the curve.

My tech-loving work colleague has gone on to be a senior director in the world of marketing and social media. Being at the ‘bleeding edge’ has done him no harm at all.

I’m not like that. I’m always interested, but whether its work or play, I usually wait for something to be tried and tested before I dive in and have a go.

There is a ‘Technology Adoption Life Cycle’ which describes the different categories of behaviour types. These range from Innovator and Early Adopter through to the Late Majority and Laggards. Laggards only come along screaming and kicking after the new technology becomes mainstream. Typically they will still be watching Betamax videos and playing their vinyl records. On the latter, the cycle came around again and they could argue they were the innovators. But that is the exception.

Usually the Innovators and Early Adopters win in the market place. They take the pain and make the mistakes but keep learning and stay ahead of the pack. So when the Early Majority join in they are already on to the next thing. 

Being slightly late isn’t always a bad thing. Being too late is disastrous. 

So in the business world, when the Early Majority ‘wake up and smell the coffee’, if they act quickly and decisively and embrace the new technology or process which is disrupting their market, they can still exploit the new opportunity at the expense of the Late Majority and the Laggards. 

Technology is disrupting the accountancy sector in a big way at the moment. Cloud software has been around for a long time but is really now coming into its own. Why would you use a clunky desk-top package when you can have a cloud package where you can view your accounts from any device, at any time and it is always up to date? Scanning software too is taking the drudgery out of bookkeeping by removing the need to key in receipts. 

I have to admit that we have not been first out of the blocks with this. We have had our cautious accountant’s hat on and observed closely how things have developed. HMRC’s “Making Tax Digital’ initiative has also changed the landscape by making the adoption of accounting software a necessity for small businesses.

Our instinct has been to go with our clients on this and move at a pace they feel comfortable with. We will continue to do this but I think they expect us to lead and guide them, which is what we intend to do. 

On a personal level I have my new tablet now with the whizzy drawing pencil for my notes. I’m 20 years behind my old work colleague but I’m embracing it enthusiastically. 

Who knows, I might just try out one of those new-fangled Smart Watch things very soon.

www.base52.co.uk