Today's Technology for Tomorrow's Firm.
Issue link: https://cpapracticeadvisor.epubxp.com/i/680172
10 May 2016 • www.CPAPracticeAdvisor.com VIRTUAL CFO SYSTEMS Reviews 2016 Reviews of Virtual CFO Systems for Accounting Firms & Their Clients By John Higgins, CPA.CITP I n the history of the accounting profession, there have not been very many opportunities for accountants to establish a new and innovative service ofering. One of those rare opportunities exists today as a day as a result of the new cloud based accounting systems model. For many years the primary format for deliver- ing accounting services by accounting frms was based in preparing historical fnancial statements and payroll reports, aka client write-up services. Tis historical reporting model had limited value to clients, which was based primarily in compliance reporting; tax compliance, bank loan covenants, etc. Today the high value opportunity for client account- ing services is to provide a comprehensive accounting and fnancial reporting service that is based in an inte- grated, cloud based accounting and fnancial reporting system. With this platform, the accountant becomes more integrated into the client's entire accounting cycle and can provide more valuable advice on a real-time basis. Te cloud accounting model allows both client and accountant to have direct access to the complete accounting system at any time, from anywhere and from any device. Tis results in a more integrated and there- fore, more valuable relationship whereby the accountant can truly serve as the trusted business advisor. Te platform for delivering these cloud based accounting services has been labelled as Virtual CFO systems. In fact, these systems can be used to provide a range of services ranging from virtual bookkeeper to virtual CFO services. Every accounting frm can develop a service ofering that is compatible with their strategic plan and the profle of their target client market. Accounting frms that are leveraging this model are increasing not only the proftability of their accounting services, but also the valuation of their practice from a succession planning perspective, due to the fact that virtual accounting services are very "sticky." Which means that clients are much less likely to switch frms due to the nature of a more integrated and supportive relationship. As you read the full reviews of market leading solu- tions, keep in mind that the optimal solution is going to be aligned with the service model strategy that you select for your practice. We have reviewed fve of the top selling cloud-based accounting solutions that ofer a fully integrated small business accounting system, as well as the tools for an accounting practice to manage and monitor mul- tiple clients. Follow the links below to see how they compare. • AccountantsWorld – Accounting Power • Intacct – Internet Accounting • Intuit – Quick Books Online Accountant • Tomson Reuters – Accounting CS • Xero – Xero Partner Platform Tis collection of cloud-based accounting solutions covers the entire spectrum from relatively simple book- keeping solutions to more comprehensive fnancial reporting systems. Tere are many valuable features that these systems may ofer, as a result of being cloud-based. Some of the key features to look for include: • Fully integrated general ledger, accounts receivable, accounts payable and payroll • Cloud-based integration with bank and credit card accounts • 3 rd party add on applications to meet specifc needs, i.e., point of sale, credit card payment processing, etc. • Integrated K PI (key performance indicator) dashboards • Integrated email based source document and fnancial report distribution • Client management dashboard to directly monitor and access individual client systems I can't over emphasize the importance of developing a strategic plan for your virtual accounting service prac- tice as a frst step. Tere are many diferent approaches available for delivering your services via the cloud and the approach you choose will signifcantly infuence which solution(s) are optimized for your practice model and target client profle. Additional Solutions for Accounting & Write-Up Tere are, of course, many cloud and installed account- ing systems available for small businesses, with some ofering tools and functionality for specifc industries or that meet the needs of specifc types of businesses, such as franchises. However, this review section focused on accounting solutions that meet both sides of the client-frm scenario, with each accessing the same data in real-time, and the accounting frm having the ability to manage multiple clients through a singular management interface to provide write-up style ser- vices without the need for data transfer or conversion. Other client and write-up accounting systems are reviewed as separate categories, including: • FreshBooks • CYM A 13: Financial Management Systems • Micronetics Accounting Expert Enterprise Edition • PC Sofware Client Write-Up • Kashoo / Paychex Online Accounting • Intacct • Sage 50 Quantum Accountants Edition • Wave Accounting / Wave Apps • NetSuite John Higgins John Higgins is leading the design and launch of CPA Crossings' "Cloud Accounting Learning Center." Tis is a comprehensive knowledgebase of training , news, information, and commu- nity designed to help practitioners embrace the new 21st cloud based accounting services paradigm. He can be contacted at jhiggins@cpacrossings.com.