June 2014 Newsletter - Odyssey Resources

The future is here… Almost… The game changers of Cloud, Offshoring and …

Cloud disruption

Cloud disruption is happening at a faster rate than ever. You can hire a chauffeured limo on Uber, hire a car on GoGet car, book some temporary meeting space on LiquidSpace, fund your business on VentureCrowd, have someone wait in a queue with Airtasker, rent a handbag on Love Me and Leave Me (if renting handbags is your thing), and rent an apartment for the night in Airbnb, pay for things using BitCoin. And you can do this all online.

These newly emerging collaborative “asset light” models have the potential to be a massive wrecking ball for older “asset heavy” business models. Have a look at the share prices for WDAY, CRM, XRO and Intuit…

Change is happening at a faster pace than ever before.

Is resistance useless… or for older accountants… can I get to the finishing line before I need to worry

Firstly, resistance is there. New York’s attorney general has been in the news re Airbnb. At the same time Westpac has taken an equity stake in Sydney-based peer-to-peer lender SocietyOne, DHL has launched Myways and Marriott has expanded “workspace on demand” through LiquidSpace.

This could just be a major shift as younger generations work on an Asset light lifestyle. A “Just in time” lifestyle means what they want, when they want it, and usually on a few general purpose devices.

This means that the younger generations don’t want “Asset heavy” business models. They won’t pay for a traditional accounting firm when you retire, and they probably don’t want to work in one unless there is no other choice.

What does the Accounting Firm of next year look like… The firm of the future is going to have a fully automated compliance offering, and most of it will be done overseas

All compliance work should be “100% Online”. All compliance work should be fixed price. (and it’s likely going to be done overseas!)

At the front end, the client engagement process might be done using quotient app. There will be the need to engage clients through a signed document (quotientapp or something else). Though some may prefer comfort from a name brand like Adobe. A product which is pulling all these together that has been designed by an Australian accountant is Practice Ignition.

There will be a need to manage the relationship through a Customer Relationship management system. There are certainly plenty of options, and one which has “Sales Cloud” and “Service Cloud” is SalesForce.

In terms of job tickets, “Service Cloud” or “Zendesk” are some offerings.

In terms of cloud storage of client data, Microsoft Onedrive has plenty of functionality, Box.com is big with Australian accountants, and to some extent Dropbox though recently I’ve heard of SpiderOak which has some impressive encryption of data on the cloud.

Online working papers, online tax returns, online lodgement… Most of this is already in place. Most of it is already 100% online. And if it’s 100% online, then it can be done anywhere, and that includes accessing overseas resources.

If compliance is done overseas, then local accountants need to move onto something else. Assisting clients with managing their business through cash flows, sales analysis, KPI’s, Customer retention, cost structures, marketing assistance, growth strategies, exit strategies, whatever – the clever stuff that makes Australian firms profitable and competitive.

Worth reading

Major disruptors are already here. Mclowd delivers free SMSF Accounting Software and a community of professional service providers who bid for work. Crowdsourcing…

Worth a read is “The Zero Marginal Cost Society: The Internet of Things, the Collaborative Commons, and the Eclipse of Capitalism”…

It is a touchy subject, but it isn’t going away… Some SMH stories… Lazy Aussies just don’t want to work and… 30 per cent of university graduates to be out of work after finishing degree…

5 Cloud Computing Myths – BUSTED!

We still like this myth busting posting!

Myth #1: Cloud Computing is a Fad
Myth #2: The Cloud is not Secure
Myth #3: Cloud Service Providers Own Your Data
Myth #4: Cloud Computing is Expensive
Myth #5: The Cloud is Unreliable

Other stuff – Australia’s New Privacy Principles – in force from 12th March 2014

The new Australian privacy principles (APP’s) come into effect 12th March 2014. There is an increased burden on the firm sending the work overseas. An APP entity must take reasonable steps to ensure that the overseas recipient does not breach the APPs in relation to the information before disclosure. Also, an APP entity that discloses personal information to an overseas recipient is accountable for any acts or practices of the overseas recipient in relation to the information that would breach the APPs (s 16C).

Offshore standards must be considered

ATO suggest a close inspection of overseas services. The ATO has warned SMSF trustees to carefully evaluate the professional standards employed by organisations offering administrative services based overseas before making a commitment to using them.

ATO deputy commissioner of superannuation Alison Lendon “We do suggest people exercise caution when considering such arrangements to ensure the offshore services are of the requisite professional standard. We have seen situations where they have not been, including where personal details of trustees and their SMSFs, like names and bank account details, have been published to the web and misused.”

While suggesting a degree of caution was needed, Lendon said using those services was not a bad thing in itself as long as a few necessary arrangements were put in place.

http://www.smsmagazine.com.au/articles/offshore-standards-must-be-considered

Odyssey is moving to larger premises July 2014

Odyssey has grown to 175 professional staff and it’s time we moved to new premises. Our new offices are closer to the airport on 2 floors which will give us capacity to expand to 350 professional staff.

If you stop by sometime, you should see a reception something like the below: