The Economics of a Cloud Based Practice Marty

The Economics of a Cloud Based Practice Marty French, Intuit Accountant Segment Business Development Leader @That. Is. Billable 11/15/17 #QBConnect | Wi. Fi: QBConnect Password not required

Connect time. Ask your neighbor… If he or she had a 12 month strategic business plan that would improve profitability by 40% on 25% of the firm’s business clients, what is the number one challenge that would stand in the way of successful implementation?

Challenges in Today’s Large Firms Staffing – Retention & New Generational Challenges Advisory? Scaling Growth Mindset of Leaders Production Expectations 3 @That. Is. Billable #QBConnect

Today’s speaker Marty French Intuit Accountant Segment Business Development @That. Is. Billable 12 Years at Intuit 32 in Technology Consulting Sales Certified Quick. Books Pro Advisor 4 @That. Is. Billable #QBConnect

CPE Process CP E In order to receive CPE credit – Be sure to sign in or scan your badge for this session Credit – You must stay in the session for the duration of the training – This session is eligible for 1 hour of CPE – CPE certificates are emailed directly to you within 2 weeks of the conference date to the same email address you used to register CPE credit administered in coordination with 5 @That. Is. Billable #QBConnect

Agenda The Economic Journey The Economic Opportunity The Economic Team The Economic Solution 6 @That. Is. Billable #QBConnect

Economics – a social science concerned chiefly with description and analysis of the production, distribution, and consumption of goods and services

The Historically, Technology Drives Economic Boom 1800 s Machines replace Weavers But quadruples demand for cloth 1985 Computers, MS Office, Tax & Accounting Software 1999 ATM’s Create Banking Boom Ecommerce on the rise 2012 Uber & Air. BNB & the Gig Economy 2013 A surprising discovery of Realization and Profitability 2017 Outsource Accounting & Xaa. S AI is here, Businesses will benefit 8 @That. Is. Billable #QBConnect

The Economic Journey to the Cloud 2000 Paypal take off and QB Online starts 2005 & 2006 Hurricanes Katrina & Rita QB Consultant QB Accountant Tools 2007 Business Owner Focus Groups +$1200 2012 Hurricane Sandy 2013 2017 New QB Online Platform Outsource Accounting Xaa. S Hosting & Cloud based Accounting AI is here, Business Advisory 9 @That. Is. Billable #QBConnect

The Economic Opportunity

The Productivity Paradox In an Hourly Based Practice • We all have the same 168 hours in a week • Time is a constraint • In order to make more you need to charge more or hire • Zero Sum or negative in an hourly based practice • Firms average a 30% increase in efficiency using Cloud Technology 11 @That. Is. Billable #QBConnect

The Value of Value Based Pricing for Profitability • Efficiency at a firm level means more clients or more interaction with current clients or both • Allows the client to focus on the totality of the firm’s value Proposition • Allows your clients to budget their total Accounting spend • Allows you to price the customer not the services • It pre-qualifies the client to ensure they are a good fit for the firm • It improves the communication and collaboration with your clients • Forces the firm to be effective in processes and project management 12 @That. Is. Billable #QBConnect

Repricing An Existing Outsourced Bookkeeping Client Currently Bill Rate $100, Staff rate $50 Client on Transaction Billing Client on Value Pricing • Average of 10 Hrs/Mo • Monthly Billing $1000 • Monthly Staff Cost (5 Hrs) = $250 • Monthly Staff Cost $500 • Monthly Technology Cost = $50 • Profit = $500 • Total Cost = $300 • Profit = $700 • NOW DOUBLE DOWN = $1400 13 @That. Is. Billable #QBConnect

Repricing An Existing Compliance Client Annual Business Return $3600 9 Hours of Tax Time Work 4. 5 Hours Throughout the Year • 4 hours of QB Clean up • 3 hours of Monthly Accounting Review Prior Period & Cleanup – 1 hour • 1. 5 hour YE Trial Balance & Return Prep Audit hunt – 1 hour • Year Round Client Collaboration Email & follow-up – 1 hour Audit hunt again & final adjustments – 1 hour • 1 hour Source Document collection • 2 hours Tax return prep • 2 hours admin time Questions on the transactions in a timely manner Source Documents are always available 50% reduction in staff time & cost NOW DOUBLE DOWN = $7200 14 @That. Is. Billable #QBConnect

The Economic Team

Solving for Culture & Staff Success Elevates Data Entry Staff to Reviewers Creates a Career Path for non-CPAs Staff Utilization at 250% in a 8 hour day Realization is at 300% More $$$$ for Everyone 16 @That. Is. Billable #QBConnect

New Staff & New Roles Do you need a sales team? Do you need business majors? Do you need consultants? Do you need technologist? Rethink your intern program? 17 @That. Is. Billable #QBConnect

The Economic Solution

Executive Leadership Drives Change

Challenges in Today’s Large Firms Staffing – Retention & New Generational Challenges Advisory? Scaling Growth Mindset of Leaders Production Expectations 20 @That. Is. Billable #QBConnect

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