Copy taken from Jeremy Suttons Linkedin post

Last month I was lucky enough to assist Lyndon, Rebecca Giddings and team at Next Level Accountants Geelong present Xero and cloud software to their clients. 

During the session Lyndon shared one of the best examples of being a proactive accountant I have come across. Lyndon tells the audience: 

“I became an accountant to help businesses understand their business finances, and make informed decisions on how to make significant improvements in the financial performance.”

What not to do

After this Lyndon brings out a bag containing 12 months of receipts a client had sent him and tips this onto the table (see the picture below!) “I didn’t become an accountant for people to pay me to process this!” he exclaimed.


The switch

The business owner who sent in the invoices was present to provide his testimony:

“I have been in business for nearly 30 years and I used to spend $30k per year for a Mid Sized chartered firm to prepare my financial statements and tax compliance. Since we have moved to Xero, Receipt Bank with Next Levels Accountants know-how I can tell you this is the first time ever that I know exactly how my business is performing”.

The new way

During the on-boarding process Next Level immediately moved the client to digital accounting technology Xero and Receipt Bank. Through Xero’s bank feeds and receipt banks scanning technology the entire process is streamlined. The bookkeeper reconciles the bank weekly and the Next Level tax team complete the necessarily compliance pieces - all integrated through their Xero HQ apps.  

The client continued:

“The system is easy and so efficient - love it! I take pictures of the receipts and then toss them. The bookkeeper is sending me my BAS almost immediately after the end of the quarter, and now my accountants analyse the figures and find ways to help me improve my business. Plus this entire service is delivered for less than what the previous accounting firm was charging me”.

Out with the old

Based on my 10 years in the industry I can assume the previous accountant gave a version of the above bag to a junior accountant who spent weeks punching them into an excel spreadsheet which would then be manually transposed into a year end reporting software which would then be manually transposed into a tax return. Well after the fact the business owner would then receive a bound set of financials and tax returns, a $30k bill and the bag of receipts back with the instruction to keep them handy for 5 years incase they are audited.

It was probably never challenged as ‘that was the way we always do it’. The process and attitude cost them a $30k client.