We authored our first ever Fintech Friday blog back in December 2019 where we pledged to raise awareness of the financial solutions available to SMEs as well as hints and tips to help businesses get the most out of their cloud accounting software.
From payment services to cashflow forecasting, approval automation to simplified expenses – we’ve covered a lot of ground over the last 4+ years, but what does this actually mean for business owners? Our Marketing Manager, Fiona Illingworth, gives a non-accountant’s perspective on what digital advisory really means for businesses.
I moved into the accounting sector some 10 years ago which is about when Xero started to gain momentum in the UK and when the whispers began of how firms were starting to harness cloud-accounting software to change their relationships with clients.
But the software piece isn’t the real game changer. Anyone can purchase a license from Xero.
Today, it’s the advisory piece of the puzzle that is driving the real change. The magic happens when your accountant becomes much more than that, and transitions to become your advisor. To prove their value, the role of the accountant today must be to collaborate with you, the client, to help you reap the benefits of your software and translate your numbers into something actionable.
So, let’s rewind. Cloud accounting. Fintech. Digital advisory. These are terms that are bounded around but what do they actually mean?
Cloud Accounting vs. Digital Advisory
At its core, cloud accounting is about taking your accounting process online, instead of relying on desktop software or paper-based systems. It provides you with instant access from anywhere at any time essentially making it more convenient to view your financial data when you want to.
Digital advisory, on the other hand, is about using that software (and others) to enhance the financial advice you receive. Traditional advisory services often rely on historical data and periodic reviews whereas digital advisory leverages advanced software tools to deliver real-time insights and proactive advice to really move the needle on your business.
Imagine you need to make quick decisions about cash flow, payroll, or investments for your business. Working with an accountant that can help to automate tasks like invoice processing, track financial metrics in real-time, and predict future financial trends based on current data means that you have all the information readily available to make an informed decision. The collaborative nature of real-time insights enables your accountant to deliver timely, actionable advice that helps you make smarter decisions and stay ahead of potential financial challenges.
At Harold Sharp, we know this is a better way of working and that’s why 79% of our clients are on a cloud-based software. That might not sound as high as you think, but when you consider that, on average, firms are only using cloud accounting software for 53% of their clients (Xero Industry Performance Report 2023), it’s way above average . Plus, some of our larger clients have invested in their own bespoke ERP systems.
Where’s the value add?
As someone in a marketing function, I get to talk to our team regularly to unpick how we are helping clients using tech-led solutions, so here are some real-life examples of how we are delivering real value. We have:
- designed and implemented an app ecosystem to meet the needs of 42 estate agencies, all of which had previously been held under a PLC with one central finance system. As part of this project, we developed a monthly Financial Forecast report of Profit & Loss at branch level, empowering each Branch MD with the data to make more informed decisions.
- converted a fast-growth IT and digital recruitment agency from paper to digital records to deliver real-time financial data that is driving commercial decisions and facilitating scalable growth. In fact, they have already doubled their headcount which was a key part of their growth strategy.
- digitalised the existing expense process for an engineering business to ensure it was scalable with the business’ rate of growth.
- created a framework to allow multi-entity, multi-currency and multi-continent management accounts for a company ranked in the Top 500 of the Financial Times’ annual ranking of Europe’s fastest-growing companies.
- implemented automated invoicing for a convenience store to save the existing finance function hours each month. In fact, you can read an in-depth case study on this client here.
How can we help?
As accountants and digital advisors, we:
- take a bird’s eye view of your finance function;
- establish what’s working, what’s not, and where you can make changes;
- using our sector knowledge, we’ll recommend relevant software that can be implemented as part of your improvement plan;
- move you to custom and more meaningful reporting (after all, not every business is the same, so why should your reporting be?);
- implement the recommended software to drive change;
- start to get a clearer picture of the numbers behind your business; and
- use those numbers to drive conversations around the future of your business and to help you reach your goals.
It’s really that simple. Well, it’s not actually that simple, but the outcome is – and it’s your accountant that has to worry about designing, implementing and delivering all the bits in between!
At the end of the day, all of these solutions – cloud accounting, digital advisory, and fintech – are about making your life easier as a business owner. So whether you’re looking to streamline your bookkeeping, get real-time financial advice, or explore new financial technologies, make sure you’re partnering with an accountant who is also able to deliver the advisory piece if you’re serious about fuelling your business’ growth.
If you’d like to speak to our team, email fintech@haroldsharp.co.uk or call 0161 905 1616.