By Dr. Chandra Bhansali, AccountantsWorld
Now that migration to the cloud is inevitable, proactive CPAs are finding ways to take advantage of the cloud to revamp their practices, and are evaluating the changes to their core services - tax, accounting, and payroll - made possible by the cloud.
In this article, we’ll focus on how cloud technology has enabled an important breakthrough in client accounting.
The development of DIY (Do-It-Yourself) accounting software, led by Intuit, fundamentally changed accounting, and today, the DIY model is the norm for accounting software. Almost all accounting systems, whether desktop or cloud-based, are created primarily for small businesses, and are sold directly to them.
DIY accounting systems undoubtedly offered considerable advantages compared to the manual accounting they replaced, but they have also created many challenges for accountants. DIY systems have taken control of accounting away from accountants, and the bookkeeping errors clients make while using DIY software products have become a major source of wasted time and effort for accountants. Many accountants also feel that DIY accounting systems reduce their standing and relevance in their clients’ minds.
While most cloud solutions are based on DIY model, a new DDIY model has emerged that harnesses the cloud to give control of accounting back to accountants, lets accountants overcome the challenges they currently face, and makes accounting more profitable and rewarding.
The cloud-based DDIY accounting system takes the opposite approach to the DIY model. While DIY software was created for small businesses and is sold directly to them, DDIY software is a professional system that is sold exclusively to accountants. It lets accountants work collaboratively with their clients while they remain in full control.
An important advantage of the DDIY system is that accountants can give their clients as much or as little involvement that’s right for each client. Accountants can easily undertake all accounting functions for the clients who prefer not to do any accounting work. The DDIY model makes offering complete accounting services highly profitable, because with the DDIY software, your staff can do what your clients’ staff currently does, only fast, easier and more accurately, all without leaving your office.
Because DDIY systems can be easily customized for each client, you can work collaboratively with clients who want to maintain some involvement in accounting, enabling them to perform the functions that suit their needs and abilities.
For the clients who prefer to write checks by hand, you can perform after-the-fact write-up work much faster than ever before. Automatic downloading of credit card and bank transactions can virtually eliminate data-entry, and can reduce the time spent on write-up engagements by 50-70%.
If you have clients who are better served by a system other than the DDIY system you offer, those clients can continue to use the system that best meets their needs. The DDIY system enables you to download data from the systems they use and use your own DDIY system to perform trial balance work and prepare fully-customizable financials.
Another useful advantage of the DDIY model is that it lets you offer your clients timely financial advice for managing their cash flow and running their businesses efficiently.
The DDIY model not only makes your accounting practice highly profitable, it also makes it more rewarding by raising your relevance.
Now you can tell your clients, “Don’t-Decide-It-Yourself. Let’s work together to make accounting painless for you.”
That’s why the new model is called the DDIY model.
Dr. Chandra Bhansali is CEO of AccountantsWorld, a pioneer in cloud solutions for accountants and the developer of the DDIY model of accounting software. AccountantsWorld offers a full suite of seven cloud solutions. To learn more about the DDIY model, click here to watch a 2-minute video.