DO YOU HAVE A GRUMBLE ABOUT ACCOUNTANCY?

We have just launched the most minimalist website in the accounting profession. Take a look at it on www.alexanderrosse.co.uk and by all means have a whinge.

THE DEBATE

Let us start off this rant by saying that we support any reduction in the state burden on our clients. By that, we mean the burden of red tape, tax and employer's National Insurance. Any reduction in these is welcome. We support the opposition pledge to cancel the Government's planned increase in NI contributions in 2011. Taxing jobs will either lower profits or less jobs - and some businesses will cease to exist as a result of this.

Which brings us onto our main rant: the election debate so far has been about slicing a small cake. We are all for growing the size of the cake. Along with reducing the national debt (without the necessary action on this, we will be paying more taxes for years just to pay the interest bill), we think the main political parties need to absolutely focus on the SME sector as the engine for growth that will generate the wealth to pay for our future prosperity. We want the focus not on taking more of a small cake, but making the cake bigger, so that marginal rates of tax do not need to rise, while we provide for the public services we all want.

No economy can tax its way out of a problem. Tax in itself is not a solution, but a temporary fix. We have a choice of either generating more successful businesses, which will create the jobs of the future, or hammer these businesses with more red tape and take more of their income away.

We know how we will vote. We are just waiting for the political parties to give us the clear options.

TRADITIONAL BUSINESS MODELS ARE BEING LEFT BEHIND BY ONLINE INNOVATORS

The 2009 recession brought entrepreneurs and bold commercial nous to the forefront. True movers and shakers, such as Alexander Rosse, Cloudreach and Google, are changing the way indispensible business services are delivered. These innovators refuse to be compromised by traditional models and are flocking together in their search for equally creative partnerships.

Alexanderrosse.co.uk, the UK’s first e-accountancy, attracted the attention of the futuristic, Google-centric entrepreneurs who founded Cloudreach. They are one of the first to provide IT services for businesses that realise the future of Google Apps. Many say that this technology threatens the existing domination of Microsoft Office. So how do these futurists see things panning out in the coming year?

“Alexander Rosse has a business model similar to ours, where simplicity is a key feature. People and businesses tend to over-complicate things, which does not add value.”

“Cloud computing, which embraces collaboration, is the way forward. In the future, information will belong to a person, not a device. There is a paradigm shift in most markets every 10–15 years and businesses have to be prepared to push the boundaries of convention,” commented Pontus Noren, co-founder and director of Cloudreach, one of the first IT companies to serve cloud computing technology.

Both Cloudreach and Alexander Rosse operate in an online office environment, sharing appropriate files and viewing their colleagues’ edits in real time.

“Online collaboration is just like sitting at the same meeting table, discussing and altering various documents, calculations and media files. This could revolutionise currently accepted business overhead levels,” explained Rashesh Joshi, director and co-founder of Alexander Rosse.

Pontus believes that in five years 80% of SMEs will use ‘on demand’ email solutions such as Google Apps.

“Running what really is a commodity service in house is simply not economically justifiable today or in the future. A hundred years ago, factories produced their own electricity, now only a handful of institutions have back-up electricity production capabilities. Within 10 years SMEs will not own hardware or software, everything will be available through a utility service-based model,” concluded Pontus.

Perhaps only a few players, such as Google, Microsoft, Amazon Web Services and the likes of telecommunication industry giants, AT&T, NTT, Deutsche, Telekom or BT, would have the capacity to deliver in this way. Maybe IBM Global Services will emerge as the infrastructure provider of the cloud computing sphere. Watch this space.

Pontus Noren

E-ACCOUNTANCY SHOWS HOW TRUST CAN BE BUILT ONLINE

Social networking is the ‘new kid on the block’ and companies are blogging their way through the complexities of business. Critics have argued that social networking is not for accountants as financial trust cannot be built online. It is no coincidence that some of these cynics are accountants themselves. Are they stuck in the dark ages or should accountants stick to filing cabinets and spreadsheets? The thought-leaders at Alexander Rosse, the UK’s first true e-accountancy, explain why they are bucking the trend and how they have created a new cutting-edge within their industry, where trust is not an issue.

Through lack of knowledge and experience, SMEs tend to be pressured into signing up to accountants through hard selling techniques and short-term but urgent needs. Alexander Rosse has started the debate: Do all SMEs really need a full service accountant?

“Many accountants over-service their clients and earn themselves unnecessary fees, for example calling a client meeting where no value is delivered yet they still charge an hourly fee and expenses.

“With businesses cutting back in the economic downturn, how can charging for unnecessary service elements be in the client’s interest? Why should SMEs pay avoidable charges? Traditional accountancy relies on mountains of paper, countless spreadsheets and the concept of trust. If accountants consider trust as pivotal, why are some overselling to SMEs?

“Alongside giving straight-to-the-point answers to unpopular questions, we provide a more truthful service when addressing client requirements,” explains Abhai Rajguru, founder member and chairman of Alexander Rosse.

Abhai agrees that building a relationship with your accountant via 140 characters posted on Twitter is certainly no way to choose who to share your bank details with. His firm are removing the perceived risk from online accounting through gradual, first-hand experience. Most people start by signing up to the UK’s longest Xero software free trial which is one of Sage’s main rivals.

Xero is thought to be the easiest online accounting software tool to use on the market, giving businesses web-based access to all their accounting information and automating numerous number-crunching processes online. Offering software as a service is a growing trend in the accountancy industry outdating the expensive disk based software, provided by the likes of Sage, which companies do not want.

Alexander Rosse builds trust by allowing clients to sample the software and get a taste of their services. By dipping a toe in the water, free-of-charge, it avoids diving head first into choosing an online accountant without knowing what to expect.

“Being able to explore Xero and refine your accountancy package to suit your own needs gifts the experience to the client without obligation. By trying the services themselves our software users get to know us over time without paying a penny. We are offering an extended trial of Xero software until the end of January 2010,” said Abhai.

The think-tank and accountancy, that is now Alexander Rosse was founded by three financial experts who originated from the Big 4. It provides SMEs with rare access to some of the UK’s most sought-after expertise, which is normally out of reach. Although they have a proven reputation, Alexander Rosse does not take anybody’s business decision-making for granted.

“We do not want anyone to take risks so we have a refund guarantee for those who appoint us as their accountants. If they are dissatisfied with the service, we simply return their fee. So far this has not been necessary, but if it did happen, they would be welcome to continue using the software with their new accountant. Without risk, trust is no longer so much of an issue,” concluded Abhai.


Try Xero software for yourself on www.alexanderrosse.co.uk

E-ACCOUNTANTS TACKLE TWO FRUSTRATIONS

Abhai Rajguru, Rashesh Joshi and Ashish Dhanda originated from the Big Four, founded the UK’s first true e-accountancy and have rolled up their sleeves to challenge the SME accounting industry. Furious about the paper-based service quality and greed-driven sales techniques they built Alexander Rosse upon moral foundations. With business owners wanting accountancy efficiency to align with other sectors, this online business is giving the reputation of other accountants a run for their money, while exposing common charging techniques.

Alexander Rosse has challenged the overselling of services and inappropriate fees that have become ‘the norm’ in traditional accountancy, and the reluctance of accountants to bring the industry to the 21st century. The lifeblood of the modern business generation is automated business functionality, real-time decision-making, mobility and flexibility often through web access. However, there is a tendency for accountants to hide in the dark ages and assume that they can operate differently.

“Having an e-accountant is a new concept, so we created a ‘no risk’ solution. We have partnered Xero’s, highly automated, web-based accounting software, which rivals Sage. Customers can access their full accounting files 24/7, from anywhere and ask us questions out-of-hours which helps optimise their time management,” explained Abhai Rajguru, founder member and chairman of Alexander Rosse.

Many accountants do not tell business owners if they do not need a full service, but Alexander Rosse is blatantly honest and lets you decide. Offering the longest Xero software free trial available, and providing valuable information and advice online, gives directors plenty of time to use the software and refine your accountancy service around your business needs. If you like the software and you do need a full-service accountant, you can turn to Alexander Rosse as they are so confident they will provide a full refund if a client is unhappy.

The frustration for Alexander Rosse does not stop in the accountancy industry. Outraged by reports announcing an 11% fall in the amount of money given to UK charities in 2008/09 compared to 2007/08, they have announced that all of this year’s profits will go to charity. The sum of £250 will be given to a selection of charities for each new full-service client that they introduce.

Willing to tear up the rule book and rethink industry protocols has been a key focus for Alexander Rosse, who is trying to reinvent the industry so that it is driven by growth not greed. They are sharing the secrets of the symptoms of excessive sales and the associated charges on www.alexanderrosse.co.uk, where you can also try Xero software free of charge until 31st January 2010.

Abhai Rajguru

DO YOU THINK SAGE AND QUICKBOOKS ARE DINOSAUR PACKAGES DESTINED TO GO LIKE THE DODO?

Xero is a 21st Century "software as a service" as opposed to Quickbooks which has been around for some time and frankly, just like Sage, its showing its age. We have nothing against "ageing" we hasten to add! However, when companies such as Sage start to act like the bankers you know it’s time to move on.

Xero's user interface and its fantastic API mean non-accountants can use the software. It's a piece of cake. At Alexander Rosse we're campaigning against the vast majority of dinosaur accountants who are just not willing to move into the 21stCentury.

Xero's customer service and back up is very good. Nathan and his team at Xero do a fantastic job.

Cost - dinosaur packages such as Sage , Quickbooks etc just cannot cope with the cost and benefits angle of Xero. £189 per annum for a fully integrated accounting software package!? In a funny way, we’re looking for the VAT change back to 17.5% (rumours abound it may even go up to 20 %...) as Xero will do this and we all benefit.

We tend to agree with what Rachael of edgeofmyseat.com [http://edgeofmyseat.com/] said about Quickbooks and why she chose to move over to Xero. Check out her blog -

http://www.rachelandrew.co.uk/archives/2009/08/22/moving-accounts-from-quickbooks-to-xero/

UK’S FIRST E-ACCOUNTANCY PUTS CHARITY BEFORE PROFIT

This week the UK’s first true e-accountancy, Alexander Rosse, based in Milton Keynes, generously announced that it will give this year’s profit away to charity. This bold statement is a result of their outrage at seeing business charity donations fall during the economic downturn. The first charity to benefit from this scheme is the Kettering General Hospital Charity Fund’s Cardiac Care Appeal, which serves those in Northamptonshire, South Leicestershire and North Bedfordshire.

According to Charities Aid Foundation (CAF) and National Council for Voluntary Organisations’ (NCVO) UK Giving Report 2009, the economic downturn has coincided with an 11% decrease in the total amount given in the UK to charities in 2008/09 compared to 2007/08. This sharp fall will have a detrimental impact on the services that charities provide. In a sector where a little help makes a huge difference such cuts can cause extreme heartache where the well-being of loved ones is involved.

”We are disappointed to see that some businesses have completely cut their donations. These are charities that provide invaluable support in disastrous situations that could happen to anyone. They need continued support to maintain their services, which in the case of the Cardiac Care Appeal, helps to improve the lives of heart patients and their families,” explained Rashesh Joshi, corporate development director at Alexander Rosse.

Alexander Rosse is giving £250 to the Cardiac Care Appeal for every business or individual from Northamptonshire, South Leicestershire and North Bedfordshire (LE16, LE17, NN, MK43 and MK44 postcodes) who appoints them as their new accountants and advisors. This charity aims to provide a healing and caring environment for patients and their families sadly affected by heart related illnesses. It helps supply a rehabilitation room, relatives’ quiet room, state-of-the-art equipment and information support.

“The environment that both we and our loved ones are in makes an enormous difference. The Cardiac Care Appeal will really help to make families like mine and patients feel more relaxed and at ease when dealing with such difficult times,” explained Philip Gilbert, the husband of a patient who recently spent time on the Cardiac Ward.

For those of you who are not quite ready to scrap the spreadsheets completely and go for a full e-accountancy service, Alexander Rosse is the only UK company offering an extended free trial of Xero accountancy software from now until 31 January 2010. Visit www.alexanderrosse.co.uk to sign up, it is the easiest accounting package in the world to use.