Seizing the app advisory opportunity

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They say a tradesperson is only as good as the tools they use. The same could be said for accountants and data. Without quality data, it’s impossible to offer clients quality advice.

But when accountants and bookkeepers have the right information at their fingertips, it’s easy to dramatically enhance the quality of advice they can provide their clients. And that’s the reason Steph Hinds, Head Ninja at Growthwise, began her app advisory journey.

“My job is so much easier if I have access to the right data. When it’s available on a granular level it does wonders for the strength of my advisory services. For example, if I can see sales are low for a hospitality client on a Wednesday, but their roster stays the same everyday, I know they need to reduce the number of waiters rostered on that day, or offer specials or promotions to get more customers through the door on Wednesdays,” Steph said.

Since helping her clients choose the right apps, not only has the quality of Steph’s advisory soared, but it’s changed the dialogue with her clients.

“We still let our clients know how much tax we’re saving them, but it’s not the main focus of our conversations anymore. Now it’s all about business improvement. I explain the story the data is telling me. Then they have the opportunity to come up with the creative ideas to improve their business in the areas that will have the most impact,” she said.

So how do accountants and bookkeepers get access to the right data? App advisory involves understanding the challenges or opportunities your clients are facing, and advising them on the right apps to set them on the path to success. The added bonus for advisory, is that when you connect Xero with one of our integrated-apps, real-time data flows between the two systems, ensuring it’s accurate and up-to-date, without the need for manual data entry.

While getting started requires time and resources, the opportunity to help small businesses by shifting to an app advisory model is huge and largely untapped, according to Steph.

As well as helping her clients revolutionise their business operations by using the right technology, she now also dedicates time to helping other advisors get started while avoiding pitfalls along the way.

Xero kick-started the journey

Growthwise started using Xero as soon as it was available in Australia and Steph immediately fell in love with the software. That was over eight years ago, and what was planned to be an initial roll out to only five select clients, snowballed into a huge operation, as Growthwise was bombarded with requests from clients to get on board

“We were able to solve so many of our clients’ problems using Xero, that we started looking for other challenges we could solve with technology. It’s an approach we’ve also adopted in our practice. We don’t do anything a piece of technology can do for us. That’s helped us understand how clients can do it for themselves,” Steph said.

After much evolution, today Growthwise offers three types of advisory: streamlining administration when it comes to accounting and bookkeeping, using the right tools to assist running the physical business, and the newest advisory area, focused on internal communication, including talking to your team and removing bottlenecks.

Challenges along the way

While it’s really paid off now, the app advisory learning curve was steep. It took time, effort, and new expertise to be added to the firm.

“We took the time for our accountants and bookkeepers to understand exactly what information flows into Xero when you add another app. Once they mastered that fundamental, the advisory process got easier and our accountants and bookkeepers were perfectly positioned to help our clients advise on the right technology to streamline accounting and bookkeeping admin,” Steph said.

But when it came to the meatier implementations, involving recommending the rights tools to run small businesses operations efficiently, the Growthwise team quickly learned they needed to hire a specialist. While the firm’s accountants and bookkeepers still use the data for their advisory services, they have a technical expert who sets the scope and workflow for these larger projects. And if they still don’t have all of the internal expertise a client needs in-house, or the required knowledge of a particular industry, they work with partners who do.

Better business for everyone

When you get app advisory right, the time and effort invested pays off. Not only has it allowed Growthwise to add an entire new service line to their business, they’ve also been able to help their clients revolutionise the way they run their entire operations.

“We implemented Vend for a retailer many years ago. They had previously been using an old-style cash register that didn’t give them any data on what they were selling, when, or what the gross profit was per product. Implementing Vend not only streamlined the admin process (they didn’t have to manually enter daily sales and could send purchase orders to suppliers easily instead of hand writing them out), but it also gave them data to make great decisions.

“We were able to look at product lines that were consistently discounted and scrap them altogether. We could also see which days were profitable, leading to a decision to close on Sundays, saving thousands of dollars in wages each year. Previous sales data also highlighted the best buying times and volumes. Having this data at our fingertips increased the business’ gross profit by 6%. That’s a massive difference for a small business,” Steph said.

But it’s the benefits that are harder to quantify that Steph finds the most rewarding.

“It’s the fact that our clients don’t have to start their paperwork at 10pm at night because now they can fit it in during the work day. Or they can make their kids soccer match, because they don’t need to work on their roster. That’s a lot more important to some people than a dollar figure at the bottom of a profit and loss statement,” Steph said.

Seizing the opportunity

“Accountants love data, and we have this massive opportunity available to help our clients. But if you’re going to take on app advisory, it does require internal change. You need to look at it as a separate service suite and ensure you have the right skills in place. If advisors aren’t willing to do this, it’s better to work with a partner or outsource this service instead. That’s the crucial piece and that’s where I can help guide advisors to make the right choice,” Steph added.

To find out how you can use apps to help your clients succeed, download our app playbook series. These resources will arm you with the tools and knowledge to get started on your app advisory journey.

Plus, don’t miss our sessions at Xerocon Brisbane. I’ll be presenting on how you can recommend the right apps to your clients with help from the latest Xero resources. We’ll also be doing app deep-dives into some key industries.

Here are the sessions we have in store to help you on your road to success with app advisory: