Shaping your team for MTD

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MTD is going to be a huge task for many practices dealing with the transition of VAT clients to MTD-ready software. With the potential of moving hundreds of clients on to online software in 9 months, if you are not prepared this could have a significant impact on your staff and on your business. A successful Xero implementation starts with your team.

You’ll need to get started on a plan now to avoid it becoming an impossible burden on your team and your business. Here are 5 ways you can get your team and your practice ready now.

1) Understand the scope of the project

Segment your VAT clients first to understand how much work it’ll be for your team. Based on our experience, you’ll need to allocate 3 hours per client just for converting data from desktop software to Xero. On top of the data conversion you will need to think about who will be responsible for client on-boarding, client training, client support and how this will effect the team and their working practices.

2) Communicate the change

Introducing new technology in any organisation can often be a challenge. One major reason is inertia to change; that is, your staff feels comfortable doing business “the way it’s always been done” and can be adverse to taking the time to learn new software. This is completely natural.

3) Manage the change

Adding new solutions to your software stack is a big decision. It not only impacts you, but everyone in your practice. Your team is your biggest asset in this process, so it’s important they understand what you’re doing and why you’re doing it. Be prepared to provide a realistic view of how you are going to make the transition. Your team will want you to guide them through your thought process. A back-story will be especially helpful for your team to understand the reasons behind the change. Managing change is about people fit, testing a few different approaches and dealing with issues as they arise quickly and effectively.

The good news: how your team currently operates will not change dramatically. But, how they actually do their job will change. It is important to draw those two distinctions. For example, in many firms, client managers do not go near the ledger. Typically, that’s the responsibility of associates. Xero doesn’t change that; but it does streamline the flow between these two roles. Associates focus on keeping the data clean and up-to-date, while your client managers interpret that data for client communication. How this work is done is a bit different than before, but ultimately what each employee does has not changed. The benefit is that Xero helps you focus on the jobs your team already does to maximise value.

4) Get your team on board

There are two key concepts to consider when getting your team on board.

The first is transparency; that is, why is the firm making this change and how does this change benefit the business (and eventually the staff)? The second is how this change positively affects your staff’s day-to-day work. For the firm, aligning with Xero brings a number of benefits, including:

The industry’s most modern, cloud-based accounting solution that appeals to emerging businesses who rely on the cloud for conducting business.
Unparalleled ease-of-use compared to older, more difficult-to-use accounting systems. This results in greater productivity and thus more time to spend with clients or prospecting for new business.

Xero’s unmatched partner program provides a wealth of resources including practice ledgers, product discounts, marketing assistance, a Xero account manager and direct access to the Xero team. For staff, Xero puts leading-edge technology directly into the hands of firm professionals and clients:

Xero’s cloud-based architecture enables staff to access client or practice information – anytime, anywhere across any device
Industry-leading ease-of-use enables staff to do more in less time
An incredible wealth of training, online resources and an active user community for the latest in tips, tricks and help. When the benefits to both the firm and staff are explained in this manner, it comforts your team and unifies them to make the switch to Xero

5) Align your team for success

It’s important to align your staff and appoint trusted team members with appropriate experience and aptitude into key roles. Each practice should have the roles and responsibilities noted below. Depending on the size of the firm, a role could be performed by the same person or shared among the team.

Executive sponsor

The executive sponsor needs to be a decision maker in the firm who

influences the firm’s migration to Xero. This role has final approval on

any decision or change to be implemented. The executive sponsor:

Ensures your vision, people and communications are in place to succeed; and when necessary, seeks support from your Xero account manager
Appoints and supports your project lead and champions to make sure they’re taking ownership and sharing knowledge throughout the wider team
Communicates a clear message to all staff about the purpose of implementing Xero
Sets KPIs and other performance metrics around adoption of new workflows
Attends Xerocon, Xero Roadshows and other relevant partner events

Project lead

The project lead works closely with the firm’s executive sponsor and Xero to manage your implementation. The role ensures that the migration delivers against your firm’s vision and:

Develops your firm’s implementation plan and tracks progress
Understands your client base to help plan your client migration
Identifies your core Xero implementation team
Makes sure that the team has the necessary Xero knowledge and skills

Champion

The champion is an expert in new workflows and supporting technology. Think of the champion as the go-to for all things Xero who:

Helps the project manager with technical product support and best practices
Teaches the wider team on Xero and associated workflows and identifies improvements
Produces a compelling Xero demonstration for your clients
Manages the Xero migration team

It’s important to identify which staff are going to be affected by a sudden surge of clients moving online and how this will affect their work. For example staff who are used to process clients data at year end, may all of a sudden have a lot less work to do. With the data now in software and with functionality such as cash coding and find and recode the time spent on preparing a TB may be significantly reduced. We have seen a huge uptrend in firms now utilising qualified accountants mid-year and checking a clients Xero account on a quarterly basis. It means the accountant can engage in real time with a client and begin to help them with growth and advice during the year, not just a year end. It also means the data at year end is a lot cleaner as mistakes are spotted sooner.

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