Being Twitter Savvy Does Not Keep Accountants Awake at Night
Because we can never get enough surveys, Sage came through with the skinny on what keeps accountants awake at night (no joke). We’re proud to say that alcoholism and Caleb’s typos did not make the list but there’s always next year. Way to go, profession!
Sage surveyed more than 500 of its Sage Accountants Network members across the U.S. in December 2010 to figure out what gets accountants’ knickers in a twist. Results as follows:
Among the 533 respondents, 34% stated that getting new clients tops their list of concerns. 28% cited tax law complexity and changes as an issue; followed by the effect of new regulations and standards on small firms, keeping up with technology, and time management concerns, all at 24%. Work/life balance was cited by 20% of respondents, and keeping up with professional standards was a key concern for 17% of those surveyed. 13% of respondents cited access to affordable healthcare for employees as a worry for their firms.
Perhaps in response to the search for new clients, 83% of firms currently specialize or are planning to specialize in specific vertical business segments. By far, services/consulting was the most popular category for specialization (63% of those surveyed), followed by construction at 43% and retail at 39%. Other popular areas of specialization include working with nonprofits (35%), restaurants (30%), and manufacturing/distribution (29%) clients.
The full survey may be found here.
We found it a bit odd that retaining clients, retaining staff and managing staff came in at 9%, 3% and 2%, respectively. Obviously there is a bit of a work/life balance overlap in there somewhere but because we here at Going Concern know no such thing, we could not bring ourselves to analyze these results further.
It’s the social media section of the survey that shocked us most. Not to say that the results themselves were shocking, exactly, as the shocking part lies in how some of these firms actually manage to make money. What do they use to attract new clients, carrier pigeons and sandwich boards? Thirty-seven percent of survey respondents use their own websites as “social media,” though in our humble opinion the “social” part means using a more conversational form of communication than some .com with your firm name in it. Twenty-eight percent use LinkedIn, 19% are on Facebook and – wait for it – 7% have gotten into Twitter. 7%! A frightening 43% of respondents don’t use social media at all, perhaps explaining why 34% are concerned about getting new clients. They must not be that concerned if they aren’t using social media to put themselves out there.
Know what this says to me if I’m a firm looking to make a killing through social media? Hit Twitter, it’s a no man’s land and you won’t have to elbow out the competition. Really, people? 7%?!
Know what else this also says to me? All my evangelizing about not acting like an ass on Twitter has been in vain; if firms aren’t using it, they probably don’t know how to search for your tweets about getting wasted and wanting to stab the senior for acting like a jackass. So have at it, it’s just you and the MLM bots tweeting out there until these guys get a clue and jump on board.
I think you kids know what to do from here.
Your Company Smartphone Scares the Crap Out of Your Boss
Let’s be honest here, how many of you use your work-issued phone strictly for work? Promise I won’t snitch anyone out. Some of you might even be lucky enough to be able to tweak your wallpaper, add apps and get your significant other on BBM for all day sexting without the pesky messaging data trail.
The AICPA’s 2011 Top Technology Initiatives Survey is out and shows that IT professionals’ biggest business technology concern is not that they could be replaced with robots but the proliferation of smartphones and other mobile devices in the workplace.
The 22nd Annual AICPA Top Technology Initiative survey, conducted Jan. 13 to Jan. 26, shows control and use of mobile devices was the No. 1 challenge for IT professionals. The finding was based on responses from nearly 1,400 CPAs nationwide specializing in information technology. In addition to mobile devices, the survey signaled future IT issues will revolve around implementation of touch-screen technology, deployment of faster networks and voice recognition technology.
“The surging use of smartphones and tablets means people are doing business, exchanging sensitive data wherever, whenever they want to,” said Ron Box, CPA/CITP, CFF. “The technology is advancing so rapidly that the capabilities for controlling and protecting the information on mobile devices is lagging behind. What was once as simple as losing your phone, could now create an enormous security risk for organizations.”
Remember back in the day when you might, say, accidentally drop your phone in the toilet at the bar and simply have to worry about recouping your contact list? Now our phones hold pictures, banking information and even client information that is oftentimes carelessly stored on unsecured devices that are taken everywhere. IT professionals can’t be expected to manage the network when the network is in your pocket, and when your pocket sometimes happens to be in the bar (you are a professional, after all).
Some of the top issues identified by CPAs in public accounting included data retention, control and use of mobile devices and privacy.
The complete Top Technology Initiatives list as voted on by CPAs, IT professionals, and others responsible for making or influencing technology decisions includes initiatives and emerging technologies that IT decision makers should be aware of over the next 12 – 18 months.
The Future of Forensic Accounting is Now
Ed. note: Welcome to the first edition of Going Concern’s Guest Blogger series. We’ll be featuring both seasoned and new bloggers to share their views on various accounting topics. If you’re interested in participating, email us your submission to [email protected]. Please include “Guest Blogger Submission” in the subject line.
Imagine being able to take tens of thousands of pages of financial data and get it into a database in a matter of hours. Those mounds of paper are quickly turned into something useful to the forensic accountant, without spending hundreds of hours manually inputting the data. Financial data is suddenly transformed and the forensic accountant can quickly map the flow of fun action patterns, create charts and graphs that show entities and transactions of interest, and create customized reports.
Doing things the old way, such a result is only a fantasy. For decades, forensic accountants have spent their time manually sorting documentation, deciding which transactions are important, and doing data entry.
It sounds painful because it is. It takes a long time, there is a high risk of inaccuracy, and there is a great chance that an important transaction will be overlooked.
So if there is technology out there to change all of this (and yes, there is!), why aren’t forensic accountants using it?
The only real answer is that they’re afraid of changing their business model. Most accounting firms charge their clients hourly fees, so they are invested in a business model that is dependent on forensic accountants taking more time to perform work which results in more revenue.
Technology that nearly eliminates the need for teams to spend hundreds of hours analyzing financial documentation is not a welcome addition to the firm; it just causes them to lose money.
Of course, it’s not really true that such advances really cause forensic accountants to lose money. All that needs to happen is firms have to find different ways to bill their clients, rather than simply adding up the time of staff and multiplying by a big number.
In addition to this paradigm shift related to billing clients, technological advances also fundamentally change the way forensic accountants investigate fraud. That makes lots of them (especially the old timers) uneasy. After all, we’ve always done it this way! How can we rely on technology over our own hands and eyes?
Here’s the thing…. those forensic accountants who resist embracing technological changes are going to be left behind. I currently use a proprietary system to complete large forensic accounting engagements, making it possible for me to single-handedly do more investigative work in a few days than a team of 4 or 5 investigators can do in several weeks or months.
This is not a fantasy; it is my reality. And my clients are getting better results much faster, allowing them to plan their litigation strategy much sooner, and ultimately be more successful in finding fraud, defending regulatory actions, and competing in litigation.
Yet I am currently the only forensic accountant in the private sector using this system, or anything like it. The government has been using a similar system for years, and if a client is being investigated by a federal agency in a financial matter, there’s a good chance the government is using the latest technology to aid in their investigation.
The future is not going to wait just because so many forensic accountants don’t want to change how they investigate fraud or earn their money. Those who are unwilling to change are going to be left behind. Those, like me, who want to be on the cutting edge, will make more money and win more interesting engagements that previously may have been too large or complex for me to handle alone.
Tracy L. Coenen, CPA, CFF is a forensic accountant and fraud investigator with Sequence Inc. in Milwaukee and Chicago. She has conducted hundreds of high-stakes investigations involving financial statement fraud, securities fraud, investment fraud, bankruptcy and receivership, and criminal defense. Tracy is the author of Expert Fraud Investigation: A Step-by-Step Guide and Essentials of Corporate Fraud, and has been qualified as an expert witness in both state and federal courts. She can be reached at [email protected] or 312.498.3661.
Doing It Wrong Twitter Case Study: The Narcissist
Following our previous Doing It Wrong case studies featuring the over-hashtagging accounting firm, the excited newbie and the hyperconnected crack tweeter, we humbly present you a criticism of one of our least favorite Twitter users: the self-absorbed narcissist.
You can spot the narcissist from a mile away by looking for keywords such as “I”, “me” and “myself.” The narcissist doesn’t really try to make it appear as though they are interested in others nor do they tend to share useful information, only their own personal triumphs, opinions, activities and musings. To the self-absorbed narcissist, this is really all that matters.
The self-absorbed narcissist is pretty easy to seduce into doing your bidding by expressing even the smallest amount of interest in their indulgent self-congratulations. This can be accomplished by retweeting their latest announcement (retweeting an announcement with lots of “me” and “my” statements will earn you bonus points in the eyes of the narcissist) and doing so might even get you a retweet yourself.
The narcissist may collect followers like nerds collect World of Warcraft gold and, if excessively narcissistic, will likely follow only 1 or 2 people to prove just how awesome and appreciated they are. To the narcissist, this is a sign of their importance and status in the Twitter community, as who needs communication when you have awesome credentials and incredible talent?
How can you avoid becoming the narcissist? Interact! Congratulate others, encourage your cohorts and share useful links that aren’t just things you’ve written or appearances you’ve made in the media.
How Accountants Can Best Utilize LinkedIn
The following post is republished from AccountingWEB, a source of accounting news, information, tips, tools, resources and insight — everything you need to help you prosper and enjoy the accounting profession.
Many people who advocate online networking do so in a generic way that can be a turn-off. They may argue that the same principles apply regardless of our business or professional activities. However it’s long been my experience that accountants are special and need to be addressed differently.
De some other online social media, I actively encourage accountants to register on LinkedIn – even if they intend doing nothing else there. In my view it’s the only online networking site where you can benefit from simply having a decent profile online.
Generally, online networking can only work if you are active and netWORK. This is also true of LinkedIn but, unlike the other sites, it is the only one that people use as a directory to search for someone like you.
This passive approach to LinkedIn may not produce as good results for those who make more active use of its facilities. But for most accountants, it’s better than nothing.
I recently caught up with Mark Perl, one of the UK’s leading LinkedIn advocates and trainers. He also understands accountants and promotes the site as the one place where we should all manage our professional reputations online.
At a bare minimum, Perl thinks all practitioners should complete a LinkedIn profile to help them be found and to optimise their search engine visibility. At its best, the site enables individuals to showcase their specific expertise to attract clients. Perl goes further and claims it is also the most effective business development and client retention resource currently available. Mark Perl and I each have detailed profiles on LinkedIn as do an increasing number of accountants in practice.
Perl comments, “When you know how to use LinkedIn well, you’ll save yourself a ton of time. You’ll walk through open doors instead of making cold calls, you’ll enhance your personal reputation, and the profile of your practice, you’ll access outstanding information and opportunities that you would previously have missed and, ultimately, you’ll increase your revenue.”
I’ve previously identified five ways that accountants can benefit simply from establishing their profile properly on LinkedIn. There are numerous other ways in which you can benefit further if you are proactive on the site. For example, Perl encourages accountants to use their LinkedIn profile and the answers section to set out their specific areas of expertise. He points out that this offers an opportunity to differentiate your firm’s particular values and virtues.
LinkedIn now has over 75 million business people as members and during March this year UK membership rose above 4 million.
For accountants who are keen to grow their practices this is a veritable goldmine of prospects. “The Advanced Search capability within LinkedIn can uncover all the business leads you’ll ever need, within your geographic location, within the specific sectors that are of interest to you, within companies of the size you prefer to approach and with the very name and job title of the decision maker you wish to engage with,” says Mark Perl.
I think he’s also right that LinkedIn is “unsurpassed” for business development. If used properly, it can be far more effective at generating leads than spammy old direct mail/email campaigns and cold-call telesales drives.
Share your thoughts on this topic in the Accounting forum on our sister site, USBusinessForums.
Accounting Tech: CCH Mobile Brings Tax Research to BlackBerry, iPhone
The following post is republished from AccountingWEB, a source of accounting news, information, tips, tools, resources and insight — everything you need to help you prosper and enjoy the accounting profession.
CCH’s new application, CCH Mobile, is an extension of CCH’s IntelliConnect tax research platform and makes CCH’s content and tools available via BlackBerry and iPhone.
More than 1,000 professionals attending the 2010 CCH User Conference from November 7-10 in Grande Lakes, Orlando, will preview CCH Mobile. The new app is the latest offering from CCH designed to ensure that CCH resources will be with professionals wherever they choose to work.
“We’re providing an advantage for any professional who needs to conduct business beyond the boundaries of their office,” said Mike Sabbatis, CCH president and CEO. “And while that’s just about everyone, only CCH IntelliConnect customers will have the ability to conduct research on CCH’s premier content from the palm of their hand – anytime, anywhere.”
With CCH Mobile, tax and accounting professionals can access answers and tools on the spot – when meeting in person with clients at remote locations, or whenever they need content quickly, according to the company.
A limited-time free version of CCH Mobile is available. All current IntelliConnect subscribers can download the debut of CCH Mobile at no charge and all CCH User Conference attendees also have access to a preview version of this portable tax research tool.
After downloading the CCH Mobile app to a smart phone, users of the complimentary introductory release will have access to:
• Customized Tax Tracker News
• Primary materials including Internal Revenue Code and Regulations
• Tax tools and calculators
• Smart Charts (depending on IntelliConnect subscription level)
Following the introductory period through mid-2011, additional subscription packages will be offered to suit subscribers’ specific research needs.
Click here for more information and to view a demonstration of CCH Mobile.
About CCH, a Wolters Kluwer business:
CCH, a Wolters Kluwer business, is a global provider of tax, accounting and audit information, software, and services. It has served tax, accounting, and business professionals since 1913. Among its market-leading solutions are The ProSystem fx Suite, CorpSystem, CCH IntelliConnect, Accounting Research Manager, and the U.S. Master Tax Guide. CCH is based in Riverwoods, Illinois. Wolters Kluwer is a global information services company. Wolters Kluwer is headquartered in Alphen aan den Rijn, the Netherlands. Its shares are quoted on Euronext Amsterdam (WKL) and are included in the AEX and Euronext 100 indices.
If Only Clippy Was Here to See This: Microsoft Office Moves to the Cloud
The following post is republished from AccountingWEB, a source of accounting news, information, tips, tools, resources and insight — everything you need to help you prosper and enjoy the accounting profession.
Microsoft is beta testing a new subscription-based product called Office 3 following applications: Microsoft Office Professional Plus (Microsoft’s flagship productivity suite, which includes Word, Excel, PowerPoint, and other applications); Microsoft Exchange Online (e-mail, mobile access, contacts, anti-virus, and anti-spam); Microsoft Sharepoint Online (collaboration tool for building public or team-based Web sites); and Microsoft Lync Online (an instant messaging and online meeting tool).
In 2011, Microsoft Dynamics CRM Online will join the above offerings. This is not Microsoft’s first foray into Cloud-based apps. Anyone with a free SkyDrive account can use the Office Web Apps (browser-based versions of Word, Excel, and PowerPoint) and store up to 25 GB of documents online. Further, Microsoft has been offering subscription plans for the Business Productivity Online Standard Suite that has offered a similar mix of communication products sans Microsoft Office.
Anyone interested can sign up for the beta of either the Small Business or Enterprise versions of the program. Those who are accepted into the beta program receive the desktop version of Office 2010 Professional Plus, along with online access to Exchange, SharePoint, and Lync. Once Office 365 leaves beta, the service should be of particular interest to small business owners.
Exchange and SharePoint typically require dedicated servers, which in turn require specialized information technology expertise. These cloud-based versions will enable just about any business to take advantage of these powerful applications for e-mail, group calendaring, and collaboration.
The Small Business plan will cost $6/user/month for 1 to 25 users and will include:
• Office Web Apps
• Exchange Online, including 25 GB mailboxes, and the ability to send 25 MB attachments
• SharePoint Online
• Lync Online
• Support provided via a moderated community forum
The Enterprise plan will cost $24/user/month and will include:
• Office Professional desktop software
• Office Web Apps
• Exchange Online, including 25 GB mailboxes, and the ability to send 25 MB attachments
• Sharepoint Online, including Forms, Access, Visio, and Excel services
• Lync Online
• 24/7 IT-level phone support
• Financially-backed 99.9% uptime service, or, in other words, downtime of less than 9 hours per year
Larger businesses also will be able to subscribe to a kiosk plan that starts at $2/user/month to offer e-mail, SharePoint sites, and Office Web Apps to workers without dedicated computers. An Office 365 for education will be available in the future to help educational institutions provide services to students without maintaining servers.
Many businesses aren’t yet comfortable with having mission-critical applications and data residing in the Cloud, but this combination of low cost and high flexibility might cause skeptics to pause and consider the possibilities.
About the author:
David Ringstrom, CPA, heads up Accounting Advisors, Inc., an Atlanta-based software and database consulting firm. Contact David at [email protected].
Accounting Tech: Seven Considerations for Laptop Shoppers
The following post is republished from AccountingWEB, a source of accounting news, information, tips, tools, resources and insight — everything you need to help you prosper and enjoy the accounting profession.
Laptop preferences often are personal, so consumers should try out a laptop – especially the keyboard and touchpad – before buying it. Consumer Reports says customers should carry the laptop around to make sure it doesn’t feel too heavy or big. The laptop should not feel so hot that a person has to move it off his or her lap while working, and it should run quietly.
The follow tures (in alphabetical order) ranked high in tests, as well as by respondents of surveys conducted by a number of technology publications and companies. The laptops mentioned in this article are not endorsed by AccountingWEB.
Battery life
Long battery life is a feature ranked high in many laptop surveys and evaluations. When not plugged into a wall outlet, laptops use a rechargeable lithium-ion battery for power.
According to a recent survey of 776 respondents conducted by Frank Myhr of Berkley, MI-based FHM Technologies LLC, on building the ideal business laptop, long battery life ranked fifth at 76 percent as a feature most desired in a notebook.
According to tests conducted by Consumer Reports, a normal battery provided between two and nearly six hours of continuous use when running office applications. The publication stated that users can extend battery life by dimming the display, turning off wireless devices when not in use, and running only basic applications.
In its inaugural Notebook Decathlon, LAPTOP magazine put 10 notebooks through two battery endurance tests: a MobileMark test (run twice, both, with and without the WLAN receiver on) and a DVD movie test. The Lenovo ThinkPad T43 took top honors with a perfect composite score of 10. Its elapsed time of four hours and 43 minutes far outdistanced the next closest notebook (three hours and 50 minutes). The optional extra-capacity battery on the notebook’s rear panel was the reason for its long battery life, the magazine concluded.
In an evaluation conducted by Digitalversus.com, the 15-inch Apple MacBook Pro was found to have a battery life of nearly five hours.
Display
The size of the screen can be anywhere from 7 to 20 inches. The smaller the screen, the more portable the laptop. A larger screen will be less portable, but easier to use for extended periods, according to a report on Digitalversus.com. Screen quality ranked third at 86 percent in Frank Myhr’s laptop features survey.
LED-backlit LCD is a new display technology that is making its way into laptops. According to Consumer Reports, an advantage of this technology is its more efficient use of power and, as a result, longer battery life.
Consumer Reports ranked several Apple MacBook models, Dell Inspiron I545-012B, HP G70-460us, and Sony Vaio VGN-SR420D/H as having very good displays in its December 2009 issue.
Durability
No matter how careful we are, laptops are eventually going to be accidentally dropped, stepped on, doused, or left out in the car during extreme heat or cold. According to the survey conducted by Myhr, 89 percent of respondents ranked durability as their No. 1 feature.
LAPTOP magazine put 10 notebooks through stress and durability tests in its Notebook Decathlon, including dropping the laptops 10 inches onto a layer of plywood placed over concrete, and spraying the keyboard with water. According to test results, four notebooks survived the stress tests without effort: 15-inch Apple PowerBook G4, Averatec 3360 EH1, Gateway M210XL, and Sony VGN-S360.
Hard drive/RAM
Most laptops come with a traditional 160 to 500GB hard drive, which is where files and programs are stored, although Digitalversus.com says that an 80GB hard drive should suffice for office documents and photos. Consumer Reports recommends paying attention to a hard drive’s speed: 4,200 RPM – while rare – is considered fairly slow; 5,400 RPM is common; and 7,200 RPM is fastest, but costs more. Some laptops can be equipped with two hard drives: solid-state or flash drives.
RAM is the memory the computer uses while in operation, and most brand-name computers have at least 2GB of RAM, according to Consumer Reports. For Windows Vista, users will need at least 1 GB, but Digitalversus.com recommends 2GB. Computers with 3GB can run slightly faster.
Keyboard/touchpad
Many of the respondents who participated in the survey conducted by Myhr commented that the quality of the keyboard is an important feature when buying a laptop. Keyboard quality ranked fourth at 83 percent in Myhr’s study.
Consumer Reports recommends that customers should look for keys that don’t feel mushy, touchpads large enough for your finger to traverse the span of the screen without repeated lifting, and touchpad buttons that are easy to find and press. The touchpad buttons should have a dedicated scroll area.
In its December 2009 issue, Consumer Reports gave the following laptop models very good ratings for keyboard/touchpad: Apple MacBook, Dell Studio, HP Pavilion, Sony Vaio, and Toshiba Satellite.
According to LAPTOP magazine, the 15-inch Apple PowerBook G4 ranked highest for design/keyboard in its Notebook Decathlon based on the laptop’s illuminated keyboard and two-fingered scrolling capability on the touchpad.
Portability
Business professionals are gravitating more toward laptops that are lighter in weight, and that portability has been a key marketing tool for netbook manufacturers. Consumers agree that portability is a great feature, as 60 percent of 600 consumers surveyed by market research company The NPD Group Inc., Port Washington, NY, said that was a main reason they bought their netbooks.
“Retailers and manufacturers can’t put too much emphasis on PC-like capabilities and general features that could convince consumers that a netbook is a replacement for a notebook,” Stephen Baker, vice president of industry analysis at NPD Group, said in a statement. “Instead, they should be marketing mobility, portability, and the need for a companion PC to ensure customers know what they are buying and are more satisfied with their purchases.”
Consumer Reports gave the following netbooks a very good rating for portability: Acer Aspire One AOD150-1165, Acer Aspire One AOD250-1990, Asus Eee PC 1005HA, Asus Eee PC 1008HA, Lenovo IdeaPad S10-2, Samsung NC10-14GB, Samsung N110-12PBK, Samsung N120-12GBK, and Toshiba Mini NB205-N210. Digitalversus.com also gave a high portability rating to the 13-inch Apple MacBook White and the Samsung X360.
Processor
The brains of a laptop are in its processor – or CPU – which performs all of its calculations and has a direct bearing on everything consumers might use their laptops for, according to Digitalversus.com. Laptops generally come with a dual-core processor, such as an Intel Pentium Dual-Core or AMD Turion X2, stated Consumer Reports.
iPad’s Versatility Make It an Essential Tool for Some Accountants
The following post is republished from AccountingWEB, a source of accounting news, information, tips, tools, resources and insight — everything you need to help you prosper and enjoy the accounting profession.
With Apple generating much of the buzz, global tablet sales could reach nearly 20 million units by the end of the year, and nearly 55 million units by the end of 2012, according to Gartner Inc., an information technology research and advisory firm. In addition to Apple’s iPad, other manufacturers have developed f the tablet, such as BlackBerry’s PlayBook, Dell’s Streak, and Toshiba’s Journe Touch.
Not without its limitations, the iPad, which is larger than a mobile phone but smaller than laptop and netbook computers, has become rather indispensible for some accountants.
Apple adulation
“I got it because I work here in Arizona but I have 50 percent or more of my business on the East Coast back in Maryland where I originally came from,” said N. Mark Freedman, who has been a CPA for nearly four decades. “I had a netbook but it was too slow. Then the iPad came out and I started looking into it. For travel purposes, it’s phenomenal. It works faster than any computer I have worked with in the past.”
Freedman works off of a Citrix server that stores all of his programs; nothing is stored on any of his computers. He knew a Citrix application was available for the iPad and tested it before purchasing the device.
“By loading in that application, [the iPad] became a PC. I can open up my Citrix server [in Maryland] and use it to get to all my programs. I just couldn’t believe I could get my desktop on my iPad,” he said.
What’s more, Freedman recently purchased the latest generation iPhone, which he is able to use as a mouse when working his iPad.
“I am able to use this thing when I travel. It’s so light,” Freedman said. “When I see clients, I pick up my iPad and everything is there. It works wonderfully.”
Initially intrigued by the iPhone and how Apple devices manage data and information, Kathleen A. Carolin, CPA, of Scottsdale, AZ-based Kaiser & Carolin, P.C., purchased an iPad the day they went on sale.
“I just got done with tax season and had extra money in my bank account so I bought a toy I hoped I could justify buying,” Carolin told AccountingWEB. “I love that little toy.”
What she affectionately refers to as a toy, however, became much more.
“I am using my iPad to take notes at client meetings. It certainly beats walking into a client’s office and trying to hook up a laptop, wait for it to boot up, and then have it block my view of my clients. The iPad is much more unobtrusive,” Carolin said.
“I am able to get my e-mail on the iPad. So, unlike my BlackBerry, I can see attachments in full and living color,” she said. “I use [my BlackBerry] as a phone, but that’s all I use it for now. The screen is so small. Opening attachments on a BlackBerry is nuts. It’s barely worth doing.”
Carolin took her iPad to a recent American Institute of Certified Public Accountants conference in Las Vegas, using it with a wireless keyboard to take notes during three days of seminars. “It’s better than dragging a laptop with you.”
Using an app called LogMeIn, Carolin connects to her office computer with the iPad. “I was talking to an investment advisor and I said, ‘Oh yes I got a copy of that tax return today.’ He asked what that entity owns, so I was able to [access] my office computer and say, ‘Here’s the property that’s in that LLC.'”
Not only is the iPad useful for accounting tasks and handy for reading books and news publications, it also is quite the conversation starter.
“I have met so many people by carrying it with me and reading it at lunch,” Carolin said. “I went to the doctor and the nurse said ‘Oh, I have one of those,’ and we talked about the apps we have.”
Sour Apple
Despite what Apple idolaters might say, the iPad has its drawbacks – at least for accountants.
“I wouldn’t want to use it on a day-to-day basis as a regular computer. It’s a little more cumbersome to work [the iPad] with the mouse,” Freedman told AccountingWEB. “I fully recommend it as a backup, as a secondary computer, as a travel piece of equipment. For travel and going out to clients on a regular basis, it becomes your computer. I would imagine that if someone got skilled enough at it they could use it to perform audits out in the field.”
Freedman added that using the iPad’s virtual keyboard can be a bit problematic as it takes up nearly half of the device’s screen.
Although, the iPad has relegated Carolin’s BlackBerry to just-a-phone status, she said the Apple device isn’t ready to supplant her computer.
“It won’t replace my laptop yet, probably due to the size of it. I do audits and tax returns. If I go out to do an audit, I don’t think it will feel right to me just yet to use it to do Excel spreadsheets,” Carolin said. “I’m not there yet, but I’m not ruling it out, either.”
The Time Wasted Fiddling with Your Smartphone Is Adding Up
The following post is republished from AccountingWEB, a source of accounting news, information, tips, tools, resources and insight — everything you need to help you prosper and enjoy the accounting profession.
BlackBerrys and iPhones have become the latest bane for employers concerned about lost productivity, according to Employment Law Advisory Services.
The company reported that its help lines are taking more and more calls from employers worried about the amount of time staff waste playing with their smartphones when they should be working.
Over the past couple of years, employers have equipped their people with phones that let them send and receive emails. Now that worries about productivity are taking hold, one of the common questions is whether taking smartphones away from employees might constitute a change in their remuneration package.
“What started as a trickle is certainly building up to a stream as more and more employers start looking at what they really need from their employers,” said Peter Mooney of ELAS.
“Being able to email staff at seven or eight o’clock was certainly seen as a benefit, but now the phones can do more and more, they are realizing that giving staff such powerful technology has its drawbacks too.”
ELAS estimated that accessing emails on a smartphone typically saves the employer between five and 20 minutes a day, depending on how much time the employee spends out of the office. Time lost to Facebook, Twitter, checking football scores, and so on can amount to 30 to 90 minutes a day.
As well as being a potential distraction for them, staff with expensive phones are also more likely to have their phones stolen, the firm advised.
In the past year or so, social networking sites were employers’ biggest online bugbear and this concern was addressed by a range of web monitoring and blocking programs. But companies that restrict staff Internet access through computers are finding it harder to control staff surfing habits on their mobile phones.
According to Mooney, downgrading an employee’s phone from a smartphone to a standard handset does not constitute a reduction in their overall package.
“Because most companies’ IT policies state that any technology staff have is for business not personal use, then it is no loss of benefit to take that away,” he advised.
Share your thoughts on this topic in the General Business forum on our sister site, USBusinessForums.
This article originally appeared on our sister Web site, AccountingWEB.co.uk.
How Much Time Is Too Much Time to Spend on Social Media?
The following post is republished from AccountingWEB, a source of accounting news, information, tips, tools, resources and insight–everything you need to help you prosper and enjoy the accounting profession.
It’s likely that your employees spend a sizeable percentage of their time using social media. As work/life balance continues to blend into one homogenous string of activities, social media activity is happening in your workplace whether you realize it or not.
But isn’t social media just a big waste of time?
It can be, but lumping all soci to the same unproductive bucket is unfair, and also unwise. Social media can be an effective tool for many key business activities – including business development, client retention, and employee retention and recruitment.
Because platforms like Facebook often blend personal and business colleagues, it’s very challenging to set black and white rules when governing the use of social media.
Free reign on social media = Trust
At Chrometa, we take a mostly laissez faire approach to our employees’ use of social media, with no official policies or restriction on what employees are allowed to do. I know this thinking is counterintuitive to what many accounting and consulting firms believe, but I think this boils down to a control issue more than anything else. It’s sort of similar to being told as a child not to get into the cookie jar. If firms set up policies dictating certain actions, employees are more likely to violate these policies if they feel they can get away with it without being noticed.
Each of our employees is encouraged to set up and maintain a presence on “The Big 3” social media channels – Twitter, Facebook, and LinkedIn. Their participation levels, on the other hand, are completely up to them. A couple of our employees really enjoy and benefit, both personally and professionally, from their time on Facebook and Twitter. Ironically, our chief technical officer generally dislikes social media and personally avoids it.
At the core of our free reign is trust. We trust that our employees are 100 percent devoted to the success of our company, mission, and brand. As a result, I have complete trust they will not represent us poorly; to do so would be like representing themselves poorly. This level of trust is only possible if an employee does completely self-identify with his or her job and firm.
How much time is too much time?
I personally have spent too much time on many occasions on the Big 3 and blogs, as well, without achieving what I’d consider a reasonable ROI on my time. Going forward, I know I need to more accurately gauge the amount of time I should spend on each medium.
It’s not completely fair and accurate when people proclaim, “Twitter is a complete waste of time” because they probably just don’t understand what it can do. Twitter can be a drain, but it also can be useful if used properly and marketed to your stakeholders. Like anything, if you spend too much time on Twitter, you can end up wasting a lot of time if you don’t use it wisely.
How-much-time-too-much-time is something everyone must figure out for themselves. I give our employees the leeway to decide how much time is too much. I know they honestly want to be productive and perform their roles to the best of their ability. Because I know this, I find it’s better if they figure out these types of limits and best practices themselves, instead of having them come as edicts from above.
It’s About Time is a series of articles devoted to practice management techniques that focus on efficiency and productivity.
About the Author:
Brett Owens is CEO and cofounder of Chrometa, a Sacramento, CA-based provider of time-tracking software that records activity in real time. Previously marketed to the legal community, Chrometa is branching out to accounting prospects. Gains include the ability to discover previously undocumented billable time, saving time on billing reconciliation, and improving personal productivity. Owens also is blogger and founder at CommodityBullMarket.com and ContraryInvesting.com, as well as a regular contributor to two leading financial media sites, SeekingAlpha.com and BeforeItsNews.com.
Five Ways Windows 7 Will Make Your Life Easier
The following post is republished from AccountingWEB, a source of accounting news, information, tips, tools, resources and insight–everything you need to help you prosper and enjoy the accounting profession.
Beyond the world of Windows XP, there lies a new age in computers. When the time comes for you to switch to Microsoft’s newest operating system, 7 will be waiting for you with enhancements that will make your transition extremely pleasing.
No need for overly pricey third-party software; these enhancements come ready out of the box and pack a punch that will make you wish you had switched to 7 sooner.
Jump Lists – Windows 7 makes it easy to access your most used documents, spreadsheets, Web pages, and media. Simply right click on an item in your task bar and a list of your most recently used items will appear in a popup window. You also can pin documents, much like a bookmark, and your document will always be listed in the jump list, ready to open with a simple click.
Snap – Making two applications align on your screen is no longer a hassle. With Windows Snap you can drag the windows to the left or the right of the monitor, and the applications will simply and easily be aligned on your screen. You also can drag a window to the top of your screen for easy maximizing. This feature is incredibly useful while dragging applications from one monitor to another.
Shake – If you ever get distracted by countless number of open applications on your desktop, with Shake, you can click and hold on any of the applications’ task bar, shake your mouse around, and all of your other applications will magically minimize. If you want to restore the applications, click on your open application, and just give it another shake. The windows will reopen.
Location Aware Printing – Have you ever taken your office laptop home, tried to print that one file you needed only to realize that you accidentally tried to print it to your office printer? With Windows 7, when your computer changes networks from home to office or office back to home, your computer will remember what printer you last used at each location and will automatically default to that specific printer. You won’t have to waste time changing your default printers.
Windows Touch – With the rise of touch screen electronics, Windows 7 comes equipped to work with touch screen computers and monitors. Not only does this feature work with single touch monitors, Windows 7 comes equipped with multi-touch, for very simple and very easy navigation around your computer. You can fly through your applications, photos, and media all with just a touch.
About the author:
David Rowe is a managed services consultant at Xcentric, which specializes in Cloud Computing and IT consulting for CPA firms. Rowe graduated from the University of Georgia in Athens, GA. He can be reached at (678) 297.0066 or at [email protected]. Follow Xcentric at xcentric.com/blog and www.twitter.com/xcentric.
Future Accounting Firm Tools? BlackBerry’s PlayBook Will Challenge iPad
The following post is republished from AccountingWEB, a source of accounting news, information, tips, tools, resources and insight–everything you need to help you prosper and enjoy the accounting profession.
As iPhones continue to impinge on traditional BlackBerry territory, Research in Motion (RIM) is countering with a competitor to Apple’s famed iPad – a tablet known as the PlayBook will be released in early 2011.
Geared toward business users, the PlayBook will serve as either a standalone device, or a larger screen for a BlackBerry smartphone. Users will be able to access any information on their BlackBerry smartphone, such as e-mail, calendar appointments, and documents, interchangeably on either device.
Internet access is available via WiFi or by sharing the wireless data service plan of a BlackBerry. Unlike the iPad, the PlayBook will offer full support for Flash, which means users won’t have to jump through hoops to view YouTube.
At nine-tenths of a pound, the PlayBook is smaller and lighter than an iPad. Current iPads don’t offer built-in cameras, but the PlayBook will have dual high-definition cameras facing front and rear to allow video recording or video conferencing.
The PlayBook is compatible with BlackBerry Enterprise Server, and offers secure corporate data access. Video playback will be available at 1080p, along with support for MPEG, DivX, and WMV formats. The PlayBook will use the new BlackBerry Tablet operating system, which includes full multi-touch and gesture support.
The PlayBook will ship with a 1 GHz dual-core processor, and will have four times the onboard memory of an iPad (1 GB RAM in a PlayBook versus 256 MB in an iPad). The operating system allows for full multitasking, meaning users won’t have to pause or shut down one application to launch another. The PlayBook will have a standard microUSB and micro HDMI ports, and the 7-inch screen will offer a screen resolution of 1024 x 600.
RIM has not yet announced pricing, but some analysts expect the PlayBook will be offered through the cell phone carriers that sell BlackBerry smart phones. Others expect that the PlayBook will retail for approximately $499, which is the same as an entry level iPad.
About the author:
David Ringstrom, CPA, heads up Accounting Advisors, Inc., an Atlanta-based software and database consulting firm. Contact David at [email protected].
What Do We Make of The Sage and SAP Rumors?
The following post is republished from AccountingWEB UK, a source that delivers topical, practical content to accountants and accounting professionals.
Merger rumors. What would we do without them? The past decade or so of my professional life has been shaped by the regular appearance of bid rumors around Sage, usually of the “who are they going to buy this week?” sort.
So you can imagine my surprise to hear on the grapevine that Sage’s share price had surged almost 5% on Tuesday night on rumors that it was an acquisition target for SAP, with Microsoft and Gapgemini reported to be sniffing around the undergrowth in Newcastle too.
I’m not a stock market analyst, so I don’t really need to chase geese like this, but I couldn’t help myself from doing a little background checking. The Daily Mail appears to have broken the story, without naming sources, around 10:30 pm on Monday night. By the next morning, Reuters and numerous other outlets had picked up the trail and various analysts were puffing up the story with blogs and tweets.
There was a tweet from China Martens at 451 group of “late night activity in Walldorf” to verify that something was up, but with none of the companies involved breaking cover this really was one of those stories where one bit of unfounded gossip was feeding off another.
Years of industry-watching have taught me never to be surprised at what a software company with a wedge of cash in its back pocket can get up to, but neither SAP or Microsoft strike me as being suitable suitors for Sage. Microsoft’s entire business solutions strategy has been in turmoil for years and if it ever enters Steve Ballmer’s consciousness, my guess is that he wishes the company had never got into bed with Great Plains and Navision.
SAP meanwhile, is everything that Sage isn’t: a technology-focused global monolith that still has trouble thinking of an SME as having anything less than a $500m annual turnover. On this point Dennis Howlett blogged, “So much of Sage’s business is at an end of the market about which SAP has little understanding. Sage is on a declining organic growth curve, has a rat’s nest of code from acquired companies, is propped up by maintenance fees and has a nightmare in the US to manage with the ongoing Emdeon fiasco.”
It doesn’t happen often, but for once I find myself in complete agreement with him.
Strangely, by Wednesday afternoon the rumors had simmered down and so had the share price (although somebody seems to have done very nicely out of the rumors with 1.7m of shares shifted at the peak of the frenzy on Tuesday night).
Now I’ve voiced my doubts, they’ll probably turn around an announce the deal in the morning.
This XBRL Thing Appears to Be Really Happening
This story is republished from CFOZone, where you’ll find news, analysis and professional networking tools for finance executives.
There’s no time to take a breather when it comes to XBRL implementations. New projects, regulations and initiatives are launched or introduced somewhere around the globe just about weekly, it appears. CFOs with firms that have yet to join the group won’t be out of the loop much longer.
XBRL, the acronym for eXtensible Business Reporting Language, means that the data contained within financial reports is constructed as individual elements, rather than blocks of text. Each piece of data comes wit and is linked to accounting definitions or rules. So, a number that makes up annual revenue has a different identity than a number that goes into payroll expense. The result? The data becomes “computer readable,” or interactive, so analysts, investors and regulators can easily compare one set of financial data to another.
Consider the following announcements and events:
Public company filings in the US: The last group of public companies that have yet to file XBRL financial statements with the SEC will start doing so for fiscal periods ending on or after June 15 of next year. These generally will be companies with market caps of less than $75 million or annual revenue of less than $50 million.
Domestic Banks: Earlier this month, Citibank announced that it was participating in a pilot involving the use of XBRL within dividend announcements issued by American Depositary Receipts, or ADRs. ADR dividend announcements were a logical starting point, because they’re concentrated among a relatively small number of issuers, and currently require lots of paper and re-keying of information, as this article in Earth Times points out.
US Legislation: True, a provision contained in early versions of the Dodd-Frank bill, and which would have required federal regulators to use a standard electronic format, like XBRL, when collecting info from the financial sector never made it to the final version. However, this summer Rep. Darrell Issa of California introduced a bill (H.R. 6038) that would amend Dodd-Frank to again include this provision. On July 30, it was referred to both the Committee on Financial Services and the Committee on Agriculture.
Along those lines, the House and Senate currently are hammering out legislation, the 2009 Federal Financial Assistance Management Improvement Act (S.303), which would require federal agencies to post spending data online in a uniform fashion – most likely, XBRL, NextGov reports. Just as XBRL will allow for easier analysis of corporate finances, this move would enable taxpayers and regulators to more easily examine federal spending and contracts.
Credit Agencies: Just before Labor Day, the SEC announced that a list of XBRL tags had been published on its website, and that nationally recognized statistical rating organizations (NRSROs) would need to begin using them by November 1 of this year.
Mutual Funds: By January of next year, mutual funds will be required to provide the SEC with summary information on risk and return from their prospectuses in XBRL format.
While XBRL’s benefits for investors have been the focus of much attention, the XBRL-related initiatives underway should benefit corporate America, as well, judging from a study by two researchers at Fordham University. In “XBRL and its financial reporting benefits: Capital market evidence,” Christine Tan and John Shon of Fordham write, “the findings of this study suggest that firms that file using XBRL experience a reduction in information asymmetry.” Moreover, XBRL may help smaller firms attract an analyst following, they add.
AT&T CEO Isn’t Impressed with Deloitte Study That Says Half of iPhone Users Would Switch to Verizon at the Drop of a Hat
Confidential to AT&T BSDs: Steve Jobs may be an asshole, but he’s not stupid.
Close to half of Apple Inc iPhone users in the United States would be “very interested” in dumping AT&T Inc for Verizon Wireless as a service provider, according to a study from professionals service firm Deloitte.
“If another carrier were to pick up the iPhone, you would probably see a number of defections,” said Ed Moran, director of insights and product innovation at Deloitte.
AT&T’S Chief Executive Randall Stephenson played down the potential impact of the loss of iPhone exclusivity at a Goldman Sachs conference on Tuesday.
Stephenson said about 80 percent of AT&T’s iPhone users were either in family plans making it difficult to cancel service or had received their phone through their business. [Ed. note: rumor has it that after making this statement, Stephenson was heard laughing maniacally]
Study finds iPhone owners want to switch to Verizon [Reuters]
Are Boomers Embracing the Always-Connected Attitude of Gen Y?
The following post is republished from AccountingWEB, a source of accounting news, information, tips, tools, resources and insight–everything you need to help you prosper and enjoy the accounting profession.
The technology use gap among the generations is closing rapidly. There may be no better example that hits home than Michael Winerup’s “Generation B” column in The New York Times, “On Vacation and Looking for Wi-Fi.” We all are touched, most of us are trapped by the psychological effect of being accessible 24/7 and the desire to keep on top of the deluge of messages and data coming in unstoppable torrents.
Winerup points out that just a few years ago the middle-aged members of his three-generation, geographically extended family vacationing together left their work and tech gadgets at home. Three years ago, a few made a visit to an Internet café on their vacation, just for the novelty of it. This year some of them stood in a long line in a resort lobby to pay for 25 hours of Internet service, brought laptops, and checked e-mail daily. This way they reduce the e-mail build-up awaiting them the first day back at work. I surely relate to that post-vacation return anxiety even as I resist checking e-mail every day when out of the U.S.
“We expect ourselves to be available,” said Winerup. That’s the Boomers’ mindset. Technology is making us work harder. Gen X and Y have been continuously connected for years, but many of them don’t want to be always available for work.
Winerup says we all are expected to use all the Internet tools for research and client relations. No more depending on secretaries and assistants.
The hit film “Up in the Air” made the point that critical human interactions, like layoffs, still require in-person contact. All the electronic connectedness not only can be a poor substitute for in-person higher touch contact, but it also leaves little time for the high touch. Now the connectedness has even invaded vacation time away with family and friends.
Is it positive or negative that the generations have something else in common?…I guess it depends.
Please share your thoughts.
Phyllis Weiss Haserot is the president of Practice Development Counsel, a business development and organizational effectiveness consulting and coaching firm she founded over 20 years ago, A special focus is on the profitability of improving inter-generational relations and transitioning planning for baby boomer senior partners (www.nextgeneration-nextdestination.com). Phyllis is the author of “The Rainmaking Machine” and “The Marketer’s Handbook of Tips & Checklists” (both West 2009). [email protected] URL: www.pdcounsel.com.
An Argument for Techie Accountants
My one piece of advice for the next generation of accountants right now is, enroll in some Computer Science courses. Learn to code. Learn how to manage a small server farm. Learn APIs, SQL, HTML5, JAVA, etc.
Drop that Poli-sci course right now.
Technical ntant’s best friend nowadays. It should be self-evident as to why. Data. Data. Data.
My first accounting gig was in a tax firm. We had an old mainframe crunching numbers and all the programming was in COBOL. In industry, reports would have all been generating output as text files; but who cares, there’s no ‘export to file’ function anyways.
Actually, that’s a good test. If you want to know whether your current software vendor is investing in the future of their product, look at the file output from your reports. If they come out as text files (you open Excel and each line of output is just one cell), this means the reporting architecture is really, really old.
It’s kind of like when you and your friends one-time go for an afternoon horseback ride. Inevitably, one person gets plunked on the beatest, tired old nag you ever seen. Yeah, technically she still rides but she ain’t even long in the tooth. All the teeth, they fell out.
Consider it the carbon dating of your accounting system.
You see, just because there has been consolidation in the ownership of companies in the enterprise software space does not mean the units have consolidated their products. Most units (purchased or raised) continue to operate independently. Revenues are generated from new sales obviously; but equally important, from a big, juicy installed base of maintenance contracts within the business units. You know that. And it’s fine. The amount of new investment in the product however, would be a corporate management decision from head office. Some products are the equivalent of that tired old nag.
Back to the point on technical skills though. Unlike back in the day, technology is no longer just auxiliary to what we do. It’s central and 100% pervasive. A commenter last week summed it up really well when I talked about the accounting tools:
“Three letters for you bitches, S to the Q to the mofo L.”
Getting a bit more techie will help you appreciate the humor in this quote. It’ll also help you recognize the tired old nag before you saddle up and ride.
In practice, normally we’re simply subject to whatever system happens to be installed. You deal with it, right? And that’s fine too. Recognition goes hand in hand with acceptance.
The reports kick out to Excel in text files; you find the delimiters, execute a ‘text-to-columns’ command, split up what you can and do your reporting. In the past, I’ve also had to occasionally create an Excel formula for pulling out text that’s really buried using the LEFT, RIGHT, functions. Then, I write a macro to automate as much as possible. Poor tired old nag.
Technology and data are just like riding a horse. With the correct instruction, you can get the horse to do what you want. But you’ll always be limited by what the horse is physically able to do.
If you don’t know anything about horses, this analogy might not make much sense at all. Which, I would say, just proves my initial point. Learn your technical skills now while you’re still in school. Leave all the fluffy horsebackriding and philosophy courses to the guys who’ll be serving you coffee after graduation.
In my view, technology skills are just as important for accountants as debits and credits. You may or may not like it, but it’s time to see how the dog food is made.
Enjoy.
Old farm adage: “If you’re going to have livestock,… you’re going to have deadstock.”
Geoff Devereux as been active in Vancouver’s technology start-up community for the past 5 years. Prior to getting lured into tech start-ups, Geoff worked in various fields including a 5 year stint in a tax accounting firm. You can see more of his posts for GC here.
Credentials for Accountants – Your Wheelbarrow Barrel Needs Tech Tools
Over the last couple months, GC has been profiling various accounting-related credentials. CPA, CFP, CMA, CIA, CFE, CVA, CFA… it’s a veritable alphabet soup of designations and employers are more and more likely to ask for a second helping these days. And you might want to pick up an MBA while you’re at it too. Y’know, in your spare time. In Canada, you can go ahead an //www.cga-canada.org/en-ca/Pages/default.aspx”>CGA, CA, and CBV to the mix as well.
Another day, another designation for yet another self-regulating body.
We’ve all heard of “grades inflation.” Well, in my view, we’re currently subject to “credentials inflation” at a rate that would make a Banana Republic cringe. In contrast, Zimbabwe Ben would likely nod in approval.
Beyond credentials though, there’s another critical piece in the employment puzzle that you would be well advised to consider as you venture into the field. Tools.
What are an accountant’s tools?
I’m not talking about the wheel barrel you’ll need to cart all those credentials to your job interview. I’m talking about the business software that more and more employers want pre-installed on their prospective employees.
At the entry level, it tends to be more of a ‘nice to have’ than a ‘must have’. But more and more, your progressive career path is affected by the type of tools you learn early in your career. There’s just no way to separate accounting and finance from the technology that facilitates accounting and finance work.
In the small business space, this is less of an issue. One small business accounting package is much like another. The “canned” reports (built in) will largely suffice, point and click. Just get yourself a healthy functional skill level with MS Excel and you’re ready to go.
Moving up into the enterprise, it’s a different story. The difference between having experience with Quickbooks versus SAP is akin to the difference between a degree from Eastern Michigan University and Princeton.
Think about that when you are venturing out into the job market for the first time. What are your aspirations? Where do you want your career to take you?
It’s difficult to blame employers for this predilection. Enterprise software is complex, subject to cryptic reporting languages, and training is expensive. The expertise is seldom institutionalized within the enterprise instead residing in the head’s of one or two key people. The “gurus.” Sometimes the expertise just walks right out the front door. It’s just way, way easier for everyone when “the new guy” can hit the ground running.
We may see this sad reality change in time.
Marc Benioff, CEO of Salesforce.com, is a key person leading the charge for change. He is an out-spoken advocate of the “consumerization” of enterprise software. In Benioff’s view, enterprise software should be as easy to use as Facebook and we’re seeing this manifest with every iteration of the Salesforce.com platform.
Unfortunately, Salesforce is the exception rather than the rule and the incumbent systems are deeply rooted in business. The technology “stack” as it’s called is built up over time and choices of enterprise systems are traditionally big, capex decisions. Change is rarely proactive and technology is normally kept well beyond the end of its useful life.
The complex enterprise systems will continue to be persistent for sometime to come. So be prepared to factor this into your career calculations. When you’re out there looking for work, ask the question of prospective employers. What systems do you use? Then, research that system to figure out its prevalence in the market: Are they using some niche software product built upon an ancient architecture? Is it a proprietary system that you’ll never see again? Is it a “legacy system”? Is it vertical specific?
Don’t underestimate the importance of these questions. No one has the bandwidth to learn all the tools currently offered. Examine your career aspirations carefully within the context of these technology tools because it can be difficult to backpedal. The tools you learn have just as much bearing on your career as the credentials you chose.
And inflation is a fact of life.
Geoff Devereux as been active in Vancouver’s technology start-up community for the past 5 years. Prior to getting lured into tech start-ups, Geoff worked in various fields including a 5 year stint in a tax accounting firm. You can see more of his posts for GC here.
Cautionary Tales: Enterprise Software Edition
A few weeks ago, I was talking about CRM (Customer Relationship Management) software. Essentially, CRM should help a company (as Dennis Howlett – business software blogger put it), “sell more stuff.”
I don’t have a problem with that result. We can argue all day long abo really “needed” as opposed to “pushed”. That’s a philosophical debate, indeed, it’s a MORALISTIC debate. In Obama’s address to the USA (re: BP oil sands) he prayed for a “hand to guide us.” Was he talking about the hand of god, or the invisible hand? … But I digress.
My point about CRM was much less lofty. CRM systems are simply about attempting to know your customer. How much data can we collate and analyze in order to maximize our value proposition? Or, if you’re a cynic – how can we, as Homer Simpson would say, “cram one more salty treat into America’s already bloated snack hole?”
Sidenote: Back in the heyday of the SUV craze, there was a great interview on 60 Minutes with some analyst/pundit who described the motivation that seemed to underlie the populating of these beasts. He described it as “reptilian.” The term stuck with me and I find it helpful to think about in around any purchasing decision of consequence. A well executed CRM can create a veritable “Jurassic Park” of suckers if that is what one is so inclined to create. Although, it doesn’t have to be that way. It doesn’t have to be evil.
My point this week though is less about CRM per se and more about what happens when an enterprise software implementation goes awry. A different kind of evil. There have been two big stories recently detailing lawsuits being leveled against firms who had been contracted to install an enterprise system and had allegedly failed to deliver on the contract.
In one case, EDS (now owned by Hewlett Packard) just agreed to pay British Sky Broadcasting $460 million for a failed CRM implementation. This was from a project undertaken in the year 2000 and abandoned two years later. The settlement is four times the value of the budgeted project cost.
In a second case, Marin County, CA is suing Deloitte Consulting for an alleged failure in rolling out an ERP (Enterprise Resource Planning) system. Marin County is seeking $30 million. Their contention is that Deloitte didn’t have the technical skills on the software in question. That’s an important point. This type of technical skill is of the “use it or lose it” variety.
So, is that the answer? When a software implementation goes awry, you sue everyone? Well, sometimes.
You see, buying an enterprise software system isn’t like buying a vehicle. You can’t just hand the wheel over to your reptilian brain and pray for the invisible hand to hook up financing and you’re on your way.
There’s work involved, normally a third party, that is paid to configure the software and integrate it into your organization’s existing infrastructure. In a complex business model, the process of defining and integrating all the business rules, data flows, and connections can be daunting… sometimes, impossible. Failure, unfortunately, is always an option.
These recent examples deal with alleged failures on the part of the third party implementers, but failures can occur anywhere within “hell’s half-acre.”
I’ve seen examples where it was clearly a management failure to provide project leadership that created an implementation failure. The example I am thinking about resulted in the company taking a $2 million dollar charge then having to start over. When I went to see them, it looked like they were heading right back down the same road. Making the same mistakes. Me? I can’t help someone who doesn’t want to be helped.
Some folks point to Saas products as a way to alleviate these nightmare scenarios. If only it was that easy. Wherever a business has an existing IT architecture, there is the possibility of an integration problem (assuming you want integrated systems which I have to believe that you’ll want). There is another company I can think of who, when I met them, had been working for at least 6 months on an integration with a Saas ERP system and their back office. For a number of reasons, it really just didn’t seem like it was going to work. And the red flag for me was that the CFO and the Director of Finance had vastly different views as to how the project was going.
These are just a couple examples I can name from my own experiences and I’m not even in the software implementation game!
The moral of the story is know the statement of work inside out. Understand the terms of the contract. Technical skills are finite. Be very clear on the desired outcomes.
And beware of the reptilian brain.
Geoff Devereux as been active in Vancouver’s technology start-up community for the past 5 years. Prior to getting lured into tech start-ups, Geoff worked in various fields including a 5 year stint in a tax accounting firm. You can see more of his posts for GC here.
AICPA: CFOs Want More Input from Auditors on IT Matters
This story is republished from CFOZone, where you’ll find news, analysis and professional networking tools for finance executives.
Certified Public Accountants are increasingly being asked to solve information technology problems for clients and prospective clients, according to a survey by the American Institute of Certified Public Accountants.
But that raises a potential conflict of interest of the sort that led the Securities and Exchange Commission to keep auditing and IT consulting separate. The pressure for auditors to help provide IT solutions will persist nonetheless, says the AICPA.
“The tide has really turned this year with the economy and increasing regulations,” said Joel Lanz, co-chair of the AICPA’s Technology Initiatives task force in a prepared statement.
“As small and medium-sized companies increasingly place IT under their chief financial officers, it’s becoming much more of a broad scope of responsibility,” added Ron Box, Lanz’s co-chair.
With a renewed focus on IT-related issues, the survey makes clear that CPAs need to be literate about information technology in order to collaborate effectively with clients and their IT partners.
Data security clearly is driving the new interest, and CPAs believe the issue will persist in importance for years, the survey suggests.
The biggest surprise from the survey, Lanz told CFOZone, is the fact that “CPAs are not only providing guidance on financial issues, but there is an expectation by audit committees that CPAs could advise on different IT governance issues. CPAs are now commenting to audit committees about business operations in addition to pure financial issues.”
It’s not that CPAs are expected to be the technology expert, but the expectation is that the CPA is able to provide business insight and IT guidance which then enables their clients to effectively leverage their technology to enhance the businesses value, he added.
Is this simply recreating the problem that led to the separation post-Enron and WorldCom of audit services from consulting, much of which was IT oriented? There’s the potential for a conflict of interest here, and a slippery slope toward bad audits as result. SEC rules specifically say audit firms cannot provide IT consulting services on matters that relate to financial reporting for the same client. And the audit committee must sign off on other types of consulting services.
Lanz concedes that CPAs will have to be careful. “It is a fine line,” said Janis Parthun, senior technical manager – IT, for AICPA, but she added that CPAs can help companies avoid problem here. “Sometimes audit committees do need some education in these areas and this is where they can reach out to CPAs that have some understanding of IT to give the audit committee options to make the right decision.”
Lanz adds says that the AICPA has helped on this front with some recent guidelines. “Recent standards provide CPAs with specific criteria for when they need to communicate with audit committees, as well as the type of communication required,” he said.
A spokesman for the Securities and Exchange Commission declined to comment on the trend.
Convio Users Indicate That Things in the Nonprofit Sector Aren’t So Bad
Convio provides technology solutions to nonprofits and recently released a bit on its user base, showing pretty reassuring data that things are not that bad in the nonprofit sector.
When the Nonprofit Finance Fund released its 2010 outlook earlier this year, a nice calming Xanax was recommended before reading. So this is certainly a bit of good news for nonprofits, at least for the customer base from which the data was compiled.
Online giving grew 14 percent despite a difficult economy. Overall, 69 percent of organizations raised more in 2009 than 2008, while 31 percent saw declines in their online fundraising.
An increase in gifts drove fundraising gains. Of those that grew fundraising in 2009, 92 percent saw an increase in the number of gifts in 2009 compared with just 43 percent of organizations seeing an increase in their average gift amount.
Small organizations grew fastest. Organizations with fewer than 10,000 email addresses on file, many of which are participants in the Convio Go! program, grew online revenue by 26 percent, and gifts by 32 percent.
Web traffic growth continued for most, but at a slower rate. 60 percent of organizations grew their website traffic from 2008 to 2009. Web traffic growth in 2009 was in the single digits at 6 percent compared with double digit growth seen in previous years.
Web traffic was strongly correlated with email file growth. 38 percent of an organization’s success building large email files could be directly attributed to the amount of traffic to the organization’s website.
This year’s study analyzes data compiled from 499 nonprofit organizations that have at least 24 months of data to compare. The study aggregates results into benchmarks that nonprofit organizations can compare against their peer group and the industry as a whole. In addition the study provides separate benchmarks for 15 nonprofit industry sub-groups, or verticals across 19 key metrics. In total Convio’s clients raised more than $920 million online in 2009.
Convio Releases Annual Study of Nonprofit Sector’s Online Fundraising and Marketing Trends [BusinessWire]
The Technology Productivity Bureau Accounts for All Stakeholders
We all know about getting a credit rating. Whether it’s for a personal credit card, a supply chain vendor authorization, or the much maligned oligarchy who rate public companies and entire nations. Based on al ion, a score is developed that (attempts) to capture the inherent risk of a credit failure.
How much could firms benefit from getting a Technology Productivity Rating?
What is the risk of a technology failure?
If an objective ratings agency existed that scored a company’s use of technology, how well would other people score your company? Who is the ‘Greece’ of technology?
To rate technology productivity, the rating has to encompass the entire organization and the way in which technology extends to external stakeholders (customers, suppliers, staff, etc). Optimal productivity from technology doesn’t simply mean newest technology. It’s not just about what technology a company uses that matters. It’s about how the technology is used. I met with a colleague in the technology industry recently who went so far as to say there’s still times when a FAX is the optimal technology for a task. It depends on the potential outcomes and workflows.
To date, I think the focus of technology productivity has been too inwardly focused in companies. Companies say, ‘How can this technology benefit us?’ instead of looking at the workflow effects for external stakeholders too. Granted, most organizations are completely overwhelmed simply by this one-sided approach. But if you look closely at some productivity software, part of the “technology” benefit is actually a workflow transfer to external parties. If I had to rate the technology, the score would decline in the event of workflow transfer being masqueraded as technology.
For example, look at productivity tools around supply chain management and recruitment:
Supply Chain Management
As a means to increase productivity, big companies implement supply chain management systems that effectively transfer the burden for account administration to the vendor companies (sometimes they even charge a fee!). For the implementing company, it is great. All the vendor information is keypunched and filed away into the database for free.
The system integrates with the ERP for invoice approvals all the way to point of payment. The internal technology productivity score is high. For the vendor, every new customer could conceivably mean a similar routine resulting is a productivity loss and therefore would rate the technology lower. A vendor with a lot of customers practically needs a Mechanical Turk just for the data entry!
Seeing these scores could be really beneficial when vendors are choosing what customers to prioritize.
Recruitment
Recruitment technology can be burdensome to external stakeholders while being helpful to internal stakeholders in a similar way. The key to recruitment technology is capturing candidate data to enable filtering and search. Some technology in this field is simply transferring the data entry task to the candidate. Each candidate types out their life story field by field, row by row. From the company standpoint, they see the output of the technology. It is good. From the candidate standpoint, they see a time sink.
Taken in isolation, this candidate time commitment is not a big deal. One candidate typing their qualifications one time in response to one job posting is fine. But what happens when the candidate is applying at a dozen jobs? Two dozen? At what point does the opportunity cost of doing a whole bunch of data entry deter the brightest candidates from these particular employers?
The brightest candidates will apply to the companies that DON’T require a massive typing drill first, selecting away from this less productive technology until it’s unavoidable. The overall technology productivity score would take this into account.
For a company purchasing new technology, understanding the opportunity costs both from your perspective and that of external stakeholders and developing a Technology Productivity Rating may not become a formal process. There is no Technology Productivity Bureau, or least, there isn’t anymore. There was… for a short time… an idea before its time… may it rest in peace.
Perhaps it’s enough to look at it from a more macro-level. Ask yourself, is my business technology liberating for stakeholders or, or are they being repressed? Then, act accordingly.
Geoff Devereux as been active in Vancouver’s technology start-up community for the past 5 years. Prior to getting lured into tech start-ups, Geoff worked in various fields including a 5 year stint in a tax accounting firm. You can see more of his posts for GC here.
Marin County Accuses Deloitte of, Among Other Things, Using ‘Neophytes’ on SAP Project
Deloitte is being sued by Marin County in California, who is alleging fraud by misrepresenting its “skills and experience.” In other words, the County says that D used their ERP project as more or less a training ground for its newbie consultants. And no client likes it when you bring the blades of grass on site. They can’t even turn on their laptops without causing some sort of scene, amiright?
Channel Web has some of the particulars:
The County in April 2005 hired Deloitte to implement its SAP ERP system. However, the County alleged in the court document, “rather than providing the County with SAP and public sector exp d the County’s SAP project as a trial-and-error training ground to teach its consultants — many of them neophytes — about SAP for Public Sector software, all at the county’s expense.”
Plus! The County claims Deloitte promised their very best people. From the complaint: “Deloitte further represented that for the County’s SAP implementation, Deloitte had assembled a team of its ‘best resources’ who had ‘deep SAP and public sector knowledge.’ ”
A Big 4 firm promising their best and brightest on the job in an RFP? There’s a shocker. “Best” being relative, as we all know but Marin County (obviously not familiar with a Big 4 sales pitch) must have been expecting a team to fly in from hyperspace that could slap this thing in lickity.
Thankfully, Michael Krigsman explains over at ZDNet that this isn’t exactly rare:
1. The court filing describes sales practices that are common through the consulting and systems integration industry.
For example, the complaint alleges that Deloitte committed to “dedicate our best resources and bring tailored implementation strategies to meet [Marin’s] long-term needs.” Many IT customers complain their system integrators do not follow through on such commitments and use inexperienced labor in attempts to reduce their own costs and increase profits.
We’d be so bold to say that this true of many Big 4 engagements, whatever the service line. Newbies have to get their teeth cut somewhere – why not on a public service job where money obviously grows on trees?
Deloitte isn’t impressed with this gnat of a lawsuit, claiming that they did exactly what they were supposed to do (not to mention to put up with the amateurs at MC that have zilch ERP experience) and the system was working just fine when they left:
As stated previously, we fulfilled each and every one of our obligations under the contract, as evidenced three years ago when all of our work was approved by the County officials responsible for the project. To be clear, the SAP (NYSE:SAP) software was working properly when we completed our work in November 2007. Not only is the complaint without merit, but we are filing our own claim against the County for breach of agreement and unpaid invoices. Although we are confident that we will prevail in court, it remains our belief that this dispute can and should be resolved in a more logical fashion that benefits the County and its taxpayers.
So Deloitte gets a little huffy basically saying, “Suck it, Marin County. MBAs love Deloitte. OH, and btw, you owe us some money,” but ultimately wants to keep things civilized for the sake of the taxpayers. Let’s hope it stays childish just for the sake of entertainment purposes. Taxpayers in California are f—ed anyway.
Marin County complaint against Deloitte Consulting on failed SAP project
California County Sues Deloitte For Fraud In SAP ERP Project [Channel Web]
Marin County sues Deloitte: Alleges fraud on SAP project [IT Project Failures/ZDNet]
Customer Relationship Management – Know Your Customer, Know Yourself
The first rule of business is “know your customer.” So, how do you do that?
This is the question that brings you into the field of CRM (Customer Relationship Management). I remember working in a tax firm back in the early 2000s and all client correspondence was hardcopy in the file. Our “CRM system” was rows of filing cabinets.
A sales forecast? rked at a company where the sales forecast was an excel spreadsheet that physically gave me vertigo just looking at it. Updating that thing was like a game of Tetris.
A “real” CRM system consolidates all of your company’s customer interactions and sales activities into one database. It enables sales and marketing to detail the entire sales process from Lead to Close. And now it’s the difference between “knowing your customer” and living in the dark ages.
I only started seeing these systems spring up in mid-sized businesses a few years ago. How much are you guys seeing CRM out there now? Does your CRM system integrate with your other business systems? Or is it more of a Contact Manager?
For example, I have seen an instance where the CRM software operated as its own sphere of information. Then, we had the company financial information as its own separate sphere. To connect the sales pipeline info (from the CRM) to the financial results was a manual task.
I’m throwing it out there because my own experience with CRM in the SMB/SME space is limited to using Salesforce.com. I spoke about them briefly when I introduced Saas and Cloud Computing a few weeks ago. I must sound like a Salesforce salesperson but I’m not. I just found that Salesforce 1) put CRM on the radar for the SME I was working for at the time and 2) was inexpensive and easy to deploy.
The other main Saas CRM play is Sugar CRM. Both Salesforce and Sugar CRM have free versions. A very small business could probably operate on the free version for ever. Most mid-sized businesses could use the free version to test the fit of the product’s process flows before committing to rolling it out throughout the business.
In large enterprise, the CRM is probably big enough to just be called “the system”. Let’s say you are working for a bank or an insurance company. “The system” knows things. Next time you are speaking to a call center representative, ask for a summary of your own history. You might be surprised what details are lurking within the system. These can be simply contact histories or can also incorporate decision-making capabilities (i.e. loan or credit card approvals).
Retailers capitalize on this technology through the use of Loyalty Programs.
The real power behind CRM, for those not currently using this type of software, is the ability to clarify the sales pipeline and to consolidate customer interaction. You can detail right from Cold Call to Close and you can get the analytics to visualize the process too.
We’re right on the cusp of even bigger innovations in this field. Just look at some of the things Google is doing right now with respect to data and data visualizations (Google Trends – Google public data – Google Analytics). Sentiment analysis is appearing to gain traction as well. To blow all that out into the CRM realm means really powerful insight into customer behavior.
The success or failure of the CRM is linked directly to the quality of data in the system. This is where the “know yourself” bit comes into play. Where you can automate, do so. Trusting a salesperson to voluntarily do data entry is like trusting your road-trip navigation to a poet. Not good. Again, great strides continue to be made here. Between the increasing migration of transactions and activities online, and the tools allowing for Salesforce Automation (SFA), the direct maintenance on this type of system can be minimized.
For those of you unfamiliar with CRM technology, maybe you’re working in smaller companies or companies with a legacy of paper-based CRM, Saas solutions like Salesforce and Sugar CRM are worth checking out. It’s a place to start. And it’s free to start.
We would really like to hear from you on this issue as well. What has your experience been with CRM?
Geoff Devereux as been active in Vancouver’s technology start-up community for the past 5 years. Prior to getting lured into tech start-ups, Geoff worked in various fields including a 5 year stint in a tax accounting firm. You can see more of his posts for GC here.
How Much Can Switching to Cloud Computing Save Your Business? Ask Google’s Cloud Calculator
Still blindly dismissing the benefits of cloud solutions for your small business? Fine. But at least crunch the numbers.
Using the Go Google cloud calculator, any sized business, at any stage in its life can calculate the savings by switching to, in this case, Google Apps:
As you noticed, you can change the assumptions for your own company including the number of employees, your IT Manager’s salary, the size of your employees’ inboxes are and more to calculate not only money saved but time saved. At the end of the little Q&A, you can present your findings to your business partners and employees to evangelize your great idea.
Take a test drive into the cloud [Google Blog]
Mario Armstrong: Cloud Computing, SaaS, Social Media Are Tools for All Small Businesses to Consider
Earlier this week we got the chance to speak with Mario Armstrong, on-air tech contributor for NPR’s Morning Edition and tech contributor to CNN. We discussed several technology issues, including SaaS and social media, for small businesses to consider to mark National Small Business Week.
There you have it! Cloud solutions, SaaS, social media. They’re all important tools for small business owners. You can spend your weekend boning up.
Survey: Stone Age Processes Combined with Unrealistic Deadlines Lead to Accountant Stress During Closing Period
Lots of you in-house accountants have the unenviable task of magically closing your company’s books on a monthly basis come hell or Hurricane Katrina. Unit4 Coda’s recent survey found that this can be a stressful time (shock!) but, despite what you hear from that dick technical accounting manager, it’s not all your fault.
One problem, according to the survey, is that several accountants are still relying on spreadsheets for many of their closing processes. Now we realize that your Excel addiction may not be something you’re interested in kicking to the curb but it really might be for the best.
But your resistance to change isn’t the only problem; you can blame management’s bullshit deadlines too and the fact that they don’t listen to you when you try to tell them (via whispers to yourself in your cubicle) that said deadlines are completely unrealistic:
Contributing factors include being held to unrealistic deadlines, ineffective processes, an over-reliance on spreadsheets and inaccurate reporting. The survey also revealed that among the top contributors to stress was the apparent disconnect between executive management teams and accountants.
Over 66 percent of the survey’s respondents(1) said an average close period takes over five days to complete, but the survey also revealed that more than 55 percent of accountants are expected to complete a close in a maximum of five days.
With tight management deadlines to meet, efficient systems and processes need to be in place in order to ensure accuracy and speed. However, the survey results also revealed that 53 percent of finance departments do more than 20 percent of their close period activity manually via spreadsheets, leaving larger room for error and a requirement to improve automation.
So if this sounds remotely like your work environment you have a couple of options: 1) have a frank discussion with shot callers in your office about investing in some technology from the 21st Century so the deadlines can be met or 2) continue with the current approach until you go postal. Choose wisely.
Inefficient Period Close Processes Are Major Cause of Accountant Stress, UNIT4 CODA Survey Finds [Unit4 Coda via Web CPA]
Cloudsplitting: Recognizing the Tech and Business Cloud Narratives
Cloud Computing can be an intimidating subject area simply due to the sheer number of articles, blogs, conferences, and information on the matter. My goal in this post is to split the discussion based on the perspective of the writer.
While researching this post on “Cloudsplitting”, I became formally acquainted to the concept of an unreliable narrator:
“a narrator, whether in literature, film, or theatre, whose credibility has been seriously compromised.”
The nature of the narrator may be immediately clear or it may be revealed later in the story. Sometimes it is revealed at the very end, at which point you find out your narrator has been totally unreliable! This makes yo story… which you should…. the guy was unreliable.
I think it’s a great concept! The first example that jumps to mind would be Kevin Spacey’s character in The Usual Suspects (Warning: Swears… Gonzalez sized swears).
I stumbled on the concept, the actual term, thanks to Cloudsplitter, the book. It’s a fictional retelling of Harper’s Ferry from the FICTIONALIZED point of view of John Brown’s son.
The author, Russell Banks, creates new context around the real events through his imagining of what Owen Brown’s views might have been. In this case, John Brown comes off as a lot less crazy than he may have come off otherwise.
(It’s also a hill in upstate NY near Bank’s home – ‘Tahawus‘ is the native Algonquin name for Mt. Marcy – the highest peak in the Adirondacks. It translates to ‘Cloudsplitter.’)
Emotional attachment and years of hermit-like isolation warp the perspective of our fictional version of Owen Brown. Unreliable. Quite frankly, I’ve seen the same in business.
I don’t want to fall for the same mistake.
We’re not hermits holed up in a cabin somewhere living on bottled water and beef jerky.
That’s one of the biggest differences between the introduction of Cloud technology and the introduction of previous computing technology. This time around information abounds. Whereas in the past, information about new technology was carried through very limited channels. And even then, it may have traveled indirect routes.
With our proliferation of information, it’s more important than ever to consider the source of the information. After all, the greatest trick the narrator ever pulled was convincing the world he didn’t exist…. or something.
Be it me and my Cloud Computing story or the guy at your office who waves his arms and decries this “parlour trick” technology.
Where is your information coming from?
I’ll point you to a few resources in a minute that, hopefully, will pass the narrator reliability test. First, if I may, I want to take the opportunity to split Cloud Computing into two separate camps.
In one camp, we’ll have Techie Cloud. In the other, we’ll have Business Cloud.
Techie Cloud:
This is the stuff relating to the functioning of a cloud environment. What’s the architecture? Where’s the data? How do I manage it?
It’s the kind of stuff your Systems Administrators and DBAs and IT Managers would want to know. For instance, I want to play around with Amazon Web Services to create a new computing environment. Do I need any special tools to work there?
Yes, there’s a front-end tool called Rightscale that makes creating a computing environment easy.
While interesting from an academic perspective, your average business user will probably get limited value from seeking out tonnes of information about Techie Cloud. Recognize it when you see it.
Business Cloud:
This is the stuff relating to using cloud-based software. The business user who is looking for a “consumerized” web experience. What does it do? Is it easy to learn? What’s the cost? How do I sign up?
It’s the kind of stuff the accountants, marketers, and salespeople would want to know. For instance, I want to find a way to manage my team’s projects. Can I get going with something quickly?
Yes, try Basecamp.
And Business Cloud is separate from the business of cloud which we’ll get into later.
The reason I am going around Cloudsplitting is because the content I’ve been finding lately doesn’t discriminate with respect to audience. You are as likely to jump into an article that’s geared toward IT as you are to find an article for a Business User’s perspective.
Forward the Techie Cloud articles on to your IT departments. There’s a view out there that Cloud is going to make IT deparments obsolete. I disagree. I think Cloud will free up IT from the mundane custodial services of server maintenance becoming a more strategic partner with management. I’ve written before about accountants being the dishwashers of business. We’re the dishwashers and IT are the custodians (or janitors if you want to be unkind about it).
And remember:
Evaluate the reliability of the source. Evaluate for audience.
Techie Cloud
8 Tips for Getting Started in Cloud Computing (by Rackspace)
What Does the Future Hold for IT? (Bloomberg)
Cloudcamp – formed to provide a common ground for the introduction and advancement of cloud computing
Business Cloud
ICPA Trusted Business Solutions (CPA2Biz) – all of these are Saas offerings
Tourist in Techie Land: Reporting from Cloudcamp Vancouver (me)
IBM CTO at Interop: Consumerization of IT is a Driving Force (ZDNet)
Geoff Devereux works in a marketing/social media role with Indicee, a Saas Business Intelligence company, bringing B.I. to mere mortals. You can see more of his posts for GC here. H/t to Jesse from Cloudsplitter Mountain Guides for the translation and Greg_Smith for the pic.
Spreading the Good SaaS Word
“How dare Sage criticise anyone else! They exist because clients and accountants don’t want to change. If only clients could see what SAAS would give them (provided they had the right accountants). Perhaps I need to become an evangelist!”
~ Unnamed accountant, commenting on Sage’s tepid position on SaaS.
Grant Thornton Survey Shows That CFOs Might Be Ignoring the SEC’s XBRL Deadline
It has been well established in these pages and elsewhere that the SEC has had its share of problems. Take your pick: 1) missing the biggest financial fraud in the history of the world 2) hiring an army of porn-addicted accountants and lawyers to protect our markets 3) waffling on IFRS 4) did we mention missing huge frauds?
To be fair, the Commission has been working hard to redeem itself by cracking down on dubious activity (from Goldman to Overstock), hiring more fraud experts and giving those tranny porn-obsessed employees a second chance.
Regardless of the turnaround-in-progress, CFOs in this country seem to have ceased taking the SEC seriously. Sure the 10-Ks and Qs still get filed but those were in place long before the wheels fell off.
In a recent survey, Grant Thornton found that, despite a SEC deadline for public companies to utilize eXtensible Business Reporting Language (XBRL), a fair amount of CFOs don’t seem all that worried about reporting their financial statements using the technology:
64 percent of public companies do not currently report financial results using eXtensible Business Reporting Language (XBRL); and of those, half have no plans to in the future even though the SEC mandated that public companies have to report their financials using Interactive Data by 2011.
“It’s concerning that almost a third of public companies still have no plan on using XBRL to report their financials despite the requirement that all public companies comply with XBRL filing requirements by mid-year 2011,” said Sean Denham, a partner in Grant Thornton’s Professional Standards Group and a member of the AICPA’s XBRL Task Force. “I foresee a lot of companies playing catch up as the 2011 SEC deadline approaches.”
Whether this lack of action can be attributed to defiance, fear of technology, or pure laziness is not explained but we wouldn’t rule out the possibility that the SEC has an outright mutiny on its hands.
A third of public companies have no plans to use XBRL – despite SEC mandate requiring XBRL use by 2011 [GT Press Release]
Also see: XBR-Lax [CFO Blog]
Just Because Cloud Companies Pay For a SAS 70 Doesn’t Make It Any Less Legit, Does It?
Confession: not 100% sure on the hype surrounding SaaS, cloud computing, living in the cloud and whatever but apparently it’s the next big thing (if it’s not already) and might make our lives just one notch short of Jetsons flying car awesome.
Ask guys like Geoff, he’ll tell you all about it. I buy it and I don’t even need to use it, have heard amazing things, and have even evangelized it once or twice.
But it’s your data so instead of jumping on the SaaS/Cloud bandwagon without asking what happens to it once you do, it might be wise to check out the SAS 70 certification and the strange relationship that legitimizes it.
Complying with the AICPA lends a certain bit of credibility to vendors who want to show how tight their control systems are so auditors can rely on them, right?
Perhaps not, says Jay Heiser via Gartner in “Analyzing the Risk Dimensions of Cloud and SaaS Computing,” who is concerned by a sense of deja vu between the faulty systems that collapsed throughout the financial crisis and cloud computing. In an extremely risk-adverse environment, a bit of caution is due before jumping head first into the unknown.
Or you can just trust the shiny marketing materials and forget that it’s your data.
Now back to cloud computing and SAS 70. Okay, let me get this straight: So the cloud companies pay accounting firms for SAS 70 certifications just as the financial organizations paid Moody’s for an investment-grade rating?
“Yes, if you see someone who claims to be SAS 70, they have paid an accounting firm. Not only have they paid an accounting firm to go do the test, but they’ve told the accounting firm what processes need to be tested,” Heiser says.
And that’s different from an audit client paying an auditor how?
In a financial crisis corollary, Big 4 opinions are fetching less these days than they used to. Cloud computing marketers don’t really get what they are pushing but cloud provider clients certainly should understand what this means for the shift to life in the cloud.
Better start updating those marketing materials.
How Cloud Computing Security Resembles the Financial Meltdown [Datamation]
It Was a Dark and Stormy Night…or: Cloud Computing and SaaS Briefly Explained
Figuring out how to sum up Cloud Computing and Software as a service (SaaS) in the space of ~800 words would absolutely require the biggest, puffiest, most cumulus metaphor that ever precipitated understanding over the dry, barren plains of ignorance EVER! Something like….