It’s all about recovery
During a review meeting with one of my Xero Partners the other day, it happened again. The question arose as to why some UK firms are more accepting of the shift to online accounting than others, and what makes the difference?
There have always been similarities between firms; these include the client demographic, numbers of clients, numbers of partners, etc. but I was even more curious and dug a little further to satisfy my own curiosity.
The answer lay in one simple aspect for this practice – recovery.
The firm had seen recovery rates grow to an average of 95% for those of their clients using Xero, an increase in real terms of nearly 20% compared with their traditional clients. They attributed this to the fact that servicing clients on Xero has meant that there has been an reduction in lost chargeable time and an improvement in internal workflow efficiency.
The impact of this change to recovery has meant that the partners are happier with the financial performance of the practice, they are reducing the amount of work in progress, billing quicker and leveraging additional incremental fee income from those very same clients. All by bundling services together using Xero as the platform. Many of the staff are now trained and fully Xero Certified and are able to respond more quickly to client issues and provide advice on real time information rather than historical.
The key for this practice was the recognition that there are now better ways to process traditional compliance based work online, while enabling them to offer more of the advisory services that their clients want and, in this recovering economic context, badly need.
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