A US take on Intuit's Amazon journey
Carrie Kahn will be presenting at Accountex USA 2018 in Boston, August 22-23. Click on this link for a complete list of conference speakers.
Hosting is a hot topic. As more and more companies move to the cloud, improvements are being made continuously to improve the reliability of their services. As you may see posts on social media, your feed may become loaded with reports from customers and QuickBooks ProAdvisors when their QuickBooks Online is down.
These outages happen unexpectedly and can cause a business to lose money. ProAdvisors are unable to do their bookkeeping and cannot charge their client for their downtime. Intuit has been listening to the complaints and has recently been making significant changes to address them — including moving QuickBooks Online to Amazon Web Services.
Intuit recently announced its plan to move hosting for QuickBooks Online to Amazon Web Services (AWS) to “accelerate developer productivity and innovation.” Intuit sold its largest data centre located in Quincy, Washington. Many major corporations are finding it is better to move to AWS than to run their own data centres. A few years ago there was some concern about the security of Intuit data centres, as well as some concerns about reliability. This move to AWS will address both concerns.
Slower performance
Intuit’s data centre was dedicated to TurboTax and QuickBooks Online. As you can imagine, TurboTax caused the data centre to spike during tax season, which resulted in slower performance for QuickBooks Online users, or even outages. This transition should bring more stability to QuickBooks Online users — which is GREAT news!
During tax season, Intuit started the migration of TurboTax to AWS and was finished by the end of tax season. Intuit is currently in the process of transitioning QuickBooks Online over to AWS, and expects to be done by later this year. The goal is that AWS will be able to accommodate spikes from customers during tax season for TurboTax and QuickBooks Online customers, making the service more reliable.
Xero made this transition in 2016 to improve their infrastructure and deliver enhanced customer experience. The switch to AWS provided an opportunity to continue to improve the technologies that help Xero function. It is exciting to see that Intuit is going down this path now too.
This announcement may be great news for QuickBooks Online users. We have spoken and it appears that Intuit has taken our feedback and is making changes that will improve QuickBooks Online service. We hope to see improvements in reliability and scalability for customers, developers, and ProAdvisors using QuickBooks Online.
Marketing Monthly: Why bother with social media?
Welcome to the third Q-and-A session focusing on marketing for accountants… with Amanda C Watts
Q. Why should accounting firms bother with social media, especially when so much business comes from word of mouth? I get asked this question often.
A. Word of mouth and referrals are a great way to feed your accounting practice in its early days. Driving referrals throughout your sales process is a must for recurring business... but relying on referrals alone will only result in unpredictable client acquisition.
Which is why you need to create a marketing engine that generates leads and attracts high value clients.
Social media is a tactic that is a vital cog in this engine. One thing you need to realise is that social media marketing is like fitness. It has to be frequent, results rarely happen in the short term, and no one else can do it for you.
However as 70 per cent of your sales process is carried out before someone reaches out to work with you and speak to someone in your firm, you need to be visible online.
This means writing regularly in the form of blogs and articles
Being featured on podcasts and as a speaker at events
Running your own events or webinars
Having a way to get people’s interest with a lead magnet
And none of the above will be seen or heard by prospects if you do not have a way to get in front of them in droves.
Which is why social media is an essential cog in your marketing engine.
- You need social media to be visible.
- You need social media to share your thoughts and insights
- You need social media to build relationships with ideal clients
- You need social media to attract joint venture opportunities
- You need social media to share your event details
- You need social media to drive people to your website
- You need social media as social proof for those who have been referred to you
- You need social media to build your personal brand
- You need social media to build your business brand
- You need social media to answer people’s questions
- You need social media to research ideas
- You need social media to research your competitors
- You need social media to share case studies and testimonials
- You need social media to share what is going on behind the scenes in your firm
The list is endless. Which is why your approach to social media must be structured and you must be clear on why you are going to use it within your accounting firm.
Is it for lead generation, brand visibility or something else? Whatever your goals are in your firm, you need to be on social media to achieve them.
See you next time, Amanda
Emerging tech offers opportunities for accountants
Accountex USA takes place next week in magnificent Boston, of Red Sox fame. There will be about 100 exhibitors at the Hynes Convention Centre on August 22-23, including Intuit QuickBooks, Sage, Receipt Bank, HubDoc and Zoho.
And just as with Accountex London and Accountex Summit North, there's a fascinating speaker line-up, too - headed by cyber-security expert Dave Kennedy.
Also taking top billing is Randy Johnston, a leading technology speaker. So, to help get in the mood for Boston, I thought I'd share this excellent emerging tech blog by Randy, which was posted originally by Accounting Insight News's US partners at Accountex USA. Over to Randy...
While creating the content for our K2 Enterprises team to teach emerging technology at this year’s Accountex 2018 conference in Boston, we applied the following rule: we will provide content that can be applied starting on the day you return to your office — and this will be true of my Emerging Technology session at Accountex 2018. We also learned some things about the opportunities created by emerging technologies ourselves along the way.
It became obvious that emerging technologies can and will be applied in the practice of accounting, whether you are in public practice or industry. It is also clear that emerging technology will contribute to profits and competitiveness.
Facts matter, particularly when it comes to Continuing Professional Education (CPE). One thing that CPE should do for you is to provide knowledge that you can apply in your day-to-day work. It is also helpful that CPE provides insight that you don’t get from your normal reading or professional interactions. That’s part of the reason live CPE, such as that provided by the Accountex conference, is such a wonderful opportunity for professional advancement.
Regrettably, there are many snake oil sales efforts out there around emerging technology. Let’s discuss a few observations and opportunities.
‘Artificial’ v true AI
The latest marketing buzzword (we call it BS Bingo) is artificial intelligence (AI). We’ve seen marketing words used before, for example cloud computing or “ease of use.” You know the pitch: If you’re not using this technology you’re obviously missing out, or if you change over to this technology it will make your life easier. While there are applications that work better with emerging technologies, vendors are using the latest buzzwords with their products, even when they are not using the technology named.
“Artificial” artificial intelligence is suffering from this issue. True Artificial Intelligence uses one or more of the dozens of algorithms to process data to produce insights and results that may not otherwise be obvious, while forms or rule-based processing produces a result based on rules directly coded in the software. Some artificial intelligence applications can apply machine learning (ML). This where the computer programs can learn without the programming of rules. Machine learning can leverage special hardware and computing power with Google’s TensorFlow, Microsoft’s FPGA (Field Programmable Gate Arrays), Amazon’s AWS Machine Learning, TSMC’s Bitmain, or NVIDIA CUDA.
As a consumer of artificial intelligence products, it is hard for you to tell the difference between a rules-based product and one that has true artificial intelligence. While you may only care that a particular business objective is accomplished, rules-based products:
- Typically take more maintenance
- Are not as flexible
- Will have severe limitations when the transactions are less consistent
While AI capabilities are progressing rapidly right now, sales hype is progressing even faster.
Blockchain and accounting
Another example of sales promotion using FOMO (Fear of Missing Out) is the emerging technology known as blockchain. While blockchain technologies are important, a blockchain is simply a distributed database created using a set of rules known as hashes. We see blockchain being incorporated into many accounting technologies, but the development is more likely provided by a publisher than through any effort that your firm will have to take directly. While the concept and application of blockchain techniques are important, you don’t need to be driven by FOMO.
Applications are being developed in a wide variety of industries as well as for public practice. But most of you won’t develop the technology, you’ll just need to use it. Blockchain ledgers provide relatively secure transactions (proponents say completely secure, and that may not be so) that can be verified and audited. Much like we use a credit card today — without thinking very much about how the money flows — blockchains will evolve to become an automated black box for processing transactions. We’ll feed a transaction on one side of the box, and a secure, completed transaction will come out the other side.
Many presenters are trying to demonstrate their expertise in this area, but typically they have a product or service to sell and are trying to make money by leveraging FOMO and FUD (Fear, Uncertainty and Doubt).
Data Science for ‘Big Data’
Many industry businesses as well as CPA firms are hiring data scientists. While data science is important, it is not “the” silver bullet but simply a fresh way to analyze data. Why has this happened? Because we have data available from more sources than ever before. Colleague Brian Tankersley coined the word “digital exhaust” to describe this output, like the way he defined “digital plumbing” to describe the connections between cloud applications.
We’ll get even more data with the expansion of the Internet of Things and 5G cellular technology. But how do you make sense of all this data, which is frequently referred to as “Big Data”? Do you wind up with actionable information or do you simply have big, bad data? We know there are four types of data analytics:
- Descriptive (what’s happening in my business?)
- Diagnostic (why is it happening?),
- Predictive (what’s likely to happen?), and
- Prescriptive (what do I need to do?).
But building predictive and prescriptive analytic models is not sufficient in a world where our users’ personal experiences have dramatically changed their expectations. Users want highly-personalized, highly-relevant recommendations, and one of our roles in using the emerging technology of big data correctly is to ask the right questions.
Emerging Technologies Presentation
In my Accountex Emerging Technologies session, we will try to give a practical accounting solution for each emerging technology — including blockchain, artificial intelligence, machine learning, and Big Data. Don’t be fooled by the sales pitches. While the opportunity is great, the opportunity to be fooled has never been greater. Are you asking the right questions?
Making Tax Digital VAT: is it time to educate clients?
The summer has arrived (it's started raining!). Government members have retreated to Tuscan villas. School children are enjoying the longest holiday of the year. Parents battle to juggle work and keep their little ones entertained.
Amid the extraordinary political, social and economic events of the past few months, accountancy professionals are debating the next step in the Making Tax Digital (MTD) debate. And it seems there is still much to do.
Research from the Chambers of Commerce claimed 24 per cent of firms had never heard of MTD, which comes into effect next April for VAT. Extrapolate this percentage against the 2.6 million businesses MTD will affect, it’s akin to the population of Bristol having never heard of MTD.
Absolutely confident of hitting deadline
HMRC's Oliver Fisher, deputy director of Making Tax Digital (Business) strategic design and policy, is “absolutely confident of hitting the April 2019 deadline” for VAT, despite the delay announced last year.
Brexit continues to add economic uncertainty as businesses are less optimistic and ‘running out of patience’ according to the BBC. With Westminster having ‘just’ made it to summer recess, it’s no wonder the accountancy industry is sitting tight before making any decisions.
At the coal-face
The world is much different at the industry coal-face. As with other service industries, accountancy practices are looking at ways of automating practices and developing added-value consultancy services in preparation for the digital economy, while spending time trying to engage clients before the looming MTD VAT date in just eight months’ time.
The balance of business development, and servicing clients is a task for any leader but combined with additional submissions and a lack of enthusiasm from many clients, it’s no wonder progress seems like walking through treacle.
So where does this melee of controversy leave the accountancy firm and its customers? Is it worth starting the MTD VAT journey now?
Time to plan
Regardless of the political or economic outlook, businesses are, and will, continue to trade whatever the outcome. Much as there is a propensity to wait, delaying client education and helping them implement the right tools will only cause widespread client upheaval in the coming months.
Think about the typical practice calendar for a moment. In July, there was the P11D and Tax Credit deadlines to work on. The schools broke up and holidays got under way, so staff levels started to fall. This pattern will continue throughout August. September will bring corporation tax submissions, which consumes time. Suddenly, it’s October and there is only six months to the MTD VAT go-live date.
However, with a little strategic thinking, it is possible to manage day-to-day business and client journeys as we move to a digital economy. There are four steps to ensuring clients are ready for MTD VAT; analysing the client base, educating clients, consulting on bookkeeping tools and training.
The MTD VAT journey
Let’s look at a fictional example: a practice has 500 clients and VAT returns are needed for half of this client base. The next step is to look at the quarterly VAT end dates and the way the practice (or client) submits VAT returns. This data mining process is completed by those not on holiday in the next few months. By the end of the summer, the practice has identified 250 clients to be educated and trained.
Back from the holiday season and the practice now has the intelligence to educate clients on the changes to MTD VAT. If these conversations are split between two people, there are just over three client calls to make each working day over two months. Of course, these calls are not a two-minute job, but there is another opportunity when calling clients: relationships are built, and practices may find there is an opportunity for additional advice or services.
IRIS and making tax digital
December is traditionally the busy season for tax returns, so it’s worth considering different forms of communication to offer bookkeeping solutions. Email campaigns, hosting webinars, or organising a seminar will raise the awareness of the deadline and convey options for consideration.
By the end of the calendar year, the client base has been educated, advised and decided which software it will use.
From February 2019, the practice embarks on training clients, guiding them through the bookkeeping process and ironing out any errors before the April deadline.
The choice is how we do it
Of course, the theory is easy to read, and practices should expect challenges along the way. But as the industry progresses through this once-in-a-generation change, the opportunity to provide traditional assurance and core compliance services though integrated, efficient automated processes and workflows shouldn’t be a burden. It’s an opportunity to transform services, improve client engagement and help everyone thrive in the digital economy.
Starting the MTD VAT journey with clients now isn’t a choice. The choice is how we do it.
Business calls for MTD roll-out delays
An "alarmingly high" number of UK businesses don't know a thing about Making Tax Digital, says the British Chambers of Commerce. Or they know very little...
So it's no real surprise that they would like to see HMRC further delay the programme's roll-out.
BCC research, carried out with US tax software group Avalara, shows:
- 24 per cent of firms have never heard of Making Tax Digital, which comes into effect next April for VAT.
- Only 10 per cent know "a lot of details" about the switch to digital.
- Two-thirds (66 per cent) know it only by name or some details about it.
Maintain digital records
All VAT registered businesses will have to maintain digital records for VAT and submit their returns digitally from April 2019. That's just days after the UK leaves the EU to add to the administrative 'challenge'.
According to BCC, which speaks up for thousands of businesses across the UK: "Of those that are aware of the change, a quarter have made no preparations at all. This is a concern as MTD will require VAT registered firms to have MTD compatible software in place that can create a VAT return and connect to HMRC systems via an Application Programming Interface (API). This is a much more complex process for businesses than the current online process of manual completion of VAT returns.
"Of those firms that are aware of MTD, just 6 per cent of businesses have contacted HMRC for advice (including online services, webinars, or via their telephone services), compared with 51 per cent who have spoken to an accountant."
Breathing space to engage
The BCC reckons a delay would give HMRC the breathing space to engage with businesses.
BCC economics chief Mike Spicer says: “The government’s aim to modernise the UK’s tax system is admirable, but in view of low business awareness and the impending challenges of Brexit, it would make sense for HMRC to delay the implementation of Making Tax Digital in order to get this change right.
“We are concerned that far too many firms still aren’t clear on what Making Tax Digital is, or what it means for their operations. With just months to go before the deadline, these knowledge gaps could make the timeline for change unworkable for many firms.
“Ministers must face up to the reality of the pressures facing HMRC and delay the introduction of Making Tax Digital for all businesses for the next financial year. This would allow the Revenue to focus its immediate attention on supporting businesses through the Brexit process, which must be a key priority.
A simpler and more efficient system
“When Making Tax Digital is implemented, the acid test will be whether it ultimately creates a simpler and more efficient tax system, or yet more onerous administrative burdens that stifle the growth of UK firms.”
Richard Asquith, of Avalara, says: “Making Tax Digital will affect 2.6 million businesses. It is the biggest overhaul in VAT obligations in decades. Approximately 25 per cent of businesses are still using manual or spreadsheet record keeping, which falls foul of HRMC’s new requirements.
"It is still not clear how they can become compliant without more education plus investment in compliance accounting packages. To date, HMRC have remained confident that they can cope with MTD and Brexit; although 29 other efficiency projects have had to be cancelled or delayed in preparation of the UK leaving the EU in March 2019."
New education programme for Ireland accountants
Ireland’s biggest accountancy body, Chartered Accountants Ireland, is launching a new education programme for its 6,665 students.
It aims seeks to tackle changing market and employer needs, anticipate future skills requirements and put additional supports in place for its student body.
The programme will be available to chartered accountants Ireland students from October 2018 and represents the largest single reform of the institute’s education offering in more than a decade.
Welcome to the basics of blockchain
Everyone's probably heard of it, but do they know what it is, or is what it is going to be? Welcome to the world of blockchain.
The word is bandied about a lot but, from people I have spoken to, there is still a fair amount of confusion over what it is exactly. Luckily, I came across a useful introduction to blockchain and cryptocurrency by accounting software group Sage.
It's certainly helpful, if not definitive. So here's a short excerpt to whet your appetite...
Blockchain is essentially a recorded ledger of transactions managed by a decentralised peer-to-peer network. It could be a record of crypotocurrency purchases (Bitcoin is an example). Or any kind of transaction for that matter.
Most people agree that blockchain technology is here to stay and will be used by the accounting professions. Some would say it's the start of the next tech revolution. Anyway here's a sneak peek at the article.
How does the blockchain work?
Imagine a document that is not held in any single location but is replicated across and managed by every computer that has access to it in the ultimate, democratised system.
The blockchain consists of a sequence of ‘blocks’ that consist of recorded data. In each block there is a record of the transactions made since the last block was created, this includes details of the sender, the receiver and the transaction amount.
The block also contains a hash that provides a unique digital fingerprint for a given piece of data. A hash is produced by a complex mathematical equation.
For a new block to be recorded, it employs a process called proof-of-work. This involves the network verifying the block hash before it can be added to the chain.
How secure is the blockchain?
Each block contains a hash of all previous blocks. Therefore, to change a data record every copy on the network and every preceding copy stored in the chain would have to be changed, ensuring security of the data recorded.
As the Blockchain is not held on a single server or controlled by a single entity, it has no single point of failure and cannot be hacked.
How can blockchain technology be applied?
Existing block chain (originally two words) technology was developed in 2008 by Satoshi Nakamoto (whose identity is yet unknown and this may be a pseudonym used by a single person or a group) to support cryptocurrency, specifically Bitcoin, as a public ledger to record transactions of Bitcoin cryptocurrency.
Aside from cryptocurrency, blockchain technology has huge potential for many other applications that involve the recording and management of any data of value. Imagine public records such as land registry; private records such as medical records and identity documents; contracts and voting all easily accessible and updated by anyone on the network but protected from manipulation and fraud.
Like the internet, blockchain technology is going to have a huge impact and businesses should not ignore or underestimate the digital evolution. By its nature both of removing the need for a third party and the security of recording sensitive data, there is a possibility to change how all transaction and data recording is conducted.
What is cryptocurrency?
At a basic level, a cryptocurrency exists as an entry in a database that cannot be changed. It is the record of an agreed transaction that has taken place.
Much like fiat money, which the traditional currency system is based upon, the actual monetary ‘coin’ has no value of its own, but instead is based upon the agreed value of a transaction between two parties for an exchange of some kind. A recording of the transaction offers validation to secure the transaction.
Cryptocurrency in itself has no value but maintains its value by its verifiable record.
Historically, the challenge for creating a digital currency has always been in how the record of the transaction would be securely held and how to avoid double-spending, without the intervention of a third-party centralised bank or institution.
Satoshi Nakamoto solved this problem with the blockchain as the foundation to support Bitcoin:
“Announcing the first release of Bitcoin, a new electronic cash system that uses a peer-to-peer network to prevent double-spending. It’s completely decentralized with no server or central authority.” – Satoshi Nakamoto, 9 January 2009, announcing Bitcoin
Bitcoin was the first, and remains the most well-known cryptocurrency.
The ledger for Bitcoin was started when the first block was generated (known as the genesis block) on the 3 January 2009 and has been limited to the creation of 21 million coins.
The full Sage article can be found here.
BrandWatch: Simplifying accounting for taxi drivers
Today's Daily Insight welcomes you to BrandWatch, the Accounting Insight News series about companies and brands aiming to cause a stir in the world of accounting and finance.
Meet Manchester-based ClickTo.Tax, a group that helps to make self-assessment tax returns as stress-free as possible for self-employed taxi drivers in the so-called gig economy.
A bit of context: the online software is recognised by HMRC, and there are more than 365,500 taxi/private hire drivers in the UK.
ClickTo.Tax was set up by former IT freelancer Manny Mahmood in April 2018. His mission is to make the tax journey smoother for private hire (including Uber) and Hackney carriage drivers.
Action tax returns
Manny says: “The idea came about following conversations with taxi drivers on my commutes and with family members who work in the trade.
"They made it clear that they lacked the confidence to action tax returns themselves and would appoint an accountant yearly to support. This was costing them upwards of £200.
“I felt there was a need to make taxi drivers more self-sufficient with their taxes particularly if their tax affairs were not complex.”
Quick yes or no answers
ClickTo.Tax software allows the user to get started for free. The process begins with a questionnaire consisting of quick yes or no answers so that their affairs can be best understood.
Manny adds: “This stage is important as it decides if our software is appropriate for the user. I am keen on getting matters right for our users.
"If the software assesses the tax affairs to be complex it will throw a prompt encouraging the user to refer to an accountant."
There are then two more simple stages, and you're up and filing.
Manny says he "wanted to make the process as simple as 1-2-3, affordable and secure".
If you'd like to feature in BrandWatch, drop me a line at [email protected]
Where next for MTD and the spreadsheet?
In most conversations about Making Tax Digital for Business, the word 'spreadsheets' is bound to crop up at some point or other. As in how will/can/do they fit into HMRC's plans for the not too distant future?
So it was interesting when I clicked on the PWC link in the UK tax authority's latest 18-strong list of suppliers of software for MTD VAT . It would seem that quite a bit has been going on behind the scenes, and progress is being made. And the word 'spreadsheets' appeared several times!
The Big Four group says: "To meet the 2019 obligation HMRC will require you to keep VAT records using 'functional compatible software', meaning one or several software programs which can connect to HMRC's systems using an approved application programming interface (API) such as our PwC VAT eFile spreadsheet solution or our more sophisticated software solution which meet the most complex of VAT accounting and compliance needs in addition to the API filing requirement.
This functional compatible software must be able to:
- Make and keep records in a digital form;
- Preserve records in a digital form for up to six years;
- Create a VAT return from the digital records and provide HMRC with that information digitally; and
- Receive information from HMRC via its API platform.
As well as software, PWC is offering businesses a "digital readiness review". PWC will check:
- The quality of your VAT data and compliance related VAT processes, when compared to the MTD requirements and standards of your peer group;
- Where data or documentation needs to be moved into a digital format or software in order to be MTD compliant;
- Where the data and software need to be digitally linked in order to be MTD compliant; and,
- How MTD compliance can be achieved, the options available to you, and the advantages and disadvantages of each.
"The outcome of this review will be a report which clearly highlights where the new requirements are currently being met and any areas which require further work, process or software changes to become compliant."
The company is also providing this service: "a forensic Excel review to ensure that your spreadsheets meet with HMRC’s current MTD guidelines, analysing and recommending fixes ahead of any potential HMRC MTD spreadsheet review."
The group says:
"As part of HMRC’s Making Tax Digital (MTD) initiative the UK tax authority has looked at the use of spreadsheets within the VAT compliance process. Whilst recognising their widespread use, HMRC have identified weaknesses and risks in the way in which spreadsheet data is often compiled and manipulated. As such, UK businesses have an obligation to ensure that their spreadsheets meet MTD requirements and adhere to best practice."
PWC says:
- We can ensure that your spreadsheets meet with HMRC’s current MTD guidelines, analysing and recommending fixes ahead of any potential HMRC MTD spreadsheet review;
- For high-risk spreadsheets we can carry out integrity checks using our automate spreadsheet auditing tool;
- Provide a summary of risks, issues and potential impacts of reportable tax figures; and
- Advise on how these ought to be addressed.
Brexit means Brexit... or does it?
It's gone on long enough. Daily Insight has made today the day to talk about Brexit. It's going to affect you, me... all accountants and finance professionals. For many there will be benefits. There always is an upside for some folk even in the worst economic and political circumstances. And there's bound to be a downside for many others, too.
The problem is we're just not absolutely sure who (or what, or when) yet. And that's after months and months of mucking around by the finest political and administrative minds in the world (probably). People like Michael Gove and Boris Johnson.
Brexit has already encroached into the world of tax, and has been used as a reason for HMRC sidelining or shelving several future projects. Making Tax Digital is sure to be affected.
May takes personal charge
We are in a pickle. And you know things are going from bad to worse when you see headlines such as "May takes personal charge of Brexit" (BBC and many others) and Department for "Exiting the EU to be downgraded" (Financial Times and many others). What could possibly go wrong?
Incidentally, what has the UK PM Theresa May been doing on the "personal charge" front for the past year or so? Isn't that her job?
It's OK though. With such pressing matters seemingly facing the country, MPs packed up yesterday for their "summer recess". Brilliant. We're in the biggest crisis facing the country for a long time, so the country's leaders decide to Take A Long Holiday.
This is fanciful
Brexit worries are coming from all sides. For instance, the most-read letter in the FT yesterday was the one headlined "Brexiters constantly tell us all will be fine. This is fanciful". And that's not from some anti-establishment crazy. It's John Nelson, chairman, Lloyd’s of London from 2011-17.
John says: "Never in over 50 years of working life have I seen the UK facing such an abject future, caused by the complete failure of our political establishment to govern, to communicate clearly with the public and, most importantly, to be honest with the electorate.
"Personal experience tells me that negotiating overseas rights is a long and painful process. If we are trying to do it as a small economy, the leverage we have is limited and far less than operating as a trade bloc, which is the EU.
UK economy in the services sector
"We would lose all the EU trading rights with third countries. It is also worth remembering that 44 per cent of our trade is with the EU. The great majority of UK economy is in the services sector — financial services alone contribute 12 per cent of gross domestic product.
"It is high time that UK business spoke up and galvanised the public to understand the true realities of what the country is facing.
Restate the EU case
"The case for remaining in the EU needs to be restated and contrasted with the now much clearer alternative. Membership of the EU has drawbacks, but overall the benefits in terms of trade, security and fellowship overwhelm the narrow shortsighted nationalism espoused by those who wish to return to an Edwardian age.
"Of course there needs to be a second referendum once the route we are pursuing becomes clear. That route will bear no resemblance to the picture painted by our politicians at the time of the first one."
More plain-speaking, sensible voices like John's need to join the debate. Whether you agree with staying in the EU or not.
Does Xero's Hubdoc deal point to a changing software landscape?
Last week's Sunday edition of Australia's Financial Review contained what turned out to be some illuminating comments from Bronte Capital's John Hempton, "one of the country's most vocal and aggressive short sellers".
The investor, who owns shares in just one ASX listed company, Xero, reckons the accounting software group that has a AUS$5.4 billion market cap, could grow to be a AUS$100 billion mega-company.
"If any Australian company has the potential to be a $100 billion tech giant, it's Xero," Hempton says. "In order to pull that stunt, they need to succeed in what the global ambition of Xero should be – we are the backbone accounting system all round the world and everyone plugs into us."
Several other suitors
Interesting. Because a few days later came the announcement that Xero had made its biggest acquisition, scooping Canadian document capture outfit Hubdoc for $70 million ( that's AUS$94 million). Tellingly, it beat off several other suitors.
OK, the AUS$100 billion is a way off yet. But one starts to see where things are heading. For instance, late last year, Intuit bought time-tracking app group TSheets for $340 million. RBS bought Freeagent for £53 million. Iris bought Taxfiler in its latest acquisition a couple of months ago. Sure, companies are always buying other companies.....but!
Xero launched in Canada a couple of months ago. And remember, it's mission is to “rewire the global economy by connecting millions of businesses to their banks, advisers and each other".
Data from bills
Toronto-based Hubdoc's software is used by accountants and small businesses to capture data from bills and statements from organisations such as banks, utilities and suppliers.
The company has been a partner of Xero for four years, meaning Xero promotes Hubdoc as a good add-on service to its own software.
Xero chief executive Steve Vamos says Hubdoc, which has 100 employees, will run as a stand-alone business under co-CEOs Jamie McDonald and Jamie Shulman.
He says Hubdoc fits with Xero's ambition for "code-free accounting", where software automates the accounting process, so accountants "no longer have to worry about transaction coding and matching invoices up to specific budgets or accounts".
Accounting systems
Hubdoc employs 100 people and says its product automatically collects bank statements, bills and receipts from more than 700 financial institutions, utilities, telecom providers and suppliers before synchronising with accounting systems like Xero.
Steve says of the deal: "Both [companies] are born-in-the-cloud companies with a shared vision for delivering innovative solutions that make it easier for accountants, bookkeepers and small businesses to share data, uncover insights and plan for the future," he says.
"The acquisition also means we expand our presence in Canada, where we just launched in May, and establish Xero as an employer of choice for tech talent in Toronto, along with growing our teams in Australia and the UK where Hubdoc has a presence."