David is back from his well-deserved vacation and ready to discuss Sage’s sudden move to oust Stephen Kelly as chief executive. Chairman Donald Brydon reportedly said, “We need to get a CEO that has SaaS in their veins.” Kelly joined Sage four years ago with a mandate to shake up the company, but despite the acquisition of Intacct, he has apparently been unable to turn things around quick enough for the board. Sage is facing increased competition from Xero on its home turf in the U.K and has been unable to gain market share against juggernaut Intuit in the U.S.
CPA Practice Advisor has announced their annual “40 Under 40” in the accounting profession for 2018, Jason Andrew makes the argument that accounting firm partners are essentially franchisees, Ryan Lazanis blogs about a guy who is probably the most remote cloud accountant in the world, FASB has simplified GAAP for cloud computing, and how Square could be the disruptor that makes cryptocurrency payments go mainstream.
Guy Pearson, founder of Practice Ignition, turned down an offer of partnership in an accounting firm at age 24 to travel around the world for a year. After running out of money, Guy returned to Australia and started an accounting firm out of his house. He set out to automate the firm right out of the gate and built a business that could scale up on its own. That meant Guy could very quickly go off and start a software company called Practice Ignition while running his firm on the side.
Brad Smith is stepping down as CEO of Intuit after 11 years, Deutsche Bank is worried about Xero and Intuit stealing Sage Groups core mid-market business, Thomson Reuters has released its own cloud accounting software for small businesses, and how Xero made a big mistake by coming to the U.S. before conquering the rest of the world.
Blake and David chat about three things this week: 1) A 15-year-old is the new Microsoft Excel world champion, 2) How businesses are failing to help employees keep up-to-date with their digital skills, and 3) the risk of performing Client Accounting Services (CAS) (AKA outsourced accounting) in public accounting firms that aren't equipped to manage client expectations when it comes to the scope of services offered.
Geni Whitehouse [LinkedIn] shares how her CPA firm carved out a niche serving the wine industry — not just with marketing mumbo jumbo but with a proprietary industry scorecard that created real value for her clients. We discuss what's holding firms back from offering more consulting services, and how to build confidence as a public speaker when you're natural nerdy and shy.
The Government Accountability Office (GAO) has recommended the use of phishing-proof FIDO security keys to prevent tax scams. Also this week: payroll and HR provider Gusto raised a $140 million Series C at a $2 billion valuation; cloud accounting software maker Xero has moved to acquire Hubdoc (a data capture solution); Stampli, an invoice management platform for midsize and enterprise businesses, raised a $6.7 million Series A; and attacks on the open office continue unabated.
Blake shares his thoughts on the first year of the Accounting & Finance Show LA under new management, then David & Blake discuss the latest accounting news, including: NetSuite's outage this week that prevented many businesses from accessing their ERP for almost a whole day, Google's hardware multi-factor authentication program that has prevented 100% of phishing attacks on its huge workforce, the recent breach of ComplyRight (a large 1099 processor), and why Hector Garcia's popular QuickBooks-focused YouTube channel was suddenly deleted without any warning. (We still don't know).