With US accountancy firms set to embrace the cloud, a glorious Nashville was the setting for Xerocon, writes Vipul Sheth.
It was a real pleasure to be able to represent Advancetrack at Xerocon Nashville. For me the city felt really pleasant and comfortable to traverse – though not quite so easy after their humungous plates of food… I often snacked in the evening after a big lunch! Definitely meals fit for cowboys.
The bars and music were amazing, with converted warehouses and barns holding sway to different musicians on different floors. It was a pleasure to visit the Country Music Hall of Fame, and many of us got to watch an NFL American football warmup game at the Titans’ Nissan Stadium.
Xerocon itself was lively, and getting to hear from North American practitioners about their challenges and opportunities was gold dust, really. Certainly, they are facing staffing challenges – a shortage of talent. Ironically this was something Advancetrack was aware of, recently flagging it up in our groundbreaking research The Accounting Talent Index, which you can request access to by clicking here.
There was certainly discussion about practices making the move to the cloud, which the US has been behind the curve. I’m prepared to stick my neck out and predict that between 40%-50% of North American practices will be using a cloud accounting system within three years.
Tipping point
This move to the cloud represents a gamechanger for that market, and opens up many opportunities. Certainly, Xero have put in a huge amount of time and investment into positioning themselves to take advantage of that development.
It’s a market that has been dominated by Intuit, and it’s been difficult for anyone else to get a foothold. The US tax system is notoriously complex; there are different rates on a state by state basis, and even within cities – there are thousands upon thousands of codes.
However, Xero has worked alongside app partners Avalara and Gusto to cut through these issues. There are other hurdles to surmount: namely, bank feeds. There are thousands of small and regional banks with which to link to.
However, Xero now looks like a real option for businesses and practices across the US; its ecosystem of app partners is unparalleled.
Major accounting firms across the world are using Xero, and I expect their US counterparts will start to follow suit - in tandem with switching to the cloud.
Silver linings
Moving to the cloud will open up new ways of working for the accounting practices, and the talent issues will, I believe, see outsourcing and offshoring become a part of the US accountancy market too.
More about that from us at Advancetrack in the very near future.
Vipul Sheth is founder and MD of Advancetrack
