Winstanley Kerridge:Our Xero Story

Neil Sinclair (Director)

• Who is Winstanley Kerridge?• How we selected Xero• Why we implemented Xero• How we implemented – What NOT to do!!• The Ugly Year – Xero Year One• What does year 2 look like?• What does our future look like?

Presentation Overview

What we are not

Who we are

Our online presence

Our online presence

Our online presence

Our online presence

Vision

Our strategy

To be the most successful professional firm of Chartered Accountants and advisors providing Marlborough with outstanding service levels of business and financial support and advice.

MissionWe are Chartered Accountants dedicated to providing the highest quality services to meet the business and financial needs of our clients.

WK summarised

WK systems 2011 style!

• Xmas 2010 $250k investment in new IT platform• Network software changed to Windows Server 2008 R2• AO started crashing every day• Support response from MYOB did not meet our expectation• 1st Xerocon in Taupo Feb 2011• Had to move debtors off AO in March 2011 – moved our internal

accounts to Xero• Instability and significant productivity loss Jan – Jun 2011 period• Desire to test the Market – had been with MYOB for over 15 years• Decided to use Request For Proposal (“RFP”) process

What forced the change

RFP process explained

Identify vendors & link to strategy

Determine functional

specificationsPrepare RFP Issue RFP

to vendors

Score functional specifications

& price

Reference checking

Complete scoring matrix

Run vendors presentations

STEP ONE : Work out what you want

STEP TWO : Evaluate Responses

RFP process explained

Additional reference checking

Vendor negotiations

Contract confirmation Implement

STEP THREE : Confirmation

• CRM• Client Database• Client GL & FA• GL Reporting

Commercial• GL Reporting Agri• Work Paper Mgmt• Tax Return

Preparation• Tax Mgmt

• Efiling• WTTC Calculation• IRD Integration• Tax Intermediary

Integration• Budgeting/

Forecasting• Trust Mgmt• Companies Mgmt

• Payroll Bureau / Internal Pay

• Workflow Planning/Scheduling

• Document Mgmt• Timesheet Mgmt• Invoicing• Debtors• Creditors• Mgmt Reporting

RFP process explained

What does a functional specification look like?

RFP process explained

We identified 1968 “unique or critical” features in our Func Specs!

What does a RFP look like?

RFP process explained

Three key objectives we identified • Make us more efficient• Allow us to provide better services to our clients• Provide the directors with better quality internal information!Four vendors identified • MYOB (AE)• APS• Acclipse (now CCH)• Xero Modern Practice

!

Software evaluation process

Three key objectives we identified • Make us more efficient• Allow us to provide better services to our clients• Provide the directors with better quality internal information!Four vendors identified • MYOB (AE)• APS• Acclipse (now CCH)• Xero Modern Practice

!

Software evaluation process

Three key objectives we identified • Make us more efficient• Allow us to provide better services to our clients• Provide the directors with better quality internal information!Four vendors identified • MYOB (AE)• APS• Acclipse (now CCH)• Xero Modern Practice

!

Software evaluation process

• Some of our current processes are stale• Some of our current processes are inefficient• Inefficient processes often the result of software not being

used fully or not supporting that function• We “over engineer” many compliance jobs• A lack of integration means we end up processing the same

data more than once (eg tax pymts in tax WP and ICA WP)• Therefore we spend a lot of time on the aspect of our work

that client does not necessarily value• We needed to work smarter

What we think we found

So we asked our clients

Client feedback

A new strategy

YIYOC PIPOMs

A new strategyCompliance

Factory

YIYOC

Event

Gap analysisConsulting

Execute C+

PIPOM

Compliance Factory

YIYOC

Event

Gap analysisConsulting

Execute C+

PIPOM

Event

Gap analysisValue Added Service

Mgmt Reporting

A new strategy

Compliance Factory

YIYOC

Event

Gap analysisConsulting

Execute C+

PIPOM

Event

Gap analysisValue Added Service

Mgmt Reporting

Technology enabler

A new strategy

• Potential for efficiency• Achieve PIPOM strategy• Provide us with better quality management information

Why Xero?Three key reasons

Why Xero?

Implementation• Assemble project team• Determine needs & write RFP!• Evaluation completed• Board sign off and staff advised!• Training – Xero, WFM, Workpapers• Plan / Implement / Conversion!• Went live!• Xero Ledgers, WFM and WPs

Oct 11!!Jan 12!!March 12!!April 12

Our lessons• A full project and change management plan• Don’t use a Director as Project Manager – hire a specialist• Understand the full cultural impact of the change• Don’t focus on IT• Train the project team first• Get staff buy in before you kick off the process• Ensure training is of the highest quality• Clean your data

A tip or two

Our challenges• Partial take up still• Tension between the teams• Efficiencies not being realised• Senior staff struggling with change in emphasis• Clients still not getting the full benefits

Year one will hurt

But there is hope

Intangible benefits• Full Xero clients – much higher service levels• Tax planning becomes simple!• PIPOM clients engaged more easily• YIYOC clients perception• Client wins • Bank referrals• Up and coming staff motivation/commitment/retention• Employment attractiveness – 180+ applicants!

Compromises• Reporting Quality• Rural had to stay on AO, consistency of appearance

Hindsight• Probably waited a year – to get off the Bleeding Edge!• Better project management• Cultural change effort significantly higher• But would we have gone with Xero…

Hindsight• Probably waited a year – to get off the Bleeding Edge!• Better project management• Cultural change effort significantly higher• But would we have gone with Xero…

S**T YES

The future• Xero is a given (while they are market leaders)• Transition - more move Full-Xero Clients• Xero farming Q2/Q3 FY14• Cloud DM Q2 FY14• Xero Add Ons will become key to higher levels of service• Business services will need to become broader – either

through lateral hires or relationships• Collaboration via Networks

Questions & thanks