Cloud Accounting User Counts

I’ve been tracking the user counts of cloud accounting tools for microbusinesses from publically available sources for about seven years now.  My latest cloud accounting user counts appear below.  Note that Intacct probably shouldn’t be in this list (especially since we also didn’t include other mid-market apps like Oracle NetSuite, as they’re both a little “up market” for most users of this.  As you know, FreshBooks and Wave are private, and don’t have to report anything publically, and with Kashoo doing more as a bookkeeping service instead of as a software company, the user counts there (which were hard to get anyway) are a little less relevant here.  We expect to have new data from Intuit, Xero, and Sage sometime in late April/early May.

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P.S. Tipsters who have good public (non-confidential) data sources for user counts (e.g. court filings, press releases, etc.) which are more detailed or more current than this (as I write this on March 27, 2018), I share Starbucks cards with those who point new things out – I’m @BFTCPA on twitter.

P.P.S. If any software publishers want to be included in this list on a going forward basis (or want any of the analysis which goes along with this), including some work on cloud vs. on premises for user counts, reach out to me and we can discuss.

Zoho: The Most Interesting Company You’ve Never Heard Of

I was fortunate to be invited to attend an analysts conference for Zoho Corporation.  For those of you who aren’t familiar with Zoho, they have about 60 different SaaS applications for all aspects of running a business, including e-mail, calendar, CRM, accounting, reports, HR, e-mail marketing, help desk, meetings, and many, many more.  The apps are sold individually, in four bundles (CRM Plus, Workplace, Finance Plus, and IT Management), or in a mega-bundle called Zoho One.  I’ve been using Zoho One for a couple of months, and it’s been pretty amazing.  Some of the things I’ve done with it include:

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A CPA’s Guide to Address Spectre and Meltdown

There were two major security vulnerabilities announced in January of this year: Spectre and Meltdown.  Both affected, for all intents and purposes, every computer which has been sold in the US in the last 15 years.  Read more:

Original Article

Follow-up Article

The Journey from Premise to Hosted to Cloud: A CPAs Travel Guide

I was pleased to write a white paper with Randy Johnston a couple of years ago for CPA.com called “The Journey from Premise to Hosted to Cloud: A CPAs Travel Guide“, which details the transition from having your IT hardware on site to using a hosting company like Abacus Next, and then the eventual move to browser-based SaaS applications.

While I wrote this a couple of years ago, it has held up pretty well, despite the rapidly changing IT environment.  You can download it from the CPA Firm Software site’s page on Cloud Computing 

Cryptocurrencies: What Accountants Need to Know

I wrote an article for AccountingWeb on Cryptocurrencies which was featured on their site for some time.  Click here to access the article.

What Accountants Need to Know About GDPR

pexels-photo-408503.jpegI recently wrote a piece on the European Union’s General Data Protection Regime (GDPR) for AccountingWeb.com.  A link to that piece is here.

Travel Hacks for Road Warriors

Most of the readers of this blog know that I do over 100,000 air miles a year, all in the US/Canada.  After 1.5 million air miles, these are my favorite travel tips – I hope they make your business travel better (or if you’re a glass half empty type, I hope they make travel suck less).

  1. Always carry $200+ in cash when you are on the road – because bad things happen, and cash can fix it quickly in almost any situation. Also because the bellmen, servers, drivers, and others who wait on you have hard jobs and get treated like crap all of the time – so throw a $20 at someone who deserves it at least once a month ($240/yr)- it’s a great way to pay it forward and make someone’s day suck a little less.
  2. Be very nice to all of the people at your home airport -know their names, bring them brownies, cookies, and other nice things around the holidays. They don’t make much money, and they can make stuff happen for you when travel gets bad. Ask about the counter people’s families and know their kids names – it will pay off in spades.  Buy the people who clean the airport coffee from time to time, because it’s the right thing to do.
  3. If you’re elite with an airline, use those “attaboy” certificates for outstanding service strategically. Give them out to people at your home airport, and do it publically – this makes me very popular at my home airport.
  4. If you have to fly 50-seat regional jets on Delta, they can’t take the electronic drink tickets – so it’s open bar, if you have to fly on one of those for over an hour and don’t have Comfort+.  (JSYK, Woodford is the best bourbon available on Delta – sorry, Jack)
  5. Electronic Expense Reporting
    • If your company uses Concur, Zoho, or other web-based expense reporting software, get the app – it’s essential, and you can take pics of your receipts as you incur the expenses
    • Manila envelopes for receipts – scan them with your Concur app when you incur them, and get them into the expense report system. Keep the paper – you may need it to get reimbursed if you lose/drop your phone or if the pic is blurry.
    • If you don’t already have a web-based expense reporting app, 1Tap receipts from Receipt Bank is a great tool for organizing your receipts.  You can take pics of them, tag/organize them with, and you can then output them as a PDF file.  Bonus: The data is available as a PDF or as a CSV file.
    • Continue reading “Travel Hacks for Road Warriors”

FAQ on Decrypting Tax Documents with AES Crypt

This week’s episode of the excellent Security Now! podcast (#599, starting at 53:10) discusses the use of AES Crypt by clients to encrypt tax data when sending it to practitioners. (I assume that those documents are destined to a professional preparer, like you, the gentle reader of this blog). While I won’t restate the original blog post (which is at http://cantus.us/encrypt-your-tax-documents-before-you-send-them/), the method described is a relatively simple way for an end user to encrypt and send a group of encrypted files over an insecure medium like Dropbox or other consumer-grade file sharing tools.  While the method described in the post can be implemented poorly (weak passwords, sending the wrong file, using e-mail, etc.), the basic methodology appears sound – but you need to evaluate the methods you approve for clients to use transmitting data.

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News Roundup- March 13th

Some of the current events I’ve been following include the following stories:

 

The Business Model Problem With Unicorns

There is a fundamental problem with Silicon Valley – too many startups seem to have a business model of “build to flip”. This model – which I’ve seen in the past – is a model in which the company has little, if any, interest in creating a serious, viable product, and is instead only interested in selling out to someone else. The short term thinking reminds me of the 1960’s movie musical, “The Music Man”, where a scam artist plans to sell band instruments to locals in “River City” and skip town as soon as they pay for the horns. One can see the signs of excess in the news – sex and shots in the stairwells at Zenefits, and magazine covers which show the hundreds of “unicorns” (a slang term for a private company valued over $1 billion) running for the exits, and most finding that there is no way out. When MVP describes a “minimum viable product” instead of a “most valuable player”, it’s a sign that the valuations may have “jumped the shark”.  The reported “shots and sex in the stairwells” at Zenefits will be the punch line for the bursting of a modern day valuation bubble, just as a certain sock puppet was a symbol of an earlier period of excess.

This focus on market capitalization instead of net income – or even producing a viable product – is a particularly intractable problem for items in the financial technology (“FinTech”) sector, where the industry actors (accountants, financial institutions) thrive on long-term stable relationships with customers, and mistakes are remembered for decades. Unlike other sectors of the economy, entrepreneurs are interested in dealing only with “grown ups” when it comes to their business finances. The constant change in features and application availability makes the users hesitant to adopt any solution from these companies, whose constant product and business model iteration makes their customers feel like they’re living a very strange version of Abbott and Costello’s “Who’s on First”.

There are opportunities out there – some such opportunities include automation of account assignment to transactions imported from banks, automated reconciliation of statements, and creating “digital plumbing” to solve the problem of digital silos in the very fragmented cloud economy.  Unfortunately, these tasks are not easy – which is why nobody is doing them successfully.  (I hope someone solves these problems soon.)

It also strikes me that there is excessive focus on HOW the products are delivered (e.g. browser/public cloud) instead of WHAT the products actually do for their users. This is accomplished by burying prospective buyers in a blizzard of BS before they buy. A partial list of “danger words” which indicate that this style of groupthink may exist includes cloud (all kinds), user experience, ecosystem, seamless integration, minimum viable product, iteration, market capitalization, and non-GAAP operating results. If you hear most of these words, I’d stay away – or at a minimum, hold onto my wallet. The unicorns are running for the exits, and I fear that some will be trampled as investors realize that they have bought into applications without a viable long term model for operating as a profitable business.