Providing Transparency for Tech Start-Up and Support for Xero Accounting
As founder of Service Crowd a technology start-up, Daniel Duckworth is a technology enthusiast and wants to focus his creative energy on building great technology and clever online marketing systems rather than focus on everyday accounting tasks.
Having said that, he understands the importance of Technology start-ups being able to monitor expenses with ease and accuracy. When Design Quotes raised private investment capital, Daniel (founder) wanted to work with an accountant who understood tech start-ups to provide regular tax advice, support with Xero accounting software and a transparent fee structure.
The start-up’s first accounting experience began after operating for a long time without doing any formal financial reporting to the ATO. Daniel stated, “We didn’t really know how to do it (BAS and GST Reporting) so I avoided it until we got warnings and said yes to the first accountant that said they could help us.”
Daniel also pointed out that “because we had put off accounting for a long time, there was a lot of work to be done and we didn’t realise we would be charged such a high hourly rate to have the accounts reconciled.”
With a previous accountants high hourly rates for even phone calls and basic bookkeeping tasks, Daniel was frustrated with the lack of transparency provided about the work the accountant intended to do and the fees he would charge.
- Ongoing Technical Expertise: Accounting for Purchase of Intellectual Property, ongoing technical and Xero software support
- Reporting: Facility for accounting software to report on recurring subscription billing and tiered plans
- Transparent Fee Structure: Enable transparent and predictable accounting expenses
- Ongoing effective and efficient advise
- Recommend and help configure Xero accounting software for automatic feed of bank data for real time expense tracking and automatic reporting of recurring billing for the client’s subscription software service.
- Provide 100% transparent quotes for services and with fixed fee pricing instead of an hourly rate with no scheduled hours.
Year round advice & support
Daniel recalls his endurance to get accounting support before switching to Finite Group “our previous accountant took ages to get back to us on a simple query’
Daniel now has all the help he needs “It’s awesome,” he says, “Dhash can pull our accounts up on screen while I’m on the phone and fix any problems on the spot. There’s no need to put stuff on a disk or email files around. He is always on hand to answer any little questions that crop up. Nothing’s too stupid or silly. And it’s nice to have an accountant to bounce ideas off who doesn’t charge for every conversation.”
Sense of being in control
We had used Xero’s Accounting software in the past with start-ups and knew how simple it was manage day to day accounting tasks. Once we had Xero up and running Daniel was surprised at how easy it was for him to share the workload and reconcile the accounts.
“The Reporting is now great – we know exactly how we’re doing and can track the results of changes as we make them, not 6 or 12 months later. For the first time I actually understood my role and their role in the accounting process and how we could easily work together to have our bookkeeping and accounting done regularly and accurately”
Easy to use, easy on the budget
At Finite Accounting we knew how important it was for the start-up to be able to understand and predict accounting expenses and share the workload to reduce expenses.
The first thing we did was provide very clearly defined work tasks and fixed prices for those tasks so the client felt comfortable and that our service was 100% transparent.
Daniel finds Finite Group’s fixed monthly fee easy to budget for as part of their regular monthly overheads, with no big surprise bills at the end of the year.