You sent out an email about an opportunity for stay at home parents about six months ago and we have not heard anything since then. What’s happening?
We are a little bit optimistic on being ready to launch this service. In the last five months, we’ve been piloting this service or this concept to a couple stay at home parents just to iron out all the wrinkles. Now, we’re finally at a point where we can actually go ahead and we actually have a platform around data automation and we have staff in place, we have a program in place and we have mentors.
Now we have proved that the concept works and we’re ready to start talking to people who are interested in earning a part time income. We’ve proven our model out and now we’re ready to allow other people to implement that model wherever they might be.
Do you have an example that you can give me on how you reduce the bookkeeping costs for business owners?
There’s one particular client that we’re dealing with. They had two retail stores and a construction company. And the way they did their payroll is they simply entered all the data on a whiteboard and then they enter it to an excele spreadsheet and then they entered it into their accounting system.
And so what we’ve put in place is a web-based app that the staff can have in their phones and they simply entered the hours each day and there’s a management interface with the management’s approval of those hours and it automatically connects to the system and the staff gets paid.
We then pull down the electronic file from the server and then import it to Quickbooks. So, that saved a lot of time a month that were spent around payroll.
What can a business owner do to leverage technology to help reduce bookkeeping costs?
We’ve been working on solving that problem for the last year and a half. And we’ve developed this Data Automation platform that business owners and their staff can use to drive down the actual bookkeeping costs.
For example, you’re a construction worker and you’re going to have to take pictures of invoices that your staff members pick up. You can email it to us and we can extract the data and allow your bookkeeper to code those transaction much faster than waiting for the people to come back in the office daily or weekly.
Our platform works with Quickbooks Desktop Pro, Premiere and Enterprise and it allows your staff to co-transact much faster and also to memorize transactions. So if you’re getting gas receipts, they can be automatically coded to gas expenses.
So the idea is that, hopefully your bookkeepers can spend 50% last time doing data entry work and leveraging the time left over to write more value numbers to you as a business owner.
What is wholesale bookkeeping and why is it important for accountants?
Wholesale Bookkeeping is a new service offering that we are rolling out. And we will offer it to the bookkeeping for accountants underneath our own brand at a guarantee profit margin for the accountants.
The way it works is the clients come to their accountants with all their receipts, we’ll send someone into their office, we’ll scan all that paper for them, we’ll digitize it all, extract the data. And then enter the data in the accounting platform, reconcile all the accounts.
We will also help the accountant build a value pricing quoting template around that particular client that they can present to their customer.
Why would they care? Most accountants don’t want to do bookkeeping and I don’t think they should. But if we can help them generate an extra $100 to $200 or $300 a month a profit margin on every bookkeeping client and you have a hundred clients, that ends up being a fairly nice profitable income stream for the accountants without actually having to do any of the work.
John, what is this new data automation platform that you guys created and why should bookkeepers care about it?
A couple of years ago, I was talking to an accountant who does national speaking tours across Canada. And there is an interest from bookkeepers and accountants around data automation.
Cloud computing had come out so you have Xero, Quickbooks Online, and Sage One. And they have a lot of these cool functions that allow bookkeepers to do their jobs much more quickly than in a traditional desktop application. And so, you have digital bankfeeds, auto-categorization of transactions based on vendor.
But none of these features are available to the desktop version. So what we wanted to do is create a product that brought all of the best components of cloud computing and all the advantages and brought it down to the desktop.
And so, the Data Automation platform is the result of that. It’s about a year and a half worth of work. It’s fairly sophisticated and we give all the advantages to the bookkeepers and accountants that want to use the desktop version of the accounting platform but have the advantages of cloud computing.
So, we have receipts and data extraction from receipts, data extraction from bank and credit card pdfs. And the database does not even need to be at the bookkeeper or accountant’s location. We all do it through a web interface and we can do all the coding in our cloud SAAS platform and then you simply hit the synchronization button to pull all those transactions in the bookkeeper’s database.
It allows bookkeepers to be much more efficient when they’re doing bookkeeping for clients that are using the desktop application.