Spreadsheet vs Portal: the ultimate smackdown

[ContrataxLtd]

Is Crunch a bespoke platform? Intouch is, so it NW (Vantage).

I like the idea of using a standard tool like Freeagent. The big accountancy companies prefer their own bespoke written stuff. Allows them to capture that income I suppose.

Hi Unixman

I believe Crunch's platform is bespoke but I'm sure Jon@Crunch will be along to clarify, I'm pretty sure InTouch & NW's platforms are bespoke too.

IMO there are three main reasons to go bespoke (from the firms POV):

1) The overall cost should, in theory, be cheaper than a standard online provider as there are no monthly subscription costs to pay for, just initial/ongoing development. The risk to the firm here is that big changes have to be made which are costly, but split out on a per client basis it's probably not too much with a decent critical mass.

2) It gives a greater tie in to the client, they are using the firms software so it's harder for them to move accountant which means they will probably retain more clients even when some may be unhappy as there is an extra hurdle to climb in moving.

3) Reporting/API interface can be better used so that the software flows directly into accounting/tax software with little staff interference. Thus things become more automated and cost efficient.

Obviously the 'smaller guys' like ourselves etc. choose to use tools like Freeagent because we don't have the initial capital available to develop/support something as good as Freeagent.

Personally, I'd go with an accountant that you get a good feel for and has the knowledge/skills to give you a great service rather than basing the decision on what software they have as software can always be changed.

HTH

Martin
Contratax Ltd

[Maslins]

The push towards portals comes from the accountants, not contractors, according to what I have seen so far.

I'm not convinced that's true, imagine it's more 50:50.

Certainly think it's fair to say FreeAgent took off initially at least by appealing to the end users, NOT to accountants. Accountants (like us) then joined the party later because there were lots of end users who loved the software but needed help.

In other situations (eg JSA) they had all their customers using one thing, then the accountant made the decision to push them all onto FreeAgent later.

If you're happy with a spreadsheet, you'll find a firm happy to help you based on that, no different to if you wanted to use FreeAgent/some other online portal. The choice is yours...I guess you just need to accept the fact that if your key priority is how you'll enter/track the data, you need to then pick an accountant that's happy to work with that method.

[JonNorris@Crunch]

I believe Crunch's platform is bespoke but I'm sure Jon@Crunch will be along to clarify.

It is - the development team sit right above my head!

2) It gives a greater tie in to the client, they are using the firms software so it's harder for them to move accountant which means they will probably retain more clients even when some may be unhappy as there is an extra hurdle to climb in moving.

I don't think this is much the case any more - software tie-in is a bit of a 1990s tactic. Any system worth its salt should let people download their data and leave.

3) Reporting/API interface can be better used so that the software flows directly into accounting/tax software with little staff interference. Thus things become more automated and cost efficient.

This is the main advantage for us - reduces manual work hugely. Also means we can do fun stuff like this:

I can also run a trial version of my annual accounts at any point during the year.

[Maslins]

I don't think this is much the case any more - software tie-in is a bit of a 1990s tactic. Any system worth its salt should let people download their data and leave.

Whilst I sort of agree, it's still a big pain.

Eg even my beloved FreeAgent (so I'm not seen to be biased here) if you want to leave to move to another package, it's not ideal. You can download all transactions, but they export into this mammoth Excel file. Not easy to find the info you need, or to import into another package.

So whilst you might technically have the data, if you move from one package to another you aren't able to easily see comparatives going back a few years like you can if you stick with the same package.

It's easier to stick with the same software package and swap accountant than it is to stick with the same accountant and swap software package. Swapping both is of course worst of both worlds in terms of hassle.

[ContrataxLtd]

Whilst I sort of agree, it's still a big pain.

Eg even my beloved FreeAgent (so I'm not seen to be biased here) if you want to leave to move to another package, it's not ideal. You can download all transactions, but they export into this mammoth Excel file. Not easy to find the info you need, or to import into another package.

So whilst you might technically have the data, if you move from one package to another you aren't able to easily see comparatives going back a few years like you can if you stick with the same package.

It's easier to stick with the same software package and swap accountant than it is to stick with the same accountant and swap software package. Swapping both is of course worst of both worlds in terms of hassle.

That's just how I'd have put it!

Martin

Contratax Ltd

[unixman]

Just a quick point regarding security and spreadsheets. I exchange bookkeeping spreadsheets with the accountant via email, unencrypted. So there is zero confidentiality. Ditto bank statements. It is a bit surprising they don't offer even an https upload service, but there it is.

Good replies all, thanks.

[Contreras]

Just a quick point regarding security and spreadsheets. I exchange bookkeeping spreadsheets with the accountant via email, unencrypted. So there is zero confidentiality. Ditto bank statements. It is a bit surprising they don't offer even an https upload service, but there it is.

Password protected spreadsheet is better than nothing. It should be standard practice for any file emailing given how easy it is to select the wrong recipient. In fact I would still do that for a https file upload.

You can take bets on which is more secure overall, online portal vs. file based, until the worse happens.