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Episode 69

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Published on:

28th Dec 2023

Strategizing in the Digital Age: Insights from Damien and Penny

Are you curious about how technology is transforming the accounting profession and what skills are now essential for success in this evolving landscape?

In this episode, co-hosts Damian Gracehead and Penny Breslin discuss the impact of bots on accounting, the importance of human review in automation, and how keen learners can help keep professionals updated. They also explore the fluid part of advisory consulting in a Client Accounting and Advisory Services (CAS) model. As they delve into their favorite past episodes and events, they also share insights about the face of business operations in their sector today and the evolution over the years.


[00:00 - 04:56] Year-End Accounting Challenges and Solutions

  • The episode focuses on various aspects of CAS (Client Accounting and Advisory Services), cloud bookkeeping, virtual controller services, and virtual CFO services.
  • Damien and Penny delve into the activities and tasks that firms and clients are engaged in during the end-of-year period. Penny describes how their firm handles year-end cleanups, tax preparations, and dealing with clients who haven’t reviewed their files throughout the year.
  • Penny emphasizes ensuring that data for tax preparation is comprehensive and up-to-date in different software platforms used by clients.
  • They also touch upon changes in tax processes, like the shift from annual to quarterly or monthly sales tax submissions.


[04:56 - 11:52] The Role of Bots in Accounting

  • There is an increasing reliance on automation for financial reconciliations, particularly towards the year-end rush.
  • A specific case study: a firm working with a client's company file for two years, noticing unusual transactions—a series of identical charges from Audible.com flagged by the team leader.
  • It is important to be regularly involved in the financial files to catch such mistakes.
  • Damien and Penny share insight into the limitations of bots and AI in accounting, emphasizing the need for human oversight.


[11:52 - 21:14] Regular File Review and Understanding the Logic Behind Automated Transaction

  • Penny and Damien discuss the challenges of relying too heavily on automation and AI in accounting, particularly with reconciliation processes.
  • How close monitoring and a thorough understanding of the client's file helped in quickly identifying and rectifying the mistake.
  • It is important to have a proactive approach in accounting, especially in dealing with automated systems.
  • Changes in technology impact the workflow in accounting, with an example of the transition from desktop accounting to cloud-based systems.
  • They reflect on how technology can disrupt traditional accounting practices but also requires new skills and understanding from practitioners.


[21:14 - 31:55] The Unpredictability of Bank Feeds

  • Damien and Penny discuss the end-of-year work rush and the increasing reliance on technology in accounting.
  • They share insights into the proactive approach and quick action taken to rectify the bot error, including getting refunds and making necessary corrections.
  • Some accountants and bookkeepers are reluctant to fully embrace new technology due to past experiences or mistrust.
  • There is a need for continuous learning and adaptation in the accounting profession, especially in relation to technology.
  • It is important to be adaptable and open to learning in the accounting profession, especially with the rapid evolution of technology.


[31:55 - 35:47] The Importance of a Learning Culture in a Firm

  • It is important to have a learning mentality within the firm, with a nod to the educational approach in the United States that encourages problem-solving and independent learning.
  • Sharing of a culture within the firm where team members regularly post educational content fosters a collective learning environment.
  • Damien and Penny discuss the podcast's success over the years, including favorite episodes and events attended.



Tweetable Quote:


"Human beings still have to think, you can't let the bots do everything." - Penny Breslin



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Thank you for listening. Please like and share this episode with a friend!

Websites: https://moneypennyllc.com/

LinkedIn: https://www.linkedin.com/in/damiengreathead/

Twitter: @Damien_GH

LinkedIn: https://www.linkedin.com/in/penny-breslin-0228b81/

Twitter: @pennyb57


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About the Podcast

Strategy and the Virtual Controller
Helping accounts and bookkeepers build the firm they want, their way
Your hosts Penny Breslin and Damien Greathead have more than 30 years of combined experience in the accounting industry. This podcast is to share their experiences of working in, and consulting to accounting and bookkeeping firms of all sizes, helping them grow.

Nothing discussed will be rocket science, instead they'll be discussing 'how' firms have successfully, and not so successfully, pursued growth. Penny and Damien will be sharing their insights on how firms can be successful by focusing on their people (clients included), their technology, and their processes and systems.

Ultimately how successful an accounting business will be depends largely on how the owners manage change, which alongside taxes appears to be the only constant.

We do want to acknowledge David Maister's great read Strategy and the Fat Smoker: Doing what's obvious but not easy as the inspiration for our title. Buy it on Amazon - https://amzn.to/3dhcUFC

Subscribe today for an upbeat and practical conversation about what's working and what's not in accounting businesses around the world.

About your hosts

Penny Breslin

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Penny Breslin is the founder of MoneyPenny, a consulting firm specializing in helping accounting firms and other businesses embrace the power of technology to simplify their operations and increase their profit margins.

Drawing on her years of experience and her knowledge of what it takes to run a successful business, Penny oversees the development of back office processes for her client firms. From the initial evaluation of the firm’s workflow, to technology selection, and assisting in the on-boarding of the firm’s clients, Penny works with her clients to maximize the benefits of a paperless and cloud-based firm.

Damien Greathead

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Damien has been working in the accounting industry for more than 15 years. In addition to getting his hands dirty preparing tax returns and doing bookkeeping, but the bulk of his experience comes from consulting to both accounting firms and the technology companies that serve the industry.

He set up 2020 Group USA which was a membership group for small and medium sized accounting firms and then went on to set up Receipt Bank (now Dext) in North America.

He regularly speaks to industry bodies on technology, marketing and change management.