I have recently completed designing an accounting system framework, utilising a cloud based system and add-ons that promote efficiency and value. For SMEs my system of choice is Xero. The core system does all the stuff you would expect, but because it is “open-source” over 300 add-ons have been developed by other companies. For example,  Receipt Bank will translate receipts and invoices into digital data that can be directly fed into Xero. All employees can upload an app to their mobile device, scan their receipts and these will automatically generate expense claims from the system. Very neat. What is the cost? it will vary depending on volume, but let’s assume 20p a transaction. That might appear expensive but if you assume that the full cost of an accounts payable clerk is £20k, then that amounts to 100,000 transactions.

Crunch-boards sits at the other end of the food chain, sucking data from Xero and elsewhere to produce first rate reporting. They claim that they can replace the use of spreadsheets.

What does this all mean to the future of the finance department? SMEs will be able to produce the same level of reporting and analysis that larger firms do, because the cost will no longer be prohibitive. The finance department will also become at least partly out-sourced. Investment will be required to get the set-up right in the first place, but following that skilled personnel (such as an FD) will not necessary be required full time. However, it will be essential that the FD is conversant with technology as the design, implementation and utilisation of rapidly developing systems will become an essential part of the role.