"Continuous Certification" is a phrase coined by Xero’s CEO Rod Drury.
In a recent article, Mr Drury hits on a mutualistic relationship, one which accountants and bookkeepers will have with cloud accounting platforms together allowing “clean data” flow for SME’s to seamlessly access new financing products. “[inlinetweet prefix="" tweeter="" suffix="@getwaddle @roddrury"]continuous certification can also provide better access to capital and finance for small businesses[/inlinetweet]”, according to Mr Drury.
Advisors are critical to the success of growing SMB’s, maintaining accurate accounts by having real-time access for monitoring makes a lot of sense, especially when using a product such as Waddle. Waddle’s lending add-on relies heavily on up-to-date records, regular reconciliations and accurate bank feeds. “We think accountants will become part of the lending environment and be the connection between banks and small businesses,” said Mr Drury.
— My Accounts (@my_accounts) August 19, 2015
A national bookkeeping firm My Accounts General Manager, Noel Tiufino states they “collaborate” with accounting firms creating more of a “symbiotic relationship”. This carries a lot of weight given, bookkeeping is a core role of accounting, [inlinetweet prefix="" tweeter="" suffix="@my_accounts @getwaddle"]Mr Tiufino said “(we) employ a ‘triangle-engagement’[/inlinetweet] whereby the client, the accountant and the bookkeeper are all on the same page prior to work commencing and are in regular contact throughout the year to ensure that the client receives the best service”. He finished off by making the point that “Everything we (the bookkeepers) do, the accountants do and crucially everything Xero does should be to ultimately benefit the client or better the relationship with the client. ‘Continuous Certification’ certainly fits this description.” Maintenance performed regularly by accountants or bookkeepers shouldn’t be seen as way to bill more hours to clients, rather it allows inefficiencies and inaccurate allocations to be identified earlier saving countless hours correcting future inaccuracies. Secondly, accountability should always be on a business owners mind, monthly reviews of business activity should be maintained and without timely and accurate reporting this cannot be achieved. Lastly, access to add-on services that rely on connections to cloud accounts such as budgeting and cash flow forecasting tools are largely rendered useless without accurate data. These new tools are allowing business owners to effectively get access to enterprise level software at very low costs and unless businesses are staying current, they simply miss out.
Why Waddle works closely with advisors
Countless business owners have tried to access financing products, only to be told they need to bring financials up-to-date, reconcile or clean up creditors. Business owners delay their chances of getting funding significantly by not maintaining accurate records and this can often leave them taking more expensive options due to time constraints.
— Waddle (@getwaddle) August 19, 2015
Waddle’s online lending add-on requires regular reconciliations, with correct allocations of bank feed data to invoices. Accountants and bookkeepers play an extremely important part in maintaining client accounts to prevent any delays in onboarding new clients and continued funding. New clients that lack regular maintenance will be referred to Waddle's network of advisors to assist with accounts, in turn, allowing funding to flow seamlessly giving borrowers the “cash on demand” experience. It could be seen as tough love, however with recent successes, Waddle customers are thankful that they know exactly how their business is travelling at any point in time.
Disclaimer: Waddle mentions “Xero” throughout this article, Waddle is impartial with all cloud accounting providers and at the time of publishing this post does not carry any integrations with the service.