Q&A’s from the CAS Lunch and Learn webinar are below:
Q. What’s the margin you are making on the bookkeeping and MA work only in the examples you’ve used?
A. The profit margin on bookkeeping and management accounts (MA) is at least 65% and it’s important to note that we are delivering margins of 65-70% on bookkeeping only jobs.
Q. With the bot, does it only work with Xero/ QB – can it work with Sage? What is the local cost for using the bot?
A. The BOT is compatible only with Xero. Pricing starts at £5 per month for up to 50 bank lines, £10 for 51-100 bank lines, £15 for 101-150 bank lines, and £20 for 151-250 bank lines. Additional transactions cost 6 pence each. Bespoke pricing is available for high-volume clients.
Q. How do you price the outsourced CFO contracts with clients?
A. This is based on value pricing compared to what it would cost the client to employ an FC/CFO. The fact that there are no on costs also helps. We will be providing further guides on pricing during the CAS tour.
Q. How does the bot prepare working papers?
A. We have a BOT in BETA testing which could automate the production of working papers for accounts prep. Important to note that our focus has been on the BOT which enables efficient bookkeeping as part of the delivery of CAS but we expect further BOTS to follow in other areas.
Q. Do we have a TC contract with Bot for That so we can get good commercials?
A. Our BOT offering is a joint venture between B4T and TC Group. We have 2 developers building bespoke offerings for TC Group. We are helping to create the landscape and currently have first mover advantage in the industry in our opinion at present.
Q. How does this link to TCO – if TCO is engaged on the bookkeeping are those guys all trained on utilising the both technology?
A. BOTS and TCO have been working closely to ensure optimal utilisation of the BOT and TCO resource to make the bookkeeping solution as effective as possible.
Q. With the CFO services, there’s a potential management role that could cause an issue with audit clients under Ethical Standards (and IT services). Do you come across these commercial tensions with these services when audit clients, fees are higher than the audit service?
A. These services are typically offered to non-audit clients, where independence is not a concern. For audit clients, the feasibility depends on the scope of services provided. If the engagement is perceived as management involvement, TC’s independence may be questioned. For further guidance, please consult our compliance team.