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Paul Donno: My journey to the cloud

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6th Aug 2015
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AccountingWEB caught up with accountant Paul Donno at the Sage Summit in New Orleans to find out more about his journey to the cloud.

By moving his accountancy business entirely to the cloud, the managing director of 1 Accounts Online has attracted new clients and now has the freedom to work wherever and whenever he wants.

Donno has embraced technology like Sage One and Google Apps, and is able to respond quickly to client needs, collaborate with his accounting, legal and marketing team, and drive the firm’s success in real time.

“We’ve moved away from PC-based products to online software you can use anywhere, anytime,” Donno said.

Background

The Suffolk-based accountant started out as a trainee management accountant back in 1985 and went on to join a regional firm of chartered accountants where he ended up partnering with Sage, becoming the 27th person in the UK to be accredited by the burgeoning small business software company.

After setting up and shutting down a bookkeeping business Donno decided to focus on running the accountancy practice and building up a loyal client base of more than 400 clients.

Around this time Sage was developing its online accounting offering, Sage One, and working in the cloud really excited Donno. He was keen to ensure clients were looked after but had a big decision to make and wanted to go down the cloud route, so decided to merge his business.

By merging his business he was able to concentrate entirely on the cloud and had an agreement which stipulated he was only going to do online work, which focussed him a lot.

Donno had always been enthusiastic about online software and in 2013 launched his own online accountancy firm called 1 Accounts Online using cloud-based accounting package Sage One. He now has more than 80 cloud-based clients and the number is steadily on the up.

Challenges and benefits of moving entirely to the cloud

For Donno the big initial challenge of moving to the cloud was on the security side of things.

This was particularly the case when it came to attracting clients, getting them comfortable with the security aspects and buying into the concept.

“Getting that message across, especially in that first year was really tough. But I think that once that happened, then the actual cloud side of things was quite easy to do,” he said. “What has been interesting with the cloud is that I always thought it was about the product all the way from the start when I looked at it three years ago. Now, and really in the last few months, we’ve looked at that and found it’s actually all about the service. The product is there, it’s a means to an end, but it’s all about the service,” Donno added.

Donno said he sees a complete shift in compliance in the profession, especially at the smaller end of the market.

“The service has just gone up so much because you can now deal with people in real time. So many accountants put ‘proactive’ on their website. But what is a proactive accountant? How can you be proactive if you’re not seeing their data?” he said.

For the firm’s limited company fixed fee service there are four touch points throughout the year where they go in and see if the client is doing okay.

“If they’re making a profit they can have a distribution and the dividend vouchers are raised. It’s all part of the service. It’s constant contact and that’s something we’ve never had before unless we went to the client for a meeting or logged on via one of the other products. Now the data is there. It gives opportunity then for other work like consultancy where you add value,” Donno said.

At the moment he is try to build up the business in terms of compliance to get the number of clients he wants, but currently around 25% of work is additional value price work.

“But the opportunity there is a lot higher than that," he said. "We are trying to get enough clients on board to take staff on and then carry on from there.”

Sage One solution

Donno was one of the first UK accountants to sign up a Sage One client, which he admits was hard work early on.

The Haverhill accountant has worked with Sage as a brand for years, all through his self-employed life, in the good times and the bad.

“As a brand it has always delivered for me. I’ve bought into the brand and the product where it is now is way ahead from where it was three years ago, even in the last six months. Bank feeds was a must and it has delivered on that,” he said.

On what’s next, Donno said Sage now needs to work on the add-on area. “I think they’re doing that and that will make it even more powerful,” he said.

Admitting that Sage was somewhat late to the cloud game and that there are some good rival cloud products out there, Donno said he does see at some point the balance will tip in Sage's favour.

“Sage will go past it. This brand wants to notch it up and I’m certain that they can do that,” Donno said. “Traditional accountants are not dying, but they will find it tough and fees are being squeezed.”

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By johnjenkins
06th Aug 2015 10:34

This is a brilliant article

which really gets my interest.

Congrats to Donno for taking an opportunity and developing it.

I have an IT client who is working with the Government on cloud stuff (over my head) and he says that in 5 years all transactions will be done through the cloud.

However (of course there was going to be an however from one of my posts) I do not think that it is right for all business.

What high techies and government have failed to grasp is that there are a lot of people out here that aren't techno minded to the extent that government want them to be. So what, IMO, should happen is that there will have to be a transition period of at least 5-10 years for SME's to come to terms with this new technology (it's not new for you but it is for a lot of SME's).

I was talking to the manager of our local Santander bank about the re-vamp of the branch using less cashiers. The reply was "The savings having less cashiers and more machines has been offset with the time spent on the older population not being able to use the new ways of working".

A lot of SME's are the same and we are in danger of creating a two tier business system or SME's will simply disappear (maybe that's what the government wants).

I can see and feel the enthusiasm of people like Donno but we do need to walk before we run.

Thanks (6)
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By steven.jones
06th Aug 2015 15:56

Sage Online Business Development Managers

Moving online can be a scary prospect for clients, accountants and bookkeepers. Paul has been brilliant and he has done an amazing job of building his business as an online accountant.

Paul is now part of many accountants and bookkeepers that have future proofed their services to clients.

Sage have online business development representatives in all regions of the UK that can meet you, work with you, support and help you.

To book some time with your representative, fill in the form Here

Also we have webinars running every day Here

Don’t forget the choice is always yours, and we’re happy to help and support you whatever you choose.

 

Steve

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By qad999
07th Aug 2015 11:06

hyped

thats what the benefits of cloud are .. no mention of the disadvantages .. but hype any perceived advantages.. reminds me of timeshare salesmen..

its just another product to sell , even to those people who dont need it  "its a must have"

besides its no real revolution , think about it , youre carrying out the same old functions ,  just with less control over the result.. its re-packaging the same , with more disadvantages and more ongoing cost

there are a lot of micro and smaller businesses that have no interest in it , they simply need a cheap once a year package of results

but beware ..criticise the cloud and you will be  treated as a holocaust denier

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By Moonbeam
09th Aug 2015 15:35

Sage One

I am amazed that for the first time in years a practicing accountant on Accountingweb is praising Sage One.

Given the many criticisms I read elsewhere about this program I'm truly dumbfounded. Are all the negative comments (made by people I've got to know and respect) completely wrong?

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By steven.jones
10th Aug 2015 20:35

Sage One has evolved so much in the last 12 months. We have simplified the portfolio in to 2 end user solutions and the top product is only £10pm. 

We have released Sage Final Accounts Online and soon Corporation Tax, and Personal Tax Online, also to mention they are free when accountant or bookkeepers process any Sage One data through them. 

We have launched many new products online in the last few months and have much more to come. Sage Impact which will contain apps, Sage Match, Sage View and more to follow, all tools to enhance an accountants and bookkeepers experience with clients. Sage are the only provider that offer choice, desktop, hybrid and cloud software. It’s up to you what you or your client chooses, we will support you on them. We will never force anyone to migrate if they choose not to. 

Also to mention the impending launch of Sage Live. As above we have a team of specialist ready to meet with anyone to discuss this further. 

Here please fill out the form

Steven Jones, Regional Online Development Manager, Sage

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By Charlie Carne
10th Aug 2015 20:15

@Steven Jones

I assume that the use of pronoun "we" in your post means that you work for Sage. It is usual on this forum to openly declare that one works for a software supplier when posting on a subject that may influence readers to adopt a product from which you benefit. If you are the Steven Jones that I just found on LinkedIn, you may wish to close your posts with the signature: "Steven Jones, Regional Online Development Manager, Sage". If you are not he, then please accept my apologies.

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