Hubdoc - free from March 2020

Opportunities and threats

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Hi, after speaking with our Xero rep he informed us that from March 2020 Hubdoc will be included for free with all Xero business licences.

I was wondering what people's thoughts would be about what opportunities this could present, or any threats this could present for that matter?

Opportunities: -

 - Clients may need trained in how to use Hubdoc. Not the biggest fee earner but opportunity to build relationship.

 - For clients who use Xero but we maintain their book-keeping and use Auto-Entry etc, then this cost could be avoided.

 - For clients who use Quickbooks/Sage etc then inform clients that Xero offers Hubdoc for free. Reduces their data entry etc. No fee/cost reduction but hopefully seen as being pro-active. As a side note it presents an opportunity to get all clients (or more clients) using one piece of software so maybe some efficiencies to be made there (no need to show staff how to use multiple pieces of software).

 - Faster accounts preparation as no need to chase clients for invoices as invoices will be attached to the transaction on Xero.

 - Will this provide a better option than Yodlee when it comes to feeding in bank statements?

Threats: - 

 - Clients opting to do their own book-keeping/VAT returns as AI makes it easier for them (in theory). I personally think this will be few clients if any for us…clients who value us and/or cannot be bothered to maintain their own books will still have these thoughts.

 - Pressure on fees as preparing VAT returns etc ‘is easy as the computer does it for you’. Most clients will be unaware of the efficiencies we can make using software but may now start to recognise it. On this point...what are people's general thoughts about AI software, do you tell clients you do not manually enter all invoices etc anymore?

Any other thoughts much appreciated, for example does anyone know if Quickbooks/Sage etc are teaming up with anyone like Xero have with Hubdoc?

Replies (4)

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Slim
By Slim
21st Dec 2019 11:22

How long will it be “free”? I assume just long enough for them to gain sufficient market share.

There is a poster on here who comments on Xero’s Poor financial position , if true this isn’t going to help is it.

Smells fishy to me.

To add. We have a fair number of clients on the cash book ledger which so paying the extra to get it will get expensive.

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By marks
23rd Dec 2019 22:37

Hubdoc from what I have seen isnt very good. Sure Xero will invest in it over the next few years but Receipt Bank is miles ahead of it of what it can do from a functionality viewpoint.

Regarding your comments in order

1. Difficulty will be getting clients to use it
2. Yes cost would be avoided if not using Xero and Autoentry but if using Autoentry is the cost not factored into your bookkeeping charges?
3. We only use Xero where we do the bookkeeping so doesnt affect us.
4. Again will be ensuring clients upload all the receipts
5. Hubdoc I dont believe does bank statements like Autoentry and RB does

1. Although cloud accounting and receipt processing software makes things more efficient clients still need to know what they are doing and how to sort things when it is done wrong. Most people dont or are not interested in learning. That why they pay an accountant/bookkeeper.
2. Cloud accounting is make processing more efficient that it used to be 20 years ago but then enables you to spend your time in other areas helping your client rather than just being a bookkeeper. If you dont show them the benefits of using software someone else will at some point and pinch your client.
3. Quickbooks has its own receipt processing software and SAGE bought Autoentry a couple of months ago. Expect that in the next year or so Autoentry will be rebranded as SAGE's own receipt processing software and only be able to be used by SAGE users.

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By Lucy Day
09th Jul 2020 16:25

Sage acquired AutoEntry last year which integrates with Sage Business Cloud Accounting (and Sage 50cloud) as well as QBO and Xero. There are no plans to re-brand it, or limit to Sage users only. We're developing more integrations into the future and will continue to do so because we want certain elements of our proposition to remain agnostic to practices can use it across all their bookkeeping software.

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boat
By SouthCoastAcc
09th Jul 2020 20:36

I trialed hub docs and found it very meh but it is "free".

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