Most of these Apps have very simple, and also very good user interfaces, in many cases better than the transitional software developers like ourselves. Additionally they move with the times, it does not take 4 years to get a basic function like an estimate, in many cases new stuff happens weekly or monthly at the longest. The typical Mobile developer looks at business functions with a new insight, they are not "cut down" versions of existing desktop accounting software.
Today you can get a Mobile App to do almost anything.
But any analysis of this market, shows in almost every case (Freshbooks is an example) these Apps lack even the most basic accounting functionality and none of the ones we reviewed had even the basic double entry accounting or complied with any of the accounting standards or registrations. We typically got responses like, "we don't need any accounting standards, as we target non-accountants", but this is no excuse to not comply with reporting and compliance standards. Removing complexity, for a target market is a grand goal, but one still needs the basics. In fact Freshbooks was the catalysis for Cognition, as we needed a engine to allow accountants to perform back office, Activity Statements, and perform basis accounting functions, bank loan reporting, bank feeds, tax returns ect. In many ways Freshbooks was our first Cognition "App" but the integration was done at the back end database, not the front end App developer. This approach has many draw backs, synchronization being the lest of these. We concluded that to be successful, the integration must be done at the developer App level.
Even non Mobile accounting solutions, like the market leader Xero maintain a set of +/- transactions, rather than the traditional double entry, which one can see within their journal API.
When it comes to functions like BAS, online ATO returns, bank feeds, AAS25 reporting and compliance with accounting standards, the typical "App" is found to be sadly deficient..
Compliance and reporting is the "Hard" bit and takes a lot of time and money to get right..
The new bread of App Developer
The rapid growth within the Apps market, has been driven by "Free" or very low cost applications, which are very easy to use, most cost less than $20.. This means that any paid App needs significant volume to make money..
If an App developer, makes use of an traditional accounting solution say Xero as their engine, they hit the "Fee" brick wall, where the excessive fees, limits the "volume" and in most cases will stall the App take up, free trials do not help. Also these traditional solutions, compete directly with the Apps market developer, this leaves very little market for the agile Mobile developer, and their customers.
We see that there is a fee threshold or about $100 per year, for this market.
Additionally the interfaces for the likes of Xero are way too complex, and not suited to the typical "light weight" application developer.
Volume underpins the success of any mobile platform "App"..
The Future Accountant
Many say the future for accountants is bleak, the increasing pressure from Adviser channels and the cost of new AFSL compliance, makes it all toooo hard. Many who are reaching retirement, see it as time to move on..
We, actually see a rosy future for the new generation accountant especially for those servicing, sole trader, trade persons, consultant, or road warrior small business, offering a local personalized service to their clients.
Most of this markets clients do not really care about BAS/IAS, tax returns, they "need " to focus on their day to day business, the last thing on their "to do list" is producing complaint reporting for Banks or Investors or the ATO.
While the new generation of Apps, can keep track of payments and cash flows, most of the Apps market users are time poor, and more than happy to "in-source" professional advice and specialist services.
The "in-sourced", virtual CFO, the future of accounting..
Also working with accountants over the years, many are latent "developers".. in that they realise the only way to differentiate themselves in the market is to offer unique and personalized services to their clients. If all practices use Xero where is the differentiation, from a clients perspective.
As there are currently over a Million Android Apps, in the market today, so there is no shortage of App developers in the market.
The new generation of Accountants get this differentiation,and have the "savvy" to understand the market changes.
With the release of Cognition, a practice can now offer a totally unique and personalized service to clients via any Mobile Platform..
Accountants simply re-selling Web Site services like Xero, Reckon, MYOB are the "old world"...
The future is unique practice services, delivered directly to your clients, you own and control your destiny.
Bottom line you can provide superior and in almost all cases, a more cost effective solution to your clients.
In marketing world this is called the "sticky client"...
Cognition "The Cloud Accounting Engine"
Enter the Australian first, and only, dedicated cloud accounting engine for Independent Software Developers.
Unlike all other cloud accounting services, Reckon, MYOB, Xero, Sage quicken ect.
Cognition has no user interface, it is exclusively a "engine" for App developers, to provide the Enterprise Accounting back end to their own "Apps".
Developer
Features:
- Free to all Sole Traders
- Fixed fee of $50 per year, or $5 per month which includes payroll..
- Only developers can use engine, as no end client interface, so fee cannot be under cut.
- Zero account setup fee, above fixed fee can be bundled "in App" all services are white labeled.
- All access via, secure, light weight REST API, using JSON message sets.
- API is free, to all registered Australian App developers.
- No Cognition "App" or web service to compete with.
- Secure, Enterprise double entry accounting engine, been in use since 2000, long before the likes of Xero even existed.
- ATO registered, for BAS/IAS with integrated SBR gateway
- Secure cloud based Auskeys
- Unlimited translations per entity,
- Unlimited customers, suppliers per entity
- Limited to 20 staff (SME market), and fair usage.
- The API usage is also unlimited, Xero has 1000 transactions, and rate limited.
- The API has paging, which limits the max set to 100 entries per page.
- Optional support for SMSF Apps, via our SMSF365 service engine.
Functions
- Invoicing, Estimates
- Expenses, Receipts
- Projects, Tasks
- Time Entry
- Payments
- Items
- Staff
- Contractors, Suppliers, Prospects
- Payroll
- Tax
Accountant Only
Features:
Features:
- SBR for activity statements, via AWO
- Tax returns, via AWO
- Optional Payroll Processing via AWO
- Traditional accounting system, journals ect, with AAS25 reporting for SME's
- Registered with the ATO.
- Payroll Bureau with AWO
- Same accounting engine in use since 2000, used in Web Ledger, Web Office and SMSF365 services.
- Deliver in-sourced, professional accounting services
Cognition: Cloud accounting engine, partners with Australian App developers and Accountant services to deliver the future today.
Availability
- Trials Q3 2014, available to all Australian App developers, and Accountants
- Commercial availability Q4 2014.
Disclaimer The contents of this site should not be understood to be accounting, taxation or investment advice but rather as general product related educational information that may or may not meet your specific requirements.
