Do you have on-site servers? Do you perform your own software updates? If you answered yes to both of these questions, your business could be losing upwards of $240,000 annually.
Many accounting practices who have sought our help were managing their own software updates in an effort to reduce costs. In many cases the responsibility had been assigned to a non-client facing staff member (eg. Administration person/receptionist) who had been given some basic training. While this represented a negligible salary cost, the knock on impacts of their DIY approach was in fact costing their business dearly.
Let’s break it down…
How many updates are required annually?
A typical accounting practise running MYOB will encounter the following updates in a 12 month period:
MYOB – 4 updates annually
Windows – 12 updates annually
Others – Most practices will also use superannuation, financial planning and various other software. While the software/application mix varies between practices, most average an additional 24 updates per year.
Therefore, an accounting practice will be required to perform a total of 40 software updates over a 12 month period.
DIY solutions can restrict your earning potential
To complete each update, servers will need to be offline for approximately one hour. It total, approximately 40 hours per year.
If these software updates are undertaken during business hours (and in most cases they are), your business is interrupted. In a practice of 20 staff, 40 hours of server downtime equates to 800 combined hours of downtime. Multiply this by the average hourly billable rate of an accounting professional ($300 per hour) and this equates to $240,000 that your staff were unable to bill for because they could not work. This is a significant and avoidable opportunity cost.
A step in the right direction is to find an IT provider who will manage your software updates for you. A good provider will work with you to run your updates well outside of business hours when no one is accessing your server.
Even better, a Cloud solution completely removes the need for updates as all software inside the environment is updated as necessary with zero user interruption.
If you are curious about a Cloud solution contact us for a pricing schedule or test drive of VAULT, our all Australian secure Cloud for accountants.