This article from the AFR highlights the failing of both the ICAANZ and CPA Australia in terms of projects for small and medium size accounting practice members. Both organisations tired to offer its members, that operate in small to medium size practices tools or avenues to help with their business. Unfortunately the facts have shown, a lack of support, along with poor control of funding within both organisations and lack of accountability in the financial reports provided to the membership. CPA Australia with its so called CPA Australia Advice and now the Chartered Accountants Australia and New Zealand (ICAANZ) with its Kairos data platform.
Both failed to properly understand those members that operate in small to medium size practices, and both spend up big on projects that were doomed to failure. You have lots of well educated professionals working on both projects, but the question is who had the business plan, who had the commercial experience to really understand whether these projects were genuine long term, viable businesses? Could both organisation have sold these ideas to the "Shark Tank"? One would think not. Could both organisations have sold these ideas to investors and raised the necessary working capital to get these ventures started and operated?
The only winners seem to be the larger accounting firms, who provided consulting services, to get these projects running or to get these projects shut down and the management team and the board members of both organisations who continue to get well paid for doing such a bad job . The big losers were the members of both organisations, as the management critically misread these ventures, poorly budgeted those projects, provided minimum disclosure in the financial reports and even worse misread the membership interest. The membership of both organisations, will continue to see their membership fees increase and may well continue to see the use of those funds wasted. Some past boards of CPA Australia have shown poor management and leadership skills and poor use of membership funds.
If you tell somebody that you have a great idea, you may get lots of members interested. If you try to sell something to the membership, and the cost of that service/software is not only unrealistic, unreliable then you wont get the uptake. What does this say about the accountant who are not only in charge of both organisations, but also appointed to the boards of both organisations?
Both organisations have certainly provided alot of bad examples, for those students, who are undertaking their accounting/business studies, in how running business ventures. can so so quickly run off the rails and go out of business.
We all just have to wait until the next issue is brought to the surface and discovered by journalists, because the membership are just given limited information and kept in the dark.
AFR 31 July 2018 by Edmund Tadros
Chartered Accountants ANZ spent $1.6m on Kairos data platform
https://www.afr.com/business/accounting ... 730-h13brt
Chartered Accountants Australia and New Zealand spent $1.6 million on its Kairos data platform before offloading the project to an external provider because the professional body could not entice enough accounting practices to become paying subscribers.
The accounting body said last week that it would transfer the management of hardware and software associated with the cloud-based suite of programs and tools to software company ASI Solutions, which will in turn offer the service to CA ANZ members.
But the media release, which spoke of the move as providing more member value, did not reveal how much members' money had been lost on the Kairos project.
The Australian Financial Review can now reveal CA ANZ spent $1.6 million in technology development and staffing costs over three financial years on Kairos. ASI Solutions will now run the platform and provide an unspecified royalty in return to CA ANZ.
The spending was part of the reason the accounting body had consecutive deficits – of $8.2 million in 2015-16 and $6.8 million in 2016-17.
Gerald Jaworski, a chartered accountant for about 40 years and CA ANZ member, said CA ANZ should not have hidden the cost of the project for so long.
"Kairos is an example of how members are treated like mushrooms by CA ANZ leadership," Mr Jaworski said.
CPA more transparent
The CA ANZ disclosure comes after rival accounting body CPA Australia added to the pressure to be more transparent by revealing details about much of its operations after a member uprising last year.
Only last week, CPA revealed it paid PwC's Strategy& $600,000 to conclude its financial advice arm, CPA Australia Advice, was not financially viable.
CA ANZ Kairos was launched in late 2016 with a goal of about 3000 subscribers by September 2017, paying about $164 a month per user.
But the foray into software as a service struggled to win paying subscribers. As of last week, Kairos had only 60 paying members and 2800 non-paying members.
The move to stem the losses at Kairos by effectively handing over the running service was flagged in April as part of a big cost-cutting exercise by CA ANZ chief executive Rick Ellis. ASI Solutions won the tender.
The transfer of Kairos to ASI Solutions would lead to better member outcomes, CA ANZ head of member engagement Mark Rice said in a statement.
"The decision to partner with ASI is part of our strategy of providing more value to members, and this includes delivering our support services as effectively and efficiently as possible," he said.
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|Merry Christmas to Peter Wilson. When it was suggested that Peter Wilson should be independent of the old board so that we can have a fresh start Peter responded with "That's your issue". Summary of the meeting here: viewtopic.php?f=23&t=594|
A good summary of where we are up to by Joe Aston of the AFR, linked to from here: viewtopic.php?f=5&p=4137#p4137
If you are new to this website read the story so far: viewtopic.php?t=321#p1793
Check out some of the AFR articles, too many to list and check out some of the ABC reports: http://www.afr.com/business/accounting/ ... 215-h055ej http://www.afr.com/business/accounting/ ... 211-h02x1d http://www.abc.net.au/news/programs/the ... s,/8626662
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