Social networking is the ‘new kid on the block’ and companies are blogging their way through the complexities of business. Critics have argued that social networking is not for accountants as financial trust cannot be built online. It is no coincidence that some of these cynics are accountants themselves. Are they stuck in the dark ages or should accountants stick to filing cabinets and spreadsheets? The thought-leaders at Alexander Rosse, the UK’s first true e-accountancy, explain why they are bucking the trend and how they have created a new cutting-edge within their industry, where trust is not an issue.

Through lack of knowledge and experience, SMEs tend to be pressured into signing up to accountants through hard selling techniques and short-term but urgent needs. Alexander Rosse has started the debate: Do all SMEs really need a full service accountant?

“Many accountants over-service their clients and earn themselves unnecessary fees, for example calling a client meeting where no value is delivered yet they still charge an hourly fee and expenses.

“With businesses cutting back in the economic downturn, how can charging for unnecessary service elements be in the client’s interest? Why should SMEs pay avoidable charges? Traditional accountancy relies on mountains of paper, countless spreadsheets and the concept of trust. If accountants consider trust as pivotal, why are some overselling to SMEs?

“Alongside giving straight-to-the-point answers to unpopular questions, we provide a more truthful service when addressing client requirements,” explains Abhai Rajguru, founder member and chairman of Alexander Rosse.

Abhai agrees that building a relationship with your accountant via 140 characters posted on Twitter is certainly no way to choose who to share your bank details with. His firm are removing the perceived risk from online accounting through gradual, first-hand experience. Most people start by signing up to the UK’s longest Xero software free trial which is one of Sage’s main rivals.

Xero is thought to be the easiest online accounting software tool to use on the market, giving businesses web-based access to all their accounting information and automating numerous number-crunching processes online. Offering software as a service is a growing trend in the accountancy industry outdating the expensive disk based software, provided by the likes of Sage, which companies do not want.

Alexander Rosse builds trust by allowing clients to sample the software and get a taste of their services. By dipping a toe in the water, free-of-charge, it avoids diving head first into choosing an online accountant without knowing what to expect.

“Being able to explore Xero and refine your accountancy package to suit your own needs gifts the experience to the client without obligation. By trying the services themselves our software users get to know us over time without paying a penny. We are offering an extended trial of Xero software until the end of January 2010,” said Abhai.

The think-tank and accountancy, that is now Alexander Rosse was founded by three financial experts who originated from the Big 4. It provides SMEs with rare access to some of the UK’s most sought-after expertise, which is normally out of reach. Although they have a proven reputation, Alexander Rosse does not take anybody’s business decision-making for granted.

“We do not want anyone to take risks so we have a refund guarantee for those who appoint us as their accountants. If they are dissatisfied with the service, we simply return their fee. So far this has not been necessary, but if it did happen, they would be welcome to continue using the software with their new accountant. Without risk, trust is no longer so much of an issue,” concluded Abhai.

Try Xero software for yourself on www.alexanderrosse.co.uk.