Canberra accountant wins Xero’s Innovative Partner of the Year
Harry Hoang (second from left) and his wife Hannah Tran (centre, holding the award) accept Xero’s FY24 Innovative Partner of the Year award in December 2023
When we think of innovation, we don’t usually think of accountants. But Harry Hoang, founder of Tailored Accounts, has a passion for supporting local entrepreneurs, innovating the accounting profession, and supporting the Canberra innovation ecosystem.
Early adopter of cloud-based accounting
Many small and not so small startups use cloud-based accounting software, such as Xero, to run their businesses. But it wasn’t always the case.
Harry was an early adopter of Xero, joining the program in 2010. In fact, he was the first accountant in Canberra to adopt Xero. He became hooked after meeting a salesperson and watching a demonstration.
According to Harry, back in 2010, many businesses and accountants were reluctant to migrate to cloud-based programs due to security concerns. While people would happily log onto their online bank account, they feared linking it to a cloud-based program. In the early days of using Xero, Harry had to convince many of his clients about the security of Xero. And he even convinced other Canberra accountants of the benefits of moving. (That’s right, he worked to convince his competitors to move to the same platform he used.)
But this is not why Tailored Account won a prestigious Xero award.
Innovator at heart - with focus
Harry loves innovation – and he loves ideas. ‘I find it easy to distract myself with ideas – there are a million things I want to do,’ he said.
“It’s better for me to invest in innovative ideas than getting distracted with ideas about other things.”
At one point, Harry became interested in web design. He built 30 websites, including for eCommerce. But then he realised he was spreading himself too thin. ‘What are you really focusing on?’ he asked himself. He then decided to go deep into one area, focusing on his super power - his accountancy business.
Harry closed out the web design business. But he didn’t totally give up on his love of innovation. Instead, he decided to invest in people with similar ideas and purposes. ‘If I find people who align with my ideas, then I invest. It’s better for me to invest in innovative ideas than getting distracted with ideas about other things.’
As an accountant, Harry understands cash flow. He also understands that budding startups often require capital from investors like him. Harry said that sometimes, a startup must do a lot of research and investment, and it may take many years to become commercially viable. (Harry noted that companies like Xero didn’t make a profit for many years and needed to give freebies and discounts). Startups need funding in order to fund themselves. Alternatively, some startups need to pump in money to launch as they need to move quickly. This could be the case if it’s a ‘trendy’ topic or if the market is moving away. It can also need funds to go to the market before a large market leader emerges.
Griffin Accelerator Program
Harry’s commitment to fostering innovation has seen him become involved in the Griffin Accelerator program. The Canberra Innovation Network has run the Griffin Accelerator program annually for the last decade. Harry has participated in 9 of the 10 programs as a mentor (and investor), making him a mentor in all but one of the programs.
During that time, he’s witnessed changes to how investments in the program are structured. ‘In the past, there was only one pitch at the beginning of the program,’ said Harry. But more than that, the financial model was different. Startups that participated in the program had to give equity ownership to an investor. The program was designed for early startups, and the valuation of the companies was low. This tended to attract early-stage startups that did not yet have an agreed valuation. While it encouraged new entrants, it discouraged established startups as the valuation and investment process meant they could lose value.
Changes to the program mean that Griffin Accelerator program participants must pitch for funding. The funding of all mentors is pooled into a trust, and the trust decides how money will be invested after hearing the final pitches. Participants are offered a safe note, and no equity is split up. Instead, the Griffin Accelerator program will get a discount at the next capital raise. ‘It’s fair for both investors and startups and is attracting better quality applicants,’ said Harry.
Not only has Harry been an investor during the reform of the way investments into startups are structured, but he is also involved in managing the trust fund. Last year, Tailored Accounts was asked to look after the Griffin Accelerator Trust Fund. Since October 2023, the firm has looked after back-end and compliance issues for all unit holders.
Andy the friendly robot
As a child, Harry loved Japanese anime. He loves robots and dreamt of a world where humans would work alongside humans. He has manifested this through Andy Bat.
Harry Hoang wanted a ‘friendly’ RPA robot so he created a cartoon image for Andy Bat.
Andy solves a problem in the accounting and bookkeeping industry. Younger accountants didn’t want to waste time on data entry and menial tasks. They wanted to be ‘true’ accountants. The issue reached a boiling point in 2018, with staff retention becoming an issue.
Harry created Andy to automate key repetitive tasks. It uses robotic process animation (RPA) – not AI. According to Harry, RPA has been around for years. For instance, a macro in an Excel spreadsheet is an example of RPA. RPA is useful for simple tasks that involve doing things like clicking through without thinking. The aim isn’t to use bots for sensitive tasks but rather to create a friendly and helpful avatar to assist with automation.
Why give the RPA function a name? Harry wanted Andy to be perceived as approachable and helpful. ‘I didn’t just want something mechanical,’ he said. ‘I wanted a friendly robot.’ Andy is a cartoon character - a hero with a badge on his left arm. Andy walks in the dark as a quiet hero in the team.
Harry spent over 12 months investing in research and development to make Andy. Andy does things such as streamlining client onboarding by sending out forms and saving them into Xero. Andy can also generate any of the 20 different reports in Xero. ‘The typical work of Andy involves creating reports, filing them and sending them to clients. Basically, anything mechanical,’ said Harry.
How successful is Andy? Harry said it’s been a successful return on investment and solved the problem of junior staff not wanting to do manual tasks. It’s also inspiring younger staff. ‘It’s what the next generation is waiting for,’ he said. And as an innovative tool, it’s also scalable - so watch this space.
In December 2023, Andy’s success led to Tailored Accounts being awarded the Xero Innovative Partner of the Year. Well done, Andy, the friendly robot!
