Innovation

Kesho’s innovation was to digitize their operations through the use of software such as SimplePay, Xero, and Office365. Their bold leap into becoming a digital and cloud-based firm was nothing short of revolutionary, especially in the context of South Africa. In a country known for its diverse economic landscape and unique challenges, Kesho’s decision to embrace new technology reflects not just innovation but a commitment to addressing the evolving needs of its clients and the broader business community.

Like many countries, South Africa still faces geographical disparities. By adopting a digital model, Kesho becomes more accessible to clients across the nation, including those in remote and underserved areas. This move promotes inclusivity, ensuring that businesses of all sizes and locations can access top-notch financial services.

The digital transformation enables Kesho to streamline its operations, reducing manual processes and accelerating service delivery. We were told that “[South Africa] was not completely developed for a long time, and they were mainly paper-based, working face-to-face with clients”. Before the innovation, Kesho had to wait until the end of the year to get financial statements from their clients, but they would be looking at decisions that were already made. By the time Kesho consulted their clients, they would be judging previous financial decisions, which left their advice untimely and irrelevant. In a country with a rapidly growing business landscape, the ability to provide opportune and effective financial solutions became a game changer for clients.

With the increasing importance of data security and regulatory compliance, Kesho’s shift to a cloud-based infrastructure demonstrates a commitment to safeguarding sensitive financial information. This move positions the firm as a trustworthy partner for businesses navigating the complexities of the digital age.

“Our sense of purpose comes from working together with people and partnering with companies to help them grow. The innovation of becoming cloud-based has made that very possible in ways we had not thought of before.” Thandeka Moshesh, Kesho Manager and Business Advisor.

Inspiration

Kesho’s company motto is `partnering for tomorrow` which means always looking into the future. Their motto perfectly ties into their company name, ‘Kesho’, which is Swahili for ‘tomorrow’.

As previously mentioned, when Vusi Matse started his firm, he saw his company as a place that tailors to its customers and prioritizes efficiency and satisfaction. Therefore, the intention to make his firm cloud-based was not a hard decision, especially with only one company director. He saw the vision of convenience for his clients.

FASSET is the Finance and Accounting Services Sector Education and Training Authority. Their partnership allows Kesho to hire graduates with the help of the government grant to help youths and businesses make an impact on their business model and financial services sector. They help graduates gain experience; many jobs require experience, making it hard for graduates to find work. FASSET helps Kesho build better client-based relationships as the new graduates, along with the training they receive, have a better understanding of technology for their cloud-based software and can help those clients who are not used to using technology other than their cellphone. FASSET helped inspire Kesho as it allowed them to hire extra employees, not at their own expense, because it was funded, therefore making it easier to grow their staff to help clients.

Overall impact

The impact of the innovation on the business in the short run was almost immediately realized when the pandemic forced the accounting industry to either shut down or become digital to remain operational. The opportune timing of Kesho’s digitization has given them a headstart on the South African accounting industry in terms of IT infrastructure. In the long run, they will be able to reap the benefits of the technology they have centered their business around. The cloud software that Kesho uses enables them to reach many more clients than they would be able to otherwise.

Beyond the firm, the innovation will have a greater impact on South African society. Kesho’s operations have enabled small South African businesses to grow, and their innovative approach has allowed them to achieve this goal more effectively than ever before. When small businesses grow, the South African economy develops by extension. Thus, Kesho’s innovation helps to foster economic development, leading to greater prosperity in South Africa at large.

A positive externality of Kesho’s innovation is its environmental benefits. Becoming digital has made Kesho essentially carbon-neutral. Since all of their records are stored digitally, they no longer have a need for extensive paper usage. Additionally, clients no longer need to commute to Kesho for meetings as they can meet digitally. This circumvents the carbon emissions associated with transportation.

In totality, Kesho’s innovative approach to accounting has heralded immense benefits for their business in the short and long run, as well as for South African society and the environment.

Business benefit

Becoming a cloud-based firm brought Kesho a multitude of strategic advantages and business benefits. Their operations were streamlined, reducing manual labor and enhancing efficiency. Routine accounting tasks like tax preparation, bookkeeping, and payroll processing were refined, freeing up human resources for higher endeavors.

The change opened them up to a wider range of clientele and enhanced the experience of their current clients. From online collaboration to real-time financial insights, Kesho’s clients benefit from greater accessibility and foster stronger client-business relationships with the firm, further stimulating satisfaction and loyalty to the firm. Previously, being an in-person, office-based firm, their pool of clients was limited to those in Nelspruit, so the switch to digital brought in more clients, such as those willing to dabble in cloud-based technology, clients from other provinces, and clients who were unable to make time in their busy day-to-days to leave and come to their office.

Being cloud-based also gave Kesho a tremendous competitive advantage during the COVID-19 pandemic. Many larger accounting firms had to temporarily shut down due to a lack of resources to keep pace with the spread of COVID-19. With no notice of the virus, they were unable to foresee how their business would be affected. These companies were not digital and could not do in-person meetings, while Kesho was able to continue operations.

As Kesho became cloud-based before COVID-19, they had already adapted to the technological changes the pandemic demanded of accounting firms. It was an easier decision for them to become cloud-based due to being a smaller company with only one director to make the decision, whereas bigger firms would have to coordinate and agree with their plans.

Social and environmental benefit

Kesho’s commitment to being a digital and cloud-based firm extends beyond business innovation; it has profound social and environmental implications, aligning with several Sustainable Development Goals (SDGs) and contributing to a positive change in South Africa. Kesho’s digital transformation creates new employment opportunities with the help of FACCET and allows them to expand further while staying responsible.

The firm’s embrace of digital technology aligns with United Nations SDG 9—industry, innovation, and infrastructure. By promoting innovation and shifting into their cloud-based model, they serve as a model for how businesses can leverage technology to drive economic growth and enhance industry practices.

SDG 10: Reduced inequalities lie at the core of Kesho’s digital approach. By making financial services more accessible through digital means, the firm actively works towards reducing inequalities. Clients in underserved regions now have the opportunity to access the same high-quality financial services as their counterparts in more developed areas.

A positive side effect of Kesho going digital is that it helps combat SDG 13: climate action and contributes to environmental sustainability as carbon emissions are reduced from clients having to drive out to the firm to sort their paperwork, especially if these clients need more attention and would have to be coming back and forth on a consistent basis. They are reducing their need for extensive physical infrastructure and paperwork. The reduction in paper usage, energy consumption, and carbon footprint promotes climate action and environmental responsibility.

Finally, Kesho’s embraces SDG 17: partnership for goals, as their digital transformation fosters collaboration and partnerships within businesses.

Interview

Thandeka Moshesh, Manager & Business Advisor