Blog Layout
7 reasons to use a cloud accounting app in your small business
Andrew Stubbs • Dec 15, 2020

Remember Walkmans? And later, portable CD music players? And VHS video players? And fax machines? 

These were all once considered the very latest in technology but are now obsolete. 

Times sure change. 

And do you know what else will soon fall into this, "Remember when we used to use…" category? 

Desktop accounting software. 

By 'desktop' I mean accounting software that you install on a computer and then every year or so you have to pay money to upgrade it to the latest version. Desktop accounting software is also where you have to send a copy of the latest version of the data to your bookkeeper or accountant for them to work on it, which then runs the risk of the information getting out of sync with your version, if you use your accounting software while they are editing their copy of the data. 

It's a messy, inefficient process which often leads to errors and headaches. 

Desktop software-especially for accounting-is old technology. In fact, it won't be long before we will all look back and laugh that we used to use it. 

Cloud accounting is the new standard for small business accounting and bookkeeping technology. 

7 reasons to use a cloud accounting app in your business  

If you haven't already switched to using cloud accounting software such as Xero , here are 7 reasons we think it's a no-brainer to make the switch, and soon… 

  1. Up-to-date data for decision making  

When you use desktop accounting software and have to transfer data files back and forth with your accountant, delays are created in generating financial reports for your business. 

It can be many weeks after the end of a month before a small business owner has the accurate information they need about their business' performance. There's no way you can make timely decisions to better manage your small business, working this way. 

When you use cloud accounting software such as Xero, you, your accountant and your bookkeeper all have real-time access to the same 'master version' of your accounting data . This means there's no need to download data files, send them off, wait for them to be edited and updated, wait for them to be sent back to you and then re-import the new data. 

Instead, having your accounting data in the cloud means everyone can see today's up-to-date version of your data-your business' performance-which gives you greater transparency and control in managing your business. 

  1. No need to update software or back up your data  

You're a business owner, not an IT manager. You have better things to do than to run software updates and make sure your data back-ups are happening and working correctly. 

Using cloud-based apps to run your business, the apps update themselves and y our data is always backed-up, in multiple locations. 

It's not uncommon for small business operators to be a little wary of 'the cloud' and to feel that their business' data is more secure when it is on their own computers sitting in their office, where they can see it. That's understandable, on an emotional level. On a logical level though, most small business' data back-up processes are probably not consistent or bullet-proof. 

On the other hand, cloud-based app ('Software as a Service') providers not only back up your data continuously across the day, they back up to servers in multiple cities and countries. That's far more secure than a small business' own back-ups. 

  1. Better security (yes, you read that correctly)

It's counter-intuitive to think that your data is more secure when stored on servers 'in the cloud' than when stored on computers inside your own business. 

But it is. It's a like a walk in the park for a computer hacker to hack into the average small business' computer network. If you use the internet in your business, you could be hacked. 

Software as a Service (SaaS) providers, on the other hand, use the same level of computing security that your internet banking uses. That's millions of times harder to hack into than a small business' computer network, and when you add an extra login step (called Two Factor Authentication or '2FA') such as receiving a one-time-use code via SMS that you enter in addition to your username and password, your data is behind a virtual impenetrable fortress. 

  1. Better collaboration with your advisors  

What's one thing that every small business owner hates? Large, unexpected (or forgotten about) bills, such as tax! When it dawns on you-or when you are belatedly told-that you have a very large tax bill coming up and you don't have enough money in the bank to pay for it, it's VERY stressful. 

Using cloud-based accounting software such as Xero in your business makes it easier for your accountant or bookkeeper to know the true story of your business' cash position . This allows them-and you-to more easily see if there is a cash flow crunch coming up, which gives everyone enough time to discuss it, plan for it and take corrective action. 

You can't have a collaborative relationship like this with your advisors if everyone is looking at out-of-date or out-of-sync data, which is what desktop accounting software tends to give you. 

  1. Save time with less data entry  

I am yet to meet a small business operator who enjoys doing-or enjoys paying their staff to do-data entry. It's such a low value, unnecessary cost for a small business.

Cloud accounting allows you to eliminate a LOT of data entry work . Xero, for example, can connect to your business' bank accounts and credit cards and then automatically import ('type in') all the transactions each day - without you or any of your staff lifting a finger. 

The accounting software also learns over time and can be instructed via rules to automatically code transactions a certain way if, for example, the transaction mentions a particular supplier or includes a specific phrase. 

And even the hassle of managing and filing receipts and invoices can be streamlined using apps that connect to Xero, such as Receipt Bank. 

How efficient is this… You can take photos of receipts with the Receipt Bank app on your phone (think fuel receipts), and you can automatically forward invoices you receive via email and PDF attachments (think monthly subscriptions), and Receipt Bank will read the receipts and invoices, automatically do the data entry for you, and then queue them up so you can check the details before approving them to be published across into Xero. It even detects any tax amounts and lists them out separately. 

  1. Freedom to access your data from anywhere  

That's one of the great aspects of cloud computing - you can access your business' up-to-date information from wherever you are , as long as you have internet access. You can also access your data conveniently through your phone or tablet, without having to lug around your laptop. 

Sure, when you're on holidays with your family, the last thing you probably want to do is check your accounting system, but let's face it… when you're running a small business there are times when you need to check if an invoice has been paid, follow up a debtor or make sure a pay run is done on time. 

Cloud accounting software like Xero makes this easy and gives you more flexibility in your lifestyle. 

  1. Get paid faster  

To improve a small business' cash flow cycle, it's crucial to issue invoices promptly, make it easy for customers to pay, and immediately follow up any overdue invoices. 

Xero makes all of this easy. 

For example, you can easily create an invoice, turn it into a PDF, email it off to the customer with a message, plus create Invoice Reminders that will automatically send an email to the customer when the invoice is overdue, or is about to become due. 

That's super-efficient, but it gets better. 

You can also choose to send an electronic invoice via email with a link that when the customer clicks it, opens the invoice in their web browser and displays a Pay Now button. By linking your Xero account with payment providers such as PayPal, Stripe or GoCardless you can make it quick and easy for your customers to pay you via credit card or direct debit. 

The result? Convenience for your customers and cash in your bank sooner. 

Many more reasons to move to the cloud  

These are just 7 reasons to make the switch to using a cloud accounting app such as Xero. 

There are plenty of other reasons too, such as the ability to integrate -effectively 'join together'-various apps in your business including point-of-sale, inventory, staff rostering, CRM, marketing and other apps, so that you can eliminate even more data entry in your business and have better real-time information to make decisions. 

Xero's add-on marketplace gives you access to over 500 different cloud-based apps, a number of which could make a big difference to your business' efficiency and profitability. 

Time to move to the cloud?  

Don't let your business' accounting and information systems be the equivalent of a Walkman or VHS video. If you are still using desktop accounting software, it's time to change. 

Get in touch with us and we'll be happy to have a chat with you to discuss the steps involved in moving to a cloud accounting app such as Xero. We will help you every step of the way to get you set up and running smoothly.

Why Your Business Needs to Invoice Using the New Peppol Network

By Andrew Stubbs • 05 Jun, 2022
Here's some good news if your business sends invoices to business or government customers. Peppol* is on its way. (That's Peppol, not Peppa .) Ever had this conversation in your business? You or one of your team: "Hello, I'm calling to follow up the invoice we emailed to you last month. It hasn't been paid yet." Customer: "Really? We didn't receive that invoice?" In addition to the time and expense of following up, the cash flow delays create stress for you and they hurt your business. Thankfully, the adoption of Peppol will solve this problem. What is Peppol? Peppol is an obscure acronym for Pan-European Public Procurement On-Line. What's more important than what it stands for, is what it enables. Peppol is an international 'eProcurement' framework for the electronic exchange of information. It creates a standard approach for governments and businesses to structure and exchange information such as invoices and other documents. What Peppol means for you and your business Peppol makes electronic ordering, invoicing and shipping between governments and private companies faster, simpler and more secure. This means your business will get paid faster when dealing with government and larger businesses. In 2019, Australia and New Zealand adopted this platform for e-invoicing which, when implemented, will make 'we never received your invoice' issues virtually impossible. The new e-invoicing system is more secure than email and provides many other benefits. Which countries are adopting Peppol? There are currently 40 OpenPeppol member countries: 32 countries in Europe plus Australia, New Zealand, USA, Canada, China, Japan, Mexico and Singapore. Each country has a Peppol authority. For example, in Australia that's the Australian Tax Office (ATO). Is Peppol already in use? Yes it is. For example, the SuperStream system in Australia-which many businesses are currently using to automate the payment of employee superannuation contributions-is based on the Peppol protocol. How does e-invoicing work? The system connects the accounting systems of all businesses and government departments via the secure Peppol network.  Suppliers generate sales invoices in their accounting systems which are sent to Peppol.

Company Director? Why You Need to Apply for Your DIN

By Andrew Stubbs • 04 May, 2022
If you're a director of an Australian company-or you plan to be-take 5 minutes now to read this article. All existing directors (and intending directors) of Australian companies need to be aware that the Australian Government has announced the introduction of a new mandatory Director Identification Number (DIN) system. (You'll notice the term director ID is also used for DIN.) This system is the initial step in the Modernising Business Registry (MBR) Program which has been established under the Treasury Laws Amendment Act which was legislated by the Australian Government in 2020. More information on the MBR program can be found here . What is the DIN system trying to achieve? The DIN aims to provide accountability and traceability of a director's relationships over time, across all companies and will provide information on a director's involvement in what may be repeated unlawful activity, including illegal phoenix activity. It should also solve the problem of false or fraudulent director identities. What are the key features? It is mandatory for all directors, foreign directors and alternate directors of Australian companies to hold a DIN. The DIN is a unique 15 digit number. The first 3 digits will be 036 which is the identifier for Australia. The last digit is a check digit to help with accuracy when quoting your DIN. Like your tax file number, you will only be issued with one DIN which you will hold for life - even if you cease acting as a director for any period. To obtain a DIN, you will need to prove your identity so you will not be able to hold multiple DINs. Other office holders (e.g. company secretaries) are not required to register. The director is responsible for updating the DIN records for any changes in personal information within 7 days of the change. The director must apply personally. The process cannot be completed by your accountant, lawyer, spouse or executive assistant. There are significant penalties for non-compliance. How do you apply for a DIN? Directors have 3 options for applying. You can apply online from 1 November 2021. To use this method, you must first establish your identity via myGovID (an app you download on your smart device which is different from myGov). Once set up, your myGovID will make accessing a wide range of government services easier. (It's not just for your DIN application). For information on how to set up a myGovID please go to https://www.mygovid.gov.au/set-up During the DIN application process, you will need additional information such as your tax file number (TFN) and your residential address as per ATO records. It would also be advisable to have other personal details such as bank account details, medicare card or a recent income tax assessment available in case these are required. You can also apply by phone ( 13 62 50 ). During the call, the operator will ask for the identity documents you would have used to obtain your myGovID (passport and driver licence) as well as the additional information listed above. These details will be confirmed with the records held on existing government databases and, assuming the details agree, your DIN will be issued. Or you can apply by mail, but this is not recommended because the process for doing this seems vague ("Write to us") which means you can probably expect a lengthy process of certifying documents and coping with the vagaries of the postal system. One of the other two methods would be a better choice. When will you need to apply for a DIN? Transitional arrangements will allow directors to become familiar with the new requirement. When you need to have a director ID will depend on when you were appointed as a director.

7 Best Practices for Setting Your Small Business on the Success Track

By Andrew Stubbs • 07 Apr, 2022
If you're a small business owner, you're always on the lookout for better ways to go about routine tasks to boost growth and underpin reliability. So, yes, you have the will; now, what are the ways? What are those consistent routines you can instill that will have the most benefits? This article looks at the top 6 things you can do to help your business thrive. We're going to cover finances, goals, marketing, technology and you ! So, let's take a look… 1. Your finances are a scorecard … and a predictor Boil it all down and dollars in the bank are the report card on the health of your business operations. Surprising then that so many people don't really pay much attention to how much they've earned, nor how much they're likely to earn. As much as it might feel like a chore, reviewing your sales and financial projections and then using them to ascertain if you need business financing is a discipline worth cultivating . If you suspect that your cash flow is precarious, you should be checking out your options today. First metric to check: your credit score. If it is too low, you need to take steps to shore it up. Next, check in with your bank or finance broker about what loans are available. 2. Goal setting, goal achieving, goal celebrating So, if you're using current and future dollars in the bank to keep score, the next thing is to do something about it. This is where goal setting comes in. If thoughtfully set and persistently pursued, goals help you orientate your willpower and your energy at each moment of the business day. This is the hidden power of goals: giving you a good sense of direction and a way to channel your instincts towards wise objectives. Constantly checking in with your goals makes them a benchmarking tool to keep your business pointed in the right direction. Yes, just having goals helps. Actually achieving a goal helps too, of course! 3. Increasing the impact of your marketing Marketing is not magic. It is not a mystery. It is not an art. However, many less-than-reputable marketers will try to claim that it is. They do so to gain wiggle room to pad their invoices and cover up their lack of skill. What this means is that it is easy to waste money on ineffective marketing. The good news is that there are many low-budget marketing strategies that actually work to help grow your brand and reputation. Scout around on the internet and choose one or two new tactics. Deploy them and test them. If they work, double down. If they don't, try something else. If you can't tell if they're working, also try something else. Social media is the obvious starting place for these low-stakes experiments and the old classics of LinkedIn, Facebook and Twitter are where to trial them. 4. Bringing your business up to date technologically The ability of modern productivity and project-management tools to give small players the same capabilities as the big boys simply cannot be ignored. Harness them properly and they'll let your small businesses operate with the same productivity as the titans of your sector. And, if your business is in the services sector, the increased controls that business technologies can yield also lets you be highly agile - that's something the big boys can't do. So, ask yourself: are you taking full advantage of what's out there? Don't worry, the answer to this question is always 'no' - the field is simply moving too fast for anyone to be able to take full advantage. However, if you have a realistic view of your needs, then you have a yardstick to help assess all the solutions out there. When you know what you need the technology to do, then you can wisely choose what hardware, software, platforms and techniques to introduce. 5. SEO has changed and it is going to change again Google - indeed all platforms offering broad search functions, from Youtube to Facebook - are constantly altering and optimising their algorithms. This, in turn, means SEO practice must constantly evolve to keep pace. So, if your SEO approach hasn't been overhauled in a few years, the time has come to give it some attention. Do a review of best practice and score how you cater to SEO in your online presences. Yet, because the underlying concept of SEO has not changed, the corrective actions you need to take may not be major. Then again, they might be! It is better to know unpleasant news sooner than outright bad news later. 6. Download the right new apps The remote work trend has gone mega and this means mobile productivity apps are very much of-the-moment. See, you can get a surprising amount done with just your phone and tablet. And apps are how it all happens … plus connectivity and a full battery, of course! Usually, apps are best for keeping an eye on things, boosting effectiveness on the "busy" tasks and enabling you to give your stamp of approval to work that needs your say-so to progress. In general, these are not value-adding tasks, just the value-neutral tasks that get in the way of the value-adding tasks. Now, there is no end of apps out there. So, as always, don't bother looking until you have some idea of what you need. 7. You are the ultimate business tool Health is the single most important aspect to consider for anyone running a business. It's the non-negotiable factor that governs everything else you are capable of. To adapt a quote from Arnold Schwarzenegger, being fit and healthy is "a status symbol. It reflects you worked hard for it; no money can buy it. You cannot borrow it, you cannot inherit it, you cannot steal it". This means that you must get enough sleep every night (most people need 7 hours or more). This means a healthy diet must become your preferred way of eating. This means that you should exercise every single day (except when sick). This means you must give your mind a rest too . Meditation isn't some mystic monkish thing, it's simply the practice of letting your thoughts come and go while you - the observer - stay peaceful and undisturbed by them. Think of it like this, meditating is mediating your mind. Take stock, choose wisely, make small steps in the right direction In this article, we've talked about some improvements you can make to what you're already doing. You don't have to do all of these at once. Start with the one that seems easiest and then stick with it to see if it works. Remember, it's not always about big changes. Often, you can make major improvements in outcome by making small changes to input. Doing the little things better. So take stock, choose wisely and be sure to make those small steps in the right direction for success today, tomorrow and the next day.
More Posts
Share by: