XU Magazine - Issue 11 by XU Magazine

The independent magazine for Xero users, by Xero users

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COVER STORY The Data Renaissance: How Bookkeeping Powers the Xero Ecosystem

ISSN 2054-7226

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30+ Integrations

ALL-IN-ONE PROJECT MANAGEMENT SOFTWARE Powerful Job Mobile app

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30+ Integrations

ALL-IN-ONE PROJECT MANAGEMENT SOFTWARE Powerful Job Mobile app

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Welcome to issue 11... magazine The independent magazine for Xero users, by Xero users

6 / Helping 1 million Xero Subscribers

24 / How cloud POS systems can improve business

8 / Xero partners with Capital One

26 / Gender diversity in the workplace: 5 benefits for small businesses

10 / COVER STORY - The Data Renaissance: How Bookkeeping Powers the Xero Ecosystem

58 / The overlooked credit control black hole costing businesses billions

78 / How a video game designer (and accountant) created AccountKit

60 / Confusion everywhere! How we wind up running down the rabbit hole

80 / Phrase of the day - Purchase to Pay

64 / Communities of passion and purpose: bookkeepers unite globally

Issue 11

82 / The vertical power of a Xero system 84 / TUTORIAL - Dryrun cash flow tutorial: Comparing your Actuals to your Forecast 88 / Connecting apps with Xero to perform accounting magic

CEO: David Hassall (Co-Founder) Managing Editor: Wesley Cornell (Co-Founder) Strategic Partnerships: Alex Newson Staff Writer: Bethany Cox

T: +44 (0)116 298 60 80 E: hello@xumagazine.com W: www.xumagazine.com

4 / Issue 11

114 / Why the right till system could be your clients’ (and your!) best friend

120 / A best practice guide to employee management 122 / Keeping up with your digital customers 14 / Xero and Equifax team up to help empower SMEs

30 / COMPARED - CRM App comparison

16 / INTERVIEW - Q&A with Alex Campbell, MD, Xero Asia

32 / TUTORIAL - How to enjoy perfect payroll with Deputy

‘Xero’ is a trademark of Xero Limited (New Zealand). XU Magazine is collaboratively produced by an independent group of Xero users and is not affiliated in any way with Xero. All other trademarks are the property of their respective owners. © XU Magazine Ltd 2014-2017. All rights reserved. No part of this magazine may be used or reproduced without the written permission of the publisher. XU Magazine is published by XU Magazine Ltd (08811842), registered in England and Wales. Registered office: 12 Jordan Street, Liverpool, L1 0BP, United Kingdom. All information contained in this magazine is for information only and is, as far as we are aware, correct at the time of going to press. XU Magazine cannot accept any responsibility for errors or inaccuracies in such information. If you submit unsolicited material to us, you automatically grant XU Magazine a licence to publish your submission in whole or in part in all/any editions of the magazine, including in any physical or digital format, throughout the world. Any material you submit is sent at your risk and, although every care is taken, neither XU Magazine nor its employees, agents or subcontractors shall be liable for loss or damage. The views expressed in XU Magazine are not necessarily the views of XU Magazine Ltd, its editors or its contributors.

112 / Tax time is done... but are you ready for Audit time?

116 / Plumber on a mission: How this tradie spends more time on his passion and less in his business

Editorial/News Submissions: If you have any editorial content (news, comment, tutorials etc.) that you would like us to consider for inclusion in the next edition of XU Magazine, please email us at editorial@xumagazine.com Advertising: advertising@xumagazine.com

Expo

34 / Blast off with EntryRocket: revolutionising the Xero and Shopify integration 38 / Making payroll processing a breeze!

66 / Letting Go: 5 signs it’s time for a systems upgrade 68 / How to Manage All a Client’s Wealth in the Cloud 70 / TUTORIAL - How TradeGecko’s inventory and order management system integrates with Xero 72 / INTERVIEW - Q&A with Guy Pearson, CEO, Practice Ignition

40 / SME managing projects, materials and stock? Cloud technology can boost your profitability

20 / Automatic for the People

124 / NEW XERO CONNECTED APPS - New to the Xero App Marketplace

92 / TUTORIAL - Running a till account on Xero

128 / NEW RELEASES - Updates and new releases: from the Xero App Marketplace

94 / TUTORIAL - How to Set Up Accruals for Time in Lieu / RDOs in Xero 100 / 3 habits share investors should break today 102 / This POS software Xero link helps indie retailer win online sales 104 / TradeGecko, the cloud-based inventory management system to power up your business

42 / Growth Mindset and SaaS Tools help accountants Fill a HighValue, High-Touch Role 44 / Should we be scared of the new EU GDPR?

90 / How the right technology can help your company stay fraud-free

106 / Planning a marketing campaign for your accountancy firm 76 / Xero place for Cloud Integrators - think again!

132 / 5 Awesome Ways a Dashboard Helps Kick Your Financial Goals 134 / TUTORIAL - How to: Set up a seamless expense management and approval solution 136 / What’s needed to take the first step to becoming an Advisoryled practice? 138 / APP/SERVICE DIRECTORY over 500 apps! 146 / ...AND FINALLY - Announcing the XU App!

109 / INTERVIEW - Q&A with Laura Venables, Accounting Business

48 / 7 Smarts Steps: To give your small business a technology edge

What CFOs wonder about

50 / EVENT REPORT - Even bigger, even better: Accountex! 52 / CASE STUDY - ApprovalMax Complements Xero for a Legacy ERP Replacement

TOP WONDERS: 1 OF 6

Check out approvalmax.com

How to organise multi-step approvals for Bills and Purchase Orders

56 / BITE 2017

XU Magazine - the independent magazine for Xero users, by Xero users. Find us online at: xumagazine.com

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Issue 11 / 5

Welcome to issue 11... magazine The independent magazine for Xero users, by Xero users

6 / Helping 1 million Xero Subscribers

24 / How cloud POS systems can improve business

8 / Xero partners with Capital One

26 / Gender diversity in the workplace: 5 benefits for small businesses

10 / COVER STORY - The Data Renaissance: How Bookkeeping Powers the Xero Ecosystem

58 / The overlooked credit control black hole costing businesses billions

78 / How a video game designer (and accountant) created AccountKit

60 / Confusion everywhere! How we wind up running down the rabbit hole

80 / Phrase of the day - Purchase to Pay

64 / Communities of passion and purpose: bookkeepers unite globally

Issue 11

82 / The vertical power of a Xero system 84 / TUTORIAL - Dryrun cash flow tutorial: Comparing your Actuals to your Forecast 88 / Connecting apps with Xero to perform accounting magic

CEO: David Hassall (Co-Founder) Managing Editor: Wesley Cornell (Co-Founder) Strategic Partnerships: Alex Newson Staff Writer: Bethany Cox

T: +44 (0)116 298 60 80 E: hello@xumagazine.com W: www.xumagazine.com

4 / Issue 11

114 / Why the right till system could be your clients’ (and your!) best friend

120 / A best practice guide to employee management 122 / Keeping up with your digital customers 14 / Xero and Equifax team up to help empower SMEs

30 / COMPARED - CRM App comparison

16 / INTERVIEW - Q&A with Alex Campbell, MD, Xero Asia

32 / TUTORIAL - How to enjoy perfect payroll with Deputy

112 / Tax time is done... but are you ready for Audit time?

116 / Plumber on a mission: How this tradie spends more time on his passion and less in his business

Expo

34 / Blast off with EntryRocket: revolutionising the Xero and Shopify integration 38 / Making payroll processing a breeze!

40 / SME managing projects, materials and stock? Cloud technology can boost your profitability

20 / Automatic for the People

124 / NEW XERO CONNECTED APPS - New to the Xero App Marketplace

92 / TUTORIAL - Running a till account on Xero

128 / NEW RELEASES - Updates and new releases: from the Xero App Marketplace

42 / Growth Mindset and SaaS Tools help accountants Fill a HighValue, High-Touch Role 44 / Should we be scared of the new EU GDPR?

90 / How the right technology can help your company stay fraud-free

106 / Planning a marketing campaign for your accountancy firm 76 / Xero place for Cloud Integrators - think again!

109 / INTERVIEW - Q&A with Laura Venables, Accounting Business

48 / 7 Smarts Steps: To give your small business a technology edge

What CFOs wonder about

50 / EVENT REPORT - Even bigger, even better: Accountex! 52 / CASE STUDY - ApprovalMax Complements Xero for a Legacy ERP Replacement

TOP WONDERS: 1 OF 6

Check out approvalmax.com

How to organise multi-step approvals for Bills and Purchase Orders

56 / BITE 2017

XU Magazine - the independent magazine for Xero users, by Xero users. Find us online at: xumagazine.com

Have you subscribed? Go to subscriptions.xumagazine.com

Issue 11 / 5

1,000,000 Helping 1 million Xero Subscribers Just four years ago, Nigel Piper joined Xero as general manager at Xero in Customer Success. At the time, a team of 50 people worked in customer experience across three locations, assisting Xero’s 115,000 customers. Now almost 400 employees work across 6 global offices, managed by Nigel, to serve the now 1,000,000 and more community of Xero subscribers.

igel is not daunted by these numbers though. In fact, he says the delight in working for Xero is a rare one: that the support team honestly love getting customer cases and helping the users to get the most possible from Xero to help their business. “Because Xero was born in the age of the internet, we support our customers online. It’s a completely different way to what was the norm ten years ago, when everything was done over the phone with dozens of different 0800 numbers, routing by pressing one or two, and customer often waiting on hold — or even worse, being answered offshore.”

“That was a truly awful experience, and I think because of it, lots of support organisations I used to work for would enjoy it when people didn’t contact them. If no one got in touch, that was a good thing.” “Whereas nowadays and at Xero, we’ve got so many fantastic resources and content at our fingertips (videos, webinars, help centre, Xero U, etc.) that we can usually help out a customer really quickly. Mostly people are quite quite happy to look for the information they need for themselves. In fact, they get irritated if they can’t find it! It’s only when they get stuck or something

sometimes surprised to learn that while Xero offers an online accounting solution, we are not an accounting company where every employee understands the ins and outs of accounting and bookkeeping.” “But to make sure we’re meeting our customers’ needs, we employ degree-level accountants in customer service. In fact, many of them have worked in accounting practices. As we’ve scaled to a million customers, Xero has grown too from an online accounting software provider to a true small business platform. We’re about much more than just accounting. In customer service, we help people with their bank feeds, payroll, billing, fixed assets, report templates, and so much more. Xero is such a complex organisation now that we need experts to truly support our customers in all of our areas that Xero operates.”

Changing it up Increasingly, Xero customer service are considering how they can incorporate technological advancements into their daily work in order to streamline the process for Xero employees and for customers. The team had more and more of a need to be working proactively rather than just in response to requests and problems. The answer to this is anticipating customer needs, like noticing and acting upon upcoming events for them, or knowing what they may require help with based on past enquiries. This is where machine learning comes in. Nigel says, “We want to use machine learning capabilities in our customer experience processes to assess cases as they come in, then correlate a case with what’s on that customer’s calendar (like

a GST deadline or payroll). Then we can prioritise an inquiry if we know a resolution is needed ASAP. Currently we can automatically suggest which customer experience expert the case would be best handled by. Maybe it’s our report templates expert, fixed asset guru, or even a legend on the team who lives and breathes our subscription transfer requests.” “The old way of doing it was opening a case and getting a person to read through it, identify someone in CX who can handle the inquiry, and sending it on to them, not knowing they already have a number cases they need to work on.” “Can you imagine, if we keep trying to do things the old way, as Xero grows past one million customers and more? That’d be nuts.”

goes wrong that they get in touch.” Old hands on hand Xero is so made in such a way that is is simple to navigate and use that customer enquiries tend to decrease after the first “firsts”, as Nigel calls them. Firsts like setting up a bank feed, sending an invoice, setting up a pay run. But even so, the nature of the service Xero offers means when customers do get in touch, the Customer Service teams must be prepared to answer comprehensive and complex questions about Xero. Nigel comments, “People are

What CFOs wonder about

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TOP WONDERS: 2 OF 6

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6 / Issue 11

How to set amount-based authorisation levels for Bills and Purchase Orders

XU Magazine - the independent magazine for Xero users, by Xero users. Find us online at: xumagazine.com

SAVE TIME

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What CFOs wonder about

MORE PAYMENT OPTIONS

TOP WONDERS: 2 OF 6

Check out approvalmax.com

6 / Issue 11

How to set amount-based authorisation levels for Bills and Purchase Orders

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Issue 11 / 7

Xero partners with Capital One Capital One, a top 10 US bank, has an innovative use of technology and data to give a new and simpler banking experience to customers. They share with Xero the vision of creating a new financial web, and so a natural partnership is formed. The two are teaming up with the aim of giving small businesses greater control over their financial data.

he financial web is based around data exchange and incorporates sharing this financial data through a network or organisations. Small businesses will connect to creative solutions that will help their company thrive. Small businesses can integrate securely with Capital One’s new application programming interface (API), connecting their Capital One financial data with Xero. This offers them a cost-effective, scalable and smart connection to the financial services they need and gives them an on-demand and simplified view of their business’s financial state through direct bank feeds, credit card data and bank reconciliation processes, enabling them to make increasingly informed financial decisions to directly benefit their business. Small businesses get more financial control In order to connect Xero and Capital One, a login is not required. Instead, the new Capital One API uses Open Authorisation (OAuth) to give token-based authentication to Xero to access businesses’ account information. The partnership with strengthen

data sharing for small business customers and give them more control over the financial data shared with Capital One. The Vice President of Enterprise Digital Products and Data Connections at Capital One, Becky, shares how security of data is increased: “As technology brings new waves of financial tools into the market, we believe that it’s important for all consumers and small businesses to have the ability to safely, securely and transparently share their transaction data with third parties that they trust.” “Through the direct data-sharing API partnership with Xero, our mutual small business customers will benefit from much greater security. They can also have access to accurate and stable data, and control and transparency over how and when they choose to share their Capital One financial data.” The power of a global financial web Xero already integrates not only with big banks globally but with leading small business banks also, to serve small businesses and improve their access to important financial services. Xero also has

Job + project + stock management

partnerships with over 100 other financial institutions around the world, and global payments integrations with PayPal and Stripe. Small businesses are starting to see productivity and growth boosted, particularly relating to assessing capital, due to the data-driven nature of the financial web where accounting and baking systems are connected. Forward-thinking finance and tech companies know that there is huge opportunity in catering for small businesses and are moving towards connecting them with innovative solutions and technology. Xero has seen how integrating with banks around the world has been extremely valuable to over 1 million Xero subscribers. The financial web makes it possible for banks and customers to securely exchange information whilst giving greater confidence in financial data. Xero is the leader in small business cloud accounting in Australia, New Zealand and the UK. In unlocking and unleashing the power of the financial web, it can completely turn around and spur on the way that small businesses work.

POWERFUL SOFTWARE DELIGHTFULLY SIMPLE

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I was at a builder’s conference sitting in a tech workshop and the guy was saying if you're still using spreadsheets you've got a problem. I gave up spreadsheets two years ago when I got this sorted with TidyBuild. I know exactly where a job is at, at any point in time. We're flat out at the moment, so it helps us decide which jobs we want because we know from TidyBuild those jobs with a better margin. With the ever changing technology I know both TidyBuild and Xero will allow our business to adapt and we wont need to worry about purchasing or buying into other programs.

”

Kelly Larsen, Director at Adan Larsen Builders

Users of

JOB MANAGEMENT

STOCK MANAGEMENT

CONSTRUCTION MANAGEMENT

INVENTORY AND PROJECT MANAGEMENT

8 / Issue 11

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Try free

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Job + project + stock management

POWERFUL SOFTWARE DELIGHTFULLY SIMPLE

Tidy helps streamline construction:

“

”

Kelly Larsen, Director at Adan Larsen Builders

Users of

JOB MANAGEMENT

STOCK MANAGEMENT

CONSTRUCTION MANAGEMENT

INVENTORY AND PROJECT MANAGEMENT

8 / Issue 11

XU Magazine - the independent magazine for Xero users, by Xero users. Find us online at: xumagazine.com

Try free

tidyinternational.com/xu

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Cover Story

The Data Renaissance: How Bookkeeping Powers the Xero Ecosystem

@ReceiptBank

Alexis Prenn, CEO, Receipt Bank Alexis founded Receipt Bank with Michael Wood in London 6 years ago. The company has grown to have offices in London, Sydney, Paris and Washington DC. Receipt Bank has become an essential partner for many thousands of bookkeepers and accountants worldwide seeking to improve their productivity, profitability and client experience.

Big data, small businesses and why there’s never been a better time to offer real-time bookkeeping services... T

he Xero ecosystem was launched in 2011 with just five inaugural integration partners. Fast-forward to 2017, and there are now well over 500 apps in this ever-growing community – with no signs of this growth slowing. This rapid ascent owes much to the free flow of information, open APIs and the ease of integration into the Xero platform, but the real driver for many app developers is finding new ways to use the financial data in Xero to help start-ups and SMEs prosper and thrive.

starts with good bookkeeping. The advent of a new generation of smart, automated bookkeeping tools, like Receipt Bank, mean there’s never been a better time to evolve your bookkeeping services beyond the basics.

couldn’t get funding at APRs below 8 per cent, compared to 52 per cent in 2015. And at higher interest rates, it becomes increasingly difficult for small start-ups and new enterprises to pay back loans and still turn a profit.

Big data for small businesses

The Xero ecosystem has responded far more nimbly to these issues. Alternative financiers such as Issue 10 cover stars, Satago, offer entrepreneurs flexible solutions for peace of mind. Other partners, such as iwoca, are using the Xero API to make lending simpler, using data from Xero to approve loans within minutes instead of days. And forecasting tools, like Float or Futrli, give teams the tools to look ahead and maintain a healthy cashflow.

their remit and add more value than ever before.

to the 2016 Working Capital Outlook Survey, carried out by C2FO, 54 per cent of SMEs say cash flow is their biggest obstacle to business growth. ‘Cash is king’ is a well-worn and chronically overused cliche, but many businesses still struggle to get a handle on their finances.

For too long, SMEs had a raw deal when it came to most financial services. The outdated processes and significant fees of most large financial service providers made their services too inflexible, too slow or too expensive for From forecasting to financing, many small businesses. invoices to investing, And this problems still having the numbers 54 per cent of SMEs exists in many of the in order now gives say cash flow is their large high street banks. accountants and biggest obstacle to bookkeepers the business growth. Take cash flow. According chance to broaden

Far from eliminating the accountant, these new avenues will shape and define the role of trusted advisor in the years to come, and will lead to stronger, more profitable relationships. But to do this effectively requires a rock-solid data foundation and, as any accountant worth their salt will tell you, good business information 10 / Issue 11

Despite the obvious need for access to finance, entrepreneurs find it incredibly difficult to raise capital. The same survey from C2FO in 2016 reported that 58 per cent of SMEs

What do these solutions all have in common? The answer is simple – they rely on accurate, up-to-date, on-demand business data. And, luckily for aspirational accountants, the tools to create a watertight bookkeeping process are quickly and easily accessible for even the smallest practice. Today’s data: tomorrow’s decisions As with many industries, one of the key drivers of change has been the development of mobile technology

XU Magazine - the independent magazine for Xero users, by Xero users. Find us online at: xumagazine.com

and smartphones. For bookkeeping, it means clients can finally submit expenses and paper receipts in realtime, straight from their phone.

review the end data. Your superfast automated data can then be published straight to Xero or exported as a CSV document.

Receipt Bank’s software tracks the time average between the issue date of an invoice and the date that it’s submitted – and that’s an incredibly important driver. Tracking that metric helps you push your clients to submit their items promptly. And it’s only by speeding up submissions, and delivering realtime data, that you can make sure clients have a clear view of their current working capital.

Overnight, you switch from chasing and entering data to helping your clients review, analyse and understand their business information. This opens up a world of new opportunities. The future of accountants and bookkeepers

A modern, efficient bookkeeping system isn’t just about making compliance easier, though it definitely Our research shows that The average delay does that. It’s also the average delay between receiving about transforming between receiving and submitting the inherent value and submitting paper paper receipts and that your business receipts and invoices invoices is 20 days. clients see in good is 20 days – that’s quality bookkeeping and nearly a three-week wait real-time numbers – and before transactions can also appreciating how software be reconciled and real-time and technology make this whole numbers achieved. However, when process effortless for you, as the items are being submitted using accountant. a mobile app, the delay drops by 75%. According to a 2014 survey of SMEs, more than 92 per cent of small That’s the difference between businesses would prefer to work your client seeing the position of with their accountant on a real-time their business health as it stood basis. By taking a smart approach nearly a month ago, and seeing to automated bookkeeping, their position this week. If action is needed to deal with an urgent cash- your firm can quickly give clients meaningful data that makes a real flow problem, you can act more promptly and offer genuinely useful difference to their bottom line. and directive advice. Research by CPA Ireland has found that firms that go the extra mile for With the Receipt Bank mobile clients are rewarded. In their survey app, clients snap a picture of their of SMEs, they found that only receipt with their phone, and this 51 per cent of their accountants is sent straight to their accountant. They can then just throw the receipt offered Business Advisory services. However, among the firms that away (cutting down on paperwork and filing). Similarly, digital invoices offered Business Advisory, the can be quickly and easily forwarded uptake rate was 90 per cent – underlining that when you help to the accountant by email. This is clients delve deeper into their already a huge leap in efficiency, financial management, that there’s but Receipt Bank takes it further. an equally positive impact on client numbers and longer-term customer Once the image of the receipt is submitted, we use optical character relationships.. recognition (OCR) technology to This doesn’t mean that all automatically extract all the key accountants are going to turn information from the scan. That into advisory firms overnight. means there’s no need for data As we mentioned before, the entry of the supplier name, date, beauty of the Xero ecosystem tax rate, taxable amount or total is that there are more ways amount paid – all you need to do is Have you subscribed? Go to subscriptions.xumagazine.com

Issue 11 / 11

Cover Story

The Data Renaissance: How Bookkeeping Powers the Xero Ecosystem

@ReceiptBank

Big data, small businesses and why there’s never been a better time to offer real-time bookkeeping services... T

Big data for small businesses

their remit and add more value than ever before.

Despite the obvious need for access to finance, entrepreneurs find it incredibly difficult to raise capital. The same survey from C2FO in 2016 reported that 58 per cent of SMEs

XU Magazine - the independent magazine for Xero users, by Xero users. Find us online at: xumagazine.com

and smartphones. For bookkeeping, it means clients can finally submit expenses and paper receipts in realtime, straight from their phone.

review the end data. Your superfast automated data can then be published straight to Xero or exported as a CSV document.

Issue 11 / 11

Cover Story than ever for accountants and bookkeepers to help their clients. Recent developments in AI and Machine Learning will increase what was previously possible with technology, freeing up more time and providing powerful new tools.

experienced, friendly and trusted business advisor is what your clients pay for – and it’s this deeply human consultative element of being an accountant that helps your clients run better businesses and, as a result, live better lives.

There’s never been a better time to offer bookkeeping. And Receipt Bank Extract makes it easier than ever.

Far from disappearing, that role of The future of accounting is waiting trusted advisor is becoming ever to be written. It’s down to you, your more important. There are myriad practice team and the profession Receipt Bank Extract lets you automate all the directions in which the role of the at large to decide what the next accountant will diverge in future chapter will look – but the aspects oflikebookkeeping. decades, but one thing is for sure: potential for innovation, evolution with the right data supporting you, and change is undeniable. Extract the documents from your clients there’s no limit to where you can go. A brightExtract future for bookkeeping the data from the documents

time consuming

Technology has already changed That means chasing clients for items and no more data how accountants work,no and more will continue practices effortless bookkeeping. All with simple fixed-fee entry.to affect Justworking profitable, as AI and advances in software pricing as many clients and documents as you need. tools continuefor to evolve. An algorithm may end up completing your bank reconciliation tasks, but none of this will diminish the inherent value you provide to your clients. Your position as an

Our Xero Add-On Solutions help ambitious businesses who want to take control of their small business by removing the guess work and enabling them to make better decisions.

Find out more at receipt-bank.com/extract

Receipt Bank Extract One Price. Unlimited clients, unlimited submissions, unlimited potential. www.receipt-bank.com/extract

Unlock the full potential of your business with the best of today’s cloud technologies.

For a free consultation and discussion about your accounting software and systems, contact Ocius Digital today.

Australia Oﬃce Accounting Business Expo shines a spotlight on the people, products, companies, trends and business models that are redefining the world of business. Join us and be a part of the largest national event for accountants in practice, commercial accountants, professional bookkeepers and SMSF professionals.

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There’s never been a better time to offer bookkeeping. And Receipt Bank Extract makes it easier than ever.

time consuming

Our Xero Add-On Solutions help ambitious businesses who want to take control of their small business by removing the guess work and enabling them to make better decisions.

Find out more at receipt-bank.com/extract

Receipt Bank Extract One Price. Unlimited clients, unlimited submissions, unlimited potential. www.receipt-bank.com/extract

Unlock the full potential of your business with the best of today’s cloud technologies.

For a free consultation and discussion about your accounting software and systems, contact Ocius Digital today.

United Kingdom Oﬃce

United States Oﬃce

17/31 Queen St Melbourne VIC 3000, Australia

Unit 1-2 Mays Farm, Lower Wick Street, Selmeston, East Sussex, BN26 6TS

329 Interlocken Parkway, Broomﬁeld, CO

+61 (03) 9008 5950

+44 (0)1323 700 222

+1 (720) 400 8815

Get your invite at AccountingBusiness.com.au

12 / Issue 11

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Issue 11 / 13

Xero and Equifax team up to help empower SMEs Cash flow often seems like a never-ending problem for small and medium businesses, who have been found to pay 1.5 times faster on average, than larger businesses. However, there are tools available to help small businesses manage their risk, and maintain a cash flowpositive business. Justin Eley, Senior Product Manager of Commercial Solutions at Equifax, explains...

mall businesses are an integral part of the Australian economy. In fact, according to the most recent Parliamentary figures, small businesses account for more than 97 per cent of all businesses operating in Australia. Cash flow has always been an issue for small and medium businesses (SMEs), who are faced with the harsh reality of paying invoices quickly, while larger businesses’ repayment rates are significantly slower – 1.5 times on average. Large businesses are used to having access to a full suite of tools offering insightful data on a new customer, such as credit history, risk profile and director information, but many SMEs don’t currently have the same resources at their fingertips.

14 / Issue 11

provider of credit information and analysis in Australia and New Zealand, to give SMEs access to a feature called Live Contacts. Available within the Xero platform, Live Contacts provides customers with a traffic-light indicator of the credit risk of businesses they may be dealing with, or considering doing business with. This indicator helps determine the credit health of a business and its capacity to pay its debts. Understanding a customer’s risk profile allows small business owners to adjust their payment terms based on a case-by-case basis – negotiating tighter payment terms with a riskier customer, for example.

However, this is a problem that is easily solved, due to an innovative new offering from Xero and Equifax.

Further to this, the Live Contacts functionality makes adding a new contact in the Business Directory easy. A user simply starts typing, and the business information auto-fills for them to select from, cutting down time on data entry and avoiding errors.

Gaining visibility of your suppliers and customers

Delving deeper into your customer’s credit history

Cloud-based accounting software provider, Xero, has partnered with Equifax, the global information solutions company and leading

The credit risk indicator from Xero and Equifax helps SMEs understand the companies they do business with.

@EquifaxAU

Justin Eley, Senior Product Manager, Equifax Justin joined Equifax (previously Veda) in 2012 and has over 10 years of product management experience. He has led the innovation and development of a number of market leading products in various industries, including the range of Trading History reports from Equifax. Justin currently manages the commercial risk account management portfolio, and is continually working to assist customers in making the best, well informed credit decisions.

If a small business owner thinks they need to find out more about a particular customer or supplier, they can purchase a SwiftCheck credit report from Equifax simply by clicking through from inside the Live Contacts platform. This report provides a full company credit check with details including directors’ credit histories, company payment history and credit rating (in Australia), and Trade Payment Rating (in New Zealand). Shifting attitudes to bring positive change Having access to a company’s credit risk information before starting a working relationship is vital to running and maintaining a cash flow-positive business. The recent release of the Australian Small Business and Family Enterprise Ombudsman’s ‘Issues Paper: Payment Times and Practices’, has sparked renewed discussion of the detrimental effects of larger businesses’ late payments to SMEs.

for small suppliers that provide up to $1 million in merchandise – benefiting more than 1,000 small suppliers. Despite this recent development, the reality is that many large businesses still tend to pay small businesses late, putting SMEs under considerable strain. Taking control of business risk management Small business owners are expected to take on any number of roles in a single day, including areas they may not have specialist knowledge in – like credit management. SMEs should not have to rely on gut feel to protect their businesses. The Live Contacts feature helps to assist small business owners with risk mitigation, and empowers them to make smart, well-informed decisions through credit insights.

On the back of this, several large businesses, including Coles and Woolworths, have shown their support of SMEs by introducing a new 14-day payment time policy

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Issue 11 / 15

14 / Issue 11

However, this is a problem that is easily solved, due to an innovative new offering from Xero and Equifax.

Gaining visibility of your suppliers and customers

Delving deeper into your customer’s credit history

Cloud-based accounting software provider, Xero, has partnered with Equifax, the global information solutions company and leading

The credit risk indicator from Xero and Equifax helps SMEs understand the companies they do business with.

@EquifaxAU

On the back of this, several large businesses, including Coles and Woolworths, have shown their support of SMEs by introducing a new 14-day payment time policy

XU Magazine - the independent magazine for Xero users, by Xero users. Find us online at: xumagazine.com

Have you subscribed? Go to subscriptions.xumagazine.com

Issue 11 / 15

Interview

XU:

You’re quite new to your role as Managing Director of Xero Asia. Can you tell us a little bit about your story before that?

AC:

I started the early days of my career in software development and technology consulting, building web applications and e-commerce stores for big companies in Australia. That’s when I sparked to the opportunities that the web can unlock and how it can fundamentally change established business models. From there I moved into corporate strategy at a global advertising and marketing group advising their agencies on how they could adapt to the technological change that was reshaping their industry. When the opportunity came up to move to Singapore and set up the advertising group’s business in Asia from scratch, I was on the next flight.

XU:

What do you consider to be your biggest achievement before working for Xero?

AC:

Q&A Alex Campbell MD, Xero Asia

16 / Issue 10 11

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Building what is today one of Asia’s leading digital agency networks, which came about through four years of work joining together a series of successful acquisitions in Singapore, Malaysia, Indonesia, Thailand and Vietnam.

XU:

So how did you come to work for Xero in

2016?

AC:

I’d been following the Xero story for a long time and had always admired how Rod and the team had scaled the business globally while still keeping an amazing culture and a beautiful product. A lot of companies lose their way on these things when they grow that fast around the world but Xero stayed true to what matters the most. The importance of the problem that Xero was solving for small businesses came into focus as my last company acquired businesses

all over South East Asia. We found that these businesses had disparate and antique finance systems which made day-to-day financial management a real challenge. As we moved these companies to Xero we saw a huge difference in their ability to see what was going on in their business and make the right decisions about how to grow and invest. I’d kept in touch with Xero along the way and I heard that they were looking to set up in Asia. I had always wanted to come back to the tech world and I knew this was a once in a lifetime opportunity. Before I knew it I was talking to Rod and I jumped at the chance to join the team.

XU:

What does a typical day at work look like

for you?

AC:

It’s a cliche but there’s no such thing as a typical day in a business like Xero that’s been doubling in size every 18 months. I balance my time between spending time with my team on the tough problems of the day, recruiting great new people on to the team, meeting with our small business customers and accounting/bookkeeping partners, and working closely with our strategic partners - especially the major banks in Asia.

XU:

What did you find were the biggest challenges when moving to Singapore?

AC:

Singapore is one of the easiest countries in the world to move to so setting up life and work here was pretty straightforward. I’ve been here five years and it’s home for me now. What was challenging was the steep learning curve of building businesses in places like Indonesia and Thailand that have fundamentally different approaches and ways of working. Pretty quickly though I fell in love with these unique and wonderful places and gained a real sense of appreciation for the nuances of navigating business and life in Bangkok and Jakarta.

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XU:

So tell us about the differences between working in Asia and Australia? Is there anything that Xero in Asia has that the rest of the world doesn’t?

AC:

Asia is a huge and diverse region which covers more than half of the world’s population, so it’s hugely different to working in Australia. Living and working in Singapore means working across different countries, cultures and ways of doing business that you would never experience in Australia. What’s different for Xero in Asia compared to our major markets is the pace of change in the underlying economies we’re operating in. Across Asia, millions of small businesses will leapfrog from operating largely in cash with basic offline record keeping to being fully set up on the cloud with electronic payments. The scale and pace at which this transition is happening is incredible and Xero is in a great position to play a big role in this.

XU:

What’s exciting you at the moment about the Asian financial market?

AC:

One of the things I learned working with small businesses all over South East Asia was how long the payment cycles are and how much cash was tied up in working capital. A lot of small businesses seemed to be more in the business of financing their customers than providing actual services. We have an incredibly exciting opportunity with Xero to help to solve this problem by automating invoicing and enabling real-time payments, which will free up cash across whole economies and create opportunities for growth and investment in those businesses.

XU:

Will you be at XeroCon South this year? How do you think combining Australia, New Zealand and Asia for XeroCon helps Xero users in Asia?

AC:

Xerocon South 2016 was my first Xerocon

Issue 11 / 17

Interview

XU:

You’re quite new to your role as Managing Director of Xero Asia. Can you tell us a little bit about your story before that?

AC:

XU:

What do you consider to be your biggest achievement before working for Xero?

AC:

Q&A Alex Campbell MD, Xero Asia

16 / Issue 10 11

XU Magazine - the independent magazine for Xero users, by Xero users. Find us online at: xumagazine.com

XU:

So how did you come to work for Xero in

2016?

AC:

XU:

What does a typical day at work look like

for you?

AC:

XU:

What did you find were the biggest challenges when moving to Singapore?

AC:

Have you subscribed? Go to subscriptions.xumagazine.com

XU:

So tell us about the differences between working in Asia and Australia? Is there anything that Xero in Asia has that the rest of the world doesn’t?

AC:

XU:

What’s exciting you at the moment about the Asian financial market?

AC:

XU:

Will you be at XeroCon South this year? How do you think combining Australia, New Zealand and Asia for XeroCon helps Xero users in Asia?

AC:

Xerocon South 2016 was my first Xerocon

Issue 11 / 17

Interview and we had more than 40 of our partners from Asia attending for the first time, from Singapore, Hong Kong, Philippines, Indonesia, Papua New Guinea and a number of other countries around the region. We’re looking to triple or more that number in 2017 as we believe Xerocon South gives our Asia partners a unique opportunity to see what’s come before in markets where Xero has been established for longer like Australia and New Zealand. From speaking with our partners who came last year I know they learned a lot and were inspired by what’s possible.

XU:

Are there any personal or business goals you have set during your time at Xero so far?

AC:

My goal is for Xero to power a wholesale transformation of the way Asia’s small businesses connect to their banks, other businesses and suppliers, and fundamentally grow their businesses. My goal is also to build a team at Xero who do the best work of their careers.

XU: AC:

Who is your main role model and why?

Warren Buffett is a big role model for me - not so much for his success as an investor but for his extraordinarily long career of doing business with great integrity and decency. Steve Jobs saw that if you could brilliantly fuse design with technology you could reshape entire industries and the way people live their lives. Elon Musk for incredible courage in putting it all on the line, again and again, never afraid to take on the world’s biggest problems and some

of the world’s toughest technology challenges.

XU:

What are you favourite things to do in your spare time? Are there any interesting hobbies?

AC:

My favourite hobby is walking the streets of fascinating cities and capturing what I see in photos, especially in Asia. Apart from that I do Muay Thai (Thai kickboxing) and yoga and read as much as I can to keep track of what’s going on in the world.

XU:

If we’re sat here again in 12 months time celebrating your role over the past year, what did you achieve?

AC:

Our Asia key markets of Singapore and Hong Kong are at a tipping point in cloud adoption and the next year is going to be a pivotal time for the uptake of technology for small businesses and accounting here. Success for me in 12 months will be that Xero has played a major role in this shift to the cloud and we’ll be able to measure that pretty easily in our customer growth and the accounting and bookkeeping partners we’re signing up.

Beyond that what’s really exciting for me are the opportunities that machine learning is starting to unlock in making Xero even simpler and easier to use for small businesses. We’ve recently released a great example of this (see: xero. com/blog/2017/03/teachingrobot-accounting) for a pilot group of customers where Xero uses machine learning to suggest automatically the right account to code invoices to (it turns out machines can do some things like this better than humans, and the machine’s still literally learning). This is only the beginning of enormous potential in the future to use machine learning and artificial intelligence to free up more and more time for small business owners to do what they do best running their businesses!

XU:

What’s the most exciting thing you’ve got coming up in the near future?

AC:

We’ve just wrapped up two amazing Xero roadshows in Singapore and Hong Kong, with 800+ attendees and two major bank partnership announcements - so there’s lots of exciting stuff up ahead for us in Asia.

Turn to page 52 18 / Issue 11

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Issue 11 / 19

XU:

Are there any personal or business goals you have set during your time at Xero so far?

AC:

XU: AC:

Who is your main role model and why?

of the world’s toughest technology challenges.

XU:

What are you favourite things to do in your spare time? Are there any interesting hobbies?

AC:

XU:

If we’re sat here again in 12 months time celebrating your role over the past year, what did you achieve?

AC:

XU:

What’s the most exciting thing you’ve got coming up in the near future?

AC:

Turn to page 52 18 / Issue 11

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Issue 11 / 19

Automatic for the People

Gary Turner, Co-Founder and Managing Director, Xero UK

Automation, Machine Learning and AI are the topics of the moment. Barely a month passes without yet another Dead Pool prediction of the occupations and professions that will be the first to fall under the wheels of automation.

Gary Turner (@garyturner) is co-founder and managing director at Xero UK, and also oversees Xero’s business interests across Europe, Middle East & Africa. Under Gary’s leadership, Xero UK has scaled from a three person startup with annual revenues of £50,000 in 2009 to what will surpass £30m during 2017.

t’s not very long ago that regular people were expected to become IT literate in readiness for the dawning age of computing, mostly because operating a computer thirty or so years ago even for the most basic of tasks was not for the faint hearted.

savvy users to quickly search for and then fix transactions that had been previously entered incorrectly by an unwitting client.

While new and serviceable forms of interface will continue to emerge and mature and will no doubt move us further up the technology accessibility curve, it’s also beginning to feel like we may be entering the diminishing returns phase of conventional software interface design thinking.

Find & Recode was so powerful because instead of leaving users to look for and then manually correct errant postings, a simple new query builder would instead return a matching list of transactions posted by a given user between a given date range; optionally matching certain other user-defined parameters. The Recode element of the feature would then enable the simple removal or correction of the errors, literally with a couple of mouse clicks.

In 2015 Xero quietly enabled a new service for users of its accounting app called Find & Recode. A powerful enhancement that enabled

Bookkeepers who had been long accustomed to grinding out what might easily amount to several hours of painstaking remedial

@Xero

bookkeeping on behalf of a client could now accomplish the same task in a matter of minutes. Find & Recode was a game changing feature. Interestingly though, Find & Recode also shone a light for the first time on something that had been impossible to measure before, and that was despite Xero’s lauded, award-winning interface design, users of the accounting software appeared to be habitually making large numbers of bookkeeping errors. In fact, a staggering three million transactions are retrospectively corrected with Find & Recode in Xero every month. Digging deeper into Find & Recode’s telemetry revealed that some quite fundamentally basic errors were being made on a regular basis. Many users were either confused about what to choose or possibly just content to just select the very first account code from the list. In doing so, users were leaving behind them a trail of basic bookkeeping errors for someone else to hopefully later spot, and then correct. Accounting is hard for small businesses The conclusion here is significant; even in an incredibly popular and contemporary product like Xero, sometimes no amount of interface design genius is able to compensate for the fact that accounting remains hard for many small businesses.

20 / Issue 11

Sharing the

XU Magazine - the independent magazine for Xero users, by Xero users. Find us online at: xumagazine.com

We’re sharing the love at Xerocon – for a very good cause. Visit the Class stand at Xerocon 2017 in Melbourne for your free heart stress ball. For every heart we give away we’ll donate $2 to the Heart Foundation. What’s not to love?

Award winning software for SMSF and non-SMSF investment portfolios. Find out more. Visit www.class.com.au/xerocon

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Issue 11 / 21

Automatic for the People

Gary Turner, Co-Founder and Managing Director, Xero UK

savvy users to quickly search for and then fix transactions that had been previously entered incorrectly by an unwitting client.

In 2015 Xero quietly enabled a new service for users of its accounting app called Find & Recode. A powerful enhancement that enabled

Bookkeepers who had been long accustomed to grinding out what might easily amount to several hours of painstaking remedial

@Xero

20 / Issue 11

Sharing the

XU Magazine - the independent magazine for Xero users, by Xero users. Find us online at: xumagazine.com

Award winning software for SMSF and non-SMSF investment portfolios. Find out more. Visit www.class.com.au/xerocon

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Issue 11 / 21

The UK’s

leading payments provider1

Trusted by over 300,000 small businesses

And so, if we are indeed nearing the diminishing returns phase of software interface design, it increasingly looks like a fallacy to think that we’ll see universal adoption of accounting software by every business unless we come up with a different approach. The UK’s tax authority, Her Majesty’s Revenue & Customs, recently embarked upon one of the most ambitious tax digitisation projects in the world. In simple terms, its Making Tax Digital strategy aims to compel every one of the UK’s five and a half million businesses to carry out their bookkeeping using software rather than the odds and ends of paper and spreadsheets anecdotally favoured by more than three million sole traders and micro entities in Britain. To justify its mandate and the shift to digital record-keeping, HMRC cites an £8 billion tax gap which it asserts is the result of either wilful or ignorantly shabby bookkeeping practices. Sound familiar? If the usability hypothesis is correct 22 / Issue 11

and we’re now squeezing the last blobs of improvement from the human interface design toothpaste tube, then it’s looking increasingly likely that the only way we, HMRC and the accounting software industry, can deliver universal adoption of good bookkeeping practices will be to change the fundamental nature and experience of accounting software. And further, if initiatives like Making Tax Digital fail to deliver and merely result in the compulsion of millions of SMBs to begin using traditionally articulated accounting software - no matter how simplified and accessible software vendors can make their tools - it doesn’t follow that increased accuracy will indeed result, if at all. Every keynote speaker and industry expert has exhorted moving away from basic compliance service provision and onto higher value added services. After decades of this, the accounting industry could still end up picking up the tab from an explosion in remedial bookkeeping work that Making Tax Digital could generate.

4th Industrial Revolution, or a return to the Dark Ages of compliance accounting? If a return to the Dark Ages of compliance accounting is to be averted, then the application of automation and machine learning feels like a good place to start. We recently commenced a pilot with a small test group of Xero users whom we invited to trial new machine learning services in Xero which will attempt to learn and then do a better job of coding transactions to the chart of accounts than a human can. We’ll publish our findings in due course, and while it is early, we also believe it could be an important first step towards reshaping the relationship that exists between the accounting profession and the business community it serves. And rather than bring about its extinction, this next generation automation in accounting could turn out to be the profession’s saviour.

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For more information, please contact your local representative

Christa Price tel: +44 (0)7771 389417 June 2016 Nilson Report 2 For Business Gateway / eCommerce Support, UK lines are open 8am-8pm Mon-Friday and 9am-5pm on Saturdays. Weekday evening calls are answered by San Francisco / Singapore.

© Worldpay 2016. All rights reserved. This document and its content are proprietary to Worldpay and may not be reproduced, published or resold. The information is provided on an “AS IS” basis for information purposes only and Worldpay makes no warranties of any kind including in relation to the content or sustainability. Terms and Conditions apply to all our services. Worldpay (UK) Limited (Company No. 07316500 / FCA No. 530923), Worldpay Limited (Company No. 03424752 / FCA No. 504504), Worldpay AP Limited (Company No. 5593466 / FCA No. 502597). Registered Office: The Walbrook Building, 25 Walbrook, London EC4N 8AF and authorised by the Financial Conduct Authority under the Payment Service 2009Go forto thesubscriptions.xumagazine.com provision of payment services. Worldpay (UK) LimitedFollow is authorised regulated by the Financial Conduct Authority Have youRegulations subscribed? us onand Twitter: @xumagazine Issue 11 / for23 consumer credit activities. Worldpay, the logo and any associated brand names are all trade marks of the Worldpay group of companies.

The UK’s

leading payments provider1

Trusted by over 300,000 small businesses

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Worldpay, helping your business grow

For more information, please contact your local representative

How cloud POS systems can improve your business

@CarbonGroupAcc

Matt Rutter, Xero Cloud Integrator, Carbon Business Group Matt looks after the Business Systems division at Carbon. As a dedicated cloud integrator, he specialises in providing efficiency solutions to businesses with the aim of reducing administration workload and automating the data entry process. When not at the office, he can be found dirtbike riding or scuba diving.

With the enhancements being made in the financial technology industry, cloud applications are becoming more popular amongst small businesses. Xero’s marketplace provides a large range of Apps that integrate with their cloud-based accounting software, enabling for a more streamlined process for business owners.

et’s discuss cloud point of sale (POS) systems...

We’ll use the retail and hospitality industry as an example. In basic terms, a point of sale is the store or restaurant’s register system used to take orders, send orders to the

kitchen and bar, track and process inventory orders and stock counts as well as recording customer payments. A cloud POS system simply means that this application is online. Moving away from traditional

native point of sale systems brings a whole host of benefits to retail and hospitality businesses. The most obvious benefit of any cloud application is that data can be accessed from any device, in any location, at any time. No longer does the business owner or

manager need to be in the office to check on sales or stock levels. Taking your point of sale system to the cloud allows business owners to enjoy a range of other benefits: Lower initial investment Traditional point of sale systems have to be purchased outright and physically installed onto each computer or device within the store or restaurant. This can be a massive upfront cost for many businesses, often out of reach for small startup cafés or pop-up shops. The limitations here are the multiple licenses that need to be purchased, new software that must be paid for when updates become available, and the need to be physically at the device to access the information. With the rise in availability of cloud POS systems, small business owners can enjoy the benefits of cloud systems without forking out tens of thousands on hardware and set-up. A monthly fee with no lock-in contract is much more appealing for business owners, in the same way a Xero subscription works. There’s also the added bonus of free updates included in the monthly subscription, resulting in one easy to manage payment. Take control of your inventory For businesses that rely on stock

such as retail and hospitality, it’s crucial to be aware of your most popular items, the profit margins on each, and your current stock levels. With a cloud-based POS system, you have 24/7 access to your stock levels and the data is in real-time. This makes ordering simple and easy, and eliminates the risk of running out of your most popular items. The application can be fully customised to represent the store or restaurant. For example, we’ve installed Kounta, a POS system specific for hospitality, into some of Perth’s restaurants and cafés. We’ve customised the screen to show the layout of the restaurant, which helps when it comes to placing orders and knowing the status of a table; have they just ordered? Are they onto their mains? Has the bill been printed? Integrate this with Xero, and you have the day’s’ takings fed directly into your accounting software at the touch of a button. Ergonomical design You have a client who is about to open a funky new bar in Perth’s CBD, serving fancy cocktails and modern tapas. Traditional POS systems are typically bulky and not very pleasing to the eye, which could ruin the ambience of the

place. A cloud-based POS system can be installed onto an iPad or Android tablet, which looks much more appealing on the counter top. Since they are compact, they can be taken to the table to take orders. Clients love the look of these systems! Integrations The great thing about cloud POS systems is the potential to integrate with multiple add-on software. Link to Tyro to complete purchases via electronic payment, which removes the need for manual entry and therefore eliminates risk of error. Connect with your online accounting software such as Xero, or online rostering application such as Deputy. With the affordability of cloud POS software, retail and hospitality businesses have no excuse to staying left behind with traditional systems. A good system will ensure you are in control of your business, and are ahead of your competitors. Carbon Business Systems recommend Vend and Kounta as great options for the retail and hospitality industries. Contact our cloud integrators today to see how you can benefit from taking your point of sale system to the cloud.

Reconcile stock trades and dividends to Xero, plus track performance and taxable income Learn more on page x 100 24 / Issue 11

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Issue 11 / 25

How cloud POS systems can improve your business

@CarbonGroupAcc

et’s discuss cloud point of sale (POS) systems...

We’ll use the retail and hospitality industry as an example. In basic terms, a point of sale is the store or restaurant’s register system used to take orders, send orders to the

Reconcile stock trades and dividends to Xero, plus track performance and taxable income Learn more on page x 100 24 / Issue 11

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Issue 11 / 25

@WorkflowMax

Caitlin Sisley, Marketing Content Writer, WorkflowMax

Gender diversity in the workplace: 5 benefits for small businesses

Caitlin has over six years of experience in the digital content world and has worked on social media campaigns, SEO blogs, press releases and creative copy for a large number of New Zealand businesses. With a Master’s Degree in Human Rights, she is not only passionate about business but also corporate responsibility, ethics and humanitarian issues.

ender pay inequity, discrimination, and the under-representation of women are still pervasive problems in the corporate world. Although the media has shed light on systemic inequities in high profile cases like Uber and Google, there has been less discussion about the importance of gender diversity in small business. If we’re going to create a more equitable world for women, what level of responsibility lies with entrepreneurs and small business owners? 26 / Issue 11

It’s a controversial topic, not least because small businesses face unique challenges when it comes to implementing gender diversity initiatives. With a lack of resources, funds and experience it can be difficult to devote energy to these complex issues, especially without a dedicated HR department. But small to medium sized enterprises account for over 50% of global employment, and in emerging markets they create 4 out of 5 new jobs. Logically, it’s crucial that SMEs take initiatives to

1 - Gender diversity encourages innovation One of the biggest challenges of small business management is that it requires constant innovation. You must be willing to try new approaches on a daily basis. Problem-solving, adaptability and creativity are the lifeblood of your small business.

Gender diversity in business has been a hot topic in 2017, with tech giants Google and Uber embroiled in scandal. While big corporations have found themselves in the spotlight, small businesses have largely flown under the radar. Yet small to medium sized enterprises account for over 50% of global employment. What level of responsibility do SMEs bear when it comes to gender diversity? And are there any tangible benefits for small business? In this article Caitlin Sisley outlines the many ways gender diversity initiatives can benefit SMEs directly...

wait to build a diverse workforce, the harder it gets. For this reason, it’s important for small businesses to encourage diversity while they’re still flexible enough to do so. By striving for diverse and inclusive recruitment in the early stages of business you’ll have a better chance of success; and can reap the benefits of diversity as your company grows. Here are five real advantages that small businesses stand to gain from cultivating diverse workforces and fostering inclusive, equitable environments.

But for this level of innovation you need a variety of minds to draw on. Your team members are shaped by their gender, culture, age, sexuality and personal experiences, and these factors influence how they see the world and tackle problems. It’s natural that a diverse workforce breeds greater creativity, while more homogenous environments risk a ‘group-think’ mentality. At WorkflowMax our marketing

promote gender diversity, inclusive workplaces and pay parity if we’re to see meaningful progress on a global scale. The benefits of adopting diversity policies early Earlier this year, the revelations of sexual harassment at Uber proved how deeply ingrained misogynistic attitudes can be in the workplace. Once a particular group dominates, it’s hard to reverse the trend, and this leads to difficulty attracting and retaining women. The longer you

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team is small but highly diverse, and I have no doubt this has contributed to our success. Our different backgrounds and experiences have helped shape us into a dynamic creative force.

2 - Gender diversity can increase profitability In 2016, a study by the Peterson Institute for International Economics found that companies with women in leadership roles tend to be more profitable. The results were based on a global survey of 21,980 publicly traded firms across 91 countries - the largest study of its kind. They found that companies with at least 30 percent women in senior “C-Suite” positions were 15 percent more profitable than firms with no women executives.

either way it hurts your bottom line. By making an effort to attract a diverse range of candidates, you bring more qualified people into the running for all your positions. Drawing on this greater pool of talent gives you a better shot at finding the best human capital, while giving your business a competitive edge over firms who are restricted by bias.

Not only does diverse recruitment widen the number of candidates available to you, it will also make your company more attractive to job-seekers. A recent study by Universum which polled approximately 36,000 university The researchers attributed this students in the UK, found that 80% significant result to two potential believe it’s important causes. Firstly, the presence for employers to of women adds to the create diverse and diversity of skill sets within a leadership “A diverse workforce inclusive workplaces. Job-seekers are group. Secondly, is better equipped always more likely discrimination against to serve a diverse to gravitate towards women naturally customer base.” companies that reflect reduces the talent their values. pool a firm can draw on - so those who do not 5 - Gender diversity helps discriminate during recruitment economic growth have a natural advantage when it comes to finding the best In April this year, allegations candidates. of systemic pay disparities at Google hit media headlines. An 3 - Gender diversity helps investigation by the US Department represent your customer base of Labor found “systemic compensation disparities” against Diversity of all kinds will make your women not only at leadership team more adept at understanding levels, but throughout the and meeting the needs of people entire Google workforce. Even in from varying walks of life. It can multinational corporations women help to build brand credibility are often paid less for doing the and trust with a wider audience. same job - and while Google is a A diverse workforce is better high profile example, the problem equipped to serve a diverse isn’t isolated to the tech industry. customer base. This is particularly important when it comes to gender representation, as women drive over 70% of consumer purchasing worldwide and are key economic decision makers. If you don’t want to miss out on this consumer demographic, it makes sense that women should be reflected in your workforce. 4 - Gender diversity gives you a competitive edge Recruitment discrimination can be conscious or unconscious, but

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Worldwide the gender pay gap is estimated at 59% (the worst it’s been since the 1998 financial crisis). According to the World Economic Forum, women’s average global income sits at $10,778 compared to the average global men’s income of $19,873. Women are underrepresented at senior levels of business in almost every industry. The 2016 Grant Thornton survey of 5,520 businesses in 36 economies found that women only held 24% of senior Follow us on Twitter: @xumagazine

Issue 11 / 27

@WorkflowMax

Caitlin Sisley, Marketing Content Writer, WorkflowMax

Gender diversity in the workplace: 5 benefits for small businesses

XU Magazine - the independent magazine for Xero users, by Xero users. Find us online at: xumagazine.com

team is small but highly diverse, and I have no doubt this has contributed to our success. Our different backgrounds and experiences have helped shape us into a dynamic creative force.

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Issue 11 / 27

management positions, severely limiting the earning potential of women. A third of businesses had no women in leadership positions. This divide is not only unfair; it’s also detrimental to our economic growth. By addressing gender inequality and capitalising on the vast amounts of unused human capital, we can create stronger and healthier economies in which small businesses can prosper. The McKinsey Global Institute estimates that advancing women’s equality could add US$12 trillion to the world’s yearly gross domestic product within a single decade. Recruiting and promoting more women in business is one of the most effective ways to achieve this. In conclusion... These are just some of the benefits that gender diversity initiatives can bring to SMEs. Gender

diversity in recruitment helps small businesses to achieve true meritocracy, by drawing from a greater talent pool and finding the best candidates. It can help you to connect with a wider customer base and outperform less progressive competitors, while cultivating innovation in your workforce and creating better companies.

priority • Strengthening the number of women leaders across the business • Supporting ‘women in tech’ events and initiatives globally

With a multitude of free tools and resources available online, there’s never been a better time to incorporate gender diversity initiatives into your strategic business plan. Xero’s Diversity and Inclusion Action Plan for 2017 includes: • A global approach to flexible working • Diversity and inclusion training for Xero staff (including unconscious bias training) • Incorporating diversity and inclusion as a strategic business

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priority • Strengthening the number of women leaders across the business • Supporting ‘women in tech’ events and initiatives globally

Need to broaden your perspective?

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Issue 11 / 29

Apps Compared

For more information, please visit:

Compared:

Insightly - www.insightly.com Accelo - www.accelo.com Capsule - www.capsulecrm.com Exsalerate - www.exsalerate.com

CRM App comparison Insightly

Accelo

Capsule

Exsalerate

Contact Management

Insightly

Accelo

Capsule

Exsalerate

Quoting & Invoicing

Record notes, schedule meetings & calls

Create quotes and invoices

Custom fields, lists & categories

Sync invoices owing from accounting system

Detailed privacy and permissions

Receive payments

Stripe integration

PayPal integration

(via Zapier)

Mailchimp

Task Management

Create and assign tasks

Accounting Integrations

Task Boards

Xero

Email notification with Task Reminders

MYOB

Drag & Drop allocation of tasks to calender

Sales Pipeline & Lead Management

QuickBooks Online

Dashboard View

Other Integrations

Track opportunities, pipeline and conversions

WorkflowMax

Track time with Timer

Google Apps

Log time

Exchange & Outlook

Timesheets pre-loaded with client activity

Zapier

Time Management

Project Management

JIRA

Track project budgets and expenses

Document storage

Project planning with Gantt chart

Email campaigns

Client portal

Create recurring & pre-paid service contracts

Track issues and tickets

Mobile App

Monitor deadlines & resolutions

iOS

Track tasks & assign staff

Android

Track projects and milestones

Project templates Unlimited project types, processes & fields

Helpdesk & Issues Management

Customisable business processes

This information was true and correct at the time of publishing. Releases happen all the time. Please contact the App for the latest release information.

30 / Issue 11

Other Features

XU Magazine - the independent magazine for Xero users, by Xero users. Find us online at: xumagazine.com

Compiled by Jeri Murphy, Co-Founder of WhichAddOn.com

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Issue 11 / 31

Apps Compared

For more information, please visit:

Compared:

Insightly - www.insightly.com Accelo - www.accelo.com Capsule - www.capsulecrm.com Exsalerate - www.exsalerate.com

CRM App comparison Insightly

Accelo

Capsule

Exsalerate

Contact Management

Insightly

Accelo

Capsule

Exsalerate

Quoting & Invoicing

Record notes, schedule meetings & calls

Create quotes and invoices

Custom fields, lists & categories

Sync invoices owing from accounting system

Detailed privacy and permissions

Receive payments

Stripe integration

PayPal integration

(via Zapier)

Mailchimp

Task Management

Create and assign tasks

Accounting Integrations

Task Boards

Xero

Email notification with Task Reminders

MYOB

Drag & Drop allocation of tasks to calender

Sales Pipeline & Lead Management

QuickBooks Online

Dashboard View

Other Integrations

Track opportunities, pipeline and conversions

WorkflowMax

Track time with Timer

Google Apps

Log time

Exchange & Outlook

Timesheets pre-loaded with client activity

Zapier

Time Management

Project Management

JIRA

Track project budgets and expenses

Document storage

Project planning with Gantt chart

Email campaigns

Client portal

Create recurring & pre-paid service contracts

Track issues and tickets

Mobile App

Monitor deadlines & resolutions

iOS

Track tasks & assign staff

Android

Track projects and milestones

Project templates Unlimited project types, processes & fields

Helpdesk & Issues Management

Customisable business processes

This information was true and correct at the time of publishing. Releases happen all the time. Please contact the App for the latest release information.

30 / Issue 11

Other Features

XU Magazine - the independent magazine for Xero users, by Xero users. Find us online at: xumagazine.com

Compiled by Jeri Murphy, Co-Founder of WhichAddOn.com

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Issue 11 / 31

Tutorial

tep One: Integrate your Deputy and Xero accounts

Integrating your Xero and Deputy accounts really is as easy as the click of a button. Whether you have set up your employee details in Xero or Deputy, once integrated, everything will be perfectly synced between the two platforms - any changes you make to employee details in Deputy will automatically be adjusted in Xero and vice-versa from hereon in. This also includes leave, so you can easily track time off requests, sick leave, paid time off and unpaid leave balances as soon as you integrate your accounts.

@deputyapp

Kristin Harris, General Manager, Deputy Kristin has been with Deputy since 2008 and is part of the company’s founding team. During this time, Kristin has been involved in nearly all areas of the business developing a firm understanding of all the facets of Deputy and has a keen eye on future global growth for the business. Growing up with a strong work ethic has equipped Kristin with a determined attitude and a firm belief that success is a direct result of hard work and a positive attitude.

with POS data and live weather feeds helps you create the perfect roster every time. Once you have finalised your schedules for the week ahead, your employees will automatically have a copy sent to their smart devices for confirmation.

can offer an open shift to either selected employees or your entire workforce with one tap – the last minute ring around can now be a thing of the past.

Step Four: Capture time and attendance

Deputy’s cloud-based and intuitive timekeeping provides you with detailed, dated and accurate records of the exact hours worked by all your employees. Once you have approved the digital timesheets, you can export all your timesheets to Xero with just one click.

Employees can clock on through the app on their phone or via a kiosk on site, so you will always have real time data of who is on shift at any given moment. If you need to fill a shift at the last minute, you

Xero + Deputy More than just saving you hours through increasing your payroll efficiency, integrating your Xero and Deputy accounts will guarantee that your business meets its legal obligation in paying your employees accurately, on time, every single time, as well as keeping you legally compliant on all your record keeping obligations for timesheets and payroll. For more help on how to get set up with Deputy and Xero, go to www.deputy.com/xero

Step Five: Export timesheets to Xero

OUR CLIENTS SAY... “The integration between Deputy and Xero is second to none, paying our employees used to take days and now it’s done in just minutes, best of all we’ve seen profit growth coming directly from better payroll management.” Giro Maurici, San Churro

Step 4

Connect Deputy and Xero to create intelligent schedules, capture when and where your people work, effortlessly get your payroll right and stay compliant with the regulations in your jurisdiction.

With the peace of mind in knowing that your timesheets and pay slips will be perfectly reconciled, it’s time to run your payroll and use all the extra time you have saved yourself to get back to doing the things you love most about your business.

Step 2

How to enjoy the perfect payroll with Deputy

Step Six: Run your payroll

Step Two: Set your employee pay rates

“With the Xero integration, timesheets from Deputy are directly imported into our Xero payroll system so we won’t have to worry about staff getting paid incorrectly. Deputy ensures greater accuracy in determining pays and has helped establish a great platform of trust and efficiency with our staff.” Declan Lee, Messina

We can now do all the award calculations for your payroll within Deputy, which can then be pushed through to Xero, any rates that you create in Deputy that don’t exist in Xero we will create for you on the fly as we export. You will be able to export a mix of standard pay rates and custom pay rates.

Features such as our fatigue management tool, tracking of new and qualified employees and our intelligent integration capabilities 32 / Issue 11

XU Magazine - the independent magazine for Xero users, by Xero users. Find us online at: xumagazine.com

Step 5

Step Three: Create your optimised roster

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Issue 11 / 33

Tutorial

tep One: Integrate your Deputy and Xero accounts

@deputyapp

can offer an open shift to either selected employees or your entire workforce with one tap – the last minute ring around can now be a thing of the past.

Step Four: Capture time and attendance

Step Five: Export timesheets to Xero

Step 4

Connect Deputy and Xero to create intelligent schedules, capture when and where your people work, effortlessly get your payroll right and stay compliant with the regulations in your jurisdiction.

Step 2

How to enjoy the perfect payroll with Deputy

Step Six: Run your payroll

Step Two: Set your employee pay rates

Features such as our fatigue management tool, tracking of new and qualified employees and our intelligent integration capabilities 32 / Issue 11

XU Magazine - the independent magazine for Xero users, by Xero users. Find us online at: xumagazine.com

Step 5

Step Three: Create your optimised roster

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Issue 11 / 33

Blast off with EntryRocket:

revolutionising the Xero and Shopify integration

@entryrocket

Caitlin Sisley, Freelance Content Writer, on behalf of EntryRocket Caitlin Sisley is a London-based freelance content writer, who recently moved to the UK from Auckland, New Zealand. She specialises in writing about small business ethics, B2B marketing and cloud-based technology.

In 2014 two brothers launched Tayroc; an independent brand of beautiful, high quality wristwatches for fashion-conscious consumers. In just a few years they experienced rapid international growth - but this created unforeseen challenges. Tayroc’s accountant Klaudia found herself struggling with the integration between Shopify and Xero. Data errors needed to be fixed manually, wasting hours of valuable time. She urgently needed a better way of integrating these two essential systems. Luckily she stumbled upon EntryRocket, who devised an innovative solution to her problems...

consumers. And they wanted to sell them at an accessible price.

The challenge of integrating Xero and Shopify

Over the last 500 years the humble wristwatch has evolved into a definitive fashion item; a bold expression of personality, culture and style. But it’s also an expensive investment - you pay for the brand name as much as quality.

To realise this dream they established Tayroc Limited, an independent and self-funded brand of high-end watches. In just three years, Tayroc’s unique timepieces have developed a cultlike following, earning thousands of loyal customers around the world.

In just a few years, Tayroc were making large volumes of sales, not just in the UK but from new customers around the globe. To meet this demand they began using the popular e-commerce app Shopify. They established three online stores trading in multiple currencies.

That’s why in 2014, two brothers set out to revolutionise the luxury wristwatch market. They had a dream of creating stylish, high quality watches for discerning

I spoke to Klaudia Poganyova, Accountant at Tayroc Limited, to discover how their business has coped with such rapid growth on an international scale.

he modern wristwatch is more than just a way of telling time. It’s a statement.

To manage the accounting side of their business they chose Xero, the award winning cloud-based accounting platform.

Both pieces of software proved essential for running their business, but Klaudia soon ran into challenges with the integration between Shopify and Xero. “All the orders we make in Shopify have to be exported with a unique account code, VAT charge and most importantly exported with a payment to the invoice - then sent to the specific bank accounts in Xero for reconciliation.” Transferring these invoices from Shopify to Xero was a cumbersome process, and far too much work to do manually. As an initial solution, Klaudia tried using the free integration between Xero and Shopify. But this created new problems. “With the default integration we could only choose one account code, and it would often export to Xero with the wrong VAT charges. This meant we had to open clearing accounts in Xero and manually sort everything out.”

34 / Issue 11

XU Magazine - the independent magazine for Xero users, by Xero users. Find us online at: xumagazine.com

With a high volume of sales and the use of several payment gateways, it was difficult to reconcile payments with the correct data and VAT charges. Multiple errors occurred which needed to be fixed by hand - a painstaking and unsustainable process. The difficult integration between Xero and Shopify often created more than half a day’s extra work. As Tayroc’s international sales continued to skyrocket, Klaudia knew they had to find a better solution.

(formerly known as CSV2Cloud) is a company who specialise in creating custom integrations to send data between any system and Xero. Klaudia was attracted to the impressive claims on EntryRocket’s website. It said they would build a small piece of software (called a document parser) to automate the flow of data from her business system into Xero.

EntryRocket’s bespoke integration

EntryRocket promised they could “create custom rules on the fly”, and the integration would be adapted to meet Tayroc’s exact needs - not the other way around.

Klaudia realised that Tayroc needed to streamline the transition of data between Shopify and Xero, and the only way to achieve this would be a custom integration. If she couldn’t find one they would be doomed to continue wasting hours of precious business time.

Feeling intrigued and hopeful, Klaudia fired off an email to EntryRocket and explained Tayroc’s predicament. She also gave EntryRocket a complete (and ambitious) wish-list of what they wanted in a Shopify and Xero integration.

She scoured the internet and found several possibilities, but one in particular stood out. EntryRocket

Co-founder Vlad Golusin replied to her within 24 hours. To Klaudia’s amazement, he offered to design

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Issue 11 / 35

Blast off with EntryRocket:

revolutionising the Xero and Shopify integration

@entryrocket

consumers. And they wanted to sell them at an accessible price.

The challenge of integrating Xero and Shopify

That’s why in 2014, two brothers set out to revolutionise the luxury wristwatch market. They had a dream of creating stylish, high quality watches for discerning

I spoke to Klaudia Poganyova, Accountant at Tayroc Limited, to discover how their business has coped with such rapid growth on an international scale.

he modern wristwatch is more than just a way of telling time. It’s a statement.

To manage the accounting side of their business they chose Xero, the award winning cloud-based accounting platform.

34 / Issue 11

XU Magazine - the independent magazine for Xero users, by Xero users. Find us online at: xumagazine.com

EntryRocket’s bespoke integration

EntryRocket promised they could “create custom rules on the fly”, and the integration would be adapted to meet Tayroc’s exact needs - not the other way around.

She scoured the internet and found several possibilities, but one in particular stood out. EntryRocket

Co-founder Vlad Golusin replied to her within 24 hours. To Klaudia’s amazement, he offered to design

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Issue 11 / 35

Ways GoCardless for Xero can support your business growth.

a custom integration which would tick off every single one of Tayroc’s requirements. Klaudia emailed Vlad a few samples of Tayroc’s data exports and Shopify orders. It only took a week for EntryRocket to build two unique parsers for Tayroc, giving them a custom integration between Shopify and Xero. The benefits of EntryRocket The benefits Klaudia and her employers at Tayroc gained from EntryRocket were dramatic. Only a week after reaching out to EntryRocket, Klaudia had a completely bespoke integration between Shopify and Xero. This streamlined the flow of data between the two systems - and eliminated the need for her to manually fix mistakes. She was able to complete half a day’s work in 10 minutes, thanks to the outstanding level of automation provided by EntryRocket’s custom integration. The whole process

now happens behind the scenes - automagically - with barely any human intervention required. Klaudia firmly believes that EntryRocket was the perfect choice for their growing company. It’s saved precious hours each day, and freed up the staff at Tayroc to concentrate on what they do best - creating and selling beautiful, contemporary watches that push the boundaries of design.

Shopify users who can benefit from this innovative service. EntryRocket can build a custom integration between any system and Xero, as long as you can export data as a computer readable file. They’ll create a seamless automated workflow, tailored to your exact business requirements. How much time could you save with EntryRocket?

She strongly recommends EntryRocket to anyone who uses Xero and Shopify. But it’s not only

Improve your cashflow Make sure you get paid on time, every time. Automate your payment collections by Direct Debit. Reduce your admin No more chasing late payments or having awkward conversations about money.

The GoCardless for Xero app is an awesome combination. It saves us loads of time each month – no more tedious reconciliation! Simpler for our customers, reduces admin and helps us get paid faster! Jonathan Hutchings,

Polite persistence pays in getting your invoices paid. Xero has helpful in-built invoice reminder functionality you should use for this. When you’ve outgrown it, there’s Chaser.

Automatic reconciliation The GoCardless for Xero app automatically reconciles your invoices increasing business efficiency. Simple to set up It’s quick to set up an account online and customers can authorise payments securely in minutes. Low transparent pricing Just 1% per transaction capped at £2 (min 20p). No set up fees or hidden costs.

We highly recommend using The GoCardless for Xero app to take control of your payments. It takes just minutes to set up, improves cashflow and reduces admin with the automatic reconciliation.

Peter Czapp, Co-Founder,

XERO APP PARTNER OF THE YEAR 2016

36 / Issue 11

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Issue 11 / 37

Ways GoCardless for Xero can support your business growth.

She strongly recommends EntryRocket to anyone who uses Xero and Shopify. But it’s not only

Polite persistence pays in getting your invoices paid. Xero has helpful in-built invoice reminder functionality you should use for this. When you’ve outgrown it, there’s Chaser.

We highly recommend using The GoCardless for Xero app to take control of your payments. It takes just minutes to set up, improves cashflow and reduces admin with the automatic reconciliation.

Peter Czapp, Co-Founder,

XERO APP PARTNER OF THE YEAR 2016

36 / Issue 11

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Issue 11 / 37

Making payroll processing a breeze! Payroll is not the most ‘sexy’ part of running a business with employees, but in most cases for businesses the total value can be the largest expense item on the profit and loss. Being trusted and knowledgeable advisors to your clients, it is best practice to be aware of payroll add-on App partners and where CloudPayroll best fits in the ecosystem...

he way your clients manage their payroll can have a huge impact on their employees’ morale. Ensuring the process is not only correct but runs smoothly and the records are easily accessible can help significantly in enhancing the experience for both your client and their employees. Time recording for casual and part time staff can require a lot of data entry and possible errors in calculations. Being your clients’ business advisor and reviewing their business processes at least a couple of times a year, then recommending improvements, can only be beneficial to you both. An online time recording system would reduce manual work and possible errors. If employees are able to enter total hours, start and finish time against a job or task, that when submitted the manager will approve prior to being accepted and included in the particular pay period, this will reduce errors and time. tradegecko_xerouser_pointer_ad.pdf

Software should improve

4/7/17

efficiencies and reduce administration time to process payroll. Some clients, like all people, may dislike or avoid change. From our experience at least twenty percent of the people are against change. If you are able to, make it easy to change and work alongside your clients with a controlled transition from their existing payroll.

and Australia enjoy an easy way of processing their payroll and love the ability of not only emailing but personally talking to our friendly, knowledgeable helpdesk team, in times of needing payroll assistance.

iPayroll. Tracking codes can be applied as well.

@CloudPayroll

Joanna Cruickshank, General Manager, CloudPayroll Joanna started at CloudPayroll in March 2013 when the Sydney office opened. She is a qualified Accountant who has worked in various industries, ran her own small business for nearly five years before starting to work at CloudPayroll. She loves solving tricky payroll scenario’s and how this would be processed in CloudPayroll. Her passion is helping businesses continually improve their payroll processes.

Then log in to your Xero account and enable. Intregration is now seamless with CloudPayroll/

There may be a perception that the person running the payroll feels changing to a more streamlined, technologically-advanced software will eliminate or reduce their position within the company. We have found that their clients categorically favour working with an easy to use interface that eliminates the previous frustrations hence improving their role and efficiencies. Integration with Xero is an easy process with CloudPayroll/iPayroll and is part of the implementation process. You enable your log in Cloudpayroll/iPayroll to Xero 13:50 account, by clicking enable, finish.

Before clients changed to CloudPayroll or iPayroll, their clients were generally using their old payroll system out of habit! Smaller businesses are too busy to look around for something better and often a medium to larger business has many decision makers making it easier to leave the status quo. That is where Accountants and Bookkeepers have a role in influencing their clients to look at improvements to make their clients’ lives easier. Trust and support are paramount to payroll. So often we hear “I wished I knew this payroll was around before” and “this is so much easier than what I was previously using”.

Single touch payroll is coming which is a government initiative to streamline business reporting obligations. When your client pays their employees, the payroll information will be sent to the ATO from their payroll solution. Payroll checklist - do you have clients who: • are processing their payroll manually or on excel spreadsheet? • are not up to date with superannuation contributions to funds? • are using Xero and require more

Born in the cloud, privately owned with 16 years of experience, all of our 5000+ clients in New Zealand

38 / Issue 11

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All of the above are great reasons to look at an add-on App partner like CloudPayroll or iPayroll. All that is required by you is make the introduction, be their trusted advisor and CloudPayroll or iPayroll, will do the rest.

Your Complete Payroll Solution Premier Cloud Services Since 2001 • All sizes of businesses • 50+ reports, helpdesk support, feature rich • Partner programme for Accountants & Bookkeepers

Free trial and no obligation demo

New Zealand

Powerful inventory and order management that syncs seamlessly with Xero  tradegecko.com

reports and easier interface? • are using Xero and have more than 100 employees? • are using other accounting systems and have a manual leave management system? • are using a bureau service, frustrated with errors, waiting for reports and paying high fees? • will not move to Xero because of the Xero payroll? • are calling you and expecting you to be a payroll expert? • are always a lot of work for you to get payroll information to lodge the BAS and IAS?

Australia

www.ipayroll.co.nz | sales@ipayroll.co.nz

WELLINGTON

AUCKLAND

www.cloudpayroll.com.au | sales@cloudpayroll.com.au

HAMILTON

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CHRISTCHURCH

SYDNEY

MELBOURNE

Issue 11 / 39

Software should improve

4/7/17

iPayroll. Tracking codes can be applied as well.

@CloudPayroll

Then log in to your Xero account and enable. Intregration is now seamless with CloudPayroll/

Born in the cloud, privately owned with 16 years of experience, all of our 5000+ clients in New Zealand

38 / Issue 11

XU Magazine - the independent magazine for Xero users, by Xero users. Find us online at: xumagazine.com

Your Complete Payroll Solution Premier Cloud Services Since 2001 • All sizes of businesses • 50+ reports, helpdesk support, feature rich • Partner programme for Accountants & Bookkeepers

Free trial and no obligation demo

New Zealand

Powerful inventory and order management that syncs seamlessly with Xero  tradegecko.com

Australia

www.ipayroll.co.nz | sales@ipayroll.co.nz

WELLINGTON

AUCKLAND

www.cloudpayroll.com.au | sales@cloudpayroll.com.au

HAMILTON

Have you subscribed? Go to subscriptions.xumagazine.com

CHRISTCHURCH

SYDNEY

MELBOURNE

Issue 11 / 39

SME managing projects, materials and stock?

Cloud technology can boost your profitability

“Since we introduced Tidy, our costs have become more stable. There’s not so much of the spurious spending as we’d seen previously.” @I_am_word_struck

Michelle Nicol, Writer, Wordstruck writing and training Michelle is a copywriter, trainer and brand storyteller who helps businesses tell their story through words that attract attention. A former BBC journalist, she loves nosing out a great story and sharing her writing expertise through training and workshops.

When it comes to winning and managing profitable work, small and medium enterprises have the same challenges as the largest enterprises. Quoting, pricing, costing and managing time and money on projects and products in the construction, technology and industrial environment is often detailed and complex...

hree SMEs and two business consulting professionals share their insights into how they solve these challenges: Adan Larsen Builders, New Zealand Adan Larsen Builders are an awardwinning construction company in New Zealand. Keeping track of each build and managing the materials required for each project helps ensure they remain profitable. Adan Larsen Builders use TidyBuild to enter invoices for supplies and labour as they occur, rather than adding up costs at the end of a build. This removes the need for back costing, the old “too late” method of determining profitability prior to cloud technology. Real time project and financial data now helps Director Kelly Larsen drive the direction of the business: “It gives us focus. We’re flat out at the moment, so it helps us decide which jobs we want because we know from TidyBuild those jobs with a better margin.” Kelly says that many others in this 40 / Issue 11

industry are still relying on old technology: “I was at a builder’s conference sitting in a tech workshop and the guy was saying if you’re still using spreadsheets you’ve got a problem. I gave up spreadsheets two years ago when I got this sorted with TidyBuild. I know exactly where a job is at, at any point in time.” Using TidyBuild together with Xero to keep track of materials and costs for their home construction business, helps Adan Larsen Builders stay ahead of the game, Kelly explains: “They were also saying there’s not one app that will do everything. I was thinking, ‘I know TidyBuild communicates with Xero nicely because that was the problem a lot of them were having.’” Profabrication Services Ltd (PFS Ltd), Wales Profabrication Services Ltd (PFS Ltd) is an engineering, welding and fabrication business that grew out of Rio Tinto’s decision to close their aluminium smelting plant in Holyhead, North Wales. After introducing Xero to manage their

Consulting advises small and medium sized enterprises on processes and software that will help them manage their work efficiently and profitably.

finances, PFS added TidyEnterprise in 2016 to help manage projects and costs. Managing Director, Martin Davies says it helps him focus on profitable projects: “I can print out a monthly report to show the productivity of my company, which breaks down into my fixed price, time and materials and my overhead type working. It shows me graphically, with clear data, where I’m being productive and where I’m not being productive.” TidyEnterprise helps PFS Ltd manage quotations, materials, stock and pricing for fixed-price projects, helping the business to save costs. “We run each job as a project in TidyEnterprise - any materials, equipment or items that we need for that project have to be raised through a purchase order through Tidy,” says Martin. “Before, people were ordering materials with no enquiries about cost. We’d have stuff turning up, and be getting invoices thinking, ‘did you realise how much it was going to be?’”

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Autoline, New Zealand Autoline are New Zealand’s leading conveyor specialists, providing automation, productivity and materials handling solutions direct to the food, plastics and industrial sector. They use TidyEnterprise to manage project costs. Managing Director Matthew Fisher explains: “TidyEnterprise is an integrated system in our company. It enables us to have transparency on the costs for any project. We can easily assess the hours and components that make up a project. We use TidyEnterprise to create every invoice and purchase and this is sent seamlessly into Xero.” Being able to integrate Tidy’s cloudbased software with other tools has been a real benefit to Autoline, says Matthew: “We have recently purchased another company and it has been simple to integrate this new entity into our system.” “TidyEnterprise is an essential part of the day to day management in our company. We would be lost without the level of transparency that it provides.” Principality Consulting, UK

“There are two scenarios in the businesses I speak to,” he explains. “In the first they need help to create order out of chaos – they’re not managing well using spreadsheets and paper-based systems. In the second, they have some electronic systems and software in place, but they’re looking for the next step up, to integrate different systems. Tidy can help in both of those scenarios, especially where you integrate it with Xero.” David recommended Tidy’s cloudbased software to Welsh-based manufacturing and engineering company PFS Ltd. David explains: “They’re already seeing a number of improvements. They can see what projects are making a profit, and what projects are not. They’re starting to make business decisions about projects they know they shouldn’t be doing because they won’t make money.” 5E Management Services, Australia Edward Fyvie, SME business consultant and lean manufacturing expert of 5E Management Services, is based in Sydney, Australia where he advises companies on systems and software that will help them run more efficiently. He recently helped implement TidyWork for a client company that engineers and manufactures large customised pressure vessels and heat exchangers for primary resource and infrastructure industries. They were looking to streamline and standardise their work to reduce waste and improve profitability.

Edward says not all job costing and project management software can deal with the specific needs of manufacturing and engineering industries: “Similar software that says it does job costing is usually designed for professional practices and service businesses. It’s fine for billing hours and simple jobs, but it just doesn’t cut it for manufacturing and industry.” “TidyWork allows a great deal of flexibility. You can invoice clients in lots of different ways, not just based on time and materials. In these kind of manufacturing and engineering industries you need to be able to allow for milestone payments, for example a 20% payment when the first batch of materials arrive. With TidyWork that’s simple. With other systems, it takes a great deal of work around.” Edward also says that using Tidy’s cloud-based system offers SMEs significant cost savings: “Tidy + Xero is around 20% of the cost of a mid-tier server-based system that can properly do project and job costing, so my clients are making savings in terms of software, not to mention the further savings in hardware to run that kind of system.”

David Lloyd Williams of Principality

What CFOs wonder about TOP WONDERS: 3 OF 6

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SME managing projects, materials and stock?

Cloud technology can boost your profitability

“Since we introduced Tidy, our costs have become more stable. There’s not so much of the spurious spending as we’d seen previously.” @I_am_word_struck

Consulting advises small and medium sized enterprises on processes and software that will help them manage their work efficiently and profitably.

XU Magazine - the independent magazine for Xero users, by Xero users. Find us online at: xumagazine.com

David Lloyd Williams of Principality

What CFOs wonder about TOP WONDERS: 3 OF 6

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How to keep Bill and Purchase Order Approvers out of Xero Follow us on Twitter: @xumagazine

Issue 11 / 41

Growth Mindset and SaaS Tools Help Accountants Fill a High-Value, High-Touch Role

@mydryrun

Barb Easter, Manager of Customer Engagement, Dryrun Involved in business development and growth for the past decade, Barb’s experience includes successes across various industries in customer engagement, marketing, and entrepreneurship. Today, Barb helps Dryrun users reduce their financial hurdles and grow their business.

In my role with Dryrun, a scenario-based forecasting tool that integrates with Xero, I spend much of my time talking to business owners how cash flow reveals the story of their business…even if the numbers don’t ‘add up’...

here are some interesting trends that I want to share with you to illustrate business owners’ experiences – it’ll pave the way to sharing 6 tactics providing additional value to your clients. Why Are Business Owners Consulting Dryrun Instead of Their Accountant? My daily meetings with customers throughout the world don’t focus on Dryrun’s software, but on each business owner’s unique business problem or blind spot. They’re avidly searching for indepth advice about how to get paid faster, timing cash inflows and outflows, having cash on hand for inventory purchases or growth…the list is almost endless. Why aren’t they seeking your input? We see these businesses struggling to understand critical financial issues but seldom communicating with their financial advisors. Even with more frequent conversations, the focus is not on strategy to manage upcoming 42 / Issue 11

decisions. Another key observation: Your clients are looking for a business solution and due to the mass adoption of cloud tools, it’s more actionable for them to sign up for a SaaS tool rather than open a conversation with their accountant. How Can I Miss? Powerful Accounting With an Arsenal of Cloud Tools Some accountants look at the cloud-tool industry as a Goliath and give in, content to see their customers once a year for a post-mortem. “Less billable hours is simply the reality of today’s economy,” they think to themselves. Other accountants look at this Goliath and take aim, thinking, “The cloud tool industry is so big and so ripe with opportunities for my clients to grow while in my practice that even in these lean time, if I take aim, there’s no way I can miss helping them succeed by bringing value to them.”

The difference in the two examples is the consideration of what high-value tasks you can perform with your clients that fall within the scope and practice of the accountant’s role. How You Re-Engage Your Clients Spells the Future of Your Practice Ian Stanley-Maddocks, CPA and Partner at Maddocks Mallett reiterates, “It used to be that AR and AP would fall behind due to the amount of data entry required. That really doesn’t hold up as an excuse anymore…If you’re a small business, and you’re not using cloud-based software, then you’re just making your life hard”. Every time a client chooses a piece of software that would allow them to disengage with you, it’s critical that you seek to re-engage them by showing them a unique aspect of accountancy that cannot be fulfilled by a computer program, but by you as the communicator, the problem-solver, the strategist; their trusted accountant. Not sure how to get started? Here are some

XU Magazine - the independent magazine for Xero users, by Xero users. Find us online at: xumagazine.com

great strategies to spotlight your strategic muscle. 1. Build Better Relationships Successful relationships mean emphasizing collaboration and communication with clients and team members. Cloud accounting software and integrations allow this to happen efficiently and securely. 2. Look Ahead Look forward to shape the future of your clients’ business with your accounting knowledge instead of backward. One visit per year provides one closeended opportunity to perform a post-mortem mop-up of their fiscal year but by bringing challenging issues to light and then making a plan to fix or exceed their benchmarks, your client gains the confidence and goal-setting mentality to work toward a healthier business. 3. Reduce Their Business Expenses Negotiate to perform cost allocation across projects, departments or business processes, then report findings. It will be necessary at the outset to explain that accessing these

data streams and building a report does have an upfront cost in billable hours, but will net savings in processes. Cost allocation will also save your clients time and improve their confidence that they’ve been presented with accurate data from which to make decisions. 4. Be Their Cash Flow Partner to Increase Their Returns The world seems to be divided into two groups of people - those for whom creating a business budget that is effective and robust is a dead bore, and those for whom budget creation and maintenance is a joy (me! and probably you!). Don’t close your practice and sign on with a small business as payroll, but helping your clients understand the difference between process-based and deliverables-based relationships will help sell your value and ultimately grow your billable hours. 5. Probe for Business Problems to Provide Increased Value

giving you a pathway to add additional value and helping you to stay actively tuned in to your clients. Clients who adopt your revised year-round growth mindset will be poised to identify and act on opportunities as they come up, and will strategize around project timelines, capacity issues, and unavoidable holdups. Net growth and profit far outweighs the cost of a few more hours of strategy. 6. Grow with Them Having a direct relationship with your client as you become involved in their growth positions you as a trusted thought-leader and strategist who is well acquainted with their unique business. This has the benefit of ensuring that as your customer grows, they won’t outgrow you and your services. Take note of the strategies you’ll adopt to increase your strategic thought-leadership (and billables) this year by leveraging cloud tools such as Xero and its integrated add-ons.

Maintaining an active and regular relationship is a great way to probe for business problems

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Growth Mindset and SaaS Tools Help Accountants Fill a High-Value, High-Touch Role

@mydryrun

XU Magazine - the independent magazine for Xero users, by Xero users. Find us online at: xumagazine.com

Maintaining an active and regular relationship is a great way to probe for business problems

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Should we be scared of the new EU GDPR? Getting Ready for The EU General Data Protection Regulation...

@AdvanceTrack

Vipul Sheth ACA CTA, Founder and Managing Director, AdvanceTrack Outsourcing Vipul Sheth is a UK based ICAEW Chartered Accountant and Chartered Tax Advisor. Vipul trained with a regional UK firm before moving to Ernst & Young and KPMG. AdvanceTrack is a UK Headquartered Accountancy Outsourcing Company with offshore operational centres, delivering services around the globe.

Data Protection Officer Accountability is a key component of the new regulation. In certain circumstances, data controllers and processors must appoint a Data Protection Officer (“DPO”) as part of the organisation’s accountability.

such circumstances, firms using a provider that is not compliant could be breaching the regulations. Companies outside the EU targeting customers within the EU will be subject to the GDPR, which is not the case currently.

reviewed as the GDPR is more detailed than currently in place. Information to be given to the data subject is more comprehensive than is currently the case (including for example, the ability to withdraw consent) and the period for which data is stored.

The Role of the Data Processor The following are circumstances where an organisation needs to have a designated DPO:

his will become law regardless of the UK’s continuing membership of the EU. It is also likely that, to trade with individuals and organisations within the EU, post Brexit, UK businesses will need to be compliant with these regulations. The GDPR will apply in the UK from 25th May 2018. Should we be scared by the new regulations? With a potential fine of 4% of global turnover, or 20m euros, we need to ensure that we understand how it impacts on us as professional firms. If you outsource, you need to consider carefully if your outsourcing supplier is able to allow you to remain compliant. Article 5 of the GDPR requires that personal data shall be: 1. Processed lawfully, fairly and in a transparent manner in relation to individuals; 44 / Issue 11

2. Collected for specified, explicit and legitimate purposes and not further processed in a manner that is incompatible with those purposes; further processing for archiving purposes in the public interest, scientific or historical research purposes or statistical purposes shall not be considered to be incompatible with the initial purposes; 3. Adequate, relevant and limited to what is necessary in relation to the purposes for which they are processed; 4. Accurate and, where necessary, kept up to date; every reasonable step must be taken to ensure that personal data that are inaccurate, having regard to the purposes for which they are processed, are erased or rectified without delay; 5. Kept in a form which permits identification of data subjects for no longer than is necessary for the purposes for which the personal data are processed; personal data may be stored

for longer periods in so far as the personal data will be processed solely for archiving purposes in the public interest, scientific or historical research purposes or statistical purposes subject to implementation of the appropriate technical and organisational measures required by the GDPR in order to safeguard the rights and freedoms of individuals; 6. Processed in a manner that ensures appropriate security of the personal data, including protection against unauthorised or unlawful processing and against accidental loss, destruction or damage, using appropriate technical or organisational measures. Article 5(2) requires that “the controller shall be responsible for, and be able to demonstrate, compliance with the principles.” Do we know what actions to take? Let’s see what you need to know.

XU Magazine - the independent magazine for Xero users, by Xero users. Find us online at: xumagazine.com

1. Processing carried out by a public authority; 2. The core activities of the controller or processor consist of processing, and requires regular and systematic monitoring of data subjects on a large scale; or 3. The core activities consist of large scale processing of special categories of data. The DPO may be employed or on a service contract, but is required to have enough expert knowledge, dependent on the activities for which they are responsible. This DPO may act for a number of undertakings.

The GDPR requires data processors to have direct obligations for the first time. This includes an obligation to maintain a written record of processing activities carried out on behalf of the data controller, appoint a DPO where required and notify the Data Controller of a personal data breach without an undue delay. Provisions related to cross border transfers will also apply to processors. Supply and commercial agreements will need to be reviewed to accommodate the new regulations. Accountability The Data Controller has onerous obligations to demonstrate compliance. This can include:

Data Controllers will need to provide information in a clearly accessible format in a clear way with the new GDPR obligations in mind. Consent It needs to be as easy for a data subject’s consent for processing to be withdrawn as it is to obtain consent. The data controller will be mandated to demonstrate that consent was given and whilst existing consents may work, they need to meet the new conditions. There are areas concerning personal data used for direct marketing and also the age of parental consent where there is no clarity on whether the age is 16. Some member states can lower this to 13.

Territorial Reach The GDPR also impacts on processors of data outside the EU, so this will impact on all outsourcers in popular locations outside the EU, such as India, processing activities relating to the offering of goods and services (even if free) or monitoring the behaviour of EU data subjects (within the EU). Many will need to appoint a representative in the EU. Most outsourcers will for example, have no presence in the EU. In

1. Maintaining documentation. 2. Carrying out a data protection impact assessment for more risky processing. 3. Putting in place data protection by design and default. Fair Processing Notices When personal data is obtained, the Data Controllers must provide transparent information to data subjects. Existing forms of fair processing notice will need to be

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Fines There will be a tiered approach to the way penalties for breaches are imposed. This will enable DPAs to impose fines of up to 4% of global revenue and 20m euros (for example, breaching the requirements relating to international transfers or basic principles for processing, such as conditions for consent). There are other specified infringements which attract fines Follow us on Twitter: @xumagazine

Issue 11 / 45

Should we be scared of the new EU GDPR? Getting Ready for The EU General Data Protection Regulation...

@AdvanceTrack

The Role of the Data Processor The following are circumstances where an organisation needs to have a designated DPO:

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Issue 11 / 45

up to 2% of global revenue and 10m euros. These fines apply to an “undertaking” and this was clarified in Articles 101 and 102 of the TFEU. “The One-Stop Shop” A company operating in many EU countries would generally only deal with one lead DPA. There has been a degree of criticism. In order to address some of this criticism, the GDPR allows individuals to have their cases dealt with locally, with the Lead Authority and Concerned Authorities working together. It is to be hoped that when in place, that it does not lead to forum shopping. Removing a Notification Requirement There will no longer be a requirement for a data controller to notify or seek approval from the DPA in some circumstances. Whilst this may reduce a financial and administrative burden, this may lead to some DPAs seeking alternative funding. The policy now is for Data Controllers to put in place effective procedures and mechanisms to focus on higher risk operations and undertake a data protection impact assessment. This should consider severity and likelihood of risk, especially with large scale processing. A lot of effort is required and the potential fines are such that they may outweigh the benefits. Also, where the data impact assessment indicates high risk for processing if measures are not taken, there is a new requirement to consult the DPA in advance. If the DPA considered the processing may breach the GDPR, they could give written advice or use their enforcement powers as the processing may have multiple impacts, or the Data Controller could conclude that nothing is high impact(!). If your outsourcer, for example uses e-mail and tools such as DropBox to exchange confidential data, you may need to consider if that places your firm at risk of fines, were there to be a data breach. European Data Protection Board (”EDPB”)

The independent EDPB will comprise of the EDP supervisor and senior representatives of the national DPAs. Its role will be to issue guidance and opinions, reporting the EU Commission and applying the GDPR consistently across the EU. International Transfers The way that consent is dealt with for data exporters has changed. Moving data outside the EU now requires subjects to have sufficient information on the risks of data transfer outside the EU. This, in the context of outsourcing will require you to ensure that any outsourcer has strong protocols to be able to satisfy yourself of the risks. Consider, for example, if an outsourcer using e-mail or DropBox to transfer confidential information is able to satisfy the new requirements. Data Subjects’ Rights The rights of individuals being strengthened was one of the main aims of this new regulation. This includes, for example, a right to require information about data being processed about them; being able to access such data in some circumstances; and correction of data where incorrect. There will also be rights relating to data used for direct marketing purposes. The concept of data portability has also been created, allowing individuals to receive back their personal data in a structured and commonly used format to allow it to be more easily transferred to another data controller. The CJEU decision on the Google v Spain case and the “right to be forgotten” or “right of erasure” received the most attention. This allows individuals to require the data controller to erase such personal data without undue delay in certain situations, such as withdrawing consent. Following this, there is an obligation to advise 3rd parties that the data subject has requested erasure of any links to, or copies of that data. This may in practice be difficult to

46 / Issue 11

manage. There is a requirement for the data controller to respond within one month, with more complex requests allowing this to be extended. Clear processes will need to be in place to meet such obligations and provided free of charge unless the request is “manifestly unfounded or excessive”. Six Things you should do now to be ready for GDPR 1. Embrace Privacy by design When a new process or product is deployed, ensure that privacy is embedded into the process. Considering the process early on will enable this to be both structured and validation checks to be put in place. 2. Understand the legal basis on which you use personal data Consider engagement letters and contracts as this may often be your form of consent for processing if withdrawn. The documents should demonstrate that the consent is given freely, is specific and informed and the burden of proof will be on the data controller, for example, the accounting firm. Obtain legal advice on how you would deal with any withdrawal of consent. 3. Review your privacy notices and policies Policies need to be transparent and easily accessible. Information provided need to be in clear and plain language. 4. Accountability framework Clear policies need to be in place to meet the standards. 5. Review the data subjects’ rights Data subjects may exercise their rights such as data portability or the right to erasure. If personal data is retained, consider what legitimate grounds there are to retain this. The burden of proof to demonstrate your legitimate grounds for retention override the interests of data subjects. 6. Prepare for data security breaches Clear policies and practised processes need to be in place in order to react quickly to any data breach to ensure that timely notification is made where required.

XU Magazine - the independent magazine for Xero users, by Xero users. Find us online at: xumagazine.com

Cloud City Accounting ng counti tive Ac Interac y 1 - December 31

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Issue 11 / 47

46 / Issue 11

XU Magazine - the independent magazine for Xero users, by Xero users. Find us online at: xumagazine.com

Cloud City Accounting ng counti tive Ac Interac y 1 - December 31

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Issue 11 / 47

7 Smart Steps:

To give your small business a technology edge Following these simple technology strategies can make running a small business a lot easier – and improve profitability... 1

Check out your digital options

By now your business should have embraced cloud-based technology and all the benefits it brings in terms of accessing data and business information anywhere, anytime. So what’s next? In a fast-moving tech world, small businesses should always be reviewing their current technology, systems and processes. Are you leveraging the full impact of social media with a considered strategy to target platforms such as Facebook, Twitter and Instagram? Could you use business apps at a time when mobiles are taking over from desktops? Remember, it’s all about streamlining your business operations while making purchases easier for your customers. 2. Ditch the shoebox

Solomons, Head of Accounting at Xero Australia.

@PayPalAU

Brian McDonnell, Director of Business, PayPal Australia Brian McDonnell is Director of Mid-Market and Small Business at PayPal Australia. With over 10 years’ experience in the Fintech industry, Brian has supported thousands of businesses to start their online payments journey. Having formerly held leadership positions at Nokia and Sony, Brian joined PayPal to be at the forefront of digital payments and the rewiring of global commerce.

profits. 4. Take advantage of online payment tools

“It’s all just there. The technology, the cloud system, the forecasting tool; they can actually do a lot of the legwork. Let the technology do the heavy lifting.”

3. Consider inventory management software For businesses with a lot of stock and distribution requirements, inventory management is crucial. Software can integrate with e-commerce or point-of-sale technology and automate inventory routines. Having real-time inventory data ensures that your business has the right stock at the right time – a must if you want to maximise

Online sales are a key element for Natalie Marie Jewellery, a bespoke jewellery company in Sydney, so it relies on sophisticated support tools. Founder Natalie Fitch says because the jewellery is crafted bespoke with fine materials it can command large sums, and electronic bank transfers can be delayed because of clearing house issues. To avoid this problem, Natalie uses PayPal to ensure fast online payments. “PayPal also means saving on bank fees and, with about 90 per cent of our international customers using it, they know it’s secure and seamless,” she says. “It’s really helped us expand our online international base.”

A Xero survey last year revealed that three out of four Australian businesses still store at least some of their receipts and invoices in shoeboxes. An average Australian enterprise churns through 100 receipts and invoices a week, adding up to a huge paper pile. Technology can transform processes. “When you’ve got smart technology, it’s not about having to then manually go through and look at every cost item and trying to work out what you spend,” says James 48 / Issue 11

XU Magazine - the independent magazine for Xero users, by Xero users. Find us online at: xumagazine.com

5. Improve cash-flow with clever invoicing Slow cash-flow is a killer for any business. Brian McDonnell, Director of Business at PayPal Australia, recommends one simple and effective solution to stop business owners wasting time chasing late payments – attach PayPal as a payment method to Xero invoices. Connecting PayPal into Xero enables customers to pay online invoices securely, with the money showing in your PayPal account in moments. “Clients who have PayPal on their invoices are more likely to spend less time chasing late payments and more time on running their business,” McDonnell says.

Internet of Things, or IoT for short, you need to get up to speed. It refers to the concept of a giant network of connected ‘things’, including people and potentially billions of devices. IoT technologies such as automated data collection software and sophisticated analytic tools for measurement are the way of the future and should not be ignored. Ultimately, they will be able to save small businesses money and help with product development and security.

requirements via desktops, tablets and smartphones, while all her online payment systems integrate and link back to Xero and PayPal. “The integration of PayPal and Xero has enabled us to have awareness of our cash flow and means we’re able to focus on the things that are important to the business,” Natalie says. For all the efficiencies that technology brings to business, though, she says it still takes real commitment to succeed.

7. Integrate all your devices For Natalie, the seamless integration of PayPal and Xero across the various devices has been a winner for her business. She relies on Xero for invoicing and payroll

“You do have to put the hard yards in and it doesn’t happen overnight.”

6. Start learning about the Internet of Things

For more info on how PayPal can help transform your business:

If you haven’t heard about the

www.paypal.com/au/xero

“PayPal also means saving on bank fees and, with about 90 per cent of our international customers using it, they know it’s secure and seamless. It’s really helped us expand our online international base.” Natalie Fitch, Natalie Marie Jewellery

PayPal is provided by PayPal Australia Pty Ltd AFSL 304962. Information provided is general only and does not take into account your objectives, financial situation or needs. Consider the Combined FSG and PDS at paypal.com.au before using PayPal.

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7 Smart Steps:

To give your small business a technology edge Following these simple technology strategies can make running a small business a lot easier – and improve profitability... 1

Check out your digital options

Solomons, Head of Accounting at Xero Australia.

@PayPalAU

profits. 4. Take advantage of online payment tools

“It’s all just there. The technology, the cloud system, the forecasting tool; they can actually do a lot of the legwork. Let the technology do the heavy lifting.”

XU Magazine - the independent magazine for Xero users, by Xero users. Find us online at: xumagazine.com

7. Integrate all your devices For Natalie, the seamless integration of PayPal and Xero across the various devices has been a winner for her business. She relies on Xero for invoicing and payroll

“You do have to put the hard yards in and it doesn’t happen overnight.”

6. Start learning about the Internet of Things

For more info on how PayPal can help transform your business:

If you haven’t heard about the

www.paypal.com/au/xero

Have you subscribed? Go to subscriptions.xumagazine.com

Issue 11 / 49

Event Report

Event Report enthusiasm for what’s to come. Accountex is already by far the most important and effective business event for the sector, and we have lots of new ideas on how we can grow and develop the show even further. We’ll be working closely with all our partners, associations and exhibitors over the coming year to ensure that Accountex continues to provide everything that our visitors need to run their businesses successfully,” she says.

Even bigger, even better:

Accountex! In May, the XU team along with many of the UK’s top professionals flocked to Accountex, the country’s largest accountancy and finance event, at London’s ExCel conference centre... I

t was the biggest Accountex yet, with over 7,000 attendees, characterised not just by numbers but companies represented and testimonials that followed. Guests were as diverse as ever, including accountants, bookkeepers, finance directors, accounts managers, business owners, tax professionals and IT experts. The event was a success all-round, and Zoe Lacey-Cooper, Accountex event director, attributes much of this to the support received: “We are absolutely delighted that the show has been such a success. This was the first year that Diversified had full, 100% control of Accountex after acquiring the event from Prysm in 2016, and we have been overwhelmed by the positive reactions from our visitors, exhibitors, speakers, associations and media partners. Their support has been phenomenal.” 50 / Issue 11

“We’ve spent a lot of time consulting with the industry over the past year to understand how we could take what was already an amazing show to the next level. And, from the feedback we’ve received already, I think that we achieved that and more!”

These sentiments are totally reflected by exhibitors, who were impressed with the increase in engagement and number of new business leads at this year’s event. For this reason, close to half of them rebooked for 2018 before this show had even ended! Amongst them were Thomson Reuters, IRIS, BrightPay Payroll Software, Webexpenses, Receipt Bank, Spotcap, DataDear, Octopus Blue, and Futrli. Show highlights The show hosts have estimated that most people attended at least one seminar during their time at Accountex. This has always been a big draw for visitors, with over 180 CPD accredited Keynotes, seminars, panel sessions and interactive

workshops. This year we had XU Magazine’s very own CEO, David Hassall, give a talk. Some our other speaker highlights are Gary Turner (Xero); Brendan Woods (AutoEntry); Hannah McIntryre, Helen Cockle and Amy Harris (Futrli); Jessica Pillow (Pillow May Chartered Accountants and Business Advisors); Michael Wood (Receipt Bank); Matt Flanagan (Bluehub); Nicola Anderson (GoCardless); Chris Deeson (pensionsync); and Karen Reyburn (The Profitable Firm). For us, the atmosphere of the place is incredible. We loved getting to know you all, going for drinks to catch up, and introducing the ever-growing Xero community to

XU Magazine. We look forward to seeing you there in 2018, for an even bigger, even better Accountex!

SAVE THE DATES Accountex Summit North: set to be launched on 6th March 2018, the first Accountex to reach the Midlands, North of England and Wales, Scotland and ROI will be held in Manchester. Accountex UK: put the date in your calendar now for what will be the greatest Accountex yet 23rd and 24th May 2018 at the London ExCel.

“This year’s line-up offered our visitors an unrivalled opportunity to exchange information about the latest technologies and services on the market, and get expert advice and inspiration from some of the profession’s leading innovators and key thinkers. From the ‘buzz’ across the show floor, to the 14 theatres all full-to-the-brim, as well as the 200 exhibition stands that looked incredible – it was a very busy, valuable and productive two days for everyone involved. “This is a really exciting time for the profession – and the accounting industry is full of positivity and

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Event Report

Even bigger, even better:

Accountex! In May, the XU team along with many of the UK’s top professionals flocked to Accountex, the country’s largest accountancy and finance event, at London’s ExCel conference centre... I

XU Magazine. We look forward to seeing you there in 2018, for an even bigger, even better Accountex!

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Issue 11 / 51

Case Study

ApprovalMax Complements Xero for a Legacy ERP Replacement Find out how ApprovalMax complemented Xero in a fully cloud accounting solution for the largest agricultural event in the Southern Hemisphere...

ounded way back in 1968 by a group of passionate farmers, the New Zealand National Fieldays Society Inc. has played an integral role in the growth and success of the country’s agribusiness sector. A not-for-profit society and a registered charity, it was originally set up to provide a link between urban and rural businesses, and to promote agricultural interests both locally in New Zealand, and on the global stage. Today, Fieldays can proudly look back on 49 years of significant growth, generating over $430m of economic benefit for New Zealand economy in the last year alone. The Society owns, manages, and develops the breathtaking Mystery Creek Event Centre, a 114 hectare property, which is home to the NZ Agricultural Fieldays event - the cornerstone of the Society. The Society also runs a variety of other industry-related events, such as Equidays and the Transport and Heavy Equipment (THE) Expo, both of which attract many local and international exhibitors.

undergoing significant change. Building on the collaborative relationship with Xero being a Principal Partner of the Society, we moved from a cumbersome ERP system to Xero’s modern cloudbased accounting platform. This allowed the Society to overcome one of our critical challenges: lengthy and costly introduction of change. With the organisation quickly growing and business processes constantly evolving, it was crucial that we be able to support change at the system level as well. With Xero, our accounting processes became available both online and on mobile, and most importantly they became significantly easier to set up and evolve. However, we still needed to complement one more thing - the financial approvals. We required the ability to replicate the way the approvals worked in the decommissioned system, and to expand them to address the growing compliance and regulatory requirements of our booming agribusiness.

@FieldaysNZ

Anthony Burman is CFO of the New Zealand National Fieldays Society Inc. An experienced leader with a proven record in leading change, through system automation and innovative process design. Anthony is more than your typical accountant, with a passion that lies deep with designing organisational strategies utilising technology solutions to enhance organisations performance and profitability. Anthony graduated with a First Class Honours Degree in Business Management Studies from the University of Waikato.

decisions. This required a more granular level of role definition and status tracking, which needed to be supported by the new approval system. And that’s how we came to ApprovalMax. The Native Solution ApprovalMax is pre-integrated with Xero and complements it with fully functional approval workflows. It gave us the ability to set complex routing rules and approver roles, including delegates. In short, it was the native solution we had been searching for. ApprovalMax allowed us to - in the simplest way possible - create a complex approval matrix, wherein we defined roles, business rules, and routing workflows, all while remaining intuitive and easy to use.

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In addition to this, we also have some process specifics such as delegating the review and approval

Purchase Orders are raised in the ApprovalMax platform, and pushed across for approval by the relevant individuals. When they’re approved, the rest of the Xero processes take place. Sometimes there won’t be a PO, and instead a Bill is received and routed through the corresponding workflow, while Sales Invoices and Credit Notes are also covered by the approval process. The approval matrix defines approval request routing, and makes sure financial documents are routed to managers with the correct level of authorisation and approval authority, regardless of the document’s origin. The Benefits of this Integration All in all, Xero - as a cloud-based accounting platform - allowed us to bring speed and flexibility to lead change.

We were able to quickly get our accounting processes up and running, with everything we need now centralised and available online. And with that the cost of change became trivial; the platform required no technical skills to implement and run. ApprovalMax too was up to the mark. Cloud-based, extremely intuitive, and pre-integrated with Xero, setup of the approval workflows was quick and easy. Bringing them together, the solution allowed us to achieve the following: • Tighter Controls - we now have the ability to track the approval status, pinpoint bottlenecks in the process, and make sure everything is completed in a timely manner. Our approval process has now gained a greater degree of control and visibility. • Improved Accountability - we are now able to keep a record of the approval activity, including who

approved what and when. We can also leave notes in case an item is rejected, offering some much needed context to the process while avoiding bloated email chains. This level of accountability is incredibly important to us as we often delegate approvals. Having the option to run detailed audits - thanks to the audit trail feature provided by ApprovalMax - and review these decisions is fundamental for a non-profit organisation. And we’re not ready to stop there. In the future we’ll be looking into extending our use of the ApprovalMax solution to approve employment contracts, sponsorship contracts, and other commercial or operational contracts.

Thanks to ApprovalMax, our process now looks like this: Xero works as our central system, into which we feed all of our financial documents, including those from an external CRM and event management system.

Supporting a New Approach In light of this success and growth, our organisation has been

Sales Invoices, and Credit Notes.

What CFOs wonder about TOP WONDERS: 4 OF 6

Check out approvalmax.com

ApprovalMax then works with every financial document present in Xero, including Purchase Orders, Bills,

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Issue 11 / 53

Case Study

@FieldaysNZ

52 / Issue 11

In addition to this, we also have some process specifics such as delegating the review and approval

Supporting a New Approach In light of this success and growth, our organisation has been

Sales Invoices, and Credit Notes.

What CFOs wonder about TOP WONDERS: 4 OF 6

Check out approvalmax.com

ApprovalMax then works with every financial document present in Xero, including Purchase Orders, Bills,

XU Magazine - the independent magazine for Xero users, by Xero users. Find us online at: xumagazine.com

Have you subscribed? Go to subscriptions.xumagazine.com

How to keep Purchase Order Requesters out of Xero Follow us on Twitter: @xumagazine

Issue 11 / 53

Over 1000 Xero users have taken control of their business with our powerful inventory and order management software tradegecko.com

TradeGecko integrates seamlessly with the best eCommerce platforms, plus now you can start selling wholesale online with our B2B eCommerce Store Start a free trial  tradegecko.com

 Every product, customer and sales channel is managed in one place

 Invite your wholesale customers to order online with unique price lists

 Real time sync with Xero for sales and purchase invoices

 Send branded invoices with credit card payments built right in

 Integrate with Xero tax types and payment ledgers

 Customise your store branding and add your own URL

 Cost of goods and stock on-hand updated daily  Itemised reconciliation log with Xero  Seamless 2-way payment sync

ECOSYSTEM PARTNER OF THE MONTH

54 / Issue 11

JAN 2017 XU Magazine - the independent magazine for Xero users, by Xero users. Find us online at: xumagazine.com

Refer your clients to TradeGecko Earn a 20% ongoing revenue share for every referral, plus free product consultancy and 24/7 support for your clients.

tradegecko.com/partners

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Issue 11 / 55

Over 1000 Xero users have taken control of their business with our powerful inventory and order management software tradegecko.com

TradeGecko integrates seamlessly with the best eCommerce platforms, plus now you can start selling wholesale online with our B2B eCommerce Store Start a free trial  tradegecko.com

 Every product, customer and sales channel is managed in one place

 Invite your wholesale customers to order online with unique price lists

 Real time sync with Xero for sales and purchase invoices

 Send branded invoices with credit card payments built right in

 Integrate with Xero tax types and payment ledgers

 Customise your store branding and add your own URL

 Cost of goods and stock on-hand updated daily  Itemised reconciliation log with Xero  Seamless 2-way payment sync

ECOSYSTEM PARTNER OF THE MONTH

54 / Issue 11

JAN 2017 XU Magazine - the independent magazine for Xero users, by Xero users. Find us online at: xumagazine.com

Refer your clients to TradeGecko Earn a 20% ongoing revenue share for every referral, plus free product consultancy and 24/7 support for your clients.

tradegecko.com/partners

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Issue 11 / 55

BITE 2017

BITE 2017 (Business, Innovation, Technology and Efficiency) saw some of Sussex’s brightest businesses come together at the Amex Stadium in Brighton to learn how to grow their bottom line. The event, hosted by award winning accountants and business advisers MHA Carpenter Box, explored the latest developments in innovation and technology, and how these can be applied to create more efficient businesses...

options and setting up systems that can help you in the case of any unexpected issues, you can go some way to safeguarding yourself against cash flow problems.

@bozboz

Sophie Turton, Head of Content, Bozboz

8. Tighten your proposition

Sophie Turton is head of content at creative agency, Bozboz. She spends her days experimenting with communication strategies to form engaging digital journey.

3. The nice guy DOES win

eynote speaker Marnus Broodryk, star of Shark Tank – the South African equivalent of Dragon’s Den – provided a fascinating insight into the mind of a highly successful entrepreneur. BITE 2017 also provided guidance from a panel of experts into the growing range of alternative funding options available for businesses of every size – from crowdfunding and business angel finance through to single invoice discounting. With six interactive breakout sessions covering top business themes, and a room full of exhibitors looking to help businesses, the day was packed full of useful tips for startups and small businesses. Here are top ten takeaways from

BITE 2017: 1. Think like a shark Kicking off the day-long event, Marnus Broodryk inspired the audience to think like an entrepreneur and ‘be the shark’. He gave the example of two businesses in the same industry. One business leader focuses on the negative external influences impacting his business growth, the other sees these challenges as opportunities and uses them as a springboard for innovation. The first business is bankrupt within a year, while the other flourishes. The only difference between the two is a state of mind – the second business leader thinks like an entrepreneur. He remains

positive and flexible. He embraces change, or as Marnus put it, “Old school ain’t cool”. 2. Attitude is more important than a good idea Positivity, optimism and determination are the key attributes that binds all entrepreneurs, according to Marnus. Having 20/20 foresight and being an early adopter allows you to identify and react to key trends ahead of the curve, which means you will be constantly innovating. This, rather than the initial idea, is the making of a successful business. Investors put their faith in people, not ideas. After all, ideas can’t execute themselves!

The old adage that nice guys finish last is not true in business. In an age where we have information at our fingertips and reputations can be made or destroyed in one foul tweet, it’s more important than ever to wear your ethics on your sleeve and live by your convictions. 4. Focus on building a company culture A key way to get across your company values is through the culture you create within your business. Create a company culture of transparency, integrity and flexibility. It’s not all about policy and rigidly sticking to the rules, it’s about giving a great customer service. This is something that must be developed from the ground up. Furthermore, a focus on employee happiness is key. If you look after your employees, they’ll look after your customers.

XU Magazine - the independent magazine for Xero users, by Xero users. Find us online at: xumagazine.com

6. Take advantage of technology 9. Research your funding options BITE was the perfect showcase for the apps, technology and innovation available to businesses. In the 18 months since BITE 2015, the cloud landscape has grown even larger with opportunities covering almost everything imaginable. This includes single solution software to add-ons to cloud accounting systems optimised for the retail, property and manufacturing sectors to name but a very few. The speed of technological change is incredible, so take advantage and adopt cloudbased systems to give you a competitive edge in the long term. 7. Understand how to capitalise on your debt

Have you heard of EIS and SEIS? Are you aware of the tax breaks you could receive through your Research & Development initiatives?

There are over 4000 finance products in the SME space and unpicking which is right for you can be a real challenge. Paul Surtees from Capitalise discussed the different borrowing options available to start-ups and SMEs.

MHA Carpenter Box tax experts discussed top tax tips to help small businesses and investors get the tax breaks they deserve, yet often miss out on. Through EIS and SEIS, investors can claim

70% of small businesses agree that cash flow is their number one concern and is a key contributor to businesses failing within their first five years. By understanding your borrowing

5. Get up to speed on tax breaks

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up to 50% income tax relief on their investments, so it’s well worth seeking advice.

When looking for funding, either through grants or the private sector, having a strong proposition that attracts investors to your purpose is key. As previously shown, investors invest in people as well as their businesses, and the value you can offer as an entrepreneur needs to be immediately obvious in the way you position yourself and your company.

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There are many more funding options available than a simple overdraft, Andy Davis, author and former FT journalist, told us during the alternative funding panel. As the market has evolved, so too have ways to gain short-term funding. Examples include single invoice assets, revolving credit facilities, high cost, unsecured lending, takings from card machines and more. Do your research to find the best option for you. This could be crucial when cash flow is tight. 10. Don’t be a d*ck The resounding lesson of the day comes back to one simple concept – don’t be a jerk. As Simon Sinek says (and as reemphasised by Marnus at BITE), “people don’t buy what you do, they buy why you do it.” And that why always comes back to you. Nathan Keeley, Partner at MHA Carpenter Box and the driving force behind BITE, commented: “Marnus was an inspirational speaker and his involvement, together with some very practical advice from break-out sessions and exhibitors, created a real buzz throughout the day.”

Issue 11 / 57

BITE 2017

options and setting up systems that can help you in the case of any unexpected issues, you can go some way to safeguarding yourself against cash flow problems.

@bozboz

Sophie Turton, Head of Content, Bozboz

8. Tighten your proposition

Sophie Turton is head of content at creative agency, Bozboz. She spends her days experimenting with communication strategies to form engaging digital journey.

3. The nice guy DOES win

XU Magazine - the independent magazine for Xero users, by Xero users. Find us online at: xumagazine.com

Have you heard of EIS and SEIS? Are you aware of the tax breaks you could receive through your Research & Development initiatives?

MHA Carpenter Box tax experts discussed top tax tips to help small businesses and investors get the tax breaks they deserve, yet often miss out on. Through EIS and SEIS, investors can claim

70% of small businesses agree that cash flow is their number one concern and is a key contributor to businesses failing within their first five years. By understanding your borrowing

5. Get up to speed on tax breaks

56 / Issue 11

up to 50% income tax relief on their investments, so it’s well worth seeking advice.

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Issue 11 / 57

@chaser_io

Brad Ewin, Marketing Executive, Chaser

The overlooked credit control black hole costing businesses billions

Brad is a former Mechanical Engineer, once Enterprise Software Consultant, and now Marketing Executive. His diverse experience, analytical mindset, and penchant for the creative has him blowing up in the cloud accounting scene with essential, actionable insights for SMEs to achieve amazing credit control and develop an elite finance function.

Unpaid invoices are a part of life, and lofty numbers are often thrown around totalling the cumulative cost to small-to-medium enterprises (SMEs). The late payment problem is well-known, but there is another dangerous, stealthier problem going under many businesses radars, costing them billions every year. Brad Ewin explores the impact that unoptimised credit control practices are having on SMEs, and the solution...

f you’re a business that sells on payment terms, you want one simple thing customers that pay on time. It’s not too much to ask for, is it? But time and time again businesses get stiffed on timely payments, SMEs especially. Not only does this stunt their capacities to trade and grow, it exposes them to a serious risk of insolvency. Lloyds Banking Group has cited the SME cash flow crisis in the UK alone as reaching £586 billion in unpaid invoices, and that number is only expected to grow. To put it in perspective, you could triple New Zealand’s projected GDP and still have more than enough room to fit in Hungary’s without capping that. While it’s easy to be left reeling by the mind-boggling scope of this debt to SMEs, there’s an insidious knock-on effect that goes unseen by many, draining their resources and revenue on a daily basis. Research conducted by RBS Invoice Finance has shown that a typical SME spends 130 hours every year 58 / Issue 11

chasing their unpaid invoices, with Bacs, the organisation behind Direct Debit and Bacs Direct Credit in the UK, reporting the monetary cost to SMEs totalling £10.8 billion. That’s 130 man hours being wasted in your business, chasing up money you’re rightfully owed! Not a number to shrug off, by any means, but it’s the enormous monetary cost in chasing the unpaid invoices that’s truly staggering. Right now, your business is being sucked into a £10.8 billion black hole, just through chasing invoices. To make matters even worse, Bacs claims this figure is growing by billions per year. And that’s only looking at the UK stats - it boggles the mind to imagine the worldwide total.

If you’re at the smaller end of SME, you could even be looking at a Xero-cost (!) setup for an automated credit control solution - Xero’s own invoice reminder functionality can work wonders for businesses in the ballpark of 10-20

invoices per month. For businesses beyond this scale, we at Chaser offer a solution for more sophisticated credit control requirements as the highest-rated credit control app on the Xero App Marketplace. Our rich suite of features includes extensive customisation, consolidated invoice communications histories, and our signature automated humanity. We delight in bringing huge time savings to businesses looking to carry out amazing credit control, automatically, without losing the impact of the human touch.

Our average customer saves over 7 hours every week on credit control, and sees a boost of £22,000 cash flow per £500,000 turnover - some customers see results within hours of using Chaser for the first time. Not only is Chaser the only credit control app on the marketplace to win Xero’s App Partner of the Year award, a five-star rating from over 200 user reviews can’t be wrong. Trial Chaser yourself for 14 days, free of charge, by heading to our XU reader exclusive page at www. chaser.io/issue11.

juggle. Escalating cases, thanking for paying, running reports to develop intelligence on customers’ credit-worthiness and the financial health of the business. Carrying out credit control is a time-consuming task, with plenty of room for human error. If your business is tussling with a combination of spreadsheets, notes in accounting packages, and emails across multiple inboxes, you’re far off the mark from best practice. The length of time unoptimised credit control processes take, coupled with the multiplying effect of human error, is exactly what’s tethering your business to the £10.8 billion black hole. So, how do you break free?

So how could this possible be?

Automated credit control

The average SME’s credit control function is unoptimised

Setting up an automated solution involves a minimal setup cost, with the capability to bring huge savings to your business. Integrating with Xero, automated credit control solutions consolidate every piece

Running a credit control function is a many-horned beast. There are emails, phone calls, and notes to

of invoice-chasing info, making it quickly and easily accessible from a central source. Additionally, the setting of email templates and chasing schedules, left to run automatically, unburdens your finance team from those 130 hours of wasted time and saves your business from the £10.8 billion black hole.

XU Magazine - the independent magazine for Xero users, by Xero users. Find us online at: xumagazine.com

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Issue 11 / 59

@chaser_io

Brad Ewin, Marketing Executive, Chaser

The overlooked credit control black hole costing businesses billions

So how could this possible be?

Automated credit control

The average SME’s credit control function is unoptimised

Running a credit control function is a many-horned beast. There are emails, phone calls, and notes to

XU Magazine - the independent magazine for Xero users, by Xero users. Find us online at: xumagazine.com

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Issue 11 / 59

Confusion everywhere! How we wind up running down the rabbit hole

or anxiety, or being asked the question, “Why am I driving a Mini, and not a Range Rover?”

@MyProfitSee

Peter Vessenes, Founder and CEO, ProfitSee With over 30 years experience in the financial industry, Peter is the CEO of ProfitSee, an allin-one financial analysis and budgeting software that helps business owners and financial advisors alike gain powerful insights to manage cash flow, grow profitability and increase valuation.

Owning a business is a complicated life experience. Financial survival for yourself and your loved ones hangs in the balance. Risk levels are high, and the future is never certain. Creating a new business takes a lot of sacrifice, but is born from a place of inspiration. Perhaps they worked for someone else with a bad employment experience, had more ideas for making new things happen than the company would allow, or maybe corporate life just wasn’t the right fit. Sacrifices business owners make include time, money, and usually, many disappointments along the way...

t typically takes several years for a new company to hit stability, and this is only true among the small percentage that survive that long. The reality of all the disciplines in running an organisation appear, whether the founder was aware of them or not.

we are so busy in the day-to-day. • I’ve got to pay all the bills and the payroll. Didn’t know I was the last one that a check gets written to... Despite this large learning challenge, the most important one of all is the last one; paying the bills and paying the owner.

These include: • What are my sales strategies? Which works the best? • What do our customers believe about us? How do I improve or sustain this? • How do I reach my target audience? What can I do to make them think of us first? • Who knew how many steps there were in running a business? There must be more than a thousand! • My, what a lot of regulations we have to follow… • I know technology creates efficiency, but, which tools are the best? • I have to hire people; I’ve never hired (or managed) before. Sound like on-the-job training for me. • Do I still have vision of why I started this in the first place? I can’t abandon where the company is going just because 60 / Issue 11

What is it that the owner is most concerned about? 1. Are we financially stable? 2. Are revenues growing? 3. Are profits growing? 4. How hard will it be to find capital if we need it? 5. Is the company’s valuation growing? 6. Are there ways for us to grow beyond sales increases? Merger? Acquisition? 7. Most of my net worth is tied up in the business. Is there an exit strategy? These are true whether it is a new company, or one that has lived through launch and is in its twentieth or thirtieth year. Basically, it is all about fiscal management, not the operation of the business. Fiscal management

is not a prerequisite for being an entrepreneur, and running a company takes so much time and energy, the typical approach to fiscal management goes something like, “Is there money in the checkbook?” Mother told us not to talk with others about politics, religion, or money. Unfortunately, for the business owner, money is the most important thing to talk about. This puts the owner in a difficult position; whom do you talk to about the company’s money? The owner certainly will not talk to employees about the money. If the company is doing well, the question will certainly be, “Why are we not paid more?”, or “Not much of a bonus, was there...?” If the company is not doing well, a different dynamic happens. “Maybe I should start looking for another job…” particularly among the most valuable members of the team. Frequently, the owner will not talk to their significant other, either out of a concern for causing worry

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Owners will not talk to their attorney; they know lawyers understand little about financial management of a company. Whom does the owner trust to talk to about money? The individuals that look at their money! Their accountants and bookkeeper see their money, and after all, “They deal with my money all the time.” Here is where the confusion begins... Bookkeepers are a critical element in posting transactions and generating reports. In a simple way, they are the first line of protection for a business in an audit, asking if the data correct and accurate. Are the bookkeepers keeping their business clients aware of what is going on through accurate reporting? Likewise, accountants play a critical role. Accounting firms engage in services that include tax, audit, and compliance. The objective of accountants doing a company’s taxes are simple: make sure the company only pays the tax that they must, and not a penny more. Audit is also simple to understand: is the data the taxes are being calculated on true and accurate? Audit validates all the data entry and transactions. A single accounting firm cannot do both tax and audit for a company, as this would violate their fiduciary responsibility as an independent agent. If companies require an audit it must be done by another organisation that did not calculate their taxes. Compliance is not difficult to understand, though it can get complicated. Is the company following all the rules, whether they are aware of them or not? Accounting firms include compliance in all tax work. In simple terms, the objective of compliance

is to keep the business, its owners, and its management out of jail. Larger accounting firms (particularly the Big Four, and other multinational companies such as Mazars, BDO, RSM, etc.) do provide consultative services to their large business clients. These consultative services are nearly always focused on cost containment. Big companies know that the fastest way to raise profitability and valuation is by reducing costs. These companies trust accounting firms to show them how to do it. Big companies do not tend to hire accounting firms to help them plan for future growth. Think of the ways companies like Alphabet (Google), Apple, and Cisco have reinvented themselves over the years as the marketplace has changed globally. Some have had the talent to do it without outside help (think Steven Jobs at Apple), whilst others may have engaged consulting firms that specialise in large scale growth based on changing times. This is typical of the types of services McKenzie Consulting offers. Let’s take this back to the primary concerns and needs of our small business owner: 1. Are we financially stable? 2. Are revenues growing? 3. Are profits growing? 4. How hard will it be to find capital if we need it? 5. Is the company’s valuation growing? 6. Are there ways for us to grow beyond sales increases? Merger? Acquisition? 7. Most of my net worth is tied up in the business. Is there an exit strategy? How many of these revolve around sophisticated looks at short term cost containment? Do their accountants and bookkeepers know how to advise on growth, or risk strategies? Do the small business’ accountants understand that business owners do not understand that their P&L report does not truly tell them whether or not they are actually making a profit?

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Another simple example: a historical cash flow statement can tell many things, but it does not help the business owner understand how the balance sheet reflects itself in cash flow. Does a business owner understand that a cash flow forecast must be shown in cash, not accrual? Does the business owner understand the difference between “cash” and “accrual”? Here is where the confusion happens: the business owner needs to, and wants to, talk to their accountant and bookkeepers about fiscal management. The conversations are all driven by the future of the company. Bookkeepers and accountants view the reports in accounting software as a representation of the past and “close to today” in the company. The business owner wants help with fiscal management for the future. Most bookkeepers and accounting firms view the help they provide revolving around cost containment. Although cost containment may help profitability, it does not reflect the way fiscal management touches all the disciplines of running a company. Bookkeepers and accountants are facing challenges in their services. Advances in technology are commoditising what they are paid for; revenue is shrinking. Many firms are recognising this and building services to their business clients that are far more than dashboarding of applications. This brave new world is upon us, and it is the accounting and bookkeeping firms that face this challenge that will become tomorrow’s superstars to the SME business community. Look beyond reporting. Look to playing the role of a financial director or CFO to your business clients. Help them grow their companies through smart fiscal management. Find help from businesses that are focused on helping bookkeepers and accountants make this transition. The future of our business clients depends on it... Follow us on Twitter: @xumagazine

Issue 11 / 61

Confusion everywhere! How we wind up running down the rabbit hole

or anxiety, or being asked the question, “Why am I driving a Mini, and not a Range Rover?”

@MyProfitSee

XU Magazine - the independent magazine for Xero users, by Xero users. Find us online at: xumagazine.com

Have you subscribed? Go to subscriptions.xumagazine.com

Issue 11 / 61

62 / Issue 11

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Issue 11 / 63

62 / Issue 11

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Issue 11 / 63

Communities of passion and purpose: bookkeepers unite globally

@themelpower

Mel Power, Head of Bookkeeping, Xero; and Founder, Bookkeeper Revolution Having been in the profession since 1994, Mel is passionate about helping small business achieve freedom and profitability in business and lifestyle. Her particular passion is Bookkeeping, having championed this part of the industry for Xero, establishing a thriving online community and delivering the highly successful Grow Your Practice Program. Mel enjoys reading, writing, playing music, her horses and cat, and most of all spending time with her husband and 3 boys.

I have been working as a bookkeeper for more than 25 years, and during that time my local community of Bookkeepers in Newcastle, Australia, has been a consistent support and encouragement to me on my practice journey, along with my favourite associations ABN and ICB. With their help, I have been able to achieve many growth and achievement milestones since I started my business growth journey in 2000...

y role as Head of Bookkeeping at Xero started in September 2014, and it has been a wonderful three years. I remember the first few weeks I began my journey with Xero: one of the key things I wanted to see was a more closely united community of Bookkeepers. We needed more opportunities to connect, support, mentor and educate one another. I had received so much support

through my career. My question was, how do we scale this so everyone receives that same support? As part of my reconnaissance on the bookkeeping industry landscape, I was able to connect with other Bookkeepers in a grass roots-style trip in 2015 , which took me from Uluru to San Francisco through to Vancouver and London. It was incredible to see how, apart

from our different compliance environments, we are all doing the same thing: providing the service of the bookkeeping function to help small businesses. The trip has lead to the development of key relationships and I have been back in 2016 and again in 2017 speaking at Ben Robinson’s Bookkeeper Boost, Accountex USA, IPBC Canada and Accounting Expo Glasgow all sharing my journey on the “Million Dollar Bookkeeper” (book coming out soon, I wanted to share my mistakes so others can avoid them!)

the journey of creating community groups on Facebook and LinkedIn, as well as a Facebook Page presence that unites bookkeepers. It was a global project that ranged across AU, USA, Canada, Asia, UK, South Africa and beautiful New Zealand. (Queenstown I have a long-standing love affair with you.) Today these groups and Facebook Pages have a collective membership base of 35,000 and it’s an engaged community. Trent Innes, MD at Xero Australia, spoke very openly at Xerocon South in Brisbane in September last year about how our Xero communities have connected and supported the industry in some very meaningful ways. This project was birthed as ‘Bookkeeper Revolution’ and today has a collective membership base of 22,500 and it’s an engaged community. The Revolution is on a mission to connect 100,000 accounting and bookkeeping professionals across the globe by 2020! It’s all about supporting each other on the journey of having a Revolutionary Firm, and the ultimate goal is helping small

business transform. One of the key things that unites Bookkeepers across the globe is that we all have a common goal. And that is to help the small business owner be as successful as possible and understand the key things that tell the story of what is happening in the life of your business. The Xero platform has enabled Bookkeepers to move away from some of the tedious labour intensive work that has bogged us down for many years, and allowed us to start working in the space that we are gifted at, and that is helping business owners with their business. It’s Automagical! So how can you get involved? Join in the discussion in our Facebook Group here - www. facebook.com/groups/ bookkeeperrevolution/ Viva Le Revolution!

Many of us work as sole traders and the benefits of connecting through Meetup, networking groups and events are valuable – but they do not happen often enough. Sometimes we need to be able to answer that ‘tricky’ problem right away. I wanted to find a way to connect us and facilitate organic, easy and accessible discussions. Enter the beauty of social media. Around 18 months ago, I started 64 / Issue 11

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Communities of passion and purpose: bookkeepers unite globally

@themelpower

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Letting Go:

5 signs it’s time for a systems upgrade AKA When it’s time to say goodbye to the software and systems you spent a small fortune acquiring...

efore considering your business, I want you to take a stroll down memory lane. Do you remember buying your first smartphone? If you’re a former PC user, when did you consider buying your first Mac? Do you remember speaking to a sales assistant with a list of questions? “Why does it do X instead of Y?” “Can you make it do X the way I used to do it with Y?” “Why are they making us do it this way?” I bring this up because no matter what was on your list back then, chances are you were really asking

one question over and over again with different wording; “Why should I change?” And that sales assistant you were speaking to? That was me in a former life. And I can tell you, I’ve heard all the questions before and I’ve given all the answers.

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Sometimes these questions are asked under less than ideal circumstances. Perhaps devices are missing or broken, backups failed, support staff resigned or retired. Maybe the tool is no longer supported by the manufacturer or developer. In any of these cases, you’re being forced into an upgrade scenario that you didn’t expect or want. It’s happened to us all in our private lives, and it happens in business all the time. Fast forward to today, and I can tell you that a great deal of the prospective Xero clients I speak to have come to us because something, somewhere, has broken. But it’s never just as simple as walking in and buying a new smartphone. Typically, the upgrade you want to make to your business systems will need to be approved by someone else, or a group of someones. Or maybe you’re that someone. In any case, it’s important to note here that everyone, no matter what you may think of yourself, is inherently going to want to take the path of least resistance. Sorry to burst that bubble, but you’re guided by biology instead of your astounding business acumen. Read ‘Thinking, Fast and Slow’ by Daniel Kahneman if that hits a nerve.

@OciusDigital

Mathew Grant, Client Services Manager, Ocius Digital By his own definition a regressing man-child that devotes an enormous amount of time to Star Wars. Mat also has a passion for Crossfit (don’t worry, he’ll tell you about it!), and business. He has always been a bit of a computer geek, doing what every teenage boy did in the 90’s; building computers, troubleshooting, and figuring out how to break and unbreak things.

Sometimes least resistance means making the obvious choice to upgrade. Perhaps your entire system had a catastrophic meltdown after your IT guy spilled Mountain Dew on the server. And you’ve been meaning to investigate “that Xero thing” anyway. Or maybe the software you’re using has changed file types and you need the upgrade to be current with your clients. Great! You’re at the point of making an upgrade already, so get on with it. But maybe, just maybe, it’s not that black and white. Maybe you’ve spent a ton of money on that server, or tens of thousands of dollars getting that ERP system customised just how you like it - and maybe it’s all working, to the best of your knowledge, “just fine”. Maybe you’ve “done the numbers” and you’re alarmed at the prospect of spending a few thousand dollars on getting your data moved over to another system. Whatever the reason, it’s important to look at the warning signs along the way to making a decision to update, or not.

This is a massive red flag, and really just means the software vendor is failing to hit sales targets, so they’re copying the SAAS (software as a service) business model to make up for the shortfall by squeezing their current customers. Look for SAAS first business - i.e. those which have only ever operated in the cloud such as Xero and related add-on Apps. 2. Your current IT support warns you away from any suggestion of upgrades, and it suspiciously seems they don’t offer anything close to the new solutions you’ve recommended. It’s pretty easy to see through IT staff who have failed to stay up-to-date with product development. Seek a fresh perspective from a fresh set of eyes and ears. Hey, you should check out this company Ocius Digital... 3. You’re not willing to kiss goodbye to the fat stack of cash you invested in your previous system. If you’re being presented with a ton of good reasons to make a change but THIS is why you don’t want to, then maybe the software isn’t the problem. Maybe it’s you. In fact, there’s probably a few other areas of the business being beaten into submission by this kind of backwards thinking. This kind of reasoning communicates a sense of pride and ego to all those affected by your choice, but not in the good way. Seriously, let it go… let it go... turn away and slam the door… 4. Your staff are languishing in a slow, outdated system that doesn’t adhere to modern design

principles. EVERYTHING starts and ends with your staff, but they don’t live only in your office or on your system. They’re being taken on an educational safari by Google, Facebook and Apple CONSTANTLY, re-teaching them better, more efficient and innovative ways to work with (what essentially boils down to) information and communication. If your system looks like a relic of the 1990s or the early 2000s, their interaction with your systems will become more antiquated and clunky to them over time. Their dissatisfaction levels will grow. Their productivity will suffer. And you can guarantee that there’s at least one staff member that’s been vocal about this, but if you’re not hearing it, either one of two things is happening; your system is actually fine, or you’re being buffered by someone in middlemanagement that is shutting down the discontent. Using a software like Xero enables staff to work any time, from anywhere, with best in industry tools that make their job easier. 5. Your staff are using a smattering of disconnected third-party tools to get their jobs done. Sure, this seems like ingenuity at first, and maybe you’ve even thought “gee-whiz, they’re a bunch of go-getters” when you’ve been shown “how it all works”. I’ve got bad news for you, though; if you need all kinds of different services to make up for system inadequacies, your system is already dead and you just don’t know it yet. We have seen horrific use cases of people making old server based systems

connect to things that they never wanted to, as opposed to a seamless Xero-centric cloudbased solution. There could be a plethora of other reasons you’re reluctant to make a big change, but I don’t care about them. In fact, you shouldn’t either. If there’s one takeaway from all of this, it’s that you should start by looking for all the reasons FOR making an upgrade first. Take everything else out of the equation.

And ask if those reasons will equal doing a better job, lead to faster turnaround times and better efficiencies, or if they’ll be the difference between slogging away after hours or getting to spend more time with the ones you love. If your inner voice is screaming “THAT’S IT!” right now or you’re still scratching your head in doubt, get in touch with the team at Ocius Digital. We’re systems experts in the technology and small business space, and we’ll help you make that list and give you a bird’s-eye view on what you’re doing and what you can do better.

5 signs that it’s time to upgrade: 1. Your software maintenance costs used to be one-time or ‘pay as you upgrade’, but now your software vendor is changing to a monthly pricing model for exactly the same platform.

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Issue 11 / 67

Letting Go:

5 signs it’s time for a systems upgrade AKA When it’s time to say goodbye to the software and systems you spent a small fortune acquiring...

66 / Issue 11

@OciusDigital

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How to Manage All a Client’s Wealth in the Cloud A

few years ago the Australian government tried to make it easier for accountants to become licensed to provide certain kinds of financial advice by introducing a special, limited license.

complexity of their work. They might be asked not only how to start a superannuation pension, for example, but also when they should do so, which veers into the realm of financial advice under Australian law.

The measure, though well intentioned, has not been very popular.

Without a formal license to provide financial advice they have to be extremely careful about not stepping over the regulatory boundaries.

Few accountants have so far applied, perhaps unenthusiastic about clearing the significant hurdles to obtaining a license that allows them to give advice only in certain areas.

Kevin Bungard, COO, Class Kevin Bungard is a highly regarded industry expert in cloud technology systems, with more than 30 years’ experience developing software solutions and applying technology in the Australian financial services and superannuation administration industries. Kevin joined Class in 2009 as Chief Operating Officer and has overseen the commercialisation, launch and rapid growth of Class Super, the leading cloud-based SMSF administration solution.

either within the same firm, or as allied businesses. However, most are still using software solutions that are not integrated with each other, or only partially. This means that when the investor wants to know the current size of their wealth, or how a certain action or event affects their tax liabilities or asset allocation overall, the incompatibilities of the different systems which have been developed to manage each investment type make it extremely difficult.

Australian Bureau of Statistics figures show that the amount of household wealth outside of super is about $3 trillion, compared with $2 trillion inside super, if the family home is excluded.

A client’s data often has to be entered twice or more into the different systems, and the professionals servicing that client cannot tell them what is happening in one area of their wealth without consulting someone else, wasting time and increasing the chance of error or giving conflicting advice.

Much of the advice that investors receive in each of these areas has an impact on the other and each needs to be considered as part of a comprehensive wealth strategy.

With self-managed super investors likely to have about as much wealth outside super as inside, investors want an accurate picture of their total wealth. To get it, they need to consult both an accountant and a financial adviser.

Fortunately, cloud software solutions like Class are helping to bridge the gaps that have made it difficult to achieve the collaboration needed to deliver whole of wealth advice and “family office”-style services.

Australian accountants are also being pushed to stretch the boundaries on the kind of advice they give their clients, both by the client and the increasing

To address these issues, and deal with the licensing requirement for financial advice, Australian accountants and advisers are increasingly working together,

One of the major advantages of storing data in the cloud is that, with the aid of the right software platform and APIs, it becomes easily available to all those who need to

The reasoning behind the measure was sound though. The dividing lines between tax, compliance and investment advice are artificial, exist for largely historical reasons and increasingly work against the provision of good advice.

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However, what investors want and need is “whole of wealth” accounting and advice on all their savings, and they want them delivered as seamlessly as possible.

@Class_Limited

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be involved in administering that wealth and providing advice. Data can be updated by either the accountant or the adviser, and is automatically available for viewing by all parties. This can include giving the client access to a simplified view of their data via their smartphone or tablet. Reporting on a client’s tax liabilities, investment performance and asset allocation becomes a much simpler task when all that data is housed in the one place and is up to date. It even becomes possible to administer an entire family office. And as long time users of Xero and Class know, the advantages of this type of collaboration extend

to the whole ecosystem of service providers available in the cloud. The cloud is home to an ever growing and increasingly interconnected range of services that aid wealth administrators and advisers, including market data, legal and compliance services, auditing and valuation services. But we’ve only just begun to scratch the surface of what is possible when professionals can collaborate effectively using a single, cloudbased software platform. Cash matching in cloud accounting software like Xero and Class has clearly been a boon for efficiency but as the amount and speed of data available in the cloud grows, the software will be able to leverage

this “big data” to make increasingly intelligent insights, not just into a client’s investments, but also into the accountant’s business itself. This not only improves fund administration, it will make accountants more valuable to their client base and more profitable by anticipating the services and strategies their clients are likely to need and want, creating new revenue streams for both accountants and the advisers they collaborate with. The future of whole of wealth accounting, family office-style services and advice in the cloud is destined to be much more valuable than the sum of its parts.

What CFOs wonder about TOP WONDERS: 5 OF 6

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