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Any professional, whether it be an accountant, CFO or financial advisor, who is advising a business on the state of its financial health relies heavily on accurate real-time data.
To obtain clean data, verifying and recording the information is vital. Having a qualified professional bookkeeper to either assist or manage the process makes a big difference to achieving this end result. A bookkeeper will make sure that there are no gaps or duplication in the data (especially if they’re using the Assurance Dashboard) and that each transaction is coded to the right income or expense category. Only then will the figures and reports you get be accurate and reliable. What is clean data? Clean financial data is the outcome of a systematized process that verifies and records data from source documents and transactions. This process makes sure the data is free of errors, verifying and checking that the information contained is free from corruption. Seamless connectivity to banks and add-ons means the data flows in, clients code it, and you periodically check they’re on track. It’s data oversight and approval rather than data entry, which means it takes less time and there are fewer errors. Clean data = clear advice So how are business achieving clean data? The keys to really making it effortless are having a well-defined process and using the right tools. Accountants, bookkeepers and small businesses around the globe are jumping at the opportunity to work in the cloud and benefit from the efficiencies it offers. Many are choosing Xero as the focal point for a web of data flowing between banks, accountants, suppliers and government agencies. Crunching the numbers Many bookkeepers are specializing in particular industry verticals or niches to streamline the process and make it razor-focused. Cafe Bookkeepers Nick from Cafe Bookkeepers in the hip suburb of Newtown in Sydney decided to focus on working just with cafes. He got really good at it at, really fast. Specializing enabled him to implement one system, and simply rinse and repeat. Having a deep understanding of a specific industry strengthens the bookkeeper’s ability to ensure clean data – an essential ingredient for small business success – and means increased profitability for the bookkeeper. Cafe Bookkeepers has taken the step to cloud accounting. Using the now clean data, they can tell the client the story of what is happening in the life of their business. They’re able to put the words behind the numbers in conversations with the client. Nick says to clients, “On top of the usual number crunching, we want to add value to your business. We’ll help guide your business by showing you where you are placed within industry benchmarks.“ So Nick’s recipe for success is creating the right system to deliver clean data, using the best tools available. Nick’s tool of choice to provide the story of the business is Crunchboards – you can read more about Nick’s Aussie success story here. Number Nerds Heading to the other side of the globe, in the UK, Mark Wallis from Numbers Nerds was on a mission to add value to his clients. He wanted to be able to create a visual representation to show monthly KPIs and forecast cash flow. Mark has implemented Crunchboards as his tool of choice as well. Clean data is vital to the process and Crunchboards pulls live data from Xero to display a compelling visual story that shows what’s happening in the business. He finds that Crunchboards is a brilliant tool for starting a conversation with a client and demonstrating the crucial role of clean data. Conversations with our clients As a professional wanting to talk to a client and relay the story of what’s happening in their business, we need to think about how we want to communicate and the style that our clients feel comfortable with. My advice is stick to just a few points, discover what is important to the client and what you identify is vital to the business success. Some clients will be focused on the numbers, others will be visual. Source: Xero Blog
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Over the past couple of decades, The Chasm Model has been the centrepiece of nearly every conversation I’ve had about launching new technology. While its merits are many, lately I’ve been wondering how applicable it is in business-to-business markets. Sure there are early adopters. Perhaps even an early majority. It’s the late majority that seems to be in trouble. Having sat around harvesting revenue from their customer base, the late majority wake up one day to face a revenue precipice. In short, the early adopters and majority reach a tipping point and start acquiring their customer base en-masse. Powered by the economics of the cloud (not just technology but also business) these new players scale at speed – achieving continuous growth rates in the high double and even triple digits. We see a couple of shifts driving the acceleration of the new players. For instance, cloud technology and business models on the supply side, and then mobile on the demand side. Entrepreneurs emerge from both sides presenting the late majority with an impossible force to counter – and their brand advantage and customer relationships are quickly weakened. Look at what happened to booksellers, record stores, and others. We are seeing the same in accounting where new disruptive value propositions are being built on cloud platforms like ours. What’s important is that these new players aren’t just using new technology – they are reshaping their brands, service offerings, price points and more. The message is clear. Rather than wait for the late majority, fuel the high-growth early adopters and watch them grow. Who would you rather be (or be backing)? The eater or the eaten?  Reproduced from Xero Small Business Guides. Small businesses often start out using Excel – but that’s only doable up until a point. Like every teenager eventually becomes an adult, your business needs to evolve and grow. Find out why the smartest organisations are using online accounting software instead.
Why Excel isn’t a long term solution Excel can do a large number of tasks, is easily available and is very widely used in the world of business. And it would be wrong not to not acknowledge this up front. However, while the application is sturdy, it’s the spreadsheets created while using it that aren’t – and this often causes issues down the track. Seven reasons why accounting software is better than Excel
It's about letting your business grow While it can often be hard to alter the way you do business and embrace change, the potential rewards are huge. The truth is, the writing is on the wall if you don’t find it easy to quickly manage your day-to-day business using Excel. Excel was simply not built to replace accounting software – so it’s time to give your business the room to grow and succeed, without restrictions. Extracted from Xero Guides to Small Business.
Cash is not king. Cash flow is.
If you are running a business, you need to be updated on your cash flow. How? The best is to have automatic bank feeds directly into your accounting software, real-time. With Xero online accounting software, you can log in online anytime, anywhere on your Mac, PC, tablet or phone and see up-to-date financials. It is small business accounting software that’s simple, smart and occasionally magical. Xero has all the time-saving tools you need to grow your business: unlimited users and 24/7 support, not to mention the security and reliability you’d expect from Xero. If you want your business to work smarter and faster, cloud accounting software is a wise investment. Working in the cloud will give you a better overview of your finances, and improve collaboration with your team.
Accounting software shouldn’t be a chore to use Small business accounting software that’s not available via the cloud can be tedious. Traditionally, it can suck up far too much of your business’ time and effort. This doesn't add value, and takes the fun out of being in business. Cloud software can save your business time and money. So what is this thing called the cloud? Think about when you use internet banking. Every time you access this data, you’re using the cloud. The cloud is a platform to make data and software accessible online anytime, anywhere, from any device. Your hard drive is no longer the central hub. Problems with traditional accounting software The data in the system isn’t up-to-date and neither is the software It only works on one computer and data bounces from place to place. For example, on a USB drive. This is not secure or reliable. Only one person has user access. Key people can't access financial and customer details. It's costly and complicated to keep backups (if done at all). It's expensive, difficult and time-consuming to upgrade the software. Customer support is expensive and slow. Why the cloud and accounting software are the perfect match You can use cloud-based software from any device with an internet connection. Online accounting means small business owners stay connected to their data and their accountants. The software can integrate with a whole ecosystem of add-ons. It’s scalable, cost-effective and easy to use. In the cloud, there’s no need to install and run applications over a desktop computer. In the cloud, there’s no need to install and run applications over a desktop computer. Instead, you pay for the software by monthly subscription. Cloud security is world class As a small business owner, you might be concerned about a cloud service provider storing your data. But the cloud is one of the most secure ways to store information. For example, using cloud software, if your laptop is stolen, no one can access your data unless they have a login to the online account. With cloud software, this is where the data lives – as opposed to on your hard drive. In the event of a natural disaster or fire, being in the cloud means business productivity doesn’t need to be affected because there’s no downtime. All of your information is safely and securely stored off site. As long as you have access to any computer or mobile device connected to the internet, you’re back up and running. In addition to this, if you invite users to view your data, you can control the level of access. This is much more secure than the old-fashioned way of emailing your files or sending out a USB stick with your data on it. Cloud-based software companies ensure that the security and privacy of data about you and your organization is always airtight. If you use online banking, then you’re already primed to use cloud accounting. Five ways cloud software benefits your business 1. You have a clear overview of your current financial position, in real-time. 2. Multi-user access makes it easy to collaborate online with your team and advisors. 3. Worry-free maintenance means you can spend more time doing what you love. 4. Everything is run online, so there’s nothing to install and everything is backed up automatically. Updates are free and instantly available. 5. Upfront business costs are reduced – version upgrades, maintenance, system administration costs and server failures are no longer issues. Instead, they are managed by the cloud service provider. Work smarter with accessible data in the cloud The beauty of this software is the flexibility it gives you to run your business from work, home, or on the go. You can be confident that you have an up-to-date picture of how your business is doing, no matter where you are. Software updates can be developed and delivered faster and more easily in the cloud. This means you don’t need to worry about installing the latest version and you’ll get access to new features instantly. With cloud accounting software, you have the option to run your business remotely, from anywhere in the world. When data is fluid and accessible, the possibilities are endless. Reproduced from: Xero Small Business Guides Have to repost this blog post (first posted in July 2012), still relevant. Most companies are innovative especially in their sales and product development (front end). However, the back end (e.g. accounting) may still operate in the same manner for the last 20 to 30 years. How do you know if your accounting people are up-to-date? Easy. If they are still using dot matrix printer, something is terribly wrong. Common excuses include: we have to print invoices and payment vouchers in duplicates, accounting documents must be printed with NCR papers etc etc. These excuses further confirm that the accounting procedures used are as obsolete as the printer. Time to innovate, front end and back end. For Generation Y, here is a picture of the noisy "device". 
Most SMEs in Malaysia are using either MYOB or UBS as their accounting software, which are essentially desktop software (meaning you have to purchase the software and install on your computer or server). You have to do your own regular backup and pay for upgrades when new versions are available.
With the emergence of cloud software, you now have more alternatives. You don't have to purchase and install accounting software anymore. Most cloud-based accounting software are on monthly subscription basis (which means no large upfront payment), nothing to install (just subscribe online and use immediately) and accessible anytime, anywhere using any devices (PC, notebook, smartphones, tablets etc). Free upgrades, unlimited users and backups are done by the software providers. Some alternatives to MYOB and UBS include Wave Accounting (free software), XERO, Saasu (with inventory functionality), Quickbooks, Freshbooks, Yendo (with CRM functionality), Outright, Kashoo and LessAccounting. Most of these software have free trial (without credit card details). Check it out to ensure that it meets your requirements. Consult your Accountant, if necessary. There are more alternatives, particularly if you are in property management, legal services industry or non-profit, that have unique accounting needs. All these alternatives have a reputation for being user friendly, feature-packed, relatively inexpensive and suitable for small business. In most circumstances, you need not consider a more robust accounting solution such as NetSuite, OpenERP or SAP until you reach a much larger size. Have fun selecting the right accounting software for your business. Most companies are innovative especially in their sales and product development (front end). However, the back end (e.g. accounting) may still operate in the same manner for the last 20 to 30 years. How do you know if your accounting people are up-to-date? Easy. If they are still using dot matrix printer, something is terribly wrong. Common excuses include: we have to print invoices and payment vouchers in duplicates, accounting documents must be printed with NCR papers etc etc. These excuses further confirm that the accounting procedures used are as obsolete as the printer. Time to innovate, front end and back end. For Generation Y, here is a picture of the noisy "device".  Going paperless is not just about reducing paper costs (or friendly to the environment). The true costs of paper are filing, storage and the most expensive of all - retrieval costs (hours are spent to "look for" documents). With more papers, we need bigger tables, more filing cabinets and never ending search for bigger office space. The chain reaction can be costly. Office space is for people, not papers. Remember KISS. Think simplicity and technology. Enjoy this classic video, George Carlin talks about "stuff". |
