Posted on 1 Comment

The July Launch of Cloud Accounting System, Wiise: What’s in Store for MYOB and Xero?

man thinking wiise accounting software learn study online training courses

Should all good bookkeepers be getting wise to Wiise?

man thinking wiise accounting software learn study online training courses

THIS JULY A NEW ACCOUNTING SYSTEM is attempting to lure Aussie businesses away from the incumbent cloud accounting majors MYOB, Xero and QuickBooks, with the promise of “access to big-end-of-town technology,” according to a report in The Australian Financial Review.

Wiise, which is owned by the deep pockets of KPMG and will operate under a strategic partnership with Microsoft and the Commonwealth Bank, will combine cloud accounting, job costing, workflow scheduling and inventory management, payroll, sales and marketing and customer relationship management into one system.

Pricing hasn’t been confirmed, but it’s understood Wiise will operate a tiered model, costing businesses between $60 and $200 a month.

The software will integrate with all major Australian banks, but added functionality will be given to CBA customers, such as access to working capital and financing options.

Businesses that have outgrown their cloud accounting system

Although Wiise will target SMEs; founders KPMG, Microsoft and CBA say the software isn’t competing with MYOB, Xero or QuickBooks for customers.

Rather, the Wiise software will suit complex businesses that have outgrown traditional cloud accounting systems, because their business operates in more than one location, has a complex supply chain, various legal entities or high transaction volumes.

The Wiise software will suit complex businesses that have outgrown traditional cloud accounting systems.

Wiise will also appeal to businesses that want to use one piece of business software, rather than multiple separate systems or cloud-accounting add-ons.

That said, it’s probably a worry to MYOB, which signalled it would grow market share by pursuing bigger and more complicated businesses; acquiring the enterprise reporting system Greentree in 2016.

What does this mean for bookkeepers?

So while contract bookkeepers should remain competitive by keeping abreast of new technologies, is Wiise yet another cloud accounting system bookkeepers, tax agents and accountants will need to learn how to use? Well, that depends on how quickly it penetrates the market. And if it penetrates the small business market in any significant way.

As a general rule, most small businesses want to spend as little time worrying about compliance as possible, which is as it should be. Simple businesses with straightforward tax and compliance requirements typically stick with simple cloud accounting systems.  

So there’s value in bookkeepers that typically services larger, more complicated businesses learning more about Wiise, but probably not for bookkeepers that look after smaller, straightforward businesses.

***

Who’s Managing Your Business Accounts?

expense apps for self employed peopleIf you’re a business owner trying to decide on an accounting system, speak with your bookkeeper or tax agent to determine the best option for your business.

If you’re looking for a reliable bookkeeper or tax agent to manage your business accounts, visit the National Bookkeeping website to find someone professional, able to work in your office, or remotely,  to suit the needs of your business.


 

Posted on

MYOB, Xero, QuickBooks and the Cloud Accounting Ecosystem

smart woman realising xero most popular accounting software program in australia and nz

How accounting is becoming more simplified:

And how bookkeepers and accountants can become a “one-stop-shop” for those needing help with their finances (Part 1 of 2)

smart woman realising xero most popular accounting software program in australia and nz

EARLIER THIS YEAR, Intuit, the parent company of cloud accounting system QuickBooks, announced it had acquired U.S.-based time-tracker platform, TSheets, in a deal worth $340 million U.S.. This was part of Intuit’s strategy to expand its offerings to small businesses and the self-employed. (In the U.S. and Canada, Intuit also operates a cloud software package called TurboTax, which lets individuals file their own federal taxes.)

What the TSheets acquisition means

The TSheets acquisition makes a lot of sense, and provides a good guide to the kinds of businesses cloud accounting firms look to acquire. For example, TSheets and QuickBooks already shared 12,000 customers worldwide, and TSheets had been developed to integrate specifically with QuickBooks (though it also works with Xero and Reckon). It also brings Intuit and QuickBooks in line with one of its competitors, Xero, which acquired a similar project management system WorkflowMax back in 2012.

For TSheets, being part of a big global brands means it’ll be able to innovate faster, with access to the Intuit technology and product team; for Intuit, it’s an additional source of revenue and market share. (Although a privately held company prior to the acquisition, TSheets had been valued at around $40 billion US.)

The cloud accounting ecosystem

Intuit’s TSheets acquisition signals that both Xero and QuickBooks intend to push further into the cloud accounting ecosystem, by partnering with, acquiring, or developing integrations that simplify the accounting process and expand their product offering.

Intuit’s TSheets acquisition signals that both Xero and QuickBooks intend to push further into the cloud accounting ecosystem, by partnering with, acquiring, or developing integrations that simplify the accounting process and expand their product offering.

Xero’s latest suite of products

In 2017, Xero introduced a new suite of products — Xero Expenses, Xero Projects, Xero HQ App Suite, Xero HQ Ask, and Xero Discuss — all aimed at providing SMEs with the technology generally reserved for big enterprises, only far cheaper.

Xero already has an app ecosystem of more than 600 certified app partners and 40,000 developers. And since Xero migrated its platform to Amazon Web Services, the subsidiary of Amazon that provides cloud-computing platforms to companies, Xero has been developing its machine learning (ML) and artificial intelligence (AI) capabilities in a push towards completely code-free accounting; in March 2017, Xero released a code-free invoicing and bank transactions feature. (MYOB previously released a similar feature called SmartBills two years earlier.)

Xero has been developing its machine learning (ML) and artificial intelligence (AI) capabilities in a push towards completely code-free accounting.

The company’s chief executive Rod Drury said that the move towards automation “will be bigger than the move to the cloud.” He also said the company was working on a feature that would automate invoices entirely.

What else has Intuit acquired?

On Intuit’s part, it’s Asia Pacific arm of the businesses has made a number of acquisitions over the last few years to beef up its product offering, some of them you might not even be readily aware of — like the 2014 acquisition of Invitco, which created a product called Invitbox that extracts data from PDFs, and operates behind the scenes to extract data from bills and receipts uploaded to the QuickBooks system.

Intuit Asia Pacific also acquired the document management company Fifo in 2013.

Next blog: We look at how the cloud accounting ecosystem has paid off and how and why bookkeepers and others working in the accounting space must continue to up-skill.

***

learn online training Xero courses videos for less

 

 

 

 

 

 

 

 

 

 

 


Our Xero online training courses include EVERYTHING for ONE LOW PRICE. Furthermore, if you select our Lifetime Membership option, you’ll have LIFETIME access to our ongoing course updates. All EzyLearn courses are accredited by the Institute of Certified Bookkeepers (ICB) and can be counted towards Continuing Professional Development (CPD) points. Find out more about our Xero online training courses. 


 

 

 

 

 

Posted on

Why Do You Want Xero and MYOB for Free?

If money is an issue there are alternatives when it comes to accounting software programs

WaveApps Transaction journal in the free accounting software competitors to Xero, QuickBooks Online and MYOB with receipt scanning built inWE’RE OFTEN ASKED whether Xero, MYOB and QuickBooks software is provided free with our training courses.

Unfortunately, we’re not given free access to accounting software, so we can’t pass free software access onto our students either. However, we do let you know where you can access trial or student versions while you complete our courses.

It made me wonder: Who’s driving the demand for these programs? It turns out, it’s usually someone’s bookkeeper or accountant recommending them. And this is usually because they’ve done a training course and learnt how to use one or more of the major accounting packages.

Does your bookkeeper or accountant disclose whether they’re earning a commission?

Some bookkeepers take a 15 percent cut of the monthly subscription fee because they’re a certified MYOB / Xero / QuickBooks consultant — and that’s why they recommend a particular package. I personally think that bookkeepers or BAS agents who do this should disclose that they are earning an ongoing commission — just as real estate agents need to make these declarations in their agency agreements.

Businesses don’t know any alternatives  

It also happens that a lot of business owners don’t know about alternative accounting packages. Therefore they simply choose the brand name they’ve heard about the most. I discovered this with real estate agents when it comes to who they choose for their social media marketing services — most of them ask what software or which person Joe Blow uses and then assume it’s good enough for them.

Selecting an accounting package to use is often one of the first things a new business owner does. At this stage, however, they may not even be aware of what they require from an accounting package; never mind what sorts of alternatives they should be looking at. When first starting out, they’re just anxious to be able to invoice and get paid by their first client.

Freshbooks, Zoho, WaveApps alternatives to Xero & QuickBooks Online

Three low cost alternatives to the “three brand names”

Zoho, Freshbooks and Wave are three other accounting packages that are either free or very inexpensive.

These three also include many of the same features you’ll find in the three big name accounting packages — MYOB, Xero and QuickBooks.

Zoho: Free invoicing software allows one user, invoice up to five customers; paid subscriptions from $7 U.S. per month; add extra features (expenses, subscription management, inventory management) as required. Pricing for Zoho Books, the complete accounting package, start at $9 U.S. per month for 2 users, 50 contacts, 5 automated workflows.

Freshbooks: Complete accounting software includes unlimited invoices, accept online and credit card payments, multiple devices, reports, payment reminders, notifications when clients have received, viewed, paid invoices; pricing starts at $15 U.S. per month for 5 active contacts (customers).

Wave: Forever free invoicing and accounting software includes unlimited estimates and invoices, generate reports, scan receipts, bank feeds (accounting package), and more; accept credit card and online payments for a fee (1.75 percent for ever 30 cents AUD); payroll $36 AUD per month.

Consider your business needs first

We recommend either Wave or Zoho for small but growing businesses, looking for a cheap or free accounting solution. Wave, in particular, provides a fairly robust accounting package that’s entirely free, and remains so if you don’t intend to take credit card or online payments (lots of businesses do, but many more don’t). In fact, they even have their own smartphone apps to capture receipts and create invoices while you’re at a clients!

If you anticipate you might want to add other productivity apps, like a CRM, inventory management, IT helpdesk, recruitment tools, or collaborate in a team project, Zoho is a good place to start, as these features can be turned on and off as required.

Of course, these accounting packages are rarely used or recommended by accountants or bookkeepers, who prefer to work with Xero, MYOB or QuickBooks because they provide the functionality needed to complete and lodge activity statements. If you’ll be working with a bookkeeper or accountant, it’s best to stick with one of the brand name three.

***

If you need training in MYOB, Xero and QuickBooks, our online training courses will show you how to set up and use various aspects of the software. More importantly, they will take you through detailed case studies where you can enter all the transactions performed by various different business types eg. professional services, trades and even the sale of inventory products. Visit our website for more information or to enrol.

 

Ref: #715

Posted on

FREE Xero Training Video: How Often Should You Check Your Inventory in Xero?

The key to cutting down discrepancies is consistency

IF YOU RUN A SHOP or business that holds stock, you should be in the habit of checking your inventory regularly. A lot of retail stores only check their inventory every quarter; others every year. This is usually because a stocktake is a big job.

Stock and inventory stocktake and count - inventory in Xero & MYOB Advanced Certificate Training CoursesThe case for a monthly stocktake

The inventory feature in Xero was a functionality that was missing for many years — but then Xero caught up.

Running an inventory report in Xero is pretty easy. The hard work sets in when you have to count your inventory to account for any discrepancies. There are usually always differences between what Xero says you should have in stock, and what you actually have on hand. The more frequently you run them, the fewer discrepancies you’ll find.

Like anything in the bookkeeping process, the more frequently you do something — be it reconciling your account or chasing up late payers — the easier and quicker it is. Where a quarterly or yearly stocktake could take half a day or more, a monthly one may only take you a couple of hours.

Understand trends in your business

A monthly stocktake is a good way to get to know your business, and understand its certain trends and idiosyncrasies. In particular, it helps you with ordering and making related business decisions.

A shop selling food, for example, needs to be wary of ordering stock that doesn’t sell quickly and ultimately goes out of date. A monthly stocktake will help you keep track of this, and monitor which items sell quickly and which don’t. Likewise, a monthly stocktake of a furniture shop lets you determine which pieces spend long periods in storage, and manage your ordering accordingly.

Run inventory reports in Xero

Free Xero Training Course video about inventory reporting
Click Image to see FREE Xero Training Course video

Do a monthly stocktake by running your inventory reports in Xero. You’ll be able to work out whether your stock:

  • is ageing (for technology retailers)
  • is going off (food)
  • costs more money to store (furniture); and, subsequently, how long it can take to sell before it’s costing you money. 

If you are new to bookkeeping it’s probably a good idea to learn more about some of the basic Xero reports you can produce for a business.

MYOB or Xero online accounting course training videos***

If you only have a very basic knowledge of Xero, cloud accounting or bookkeeping, and you’re looking to gain a better understanding of basic bookkeeping terminology, get our free Basic Bookkeeping Guide

You’ll learn how to run reports in Xero, in particular inventory reports, in our Xero training courses. Visit our website for more information or to enrol and see course prices.


online bookkeeping courses to earn cpd points

EzyLearn Excel, MYOB and Xero online training courses count towards Continuing Professional Development (CPD) for bookkeepers and accountants. We’ve been an accredited training provider of the Institute of Certified Bookkeepers ever since the organisation started in Australia. Find out how CPD points can be of benefit to you.


 

Posted on 1 Comment

The Best Xero-Integrated Project Management Apps

Which ones are best for your business?

xero integrated apps to keep your business within budget learn xero online learning videos
We look at project management apps that integrate beautifully with Xero to keep your project within timeframe and budget.

FOR BUSINESSES WORKING on large projects spanning weeks or even months, keeping track of time, cash flow and profitability is imperative. This is even more so for businesses that work on fixed-rate contracts or tenders.

Such fixed-rate projects are common in the building and construction industry, but also the creative, engineering, and IT industries.

Many of these businesses manage a project’s workflow across a number of different documents (spreadsheets, their CRM, accounting software) — and many don’t manage it properly at all.

As a consequence, projects often come in over budget. A number of cloud-based project management and workflow apps aim to change that, however.

WorkflowMax

xero productivity apps to keep you in budgetThis Xero-owned and operated project management platform contains four elements:

  1. Lead generation
  2. Project management
  3. Cash flow management
  4. Payment

PROS: Being a Xero product, it integrates “seamlessly” with the Xero accounting software, along with other third party software, such as Salesforce, Dropbox, Google Drive, ZenDesk and Receipt Bank, plus a number of payroll applications — Smooth Pay, MYOB Payroll (note: not MYOB’s accounting package) and SimplePay.

CONS: Unlike Xero, however, WorkflowMax is pricey; a one-user plan starts at $27.50 per month and can cost as much as $275 a month for a plan for 21-50 users.

WorkflowMax alternatives

Zoho Projects

zoho projects best integrated xero apps for project managementZoho Projects provides planning tools, Gantt charts, timesheets, document management and collaboration tools. Visually, it’s not much, but it’s easy to use. It isn’t as robust as WorkflowMax, but it’s a good tool for smaller businesses. And it’s part of the Zoho ecosystem.

For a Zoho app, there’s a good number of third party apps it integrates with, including Github, Google Drive, Google Sheets, Gmail, Microsoft Office, Basecamp, Dropbox and Slack.

Pricing starts at $25 per month for 20 projects on an “express plan” and tops out at $100 per month for an enterprise plan with unlimited projects; a free, one-project plan is also available.

Fergus

Fergus trade software logo best xero integrated project management appsFergus is the project management app built by tradies for tradies. Again, like the project management apps before it, Fergus is broken down into three elements:

  • project management 
  • communications, and
  • financial management.

The tradie-specific features include a GPS tracker and a site visits feature. Fergus integrates with Xero and MYOB AccountRight.

Basic “starter” plans begin at $19 per month, per user (recommended for concreters, plasterers, roofers and small firms) and tops out at $39 per month, per user for the “professional” plan. Sole traders get access to the starter plans for free forever.

ProWorkflow

proworkflow xero intergrated project management apps learn xero online course videosProWorkflow is the project management app that promises to be “the project management software your team will love!”

The features — task management, timesheets, messaging, invoices, etcetera — are standard fare.

But the software has opened up its APIs, so businesses can build their own apps, reports and integrations. It already integrates with Xero, QuickBooks online (and desktop), MYOB AccountRight and Freshbooks. It also integrates with Dropbox, Google Drive and OneDrive.

Basic “solo” plans start at $10 NZD per month, per user; advanced plans cost $30 per month, per user.  

***

We are always exploring and analysing new and emerging technologies and introducing new content as part of our Updates and Additions policy. Any new content we add to the course in which you’re enrolled is yours’ for free if you’re a current EzyLearn student. Find out more about our suite of Xero online training courses.


Stay in Touch, Like and Recommend Us

online social media training courseIf you want to receive announcements, updates and tips from us subscribe to our blogs or like our Facebook page and share it with your friends.

Posted on 1 Comment

Is Xero Better than MYOB for Bookkeeping Businesses?

Bookkeeping Incumbent, MYOB Versus Cloud Innovator, Xero

MYOB or Xero online accounting course training videosMYOB HAS LONG BEEN the preferred accounting software of choice for accountants, but a lot of small business owners have now come to prefer Xero. It’s easier to use, and they can access it anywhere — their desktop PC, tablet or smartphone.

Meanwhile, the rise of cloud-based accounting software, which was pioneered by Xero, has made it a lot easier for bookkeepers to base themselves from home. Throw in other technological innovations — cloud storage, bank feeds — and a remote Xero bookkeeper has become the more appealing choice for businesses, too.

Good bookkeepers have a corporate background

Many experienced bookkeepers (around level three upwards) have a corporate background. They’ve typically worked for big accounting firms, and are possibly qualified accountants or BAS and tax agents, familiar with all the available ERP systems on the market.

As much as they know MYOB as the big robust accounting software for medium-sized businesses, a lot of these ex-corporate bookkeepers are also well aware of how Xero benefits small-to-medium businesses: It’s less confusing to use and it’s cloud based; things that make the bookkeeper’s job easier, too. But there’s no guarantee they’ll recommend Xero purely because of that.

Their experience with a range of different ERPs, makes them just as likely to have a subscription to more than one accounting software so they can recommend, with firsthand knowledge, the right accounting software for your business — be it Xero or QuickBooks or, yes, even MYOB.

Bookkeepers can grow their business

National Bookkeeping - How to Earn More MoneyOf course, one reason Xero has become the preferred accounting software, over MYOB or QuickBooks, for a lot of ex-corporate bookkeepers is because of the Xero partner program which enables them to earn ongoing income by recommending Xero to their clients.

Billed as a way for Xero bookkeepers to grow their business, the program lists certified partners in the Xero Advisor directory, which is used by businesses looking for a Xero-certified bookkeeper to manage their accounts. To become a Xero partner, bookkeepers must successfully complete a Xero skills test. When they do, they’re listed on the directory.

The more Xero clients a bookkeeper brings in under the Xero Partner program, the higher their status and the greater their rewards — free Xero memberships, marketing help, and big discounts on subscriptions for their clients.

It’s incredibly appealing for ex-corporates who want the flexibility of self-employment, but want to grow their business with a client-base of substantial mid-sized businesses — and fast. So the more business a bookkeeper can bring Xero, the more business Xero can bring the bookkeeper. At least, that’s how it’s supposed to go.

Universal access with Xero

But Xero Partner or not, far and away Xero’s popularity is really due to its technology — and its commitment to using technology to improve the way businesses stay compliant with the tax office.

That all started with universal access. Businesses that use Xero can invite anyone in their team — their admin assistant, bookkeeper, accountant, their entire sales team — anytime they like, as part of their Xero subscription. Here are a few more reasons:

  • Invoices can go out as soon as a project is finished or a sale is made; likewise for estimates and customer statements.
  • It also means that a business owner can monitor their cash flow in real time, while their bookkeeper is keying transactions and their sales people are sending off invoices.
  • And because the software is in the cloud, these people don’t even need to be in the same building, never mind the same city, state or country! (Xero is the rare low-cost accounting program that supports multi-currency.)

It’s all about the Xero tech

Xero also integrates with more than 500 third-party apps. Some popular integrations include Gmail and Hubspot, the marketing and sales platform. These two integrations alone turn Xero into a complete business management platform and enable it to scale up to the services provided by mid to large sized ERP systems.

Businesses can import data to Hubspot based on customer spend or products and services sold, and send those customers tailored marketing messages. The Gmail integration gives users a complete snapshot of previous conversations with customers — salespeople can see if there are outstanding invoices, or problems with a customer’s account, for example.

Gold standard in bank feeds

Although bank feeds are accurate most of the time, they’re not perfect. MYOB has been know to be particularly temperamental, but Xero has a reliable bank feeds function. Again, that’s a lot to do with Xero’s commitment to tech. 

Setting up bank feeds in any accounting software is as simple as clicking a few buttons, giving a few permissions, and voila! Your bookkeeper has just saved themselves hours each month. Bookkeepers much rather spend as little time as they can keying and coding transactions.

[box type=”info”] This time is better spent doing bigger jobs — lodging activity statements, reporting, payroll — so they’re going to recommend an accounting program with bank feeds.[/box]

Plus, business owners won’t have to wait for their bookkeeper to enter their transaction data each fortnight or month to see how their cash flow is tracking: Bank feeds give business owners a complete picture of their business’s cash flow and financial health because transactions are imported in real-time.

Xero courses provide Bookkeeper CPD points

EzyLearn Online Course CPD points for bookkeepers and marketing professionalsEzyLearn gets lots of enrolments in our Xero training courses and we’re an accredited training provider with the Institute of Certified Bookkeepers. The ICB requires its bookkeepers to continue developing their skills and knowledge as a bookkeeper in order to retain their membership (this is known as continuing professional development, or CPD).

Many bookkeepers and accountants do EzyLearn’s Xero courses to earn their annual CPD points. EzyLearn offers a number of different training courses as continuing professional development (CPD) for bookkeepers, including our Microsoft Excel, Xero or MYOB training courses.

Our Bookkeeping Academy training courses start at $99 — for Xero or MYOB — and allow you to learn what you want, when you want, entirely at your own pace. Visit the Bookkeeping Academy website for more information or to enrol.


 

Posted on

Accounting Software or ERP System?

enterprise resource planning systems learn myob xero quickbooks online training course videos

Are you BIG enough yet?

I’VE BEEN IN BUSINESS since my early twenties but it wasn’t until my late twenties that I had any clue about how larger companies use and pay for software. I was going through the process of selling a water filter business that I’d been operating in Sydney’s Dee Why when I had the pleasure of meeting the owner of Fountainhead Water Company, Mark Darling.

Fountainhead used a specialised accounting system for the bottled water business which did everything from receipts for each delivery to capturing bottle deposits, tracking rental coolers and more — and they were paying hundreds of dollars per month for this software. It was a far cry from purchasing the MYOB software for a couple hundred dollars and NEVER upgrading (no payroll at the time).

Now I understand the importance of Enterprise Resource Planning (ERP) systems and how they are almost sewn into the fabric of the procedures for medium to large businesses. I was contacted by someone at Sage, asking if EzyLearn had ever thought about offering training in Sage One, their software for their smaller clients. I replied by saying: “Yes, but what is the demand?” I never heard back from this person (might be a good tactic for you if you get too many cold calls!)

SAP one can cost you $600 per month so don't complain about $70 per month for Xero

Getting Setup Using an ERP System

This Sage person piqued my interest so I did a bit of research.

I soon realised that these ERP systems are sold almost exclusively through ‘integrators’ or channel partners who visit your business and really get into the nitty and gritty of the procedures and processes.

They perform their analysis and then set about a plan to implement the new software in the business using deft project management and people skills to CHANGE the way the business works.

These ERP system integrators get very involved in the operations of these larger companies and they get to see the BIG mistakes that small businesses make when dealing with them and know how easy these problems are to fix.

One such person is Carmel Crane, Finance Manager and ERP Specialist at National Bookkeeping, with specialist knowledge of midsize businesses in the mining and related industries. Carmel points out that tier one ERPs, such as SAP, JDE and Oracle are “large, expensive and all-encompassing software systems that tend to be implemented by large, multi-currency organisations.”

In a way, even small business software programs like MYOB, Xero, QuickBooks are ERPs but no one really uses that term and the process of getting set up is often much less formal and done by a high-level bookkeeper like a Finance Manager or accountant. 

The most interesting aspect of my research was when I came to the site of Leverage Technologies and found their sign up form for Sage One. I thought back to those days of working with Mark Darling, but more importantly, how true ERP systems don’t just do invoicing and payments but manage:

  • job costing
  • distribution
  • e-commerce — and even —
  • CRM.

These are services that “integrate” with software like Xero and Quickbooks.

What are tier one and two ERPs?

When you start delving deeper into ERP’s you realise there are different tiers of software which depend on the size of the company using them. Tier one ERPs are relatively inexpensive but fairly flexible applications that enable small businesses to manage their accounting and operational needs. But larger midsize businesses will have different needs that will exceed the capabilities of a tier three software like MYOB or Xero.

“Tier two is aimed at mid- to -large companies — I have a lot of mining companies in this space,” she tells EzyLearn, “and would include [software such as] Pronto, Sage and Green Trees.”

“This software has more modules than tier three, but it’s not as complex as tier one. Tier three is for small businesses, [and they] focus on the accounting side of business with simple relationships across modules.”

Tier three software is for small business and focuses on the accounting side of business.”

— Carmel Crane, ERP Specialist, National Bookkeeping

How to know if you need a tier one or two ERP? 

Any midsize business — so if you’re running a mining company, a substantial wholesale business or manufacturing or retail business — would need to work with at least a tier two ERP. And for the implementation of a tier two ERP like Sage or Pronto, Carmel strongly suggests engaging the services of an ERP specialist rather than just seeking input from the ERP company. 

“An ERP specialist understands the relationship between the modules,” Carmel says. “They can direct you in how purchasing will affect inventory and how plant maintenance will affect asset values — there is a holistic view of transactions.”

“And they know that when a problem occurs, a simple fix may just cause further error down the track. It’s important to understand the big picture.” Carmel Crane, ERP Specialist

Selecting the right ERP for your business

Just as small businesses would select a tier three ERP based on their requirements and the cost of the system, businesses selecting a tier one or two ERP do the same.

“The software is selected based on requirements, scope and cost,” Carmel notes. “Coca Cola are likely to run SAP or JDE, whereas a local operation with branches across Australia is more likely to go with Pronto or Sage.”

But she adds: “That said, just to contradict myself, I spoke with a company last week that had received an implementation quote from JDE for $1.8 million, and when I asked Pronto for the same requirements, they came back with a ballpark of $1.6 million. However, the quotes were for 30 licenses; most mid-range businesses will only use 10-15 licenses, so it would cost less.”

***

To select the right ERP — and for the right price! — engage an ERP specialist. Their knowledge of how various elements of your business operations — inventory or machinery maintenance — will affect your business, combined with their in-depth knowledge of ERP systems make them an invaluable resource.

Carmel Crane ERP Specialist National Bookkeeping_3_comp

How to find an ERP Specialist

Carmel Crane specialises in ERP systems for businesses in the mining and related sectors. Her knowledge of Xero & MYOB enables smaller businesses to get set up and systemised so they are better equipped to deal with larger clients.

She is also available for face to face training in Xero & MYOB.

As a Finance Manager, she works with businesses in the Atherton Tablelands, Cairns, Chillagoe to Charter Towers regions, Dalby through to Dubbo (including Broken Hill, Cobar and surrounds), and the Riverina, Wagga Wagga and Wyalong areas.

Carmel is looking to expand her list of clients in these and surrounding areas. If your business is in need of an experienced finance manager for managing Xero or MYOB or even a mid sized business looking for an ERP specialist, you can contact Carmel through the National Bookkeeping website.


 

Posted on

Is Xero Really All It’s Cracked Up To Be?

How does Xero stack up in the cloud accounting game?

xero learn online xero course training videos cheap
Xero CEO, Rod Drury

WHEN XERO FIRST ENTERED the accounting space, it gave MYOB a real run for its money — something Xero continues to do to this very day.

When Xero first entered the market, it was with a bang. You see, even though  Xero and MYOB share many of the same features, Xero was cheaper and easier to use than MYOB, but perhaps even more so, it was also cloud-based. Being cloud-based meant you didn’t have to buy and install pricey software that would be out-of-date within 12 months. A huge advantage.

Since then, however, a number of cloud-based accounting applications have entered the market — QuickBooks Online (now distributed by their US-based parent company Intuit), Reckon One, Saasu, Zoho, and so on.

As business owners have more choice than ever before, it’s got a lot of people wondering about whether the two market leaders (Xero and MYOB) are really all they’re cracked up to be, Xero in particular.

Missing a dropdown menu

Even though Xero was hailed as a breath of fresh air when it first entered the market, it is still a little more complicated to use when compared with other cloud accounting apps, like QuickBooks and Reckon One. For instance, the purchase orders feature is still hidden behind bills, when it could easily be access via a dropdown menu. But it’s not a major quibble.

Xero’s contact profile misses a beat

Although Xero allows you to assign customer numbers for your suppliers or customers in the contact profile, it doesn’t have the functionality to record customer numbers assigned by supplier or customer.

If you’re trying to get in touch with Telstra, for example, with whom you’ll have been assigned a customer or account number, you’ll have to dig around for the paper bill to find that customer or account number.

It’s easy to file bills, though

This feature is available in QuickBooks, and it’s also available in MYOB, but as is often the case with MYOB, it requires more steps to do what you can in Xero in just a few clicks. Rather than keep paper bills on hand, Xero allows you to attach them to you transactions, so you never have to go hunting around for a bill again (very useful given the contact profile issue mentioned above).

In MYOB, you must upload your bills to your in-tray, and then link them to your transactions. This is annoying, because it requires you to leave the transaction window and open the in-tray one.

***

Remember that when you select a cloud accounting package for your business, do not choose solely based on price. Make a list of the needs of your business and the functions you’ll require, and then select the accounting package that suits your needs the most. Ask your bookkeeper and other business friends for their recommendations as well.


Announcement: Microsoft Excel 2016 Beginners’ to Advanced courses now available!

learn to use excel online training course videos cheap best

At EzyLearn we include all versions of a software program in our training courses. That means when you enrol into Excel you get 2016 — AND — the older Excel courses which include version 2013, 2010, 2007 and even 2003 (if you really need it).
When you enrol in Lifetime Course Access you get access to ALL versions and ALL FUTURE VERSIONS as we continually update them — at no extra cost!

Posted on 1 Comment

Ratings, Reviews, Testimonials, Recommendations

Why you can’t beat old-fashioned word of mouth

social media ratings reviews online word of mouth referrals
Online ratings and reviews have a role to play in buying decisions, but sometimes you just can’t go past traditional word of mouth to find good workers.

ONLINE RATINGS AND REVIEWS ARE a great way to determine whether a business is trustworthy or whether they products and services they provide will suit your needs. TripAdvisor and Yelp have transformed the hospitality and accommodation industry, for example. And Airbnb is doing similar with short-term rentals.

But as we’ve previously discussed, online ratings and reviews can be easily faked and sometimes biased or devoid of useful information

Looking for a local? Ask around!

While recently working on a home renovation in Newcastle, I came across a carpenter who had seven employees working for him. Jimmy the Chippy in Belmont has been in business nine years, has no website or online presence — but his business is booming.

How does he do it?

The old fashioned way! He does exceptional work for his customers and clients, who hire him again and again and refer him to friends, relatives, colleagues and so on. He also made a point of networking with local builders and plumbers in the area, who contact him when they have work to do, and refer him to other builders and plumbers as well.

Use word of mouth

If you’re looking locally, and the online ratings and reviews of the businesses you’re trying to decide between aren’t helping, asking a friend, relative or work colleague if they know any of the businesses.

If no one in your social network knows the business, you can also google an online forum like Whirlpool, where members frequently provide fair and balanced opinions of businesses they’ve dealt with — and if they don’t, they’re usually called out for it.

Testimonials are helpful, too

Real estate agents, accountants and many other businesses — EzyLearn included — use testimonials rather than ratings or reviews (except on Facebook), so you shouldn’t discount these just because they’ve been vetted before going online.

And don’t be put off if a business has received the odd bad review. Look at why they’ve received the review and what the business has done or said to address the bad review. Some businesses with a less than perfect record may be more trustworthy than those with reviews and ratings moderated by the businesses themselves.

At EzyLearn we provide testimonials from our students, which include their full name and location, and why they chose EzyLearn to study in the first place. We ask each student whether it is ok to publish these beforehand. We also offer a money-back guarantee and free samples of our course content, so students know they can trust they’re making the right choice.

***

At EzyLearn, we’re committed to helping students of our online training courses, be it in in Xero, MYOB, Excelsocial media or other courses, gain employment as bookkeepers, generally better their businesses, or even start their own bookkeeping business. To this end, we provide you with a Lifetime Access option to our cloud accounting training courses.


cashflow reports in xero and excel

Our Xero online training courses include EVERYTHING for ONE LOW PRICE. Furthermore, if you select our Lifetime Membership option, you’ll have LIFETIME access to our ongoing course updates. All EzyLearn courses are accredited by the Institute of Certified Bookkeepers (ICB) and can be counted towards Continuing Professional Development (CPD) points. Find out more about our Xero online training courses. 


Posted on

Should You Buy Commercial Property Outright or Get a Mortgage?

The power of using Excel and Xero combined

Excel and Xero combined importing_comp
Our courses cover how to import from Excel into Xero and visa versa, for purposes such as working out depreciation on a business premises.

THERE ARE MANY UPSIDES to buying a commercial property for your business and if you’re able to buy an industrial unit like a Cubbyhole, it can also be a lot cheaper than renting premises.

Buying outright

If you’re in the financial position to buy your business premises outright, it may seem like a no-brainer to do this instead of getting a mortgage. However, there are some things you need to consider:

  • You’ll lose liquidity on the assets in your property, which means you won’t be able to tap into any equity in the property, unless you take out an equity loan against the property.
  • You’re tying all your cash to one asset class, which may limit your ability to make other investments and prevent your business from expanding. This could run counter to your reasons for making the property purchase in the first place.

Getting a mortgage

When you get a mortgage, you have the benefit of being able to access equity in the property, which will enable to invest elsewhere. Of course, there are still factors to keep in mind:

  • You’re spreading the payments over many years, which ties you to paying down that asset for the foreseeable future.
  • You’re paying interest, which although it’s a tax deduction, will significantly inflate the price of the property.

Work out the best way in Excel

Using the data from your Xero accounting software package, Microsoft Excel can help you determine whether your business will be financially better off buying its premises outright or getting a mortgage.

You can also create a financial forecast in Excel. Using Excel, you can calculate the depreciation amounts, which can then be entered into Xero. We cover how to deal with aspects like depreciation in our Xero Bank Reconciliation Course, because many businesses own, or will own, a capital asset at some point.

***

Check out our new Cash Flow Reporting, Budgets and ROI Course for Xero which shows you how to deal with an asset purchase like a business premises in Xero. Remember, you get access to ALL our Xero courses for ONE LOW COST. Visit our website for more information on our suite of online training courses or enrol today!


learn to use excel online training course videos cheap best

Importing from Xero to Excel and back again is included as part of our Advanced Microsoft Excel training courses — and you receive access to ALL OF OUR COURSES, including ALL skill levels for ONE LOW PRICE. You can even start your Excel journey with our FREE Beginners’ Excel Course Workbook. Read more about our beginners’, intermediate and advanced Excel training courses on our website, or enrol to start learning by 5pm tomorrow!


 

Posted on 1 Comment

Buying Real Estate For Your Business

The pros of buying a business property

xero reports to buy or sell business industrial unit business investment
Buying a premises for your business need not be cost prohibitive and you may enjoy good equity growth.

IN OUR NEW CASH FLOW reporting, Budgets and ROI course for Xero, we delve into the purchase of real estate for your business, which you may use as office space or as a warehouse or as a storage facility and workshop, depending on your line of work.

Why some businesses don’t like buying

Lots of businesses avoid buying premises for their businesses, because you’ll need to have a large capital injection right off the bat, and you may also incur land tax obligations, building insurance, and also be liable for maintenance and repairs.

Renting gives businesses, especially new ones, flexibility, as you’re only locked into a short term lease — not a multi decade mortgage. And if you decide to move or find new premises before your lease term is up, you can often minimise the costs by subletting the premises.

Buying as an investment strategy

However, buying your premises is a good investment strategy, as you’ll be able to access the equity and capital growth in the premises as property prices rise.

You’re also afforded greater freedoms and stability when you own your business’s premises — in particular, protections from rising rents — than you would have if you rented your premises. If you outgrow the space, you can always access the equity and may be able to buy adjacent premises, or rent out your existing ones while you upgrade, providing another valuable income stream.

Running the right reports to help you decide

Of course you can use a cloud accounting program like Xero to run reports that will help you decide whether to buy or rent your business premises and how such a decision will impact your cash flow. There will naturally be capital gains tax considerations and associated deductions. Our Xero training courses go through how to run these kinds of reports to ascertain the financial health of your business.

Low cost pathways to ownership

Industrial units are a good pathway into ownership for your business. If you don’t need to be right in the heart of the city or major town centre, you can often purchase an industrial unit for under $100,000.

In Newcastle in the Hunter region of New South Wales, you can purchase an industrial unit called a Cubbyhole, which can be used as a workshop, storage unit or office space for tradespeople, small and online businesses. These come with amenities such as toilets and showers, car parking (including visitors’ and disabled) and CCTV security, among other things and are worth checking out if you want to buy and only need a smaller business space. 

***

In our Cash Flow Reporting, Budgets and ROI course for Xero, you’ll learn how to deal with the purchase of business premises just like a Cubbyhole in Xero. Visit our website for more information on our variety of online training courses or enrol today!


learn online training Xero courses videos for less

Our Xero online training courses include EVERYTHING for ONE LOW PRICE. Furthermore, if you select our Lifetime Membership option, you’ll have LIFETIME access to our ongoing course updates. All EzyLearn courses are accredited by the Institute of Certified Bookkeepers (ICB) and can be counted towards Continuing Professional Development (CPD) points. Find out more about our Xero online training courses. 


 

Posted on

Cash Flow Reporting in Xero

Show me the money!

learn cashflow reporting in xero online training course videos
Creating a cash flow report in Xero will tell you more about the financial state of your business than profit and loss statements.

IN OUR BRAND NEW Cash Flow, Budgets and ROI Xero Training Course, you’ll learn how to generate a cash flow report for your business.

Cash flow reports show the money going in and out of the business, so they’re better indicators of a business’s overall financial health than a Profit and Loss statement (P&L).

A cash flow report enables you to make forecasts and budgets for your business based on previous trends — recurring expenses, average time to get paid, seasonal quiet periods, and so forth.

The 3 cash flow categories

Cash flow reports are typically broken up into three categories:

  1. Operating activities: cash flowing in and out of the business from revenue-generating activities
  2. Investing activities: cash flowing in and out of the business from the acquisition and sale of long-term assets
  3. Financing activities: cash flowing in and out of the business from borrowings and changes in equity.

Items in a cash flow report

In our Cash Flow, Budgets and ROI Xero Training Course, you’ll learn how to generate a cash flow report in Xero. That report will show every transaction that’s run in and out of your business, divided among one of the three categories.

In the operating activities category, you’ll typically find things like costs associated with any training courses or seminars, advertising and marketing expenses, income or commissions from your business, subscriptions to any magazines or periodicals, etc.

Under the investing activities category, you’ll find the cost of purchasing office or warehouse space and the capitalised borrowing cost, for example.

The financing activities category will show the loan you’ve taken out to purchase your business’s office or warehouse space.

You’ll learn how to generate and work with cash flow reports in our new Cash Flow Reporting, Budgets and ROI Training Course. ENROL now or read more about the benefits of cash flow reporting to your business. Are you a sole trader or contractor needing to record your ongoing expenses? We cover that too!


cashflow reports in xero and excel

Our Xero online training courses include EVERYTHING for ONE LOW PRICE. Furthermore, if you select our Lifetime Membership option, you’ll have LIFETIME access to our ongoing course updates. All EzyLearn courses are accredited by the Institute of Certified Bookkeepers (ICB) and can be counted towards Continuing Professional Development (CPD) points. Find out more about our Xero online training courses. Or learn more about our entire suite of online software training packages and social media training packages.


Posted on

Importing Bank Statements into Xero

Making bookkeeping easier, faster and more accurate

importing bank statements into Xero online learning course training videos
You’d be surprised how many business owners don’t even know how to import their bank statements into their accounting software. Are you one of them?

WE HAVE CREATED A brand new Cash Flow Reporting, Budgets and ROI Course for Xero and one of the things you’ll learn is how to import your bank statements into Xero.

The sales spiels of many of the notable online accounting software packages like QuickBooks, Wave Accounting, Outright, Kashoo, LessAccounting, Clearbooks and even Xero, claim that this feature will save you time and effort as it imports your bank transactions. The truth is, this is not foolproof and won’t work 100 percent of the time (even if it’s just a matter of not being able to get your software and your bank to “connect” just as your mobile phone connection inexplicably doesn’t work sometimes).

Therefore, always double check your bank transaction data has been imported accurately. This said, importing your bank statement into Xero (or whatever accounting software you use) is a really important step in the bookkeeping process that a lot of business owners forget or don’t know how to do. And the technology is only going to get better!

Using the correct format

To import your bank statement into Xero, you must ensure it’s in the correct format. Xero can only work with a CSV file of your bank statement. Depending on your bank, you might be able to download your bank statement as a CSV file from your internet banking, or you will have to create one from scratch.

Creating one from scratch isn’t too difficult. If your bank doesn’t give you the option of downloading a bank statement as a CSV file, you can create one yourself in Microsoft Excel.

You can download an Excel template from Xero. It includes the recommended fields and is already set up as a CSV file, so all you need to do is add in your data.

Set transaction rules

Once you’ve created and uploaded your bank statement to Xero, you’ll need to set up transaction rules for recurring expenses. You’ll learn how to do this in our Cash Flow Reporting, Budgets and ROI Xero Course.

Setting rules for recurring transactions helps speed up the reconciliation process, which depending on the type of business you operate and how often you reconcile your account, can be the most time-consuming part of the process.

Importing your bank statement and creating rules for transactions that occur each week, month fortnight, year, etc, greatly speeds up this process.

No CSV? Use bank feeds

If your business has lots of expenses every week, and your bank doesn’t let you download your bank statement in a CSV format, you may find that manually creating one in Excel each month is too time consuming.

Set up bank feeds instead. Bank feeds is the process of linking all of your business accounts, whether they’re credit cards or bank accounts, to your accounting software, so that each time you make an electronic purchase, it’s automatically imported into your accounting software.

This will allow you to reconcile your account each fortnight, week or more frequently, if you desire, than once a month when your bank statement comes in.

***

Bank feeds save your business time and money. Find out more about setting up automatic bank feeds in Xero and importing bank statements into Xero. You can also read more about our new Cash Flow Reporting, Budgets and ROI Course for Xero, visit our website or enrol today!


learn to use excel online training course videos cheap best

Learn Microsoft Excel from scratch or brush up your Excel skills, at your own pace, with our affordable Excel online training courses — where you get THE LOT (that’s 9 courses in total) for ONE LOW PRICE — everything included! Volume corporate discounts are available and our courses count towards CPD Points. NOW is the time to learn to use Excel, one of the most-used software applications in the world.


 

Posted on

3 Things You MUST Do in Excel!

Business owners and job seekers take note!

learn xero myob excel online training course videos
Excel isn’t just for budding bookkeepers; it’s a great tool for all business owners to know.

MICROSOFT EXCEL IS THE most widely used spreadsheet application in modern computing. That said, it’s also one of the more difficult programs of the Microsoft Office Suite to learn, which is why we recently updated the content of our Excel training courses.

A lot of people do our Excel training courses to help them “skill up” to find a job, find a position better suited to them, or develop their career path. However, Excel is a fantastic tool for small business owners as well.

But whether you use Excel to create a pivot table or a database, there are a few things you should do each time you open an Excel document. Here we present you with three:

1. Vertical align: always centre

Always align the text in the cells of your Excel spreadsheet to the centre, or the top in certain circumstances. But never, ever align it to the bottom. It’s hard on the eyes and, when you’re looking at lots and lots of data in lots and lots of cells, it becomes difficult to know which row, column, etc, you’re looking in. Centre alignment, always.

2. Build error-checking into formulas

There should never be an instance where one of your workbooks is showing a #DIV/0, #N/A, #REF, #NAME?, #NUM!, or #NULL! error. This is especially true if you’re sharing these workbooks with your business partners or accountant or whomever.

Seeing an error in a financial report may cause the reader to doubt the accuracy of the entire workbook, so ensure your workbooks remain error free by using the simple IFERROR() error-checking function in Excel.

3. Print preview your work

Again, if you intend to share workbooks with other people, you should always ensure that your Excel workbooks can be printed nicely and easily, even if you don’t intend to ever print the document yourself. This is easy enough to do via File > Print Preview and adjusting the print margins before sharing (or printing) the document.

However, judging by the number of times I’ve printed an Excel document only to collect 87 sheets of paper off my printer to read the contents one 4×4 table, the function is seldom used by anyone else but me!

***

For more Excel formatting tips and tricks, download our FREE Beginners’ Guide to Excel, or enrol in our intermediate or advanced online Excel training courses to learn how to create databases, pivot tables, charts, graphs, and much more…

Read more about our beginners, intermediate and advanced Excel training courses on our website, or enrol to start learning by 5pm tomorrow!


learn xero myob excel cheap online training courses videos

At EzyLearn, we’re committed to helping students of our MYOB, Xero and Quickbooks courses gain employment as a bookkeeper or even start their own bookkeeping business; it’s why we provide you with lifetime access to our online cloud-accounting training courses as part of our commitment to continuing professional development


 

Posted on

Is the ATO Getting into the Cloud Accounting Game?

The ATO is helping you keep track of deductions and expenses

ATO expense app learn xero online training course
The ATO’s recently launched app isn’t helping you invoice just yet, but it is good for keeping track of your business deductions.

ALL BUSINESSES CAN TAP into useful cash flow forecasting apps, whether they use Xero, Quickbooks or MYOB. There are also a host of basic expense and budgeting apps that sole traders and contractors can use for similar purposes.

The difference between the two boils down to price and functions: The more functions you need, the higher the price tag. Businesses that require high-level reporting and forecasting tools, such as a “scenarios” function that lets you determine the impact different business decisions would have on your cash flow, before you actually make them, would need to stump up, at a minimum, between $50 and $80 a month for this functionality.  

Free expense and budgeting apps would suit most contractors and sole traders who don’t require complex forecasting and reporting tools, but who do need to see when money is coming in and when it’s going out, and whether there are deficiencies.

The ATO’s tax and superannuation app

ato app my deductions learn xero online training course
Image: Courtesy of ATO website

Looking into the best expense and budgeting apps for small business, we came across the Australian Tax Office’s app, simply called ATO. It works on Windows phones, as well as iOs and Android devices, and it’s updated regularly by the ATO, so you know this isn’t just a passing fling.

Our post on cash flow reporting and forecasting for contractors and sole traders went through the app’s functions, including what we thought were some standout features:

  • Recording expenses and deductions
  • Tracking mileage
  • Inputting income
  • Tax calculators
  • Business performance calculator
  • Lodging income tax returns.

If these features sound familiar, that’s because they’re all the features you’ll find in a basic cloud accounting program, with the notable exception of invoicing. Electronic invoicing is not something the ATO is particularly concerned with because it’s not a requirement. Invoicing, of course, is a requirement, but how you do it — in person, by snail mail, email, etc — isn’t.

Cloud accounting still best and easiest

If the ATO app introduced a simple way to invoice customers, we’d say it was definitely muscling in on QuickBooks and Xero’s territory, since both programs appeal to the small business owner, QuickBooks in particular.

In absence of that, the ATO app is a great tool for contractors and small business owners to use to keep track of their expenses and deductions, and especially to calculate their tax rates (so as to properly keep money aside for tax, rather than being hit with a tax bill you have to pay off). For contractors with a very simply business model, it’s even useful for lodging your tax return.

But otherwise, cloud accounting applications are still the best and easiest way for businesses to run an efficient, compliant business. At the end of the day, for many small business owners, they’re not drawn to Xero or QuickBooks because they want to stay compliant, it’s because they want to be able to easily invoice customers and track their income — compliance is just an added bonus.

Our online Xero training courses meet all skills levels for ONE LOW COST. We will show you how to record deductions, invoice customers, run financial reports, and lodge activity statements and tax returns. Visit our website for more information about our range of online accounting, media and general business courses.


learn to use excel online training course videos cheap best

Need to brush up on Excel? You receive access to ALL OF OUR COURSES, including ALL SKILLS LEVELS for ONE LOW PRICE. You can even start your Excel journey with our FREE Beginners’ Excel Course Workbook. Read more about our beginners’, intermediate and advanced Excel training courses on our website, or enrol to start learning by 5pm tomorrow! And all of our Excel courses can be counted towards CPD points.


 

Posted on 2 Comments

Cash Flow Forecasting for Sole Traders and Contractors

Great expense apps if you’re self employed

expense apps for self employed people
Are you busy and self-employed but can’t afford the higher price tag of some expense tracking apps? Don’t worry, there are cheaper options available.

AS WE’VE WRITTEN PREVIOUSLY, cash flow is one of the most accurate instruments for predicting your business’s financial health. It’s more accurate than profit and loss statements, which don’t take into account any cash outlays, and so don’t show a true picture of your business’s finances.

We have also checked out some of the latest cash flow forecasting apps that integrate with Xero and other accounting packages. These can be excellent tools for businesses that employ staff or are expanding rapidly, but there are still many business owners that don’t fit into that category, and although keeping an eye on their cash flow and forecasting trends remains critical to their financial health, they can’t justify the high price tag of an app like Spotlight or Float.

Expense and budgeting apps

What’s a cash flow app, if not a program that tracks your expenses and income and then tells you how much money you have left in the bank? That’s what FUTRLI and Spotlight, the apps we reviewed recently would do, and then also let you do other things, like create scenarios to determine the particular outcome of a business decision.

But there are other expense apps that sole traders and contractors can use for cash flow forecasting:

Pocketbook

Pocketbook, the Australian personal finances app recently acquired by ASX-listed ZipMoney, is free to use, although a recent deal with 1300HomeLoans means it may analyse your spending data to make commercial suggestions around your personal finances. (For the record, I have been testing it for months and hasn’t been subject to any such suggestions.)

Pocketbook lets you connect your bank account to the app so it can import your income and transaction data. Once you get some initial housekeeping — categorising your expenses and income — out of the way, you can then set up a safety spend limit based on Pocketbook’s analysis of your spending vs. income.

Pocketbook also learns from your transaction history, meaning it can predict upcoming income and bills. It’s very nifty for contractors or freelancers who have more than one income source that doesn’t always run through your accounting software — if you’re working on your TFN and ABN, for instance.

TrackMySpend

TrackMySpend expense apps for Xero online training courseThis free app, by ASIC MoneySmart, lets you connect your bank account to the app, categorise your expenses, nominate a spending limit, and create expense reminders that can be sent to as text messages ahead of their due date.

Like Pocketbook (but without the commercial overtones), TrackMySpend will also learn from previous trends in your income and expense data to predict future income and expenses. Best of all, TrackMySpend can be exported as an Excel file or connected to your accounting software. The iOS app is a bit out of date, though, so it won’t work on more recent Apple devices.

ATO

ato_mobile_app for Xero online training course videosIf you didn’t know it already, the Australian Tax Office has its own mobile app. It allows you to access the ATO’s online services, lodge and track your tax return (yes, right from your mobile phone), work out key tax dates and access tools and calculators.

Its most handy functions: being able to enter your expenses (including a photo of receipts and bills), track mileage, and record your income. It’s not automated, but it does propagate that info directly into your tax return, so you don’t have to do it later. It also accurately calculates your tax liabilities.

The ATO app’s best function, however, is its “business performance calculator”, which, using the data you input, will give you an indication of your business’s ability to pay its debts, as well as a comparison of its performance based on the ATO’s “small business benchmarks” data. Over time, it’ll also show whether your business has improved or declined since you last used the tool.

Understanding your business’s cash flow is critical to its ongoing financial health, and to your ability to make sound business decisions. Use one of these tools in conjunction with your accounting software to ensure your business is running on all cylinders.

***

Our Xero training courses, which provide training in EVERY LEVEL for ONE LOW COST, will show you how to run financial reports, including cash flow statements that you can use to create forecasts in Excel. Visit our website for more information about our online training courses.


Social Media and Digital Marketing online training course_comp

Are you in business as a bookkeeper, tradesperson, retailer, trainer or real estate agent and want to stand out from the crowd? We can teach you the online marketing techniques to help you do just this! Check out what’s included in our comprehensive Social Media and Digital Marketing online training courses.


 

 

nnn