RA Business Advisors

Technology

How Can Accountants Use Blockchain To Step Up Their Game?

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The buzz is continuing to grow across the business world for Blockchain, and we have written about it in the past, but how can accountants use Blockchain to streamline their work?

Wait, how does Blockchain work again?

Put simply, Blockchain removes the need for storing your own transaction records through creating an audit trail on “blocks”. These blocks are public and can be accessed/maintained by all parties involved in a transaction. The audit trail of a transaction builds as more information is added, blocks are encrypted to ensure privacy breaches don’t occur. Once a block is verified and added to the Blockchain. These can’t be manipulated by others but can be corrected by those involved.

Isn’t Blockchain only useful for cryptocurrency?

Cryptocurrency brought this technology into the zeitgeist, but these applications are just breadcrumbs of what Blockchain is capable of. The motivation for the use of this technology is secure and easy exchange of information between parties. These are very important capabilities when exchanging Cryptocurrency, but also useful for accounting and bookkeeping.

Why should I care about Blockchain?

Reports from the World Economic Forum suggest 10% of global GDP will be stored on this technology by 2025. Universities are offering courses in Blockchain, the next generation of accountants will be masters before they even enter the workforce. To put it simply, Blockchain is here to stay and is growing in importance.

How is this going to change accounting?

Because transaction information is entered into “blocks” and securely stored, there is no need for parties to keep their own records of transactions. However, there may become a triple-entry system, where transactions would be entered into both the Blockchain and each party’s ledgers.

Blockchain eliminates the need for auditors to verify transactions, this means accountants will no longer have to reconcile and process transactions as parties can record and share information independently. Standardisation also allows auditors to verify large portions of data automatically, saving time and costs for audits. This marks a shift in the workflow of accountants, through shortening the process of verifying information, this opens up other opportunities.

This technology can be used to improve the integrity of electronic files easily through generating a hash string of a file. Hash strings are electronic fingerprints of files which can be compared once timestamped into a file.

Hashing blockchain

What changes are we seeing right now?

Robert Massey discussed the boom of Cryptocurrency business for accountants at the Accounting and Finance Show. As governments around the world develop better tax guidelines and recognition for Cryptocurrency, tax professionals will see more business.

Massey also discussed the idea of ‘smart contracts’ using Blockchain to embed contract details into third-party sources. For example, a contract where an invoice will pay for itself after checking delivered goods are received based on specifications and presence of funds in a company’s account. At the moment, ‘smart contract’ technology is being used in the legal industry, but the applications are wide spreading.

 

There is a lot of business in Blockchain, start to develop your knowledge now so you don’t get left behind

Blockchain spending

Artificial Intelligence – The Future of Finance

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Artificial Intelligence – The Future of Finance

If someone said the letters AI to you 20 years ago, you would think they were insane. The prospect of artificial intelligence never seemed real but since the technology era really took off, AI is a reality, not just a dream. Each and every day we are subject to artificial intelligence, from auto-correct on phones and computers to Siri and Google assistant on your smartphones.

The corporate giants are investing heavily in AI because they know it’s not the future anymore, it’s the present. AI provides so many possibilities that us mere mortals never thought possible, that’s why our absolute favorite corporation – Xero are investing heavily in this transformative technology. Unfortunately, as with all technology advancements, there are misunderstandings and massive concerns. Does Skynet ring a bell, anyone?

The Difference Between AI and Machine Learning

AI concept creator John McCarthy explains AI as: “every aspect of learning or any other feature of intelligence can in principle be so precisely described that a machine can be made to simulate it.” This definition moves away from the concept of ‘thinking machines’, as we’ve seen in the Blockbuster  ‘Terminator’. The definition of AI varies based on the goals corporations are trying to achieve.

Machine learning is a data analysis technique that teaches computers to learn from experience. Machine learning uses both supervised and unsupervised learning to predict future outputs and find patterns or structures within input data. Machines use learning algorithms to ‘learn’ information directly from data without relying on predetermined equations as models.

Google Assistant

Tech Mogul Google has always been the forerunner with technology, especially with the release of the small but powerful Google home. Google home utilises the intelligent and responsive google assistant that you can find on any 2016+ Android or Google smartphone. This tiny inexpensive gadget sits anywhere in your house or office and provides you with a whole myriad of features, including but not limited to: playing music, sending directions, providing weather and traffic updates.

Appointment Setter

Even though Google is absolutely obliterating the AI market with Google assistant and Google home, they are furthering this development even more. Enter stage right, the Google Duplex. What is Google duplex? Another step in the direction of advanced AI. Google Duplex is an appointment setter, not an online one mind you, but Google Duplex actually calls the restaurant or hairdresser that you want to book at.

The Backlash

Unfortunately, this new technological advancement has prompted concerns about the ‘fate of the human race.’ In a nutshell, people are worried that we are playing with fire and are about to get burnt. Some claim Duplex is not only strange but completely unethical whilst others are applauding Google for this massive feat. I don’t want to imagine how many man-hours went into accurate speech recognition. Those against the innovative technology said it was immoral for the robot not to identify itself prior to booking the appointment. Google has since given in to these demands and will avoid the assistant ‘deceiving’ humans when setting appointments by identifying itself as a robot to the recipient.

Will AI Affect the Way I Work?

Because of the second payments directive PSD2, significant changes are coming to the accounting industry (significantly good that is). Finally, the big banks won’t be allowed to hold onto user data, this vital information can now be shared (with user permission) to third parties. What does this mean exactly? Management accountants and business advisors will be able to utilise businesses’ banking and account records to accurately predict data and turn towards intelligent cashflow.

 

Why You NEED an Online Presence to Succeed

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Social Media

Prior to the technology boom, everyone found businesses in the yellow pages. Unfortunately, these days’ local listings, newspaper advertisements, and any other print medium just won’t cut it. No matter how amazing your business or product is if you aren’t online, you are invisible. Having an online presence can make or break a small business.

The Why

If people are able to find you through a quick google search, google maps or a social media campaign, then you are on the radar. Just being seen isn’t enough, just like the cliché ad you hear at Southbank Cineplex “don’t just be seen, be heard.” Having an up-to-date website is as important as having one in the first place. It’s not only beneficial for yourself (avoid negative reviews) but also your customers.

When I mention an up-to-date website I don’t mean a complete overhaul once a month to the excess of thousands of dollars but instead, I mean a little sprucing up. Content should always be updated, especially if you change address, prices, or even the business name. Time dedicated to creating an online presence is time well spent, especially for small business owners.

 

Online - Why?

Here are the top reasons to increase your online presence:
  1. Become More Accessible – enhance your online presence to stay ahead of the competition. You don’t want a potential customer to pick your competitor over you, so why make it easier for them too?
  2. Cast a Wider Net – these days there are hundreds of social media applications, groups, and even advertising platforms (all thanks to the internet), so why not use them to your advantage? Let the customer come to you, instead of going to them.
  3. Build Consumer Relationships and Trust – reviews will be your next best friend. You have the ability to reach out to unhappy customers and avoid your name being dragged through the mud. Positive reviews can enhance your business in the public eyes. If you can maintain at least 4 stars on Google, Facebook, or the like – you’ll maintain an online presence.
  4. Effortless Marketing – consumers can browse your products, hours of operation, and much more important information with the click of a mouse.
  5. Find What Works and What Doesn’t – easily see the effects of a marketing campaign, track website traffic, and social media statistics. Every inch of your online presence can be measured, thanks mostly to Google Analytics.

 

The How

  1. Create a visually appealing website – with up-to-date information and working links
  2. Create a Facebook and Twitter account – these will give you access to not only a new audience but also allow you to share any news, events, or discounts with the click of a button
  3. Search Engine Optimisation (SEO) – focus on important keywords that relate to the information on the webpage (needs to be done for each webpage). This allows Google to pick up said keyword without the use of advertisements. Essentially allowing potential customers to find your site without relying solely on paid advertising
  4. Hire Someone – you don’t need to hire a university graduate, in fact, you’re better off hiring someone studying marketing or advertising to work either one or two full days a week. This will increase your marketing budget but will be better utilisation of your time. They can complete all your marketing tasks, keep your social media and website up to date, and work on both SEO and AdWords. This means you don’t have to pay hundreds of dollars a month to multiple companies to stay relevant

Conclusion

Building an online presence doesn’t have to be rocket science, there is an entire wealth of technology just one search term away. Create blog posts, maintain your website, utilise social media, and your marketing will be far more effective.

Security – The Endless Dilemma

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Internet security

 

In this day and age, nothing takes precedence more than security. When I say security, I’m not talking about locking your front door or installing a home security system. I mean keeping your account and business information secure and encrypted.

Attention-grabbing headlines relating to online scams, hacks, or viruses are endless, we are constantly trapped worrying that our secure data is being uploaded to someone halfway around the world. Despite these endless stories, the internet is still safe for businesses – provided you take necessary precautions.


Information Matters

No matter what hard drive you use, IT guy you’ve got on speed dial, or how locked tight you keep passwords; your valuable information is NOT safe. From accidentally spilling your morning coffee, to a virus infecting your system and stealing all your valuable information.

Viruses have been plaguing computers well before illegal downloads occurred. In fact, computer viruses (or worms) first began in 1971 with ‘The Creeper Virus’. The first worm was simply an experimental program that became self-replicating, and an anti-virus program was created to remove it. Whilst virus and anti-virus are considered quite yin and yang, security packages just won’t cut it when a hacker wants your information.

To defend against these notorious criminals you don’t need to hire a professional anti-hacker for combating worms, you simply need to move your accounting to the cloud. The cloud replicates your data in different locations to make sure it’s both secure and available when you need it. Not even a natural disaster can affect your accounting data.

Your decision

If you’re thinking about moving your accounting the cloud, look no further than Xero. Security is the top priority and Xero takes every measure to ensure your information stays safe. You won’t need to research what cloud company to join, as Xero has done their due diligence and already utilize a secure and reliable company.

Make Technology work for you

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Your small business

Running a small business seems great in theory; you’ve got the benefits of being your own boss, extra income, flexibility – the ‘Australian dream’.

When in reality you’ve got hours of administration work, constant pressure of cash flow, and endless hours working on the small minute financial details of you business. With revolutions in technology like the famous ‘cloud’, how come you still have hours of bookkeeping, payroll and the like?

The cloud isn’t the be all end all

Great, you’ve setup your business and transitioned everything into the cloud. Have those hours of painstaking work dialled back? Or has it just gotten worse? The cloud isn’t user friendly and unless you’re prepared to take up another university degree or spend hours reading through multiple guidebooks on bookkeeping, payroll, and marketing. When you’ve got inventory, cash flow, supplies, and clients/customers to worry about, how can you spare the time?

The cloud, bookkeeping applications, payroll software won’t save you time, it’ll just increase your workload.

By now you’re thinking, why did I ever start this small business, will it ever succeed? Don’t worry; you don’t have to handle all of this paperwork on your own. Luckily, there is a major time-saving solution just one phone call away.

 

The truth about the digital age

Going digital isn’t all that, sure it’s great in some aspects but sometimes you really need a human element. This isn’t new to the technological world either. Many major companies such as Apple and Spotify use ‘real human beings’ to create popular playlists.

Not to mention those little food apps like Foodora and Uber Eats that combine technology with real human beings. Would you trust a robot delivering your weekly order of Mexican? It doesn’t even begin with these guys, full stack businesses have been around since smart phones came into existence!

But this article isn’t about your food delivery needs, so let’s get back to the topic of your business. Apps won’t make your professional life easier like they do with your personal. You need a REAL solution; well don’t worry reader that’s where professionals come into play.

And by professionals I mean, accountants and business advisors. Don’t worry you won’t need to open a new tab and scour the internet for a business advisor that actually makes sense. We’ve got you covered!

 

Xero: The beginning of the end

Xero is definitely a life changer, as we’ve discussed before but it can also be a hassle if you don’t know what you’re doing. Small business owners enjoy using Xero as it makes accounting fun but in the long run some are making a mess of things. I mean, if you join a bookkeeping Facebook group, you’ll see what I mean.

Enter: a Xero-savvy business advisor with a free one hour training session. Now before you go rummaging around for your keys, you’ll need to book as everyone knows time is valuable.

 

What if I still can’t get it right?

You’ve gone through your free training session, maybe you’ve booked a few more but you still can’t quite get the hang of it? Lucky for you our tech-savvy advisors know Xero inside and out, so you don’t have to!

And here’s the absolute kicker; choosing a business advisor over a DIY can not only save you time but it’s less risky and less expensive than hiring an in-house bookkeeper. So if you aren’t up to the task of sorting out your payroll, taxes, accounts receivable, and accounts payable, then I advise you to give us a call or book a consultation.

 

Blockchain Technology – The Future of Transactions?

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Blockchain – Painting The Picture

Have you ever thought about the ‘middlemen’ that are involved in your daily transactions? Think about when you buy a coffee from your local café – a bank confirms the amount you need to pay to purchase that coffee and then sends that amount to the café owner. Now let’s relate this to a larger scale business example – an auditor will examine a company’s financial records to ensure accuracy, and make sure that they comply with laws and regulations. Blockchain is an upcoming technology that might remove the need for these intermediary services.

The Blockchain offers the chance to bypass the middleman and provide secure verification for all sorts of transactions – saving time and money by eliminating the need for third party processes. John O’Connell of Macquarie Group has touted the Blockchain as “a layer of trust on top of the internet”. With this technology, there is the potential for vast improvements to transaction security and speed, market visibility, and elimination of fraudulent activity and disputes.

How Does It Work?

Blockchain technology is different to the classic accounting ledger – which typically records transactions in one place. The difference with the Blockchain is that it stores transaction information in several “blocks” creating an audit trail that builds as more information is added. Every party involved in the transaction is able to access the Blockchain, and are all responsible for maintaining it.

blockchain

Implications

There have been concerns that the Blockchain could disrupt several industries; this technology could mean that there would not be any need for auditors to verify transactions conducted in the Blockchain. The presence of the Blockchain also eliminates the need for accountants to reconcile and process transactions, leaving companies, their clients, banks and tax authorities to record and share information independently.

However, several experts have assured that this technology will not displace the need of financial advisory – they instead see the Blockchain working synonymously with accountants. Claire Mackay, principle advisor at Quantum Financial has insisted that Blockchain technology will enable advisors to provide a faster and more efficient service, but the interpersonal relationship between the advisor and the client will still remain the key to business moving forward.

One thing is for sure, the Blockchain has the possibility of transforming accounting, audit and banking – creating one true record of transaction. Due to these changes, these services might have to re-evaluate the way they operate in the near future; ensuring that they still offer a value proposition that won’t be eclipsed by fast moving technological development.

 

Information gathered from intheblack.com

 

Post Contributor:
Andrés Pascoe

The New Payments Platform…Finally!

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The Current Problem

You go out to dinner with friends, you’re having a great night & what could possibly go wrong? Then the end of the night comes, and the waiter utters that dreaded sentence…

“Unfortunately we don’t do split bills…”

This is a hassle that we have all experienced as with the high dispersion of banking providers among consumers, there is bound to be at least one of your friends that uses a different provider to you. As we all know, it can take up to 3 business days for payments to be transferred between different banks – which is extremely frustrating.

Although this delay can be a pain for consumers, perhaps the biggest sufferer of delayed inter-bank payments in Australia is small business. Late payments have been described as the “silent killer” of Australian small businesses. Another major problem for small businesses in Australia is poor cash flow – research has found that small business owners spend an average of 12 days in a year chasing unpaid invoices. This forces small businesses to focus on surviving rather than thriving, due to the stress that arises from chasing these payments.

Australia is a front runner in embracing electronic payments, however Australia’s existing infrastructure does not have the capability to support the evolving needs of a 24/7 digital economy. The RBA has now come up with the answer: The New Payments Platform. The New Payments Platform or NPP is a platform that: “Can empower businesses to become more efficient, reduce costs and improve their customer service.” A big win for Aussie small business!

Happy

The Way it Works

Basic Infrastructure

Users will be able to transfer money between bank accounts in real time, through an identifier such as an email address, phone number or ABN number. This provides unprecedented efficiency and convenience with transferring money (no more sharing of lengthy BSB and account number details). Users will also be able to include richer data with each payment – 280 characters will be allowed to be added to each payment rather than the 18 characters currently allowed by banks, which will facilitate e-invoicing and instant processing.

Fast Settlement Service

The Reserve Bank of Australia will provide the Fast Settlement Service (FSS), which enables all payments made on the NPP to be settled in real-time central bank funds, across each financial institution’s Exchange Settlement Account (ESA).

Overlay Services

Overlay services are payment related products or services that can adopt the benefits of the basic infrastructure. This provides a platform for competition and innovation, with each product and service having the possibility of offering differing or similar experiences. The first Overlay Service to go live on the NPP will be Osko by BPAY.

This new platform represents a great opportunity for small business in Australia, as a more efficient, accountable payment system is a welcome change to increase productivity within small businesses. Small business is continually proving to be a crucial contributor for Australia’s economy, and is a sector that can benefit greatly from the New Payments Platform. We can’t wait for this system to kick in, as we are looking forward to seeing our clients experience the benefits of this new system!

Post Contributor:
Andrés Pascoe

EFTPOS Minimum? Australian Consumers Are Cashing You Later

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How frequently do you go to your local café and pay for your morning coffee with a crispy fiver? The reality is that as soon as ‘medium cappuccino’ is rolling off your tongue, the café staff member is most likely entering the amount due into their portable EFTPOS machine, assuming that a cashless transaction is about to occur. Cashless payments are becoming a more prevalent trend in business transactions around the world, with Australia as one of the front-runners of this revolution.

Research conducted by market analysts East & Partners has shown that cash payments currently make up less than 10% of all payments received by Australian merchants, additionally; between 2010-2016 the amount of cash payments within Australia has fallen around 46%. This has been quite a quick transition for Australian businesses, as only 10 years ago cash payments represented 70% of all Australian transactions according to RBA. East & Partners have also claimed that only 2% of all transactions will be paid via cash within the next 5 years.

In a society that craves convenience more and more every day, these statistics definitely make a lot of sense. The prominent rise of cashless payment systems can also be attributed to leading edge organisations such as ride sharing service Uber utilising cashless payment systems, whose success with an online payment system is currently putting their competitors at a major disadvantage. This has created a knock on effect to all small businesses operating in Australia, in that Uber’s success with cashless payment systems has in a sense set a standard for convenience. The benchmark has been set, and it has become crucial for Australian businesses to aim for this level of convenience.

The modern consumer is time-poor, and a minor inconvenience such as a $5 EFTPOS minimum can now be a crucial factor for a consumer’s purchase decision. Technology is continually proving to be a crucial aspect of the successful operation of a business, and this is something that we as business advisors are extremely passionate about.

Post Contributor:
Andrés Pascoe

How Agile is Your Business?

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how agile is your business

It is widely known that successfully operating a small business comes with plenty of challenges. The long hard days of trying to manage every activity within your business everyday can be extremely time consuming and tiring. Thankfully, we live in a day and age where there are readily available tools specifically curated to help a small business owner overcome these challenges, and importantly present them with a platform to grow. These tools have all been made possible by the continual marriage of technology and business within the last couple of decades. We can think of technology and business as a relationship that started off rocky, but now the connection is stronger than ever, to the point where the two have become interdependent. And there are no signs of them breaking up anytime soon.

The importance of technology

Stepping back from the view of a small business and glaring into the landscape of the general business environment, we can make one obvious assessment: technology is the number one factor that is influencing today’s business climate. It is important to note that tech affects all businesses, regardless of whether your business is directly concerned with technology or not. Although this evaluation is an obvious one, few business owners realise how quickly this implementation of technology has to occur. The rate of digitisation of business is accelerating, as organisations try to keep up with the rapid technological changes occurring within each industry.

Innovate your business model

In order to keep your business relevant in today’s age, you not only have to improve on a competitor’s business model, but continually think of how you can improve your own business model! This sense of continual innovation within your business can enable you to be adaptable to change. We believe that small business owners can utilise cloud accounting software such as Xero to alleviate the stress of time consuming activities such as book keeping, giving you the time to complete more dynamic tasks. We also believe that using a tool such as Xero allows us as advisors to collaborate effectively with small business owners to make your business more agile. By agile we mean that we can analyse your business’ real time data, from which our advisors can directly propose where decisions can be made, creating more value, efficiency and ultimately more revenue for your business.

Contact us on 07 3367 0852 for a free consultation, and we can present to you how collaborating with us through the use of Xero can make your business more efficient, and free up more time for you to utilise on other necessary revenue building ventures within your business.

Post Contributor:
Andrés Pascoe