RA Business Advisors

technology

How Strong Is Cloud Security?

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Data Security

All SMEs including accounting firms have a common issue: security, with ransomware, data breaches, employee theft and scam artists becoming an increasing issue for all companies. Unfortunately, the security market is becoming more convoluted with merchants who only care about sales, as well as poorly made “silver bullets.” How do we keep our firms secure amongst all the noise? We simply have to seek out experts and keep ourselves informed.

One of the biggest debates when it comes to considering your data security is what do you use to share data? How do you share access to apps? Well, as Ping’s senior technical architect Sarah Squire explains

“the two best practices are to encrypt data when it is stored and when it is transferred. When transferring to a client, the client needs a private encryption key on their computer to decrypt the file.”

What is identity management and why do I need it?

Identity management may be a foreign concept to many of us, but this is another integral practice for securing your firm. Employing identity management means setting up identities for each member of a firm and giving them separate permissions for logging into your software.

A common solution to the use of identity management is a password manager, either locally or through the cloud. However, as Sarah Squire states “(Password managers are inferior) because a password manager is controlled by employees. You could have an employee who is a bad actor and you need to log them out of all their apps at once.”

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.

 

Small Business Owners: Why they can’t sleep

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Can't sleep

Why Small Business Owners can’t get any sleep

Time management and cash flow concerns are keeping Small Business Owners (SBOs) awake at night. They are constantly fretting over slow paying debtors and an endless lack of time. I’m not going to bore you with statistics but if you’re interested, check out the graph below:

Reasons why Small Business Owners can’t sleep

Slow paying debtors

Small businesses always seem to find themselves at the mercy of slow paying debtors. Picture your business as a scale, on one end you’ve got creditors and on the other end, you’ve got debtors. Unfortunately, big businesses don’t give you much time to pay (that phone bill is due ASAP), whilst debtors use small businesses as a source of working capital. According to the Australian Competition and Consumer Commission, three out of every four businesses are paid late (link). Thinking back to that scale, if your debtor pays on time the scale tips in your favour (providing cash flow), if that debtor pays late, the scale tips towards creditors – meaning debt.

Where does the time go?

Many SBOs complain they don’t have enough hours in the day to do everything that is required for their business. The majority work a minimum 50 hours per week (that’s roughly 10 hours a day for a five day week), yet state they still can’t get everything done. As much as they would like to explore alternative ways of improving their cash flow, they never have the time!

Unfortunately, technology hasn’t been as advantageous as we previously thought.

See: Make Technology work for you

Reduce the risk

  1. Set a maximum figure for outstanding total invoices – if a customer has not settled their outstanding account, bar them from receiving more products or services until the account is settled
  2. Upfront pre-payment – Opt for upfront pre-payments with as many customers/clients as possible (i.e. service plans, fixed monthly plans, etc)
  3. Obtain part payments (milestone) for larger projects
  4. Pay your bills manually – opt for manual payments, rather than direct debit. This can help greatly with cash flow timing issues

Often cash flow problems are caused by out of date bookkeeping and slack financial management.

We can help

At RA Business Advisors, we can assist our clients with a whole range of services, including cash flow analysis. We can identify what’s blocking your incoming cash flow, and help you with strategies to overcome it. Sit down with one of our friendly advisors for a coffee and a chat.

To chat with one of our advisors call 07 3367 0852 or email mail@raaccountants.com.au

 

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.

 

7 Resolutions to a Better Business Year Ahead

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REPEAT AFTER ME…

I will manage my cash flow more effectively.

Before even attempting these resolutions having a steady cash flow is vital! A prominent study from the financial services company U.S. Bank found that 82% of start-ups and small businesses fail due to poor cash-flow management. Read on if you want to be an exception!

I will improve my digital presence.

Don’t let valuable customers slip through the cracks of a poor web presence. Even if your website and email marketing list is up to date, when was the last time you checked if you’re web-presence was mobile friendly? Have you tried your hand at social media? Now is the time!

I will invest in much needed technology/equipment.

Nothing stunts productivity, and frustrates employees more than being stuck in the dark ages when it comes to fast advancing technology. Slow internet speeds, clunky operating systems and inadequate tools can eat up valuable time. While it may feel like a big investment it’ll pay for itself in future time saving.

I will learn something new.

If the end of the year is quiet for you, build in reading time and supplementary training to refresh the skills of both you and your employees! Industry blogs, books, magazines, demo videos are just a few in the long list of resources at hand that will enable you to be on top of the trends in your industry.

I will strategise weekly.

It is easy to steer off track when you forget where the track is leading. Each week you should remind your team of their individual and collective goals for the week.

I will build a promotions Calendar.

Holidays such as Easter and Valentine’s Day may seem unnecessary but they are designed to be vital marketing opportunities for any business. So get your calendar out and use the appeal of these festivities to your advantage.

I will consider my Hiring needs.

Of course none of the above can be done without the commitment and dedication of loyal employees. While running on skeleton staff may seem cost effective short term, make sure you don’t take it too far leaving unnecessary strain on your current staff. Consider hiring casuals to alleviate some of the excess pressure at peak times.

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

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