Technology Archives - Foley Business Management

Which accounting package is better for bookkeeping? MYOB or Xero?

We hear people talk about how good MYOB and Xero are. But which one is best for your business? Choosing which accounting package when asking colleagues and professionals has become like asking which is the better v8 Supercar maker, Holden or Ford? Who is going to win State of Origin, the Blues or the Maroons? Or which is better to shop at, Coles or Woolworths?

Bookkeeping is a critical part of any small business, so we shouldn’t be deciding which accounting package to use simply by the preference of others. Let’s look at what you will need to consider when deciding.

1. Who will be doing your bookkeeping?

If you have a bookkeeper who will be doing all of your bookkeeping for you, then the decision of which accounting package may already be decided. Many bookkeepers now only train in using one accounting package, be it MYOB or Xero. If you or one of your staff will be doing the bookkeeping, they may only be trained in one or neither of the two accounting packages.

2. Do you have access or good connection to the internet?

Being able to access the internet is a crucial part of deciding whether to use MYOB or Xero. Xero is a cloud based only package, therefore you can only use it while you are connected to the internet. So if you have poor or no internet connectivity, then Xero may not be the best accounting package for you. MYOB have accounting packages that do not require to always be connected to the internet. You can work on the business file without being connected and upload it later. Read further as to the different packages within Xero and MYOB.

3. Useability.

If you intend to do your own bookkeeping, Xero is definitely a much more user friendly accounting package. Their training tutorials are done on video for each module of the accounting package. The core package is very simple in features and to navigate. MYOB can feel a little clunky to use if you are not familiar with it. It can be jammed with features creating confusion when trying to find and do things.

The counter to this is MYOB will have many of the features you will require later and these are already included in the package. Xero is very light on features, meaning later you may feel it lacking in functionality and will require add-ons to access or improve on features. We will discuss add-ons later.

4. Packages within the Packages.

Both Xero and MYOB have different packages within the packages. For example MYOB has AccountRight and MYOB Essentials. While Xero has Starter, Standard and Premium. We will be discussing MYOB AccountRight and MYOB Premium.

An example of this is Payroll. MYOB AccountRight has an unlimited number of employees you can create in the payroll. Xero is limited in the core package to only 5 employees. MYOB AccountRight has job costing included while Xero projects is a fee per month.

So understanding what you will need now and in the future is important in deciding whether to purchase MYOB or Xero.

5. Add-ons

Accounting packages are becoming more about the add-ons then about the accounting package…. and for good reason!

Add-ons are additional applications that you can use to ‘attach’ to the core MYOB or Xero accounting package. What’s great about add-ons is that they can essentially allow you to customise and supercharge your accounting package to your business needs. The only thing is being able to know what add-ons you will need and what they can do. MYOB has some 400 add-ons while Xero has over 1,000. The categories of add-ons can vary based upon industry, function or category. The ability to negotiate which add-ons you need has become an industry within itself.

Also the need and cost of add-ons. As previously discussed, Xero is a very light but very simple package. It has become a darling of the technology world for its REST API (Tech talk for ‘it connects with other software applications very well’) as it allows software developers to create applications to add features to the core Xero package, hence the greater number of add-ons with Xero. Again using Payroll as an example, after 5 employees you will need to pay for more employee licences with Xero or look to using and purchasing another add-on that will facilitate the number of employees you need now and in the future.

Add-ons are generally priced as a monthly subscription and can then increase with features and licences. This needs to be a factor when considering price which will be discussed later. Many add-ons now integrate with both MYOB and Xero, which is something to consider later when we discuss current and future needs.

6. Current and future needs

We sometimes buy only considering what we need now, without considering what we need in the future. Consider what your needs are not only now but later in your decision. Will your change in needs be accommodated by either MYOB or Xero package you’re using now or will you need to upgrade the package or purchase an add-on later?

While we cannot predict the future we can consider it for our current purchasing decisions.

For example, you may use an add-on that is of tremendous value to your business. But you may decide to change from MYOB to Xero or Xero to MYOB. If the add-on integrates with both accounting packages then great, you can change and continue using the add-on. But if it doesn’t then you may have to make the decision of either changing accounting packages as well add-ons, or keeping the add-on and therefore staying with the same accounting package.

7. Price

As discussed, both MYOB and Xero offer different packages within their suite of products. Both products will offer a monthly subscription service. What is also needed are any add-ons that allow you to use the package for your everyday needs or to allow you to supercharge parts of your business by attaching customised add-ons to save money or time or make you money. The price of the packages should not be considered on its own and should be considered as part of a number of factors including add-ons, cost savings, time savings and increased benefits. To find out more about pricing visit the MYOB Price Plans and Xero Price Plans.

8. Still don’t know which accounting package to choose. MYOB or Xero?

Foley Business Management is both a MYOB Partner and Xero Certified Advisor. What this means for our client’s is that we can assist them to make a more informed business decision in what accounting package is best for them. We take into consideration all of the above factors plus many more when advising you which accounting package is the most appropriate for you and your business. Choosing which accounting package to use is critical in your business success. Do you want to make such a crucial decision without the right advice? Then contact Foley Business Management to discuss how we can help you make the right decision.

All information in this article was correct at the time of writing.

Digital Disruption- Why isn’t Leeanne Enoch’s son getting his drivers licence?

I had the privilege to hear the Hon, Leeanne Enoch, then Queensland Minister for Small Business, Science and Innovation speak at a Logan Chamber of Commerce business breakfast. For many in the audience, the story she told was a wake up call to the changing world we will be living in.

Leeanne spoke about how her first son, now 20, was so eager to get his drivers licence at age 16. He was completing his logbook and pestering his mum for driving lessons to complete his logbook hours. As soon as he turned 17 he was going for his ‘P’ drivers licence. For many readers this is the same situation many of us went through.

But for her second son, now 16, the experience is completely different. His mum wants him to get his licence so he is independent to drive himself places. He has no interest in getting his licence, to his mums obvious disapproval. But why isn’t he bothered with getting his licence? Well his debate is one his mother, an exceptional politician, couldn’t question! To paraphrase the Minister and her son-

“Mum, why is having a drivers licence so important? I/m 16 and I take the bus. But in a only a few years if I want to go somewhere I will take a car, but it won’t be the same way we currently use them. I won’t own a car. This will save me money by not having to buy one, maintain it and pay insurance on something I only use a few hours a week. Instead, I will pay for the hire of a car. I will use my smart phone, or another mobile device, to order a car to come pick me up. This will be similar to the current car sharing economy apps we already use.

I won’t be needing my licence. In fact, needing to know how to drive a car will be unnecessary. The car that comes to pick me up will be selfdriving. It will be one of the many different types of self driving cars that are being tested right now! The car will pick me up, drop me off to where I have ordered it to drop me off. The car will then drive off to pick up its next passenger.”

To further her son’s argument-

The car will be in use 24/7. This means we will see the age of vehicles on the road reduce to be no older then 5 years as they will quickly rack up the kilometres.

It will also mean reduced need for parking space and storage of cars in home garages or on streets. In fact, the cost of the fair will be reduced by selecting to share a car with others also going in your direction. This will reduce the number of cars on the road. We will also have less environmental emissions as a result. Not just because we are using electric cars, but because they will be powered by more environmentally friendly sources of energy as solar.

That is an argument that is being had today. What arguments will be had in 5 years time with teenagers?

From The Oscars to Graduate Recruitment Videos

https://www.youtube.com/watch?v=0zlEFTgk1tg

Within days of each other accountants have been in the ‘spotlight’ for getting laughs….. but not for the right reasons. First, the mix-up with an Oscars envelope for ‘Best Picture’ now termed envelopegate. Second, an ‘excruciating’ recruitment video from the Australian Department of Finance to attract graduates. So how are accountants viewed?

Trust is key

While we do have our moments, generally accountants are viewed as one of the most trusted professions. In fact we have been consistently ranked 11th in the Roy Morgan’s Annual Image of Professions Survey. Deloittes was ranked number one to work by graduates by GradConnections. But the accounting profession has been undergoing significant change.

Meeting client growing needs

Accounting firms are now calling themselves ‘consulting’ firms and their accountants now referred to as consultants. Why? Because the profession is now becoming a more broad service provider to business. No longer are we just ‘number crunchers’ and ‘bean counters’ preparing tax returns and financial statements. Our services have gone further into providing advice and information to business managers. This allows business managers to make more informed decisions. Technology now extends into providing information technology services in accounting. For larger firms they are becoming ‘one stop shop’ business service providers to business. This has seen them competing with consulting firms as McKinsey & Co, Bain & Co, Boston Consulting Group.

Remaining relevant with customers

Bookkeepers and management accountants are no different. With the introduction of Goods and Services Tax in Australia, the role of bookkeepers has become important. Our role with owners and management has become more intimate. Business is becoming more technology based through transactions, e-commerce, online banking, cloud accounting and many addon features. Our knowledge, skill and experience is critical to success. It’s becoming necessary for business to keep up with competitors. Remaining relevant with customer technology needs is required by business.

Technology key to innovation

To demonstrate how technology influences business, let’s look at some of the best performing USA stocks in the last 20 years. We see Facebook, Amazon, Microsoft, Google and Apple. Watching Sky News “Smart Money”, Xero Managing Director Trent Innes identified the cost benefits to business using cloud based technology, allowing remote access to their business on mobile devices as smartphones and tablets. This allows business success through innovation and improved cashflow management. This is followed by CEO Simon Griffith from Who Gives a Crap, an online social enterprise. Their purpose is to build toilets for those in need by selling 100% recycled paper cleaning products online. They use tehnology to streamline their logistics and warehousing to minimise costs.

We’re human, but we’re needed

So yes, accountants or consultants are human. It is what makes the profession one of the most trusted and sought after. Our work is wide and varied as our clients needs change and evolve. Management accountants are sought for our intimate understanding of our clients. This allows us to provide insights they could not achieve on their own. Our role is no longer bean counting. It’s now advising and using technology to allow business owners and managers to make more informed decisions. Technology is now a growing part of the service provision for clients. Innovation is essential to for businesses to remain relevant with their customers, now and in the future.

Why Foley Business Management is relevant to your business

Our purpose is to build sustainable communities and to create a better world for our childrens’ children.

This is why we take a holistic approach to our clients, not just preparing financial statements and leaving it to the client to work out on their own. We provide financial management solutions to small businesses, not for profits and social enterprise so they can make informed decisions. For many people, owning a business is a big step. One that will affect you, your family and your community.

If you would like to speak to one of our consultants for a free 30 minute consultation, please contact us to organise a time that is convenient. A business can be a rewarding experience for you, your family and your community! Let’s make sure you do it the right way.

BEWARE accounting package addons- Don’t get burnt by the sizzle!

Addons for small business accounting packages, as MYOB, Xero and Quickbooks, are now becoming increasingly popular to use by small business owners. They offer an efficient and effective way to improve profits and reduce costs. But there are quite literally thousands of addons in the marketplace. So where do you begin? As a management accountant with experience with the addon industry, BEWARE. There is a saying in sales…..

“Sell the sizzle, not the steak”

What this means is that you do not sell the customer the product, you sell the benefits the product offers the customer. For example, you may buy a shirt not because you need a shirt, but because you like the colour and design of the shirt. The salesperson will compliment you on how it looks on you. But many people have experience in buying their own clothes. How many small businesses have experience in buying accounting addons?

Experience adds value

For the inexperienced, knowing where to find the right addon can be difficult. But what can be of greater concern is being sold something that is not right for your business, or your business doesn’t even need.

The makers of addons are out to sell their product. For the unknowing buyer, this can mean being sold a product that is not everything the seller is promising. For example, I recently contacted an addon supplier to be given a demonstration of their product as part of an evaluation for a clients problem. In being given the demonstration, I asked questions of the product as “Where does it extract it’s data from? Does it work with these features of the accounting package? Will you be making improvements in these areas?”. These questions allowed me to identify the addon was not suitable for the client.

Salespeople SELL!

These are important questions many small business owners will not consider as part of the product. Instead, the salesperson will lead them through to the buy. Is it the responsibility of the salesperson to tell the business owner to ask these questions? NO! The role of the salesperson is to SELL the product, not to put up potential reasons for the business owner not to buy. The salesperson is responsible to answer your questions or find the answer when asked. But sometimes the sales pitch doesn’t tell the whole story, or tells you what you want to hear.

Don’t get burnt by the sizzle!

If you’re not experienced, it’s very easy to buy an addon that is not right for you because you were sold by the salesperson. DON’T GET BURNT BY THE SIZZLE! There are some ‘consultants‘ that also offer to find or sell you addons for your accounting package. What is not disclosed is the consultant may receive an incentive or commission from the sale. So you may be told that it’s the right product for you, when in actual fact it is the commission that determines what product they direct you to. I am currently seeing LinkedIn and Facebook posts for a particular type of addon being pushed by consultants. A product I know pays a very good commission based on the marketing strategy of the supplier. There is nothing wrong with this. As business owners we can relate to having a business where you want to maximise sales.

Does Foley Business Management receive incentive’s or commissions?

Yes we may. But we disclose this as part of our engagement with the client. We also make it clear we are acting in their interests as our client and not in the interests of the suppliers or our own. In fact, we have probably gone beyond this by announcing to the world in this article we may receive incentives and commissions! But we value the trust in the relationship we have with our clients by assuring them our advice is based on what is in the interests of them and their business, not what we are paid by the supplier.

Why does Foley Business Management want you to know this?

Our purpose is to build sustainable communities and to create a better world for our childrens’ children. It is easy to be sold something that is not right for you and your business. It can potentially make a good business go bad very quickly. Knowing what is best for your business is the right thing for all involved.

This is why we take a holistic approach to our clients, not just preparing financial statements and leaving it to the client to work out on their own. We provide financial management solutions to small businesses, not for profits and social enterprise so they can make informed decisions. For many people, owning a business is a big step. One that will affect you, your family and your community.

If you would like to speak to one of our consultants for a free 30 minute consultation, please contact us to organise a time that is convenient. A business can be a rewarding experience for you, your family and your community! Let’s make sure you do it the right way.

Xero Roadshow 2017 Brisbane

The Xero’s Roadshow for 2017 in Brisbane gave some great insights into some of the features that not only already exists, but they will be releasing. We were also able to hear from addon providers who had stalls at the event. The number of addons and apps you can now have either attached to Xero or as separate features is always growing and changing.

Why having an accounting package will improve your business success!

According to ASIC data, after 5 years the success rate of a business is 51%. Who enters into business with the odds of your business not being a success being 49%. You may as well toss a coin to decide if you go into business!

For a business that uses an accounting package, especially cloud software, this dramatically improves to an 88% success rate! The numbers speak for themselves, if you don’t have an accounting package, you are gambling with the success of your business.

Addon for Boosted Benefit

An interesting fact is that only 40% of businesses use an addon connected to their Xero package. While many apps don’t require being connected to your accounting package, businesses could be losing benefits of adding value to their business and clients by not doing so.

The scary thing is some bookkeepers don’t know what addons are out their to recommend to their clients. This means they aren’t even able to offer them the ability to decide if they could benefit from an addon.

As a management accountant, I am constantly looking at ways to not only improve my business, but those of my clients to ultimately improve their ability to make decisions. For this reason I provide clients with software evaluations.

Let’s be honest, as a business owner you want to do what you are good at. You don’t want to be on a computer doing research and being shown through demo’s when it’s not your thing! We can do that for you considering the needs of you, your business, your customers and your suppliers.

New Product- Fixed assets for tax purposes

This is a great new product addition to Xero. For businesses with assets, this will be a great way to keep track of what you do and don’t have. It will also assist with tracking and entering depreciation so you have more accurate reports. I look forward to using this feature for clients!

https://www.instagram.com/p/BQhNTxcg18L/?taken-by=foleybusinessmanagement

MYOB INCITE Roadshow 2017

https://www.instagram.com/p/BQKCT69gGv9/?taken-by=foleybusinessmanagement

Tomorrow, today

This event was predominantly for bookkeepers and accountants who use MYOB. The event opened with Gus Balbontin, former Executive Director of Lonely Planet. The theme of the event was ‘Tomorrow’. Gus spoke of how Lonely Planet had to adapt to the change of media and publishing from the ‘old media’ of papers and magazines to the ‘new media’ of the digital age where everything could be found at the click of a button. A reminder that if you do not move to meet what your customers want for tomorrow, then you will be left behind.

Customers buy holes, not drill bits.

The second part of the roadshow centred around add-ons and getting the most out of them. With a number of add-on exhibitors, this allowed me to re-acquaint myself with those I knew and those I had yet to meet. The event re-inforced the fact business needs are constantly changing. This includes accounting and financial management products. There are literally thousands of add-ons available and our business clients require us to be able to give them recommendations for these add-ons that will allow them to make informed decisions.

Leaders in Business

For this reason Foley Business Management invests time in understanding not only the needs of our clients, but the tools they require to make their businesses better to serve their clients. We are finding our services not only consulting to our clients, but to the providers of accounting and add-on software. Why? Because of our expertise in management accounting, we understand what is needed in software to make it a benefit to users. We are advising the makers of drill bits what the drill bit needs to be able to do and what it needs to do that serves the client.

Businesses need a hole.
Add-on providers make drill bits.
We advise Add-on providers what is needed to use a drill bit, such as a power drill, and how the client will use it, such as in hard wood or soft wood.

How we can assist you and your business or ‘make sense of your dollars’

Our purpose is to build sustainable communities. What we do is provide financial management solutions to small business, not for profit and social enterprise that allows their owners and board members make more informed decisions. We do this by providing bookkeeping, management accounting and consulting services, specialising in the Indigenous sector.

Your business is a valuable part of the community. You provide employment, spend money in the community, provide goods and services the community uses and needs. We want to assist you to do this better by allowing you to make more informed business decisions. Basically, we help to make sense of your dollars.