5 tips for Xero users

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Five tips from this year’s Xero quarterly product updates

Did you know that Xero has an inbuilt calculator? Are you across Xero’s inbuilt timesaver features? Across useful ways to use contact groups?

1. Save time with the inbuilt calculator

Did you know that Xero has an inbuilt calculator? It allows you to calculate amounts as you create transactions. When you are in a numeric field in Xero, you can enter a calculation and then press Enter or Tab, and Xero will calculate the result. For example, entering 7+2 and then Enter will display as the number 9 in the field.

The calculator is available in the Quantity, Unit Price and Disc % fields in transactions, and the Debit and Credit fields in manual journals.

In new invoicing, discount percentages are calculated automatically, so the calculator isn’t needed.

2. Add planned payment dates from the Awaiting Payment tab in bills

This tip helps you manage cash flow and plan when to pay bills. You can add a planned date to a purchase invoice in the Awaiting Payment tab to create a planned payment schedule.

This is great for businesses with a daily payment limit on their bank accounts, because Xero totals the bills as you select them — so you can see if the total exceeds your daily limit. If you’re using short-term cash flow in Xero Analytics, this also makes it easy to keep your planned payment dates up to date, so your cash flow forecast is more accurate.

3. Use keyboard shortcuts to navigate around Xero

Here’s a great timesaver which you can use from most screens in Xero. If you enter the forward slash (/), you’ll open the global search. You can then type a letter to navigate straight to a page.

For example, entering ‘/b’ will take you to bills,  ‘/c’ will take you straight to contacts and ‘/d’ will take you to the dashboard.

4. Use repeating invoices for customers who pay a monthly fee

For businesses with regular sales to particular customers, repeating invoices can be a big timesaver. Let’s say one of your customers pays you a monthly fee. You can set up a repeating invoice template so Xero automatically creates a new invoice each month.

Set how often you want Xero to create the invoice, choose the date of the first invoice and then select when the invoice is due. If it’s the same amount each month, click ‘Approve for Sending’. Then each month, Xero will create the invoice, approve it, and email it to your customer.

5. Add suppliers to contact groups for the method of payment

This is a useful way to use contact groups. If you pay some suppliers by bank transfer and others by direct debit, add them to contact groups for the method of payment.

This lets you search the bills ‘Awaiting Payment’ page by payment type and you can sort, group, or filter the Payable Bills reports to make managing your bills payable and generating bank transfer payments easier.

Got a question about making the most of accounting or bookkeeping in your business? Get in touch with our Xero specialists who will be able to assist you with all your cloud accounting queries on 1300 015 130.

hiring

Attracting talent to your workplace

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7 Ways to Distinguish your Business in a Competitive Hiring Environment

Businesses need people to serve customers and grow. This requires ‘recruitment’ which can take many forms like hiring full or part-time, subcontracting, and offshoring.

Whatever the approach, a recruitment strategy should help the business to stand out from other options candidates are considering. This is especially important when fewer graduates are taking entry-level positions and attitudes to work are evolving.

We asked some recent graduates what attracts them as potential employers and to provide some examples. Here’s a summary of their feedback.

1. An Employer with Resilience

A majority of graduates said they want to ‘avoid employment uncertainty’, especially when beginning their careers. They prefer to ‘find their feet’ in their first role and MAY consider more ‘risky’ employment options later.

Lesson: A business which shows it has weathered (or even thrived) in tough times (without reducing the team) will be attractive to job seekers.

2. An Employer which Stands Out

A challenge in any industry is to stand out from the competition. Differentiation can take many forms including services, customers, working conditions or culture.

Lesson: Address the question. “How are we different?” throughout the recruitment process. You may not appeal to everyone… but are more likely to attract the candidates that will ‘fit’.

3. An Employer Offering Attractive Compensation and Benefits

This will be a factor in swaying an applicant’s decision, especially when considering several job offers. However, applicants don’t just consider the annual compensation in the first year. Many will look at longer-term earning opportunities, like bonus plans, equity participation, and non-financial benefits.

Lesson: Take a flexible view on compensation. Know that it is important but will mean different things to different candidates based on their ambitions. Tailor packages which will make sense to your target employees.

4. An Employer which is Flexible and Responsive

Many businesses will be on the smaller side (revenues, number of employees, etc.) compared to employers in other industries. But this can be an advantage. A small business can easily design attractive compensation plans, provide exposure to a wide range of duties and be flexible on employment policies. (Compare this to large firms, which can be impersonal and inflexible).

Lesson: Emphasise that you are flexible as an employer (while still maintaining good processes and discipline).

5. An Employer which Offers Advancement Opportunities

Career advancement can mean formal training. It can also mean exposure to new opportunities in a growing, dynamic business which will offer new management positions in the near future. A clearly-defined career path is attractive… but some candidates will recognise that the best and fastest advancement arises in ambitious firms which take on interesting and challenging projects.

Lesson: Demonstrate how people learn in your business both through your professional development activities and because of your bold, innovative approach.

6. A Successful Employer

Success means different things to different candidates but most want to feel proud of their association with their employer. Growth is an obvious indicator of success but other factors include a good reputation, significant customer engagements, industry leadership, prominent partners, a track record of innovation, and community service projects.

Lesson: Highlight your accomplishments, especially those which help you to stand out.

7. An Employer who Takes a Long-Term View

In some industries, businesses have short-term horizons, including the ‘exit’ of the founders as the business transitions to new owners. This can be appealing and exciting but is not ‘normal’ in professional services. A firm that hires entry-level candidates so they can be groomed for long-term success in a growing, vibrant, stable organisation is likely to be attractive.

Lesson: Emphasise long-term commitment to employees since this will attract more loyal employees who want to develop their skills as the firm grows.

How does your business stack up on these criteria? A small tweak in your strategy may yield significant results.

Certified Xero Bookkeepers

Notch Above Bookkeeping are certified Xero bookkeepers and feature agreed-price monthly fees so you know exactly where you stand. No hidden extras and no ticking clock. Browse our range of Xero bookkeeping services below and get in touch today to discuss the plan which best suits the needs of your business.

employee & employer on computer

Getting employees on board for the holiday rush?

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Hiring additional employees to help with surging end-of-year demand?

The New employment form, accessed through ATO online services, will help reduce your administration.

It’s an easy way for your employees to provide you and us with the information the ATO needs. If your new employee has a myGov account linked to the ATO, once signed in they can:

  • access ATO online services
  • go to the ‘Employment’ menu
  • select ‘New employment’ and complete the form.

Your employees will need your ABN to complete the form. When they submit the form, their tax file number (TFN) declaration details are sent straight to the ATO, so you don’t need to do this. The form will then enable them to print and give you the summary of their tax details. You’ll need the summary so you can input the data into your system.

The New employment form can also be used to collect a range of information. For example, employees can use it to authorise variations to the amount you withhold from their pay for tax or the Medicare levy, or to advise you of their choice of super fund. They can also use it to update their tax circumstances with you, for example, if:

  • their residency status has changed
  • they no longer have a government study and training loan
  • they are claiming the tax-free threshold from a different employer.

The downloadable version of the TFN declaration form will be removed by the end of this year.

Certified Xero Bookkeepers

Notch Above Bookkeeping are certified Xero bookkeepers and feature agreed-price monthly fees so you know exactly where you stand. No hidden extras and no ticking clock. Browse our range of Xero bookkeeping services below and get in touch today to discuss the plan which best suits the needs of your business.

cybersecurity

Do you think you can spot a cyber threat?

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Cyber security is more important than ever

Protecting your customers and your data from cybercriminals should be one of your top business priorities.

Ensure that you know how to identify and respond to cyber threats. Increasing your knowledge and awareness is the best way to protect your business.

Luckily, you don’t have to be an IT expert to step up your cybersecurity. Protect your business now with these five ways to increase your online account security:

1. Make 2 Factor-Authentication Mandatory

2 Factor-Authentication (2FA) helps prevent a hacker from getting into your account, even if they steal your password. To avoid common phishing techniques associated with text message codes, choose to apply 2-Factor Authentication.

Alongside the traditional password, 2FA-enabled users are required to enter a one-time security code that they receive via text which is the best way to authenticate the user.

You don’t have to make 2FA mandatory in your business, but we strongly recommend it as do most good cloud computing platforms.

2. Close shared login accounts

Shared logins mean multiple people in your business know a password and can make it harder to track any work or issues you may have.

3. Remove risky access to your data

Consider removing account access for any staff who are no longer with you.

4. Update your software

If your browser operating system or apps are out-of-date, the software might no longer be safe from hackers. Keep your software updated to help protect your account.

5. Use unique, strong passwords

It’s risky to use the same password on multiple sites. If your password for one site is hacked, it could be used to access your accounts on multiple sites. Instead, consider using a password manager.

If you’re ever unsure about a phone caller, SMS, voicemail or email claiming to be genuine but seems suss, do not reply. You can also follow the latest scams and advice on how to protect yourself on the ATO website or via Scamwatch.

Looking for a Xero Certified Bookkeeper for your business? Are you drowning in paperwork? Cash flow keeping you awake at night? Learn how Notch Above Bookkeeping can solve all these problems, and more. Contact our team on 1300 015 130 Australia-wide.

mental health

Wellbeing for small business owners

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Wellbeing support available for small business owners

The Queensland government has unveiled an $8.76 million wellbeing package for small business owners in need of mental health support.

The Small Business Wellness Package is for Queensland business owners in the process of starting or currently running their own businesses.

A $3 million Small Business Support Service Fund, which will assist with alleviating stresses for small business owners, is included in the package.

Six new wellbeing coaches will also be implemented in Cairns, Mackay, Townsville, Toowoomba, and North and South Brisbane under the wellness package, joining the existing state-wide network of more than 40 rural, tourism and small business financial counsellors.

Read more at https://www.business.qld.gov.au/starting-business/advice-support/support/wellbeing

Looking for a Xero Certified Bookkeeper for your business? Are you drowning in paperwork? Cash flow keeping you awake at night? Learn how Notch Above Bookkeeping can solve all these problems, and more. Contact our team on 1300 015 130 Australia-wide.

Source: Business Queensland

manufacturing

Made in Queensland

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Made in Queensland Round 5 now open

Made in Queensland (MIQ) is a $101.5 million Queensland Government program helping small and medium-sized manufacturers

It helps firms increase international competitiveness, productivity and innovation via the adoption of new technologies, and to generate high-skilled jobs for the future.

The applicant guidelines for Round 5 (PDF, 689.1KB) are now available. The $20 million Round 5 of Made in Queensland opened for applications on 31 October 2022.

Queensland-based manufacturers looking to adopt the processes, practises and equipment of Industry 4.0 implementing projects that include energy efficiency, export, reshoring, supply chain improvements, sustainability and/or decarbonisation are encouraged to apply for matched funding grants of $50,000 to $2.5 million. See the applicant guidelines for full details including eligibility and evaluation criteria.

About MIQ

Since 2017, MIQ has supported 104 advanced manufacturing projects across the state. It is expected to create more than 1,700 jobs over 5 years and generate more than $140 million in private sector investment. Of the 104 projects funded through MIQ, 38% are being delivered in regional Queensland, creating more than 500 jobs over the next 5 years.

The MIQ program is part of the Queensland Advanced Manufacturing 10-Year Roadmap and Action Plan to support our manufacturers. On 21 June 2022, the Government announced that Made in Queensland is receiving $40 million for two more rounds, over the next two years, to continue helping small and medium manufacturers to increase international competitiveness through adopting new technologies.

Looking for a Xero Certified Bookkeeper for your business? Are you drowning in paperwork? Cash flow keeping you awake at night? Learn how Notch Above Bookkeeping can solve all these problems, and more. Contact our team on 1300 015 130 Australia-wide.

Source: QLD Department of Regional Development, Manufacturing and Water

team meeting

8 Best Practices in Delegation

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Successful Delegation to Drive Business Performance

As Accountants, we like to see our clients operating at high levels of efficiency and generating healthy profits.

Many businesses invest a significant amount in human resources including compensation, recruiting, training and benefits so it’s important to use these resources wisely.

One thing that prevents business owners from getting the most from their team is the failure to delegate work. The most successful ones might demonstrate boldness, clarity, flexibility, consistency, and communication skills… but high on the list is the ability to delegate.

What do we mean by delegation?

Delegation occurs when one team member requires another team member (usually a subordinate) to take on one or more of their tasks.

Why would we delegate?

The main reasons are:

  • Productivity: The delegating team member is now free to take on other tasks, presumably tasks which add more value to the business. This enables growth and efficiency.
  • Skills: Some people are more skilled at certain tasks than others. Wherever possible we want tasks allocated to the most skilled people because they will get the best outcomes.
  • Training: One way to learn a new skill is to practice it. Certain tasks can be delegated in order to develop the skills of other team members.

So why is delegating difficult?

Delegating means taking risks. Some people will not succeed at tasks delegated to them. That causes frustration for your team and maybe your customers. Time is wasted if tasks need to be redone. This encourages the philosophy that I may as well just do this myself. It’ll be quicker.

What are some Best Practices in delegation?

This has been studied at length by prominent thinkers such as Dr Stephen Covey and others. Here are some ideas that may apply to delegation in your business.

1. Explain why the task is important

Delegation is more likely to succeed when people understand and acknowledge the IMPORTANCE of the task. On the other hand, a feeling that the task is irrelevant or something you just don’t WANT to do will encourage the wrong results. Explain who will benefit – like colleagues, the entire business, your customers, your vendors, etc and HOW they will benefit. The more measurable the benefits, the better.

2. Play to team members’ strengths

Delegate to people who are likely to succeed with that task. There are never guarantees… and sometimes it’s appropriate to delegate challenging tasks. However, if there’s a strong chance of failure, delegation is probably not the best course.

3. Set the rules or guidelines

Delegation often fails when the scope of the task is poorly defined. Compare these examples:

Please get together all of the financial reports for my upcoming board meeting. Thanks.

vs

Please get together all of the financial reports for my upcoming board meeting. The priority is the P&L and Balance Sheet and we won’t be needing the Cash Flow Analysis. I want to check over the P&L before you send it to all 6 board members. This should be complete by Friday morning at the latest. Please ensure the logo is correct and at the top right of each document. Thanks.

4. Provide resources

Building on the above example:

Take a look at the reports we used last month and please stick to that format. Jim can help with accessing the financials in the accounting system if you run into problems. Mary has the updated board member list. I’m always here if you run into any difficulties.

5. Make the outcomes measurable

You want to be very clear about when the job will be complete and the goal is reached. Here’s a bad example:

Can you look into the software we could use for an Employee Survey?

For one thing, there is no deadline and the instruction will trigger many questions. Is there a budget? Or any specific functionality we ‘must have’? What’s the timing for deployment? What’s wrong with the software we used last time? What did we learn from that experience?

The point is it’s difficult to create accountability unless you have some clear, measurable outcomes. And accountability is good for both parties.

6. Show there are consequences

Be clear on what will happen (good and bad) if the task is completed (or not completed) properly. You want your colleague to feel invested in the outcome. They should share in the success of the project but also be responsible for any failure. This will lead to a more focused and diligent approach.

7. Put things in writing (and follow up)

This reduces the possibility of confusion and creates a record of your request. For repeatable tasks, you will also build a template which can be reused.

8. Trust!

Everyone starts somewhere. Even the most accomplished people have failed at certain tasks previously. But somehow they learned, probably because someone entrusted a task to them. Mistakes will be made and patience may be required. A good leader will understand the risk associated with the task and manage this carefully. They will also recognise that there is great value in empowering an employee to do something independently.

There’s no doubt that most managers could delegate a lot more work which would free them to focus on more productive tasks. That’s good for them and the business as a whole. It’s also good for the Accountants who like to see more profitable clients!

Need help increasing business efficiency? Contact Notch Above’s team of Xero Certified Bookkeepers on 1300 015 130 today.

payroll

STP Phase 2 reporting

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Getting STP Phase 2 reporting right

Single Touch Payroll (STP) Phase 2 reporting started on 1 January 2022.

So far, more than 200,000 employers have started reporting STP Phase 2 information for over 3 million individuals.

We’ve noticed some mistakes people are making as they move to STP Phase 2 reporting and are sharing the most common mistakes so you can avoid them, such as:

  • re-mapping pay codes or categories incorrectly. Check if you have pay codes for items you need to list separately, such as bonuses, commissions and overtime
  • continuity of year-to-date (YTD) reporting. If the solution you use requires you to input your existing YTD amounts manually; make sure you bring over all the amounts you need to
  • incorrectly categorising allowances. You must report all allowances separately in your STP Phase 2 reporting, which includes 8 allowance categories and one for ‘other allowances’. Only report an amount as an ‘other allowance’ if it doesn’t fit into one of the 8 categories.

Certified Xero Bookkeepers

Notch Above Bookkeeping are certified Xero bookkeepers and feature agreed-price monthly fees so you know exactly where you stand. No hidden extras and no ticking clock. Browse our range of Xero bookkeeping services below and get in touch today to discuss the plan which best suits the needs of your business.

Related reading

Single Touch Payroll changes 2022

Source: ATO

woman florist with ipad

Protect yourself and your business online

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October is Cyber security awareness month

Throughout October the Australian Cyber Security Centre (ACSC) is sharing guides and resources that will help you protect all your information from cyber criminals.

Update your devices and applications

Cybercriminals hack devices by using known weaknesses in systems or apps. Check your devices for updates, and turn on automatic updates so that future updates are made straight away when charging and in Wi-Fi.

Turn on multi-factor authentication

Multi-factor authentication (MFA) is a security measure that requires at least 2 proofs of identity to grant access. MFA options can include a physical token, random pin or fingerprint.

Using MFA significantly boosts your protection against criminals. While they might manage to steal one proof of identity, like your password, they will be locked out of your account without the other.

Learn how to turn on MFA for your accounts.

Set up backups

Backing up your data means saving copies of your files to an external storage device, or an online server like the cloud. It means you can restore your important information if something goes wrong.

Setting up automatic backups in your system or application settings will give you peace of mind.

Already checked these on your to-do list? Take the next steps. Visit cyber.gov.au for more detailed guidance, or subscribe to alerts to find out more about the latest cyber threats.

If you’re ever unsure about a phone caller, SMS, voicemail or email claiming to be genuine but seems suss, do not reply. You can also follow the latest scams and advice on how to protect yourself on the ATO website or at Scamwatch.