Artificial Intelligence AI

Navigating Artificial Intelligence

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How small businesses are navigating AI

The hype around artificial intelligence (AI) is making small businesses feel that its development and adoption are moving at lightning speed.

Curiosity outweighs concerns

Even with ethical concerns in the frame, and with AI tools becoming more easily accessible, small business owners want to be proactive and stay ahead of the curve. New Xero research found that globally, 32% of businesses are experimenting with AI tools, and 21% are investing in them. The results also showed:

  • one in five small businesses were dedicating more resources to AI
  • more than half (51%) said they trusted AI tools with identifiable customer information
  • 45% of respondents said they would trust AI tools with sensitive commercial information

In fact, new Xero research shows that 80% of small business owners globally are concerned that the fast pace and nature of AI are leaving regulation in the dust. They told Xero they want governments to do more, given the potential big impact on industries and the workforce.

Xero launched their Future Focus research on AI at Xerocon Sydney this year, taking an in-depth look at how 3,000 small business owners from across Australia, New Zealand, Canada, Singapore, the UK and the US feel about AI and the potential impact on their business.

Mixed feelings about research findings

So, what did the research say? In a nutshell — small businesses have mixed feelings about AI. They’re curious and excited, but there’s also concern about ethical implications and data privacy.

Almost a third (32%) of small businesses are intrigued about AI, while others are feeling anxious (31%) and excited (30%). Half of small businesses believe AI will be more helpful and have a positive impact on their people, processes and workflows, compared to 20% who said they believe it will be more harmful.

Sensitive information disclosure (41%) and data privacy violations (41%) were considered to be the biggest ethical challenges relating to AI use in their business. Some (38%) respondents were also concerned about the ethical challenges around worker displacement that could be caused by AI utilisation.

The challenges of using AI

While AI has piqued the interest of small business owners, it’s not the top priority for small businesses just yet. Only 8% of respondents ranked adopting or investing in AI as their number one priority over the next 12 months.

In terms of the small businesses that are already using AI, 69% are reporting some drawbacks, and 23% have seen increased security or privacy issues since using generative AI tools. These drawbacks included:

  • increased biases or inaccuracies in content (18%)
  • decreased employee morale (18%)
  • decreased efficiency due to time overseeing the quality control of AI content (16%)
  • reduced headcount (14%)

While reduced headcount can be seen as a drawback, it can also support small business owners to be more efficient and save on costs. Though 59% of small business owners said they don’t see their hiring plans changing over the next three years, a third (31%) said they plan to hire fewer people.

A reminder to use data responsibility

The interest in generative and predictive AI is understandably driving curiosity among small businesses. But if exploration of this technology leads to sharing personal identifiable information, that could put their customers’ data at risk.

Because of how important protecting sensitive data is, Xero has had, for many years now, responsible data use commitments that guide them as a business, and help support Xero customers as they navigate their own data use.

Xero also announced a number of new, exciting AI-powered features and generative AI experiments at this year’s event.

Considering Xero for your business? Notch Above Bookkeeping’s Xero Certified Advisors are here to answer any questions or to help your business upgrade to or optimise using Xero. Contact us on 1300 015 130.

Source: Xero

cash in hand

Another $2.5M in grants for QLD small businesses

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Business Boost Grants Program Queensland

Key points

  • Business Boost grants of up to $20,000 to help Queensland businesses are up for grabs
  • $2.5 million will be available in this round
  • For more information go to www.business.qld.gov.au/businessboost
  • Applications close 12 September 2023.

The Business Boost grants program provides support to businesses to improve their efficiency and productivity through organisational development.

The grants can be used for activities that will create growth, such as strategic business planning, design and implementation of sophisticated cloud platforms and online management systems, and, planning and systems for staff management and development.

The Business Boost Grants Guidelines have been updated for this round and are available online now and businesses will be able to register their interest from 9am on 6 September 2023 until 5pm on Friday 12 September 2023.

Business Boost Grants are a pillar of the Queensland Government’s Big Plan for Small Business Strategy 2021-23. Business Boost grants have already helped 379 businesses which have shared in more than $4.7 million.

Notch Above Bookkeeping are Xero business bookkeepers and Certified Xero Platinum Partners Australia-wide, specialising in cloud bookkeeping setup, training and ongoing support. Contact us on 1300 015 130.

Source: https://www.business.qld.gov.au/starting-business/advice-support/grants/business-boost

Annie of Notch Above Bookkeeping providing Xero training

Xero Beautiful Business Fund submissions now open

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Submissions open for inaugural Xero Beautiful Business Fund

Xero small business customers have until 6 October to enter for a share of $750,000 in funding globally

Xero, the global small business platform, marked day one of Xerocon Sydney 2023 by opening applications for its inaugural Xero Beautiful Business Fund, designed to celebrate small businesses, empower success and help accelerate their growth. The initiative is now open for submissions with Xero funding available to support the future aspirations of small businesses globally.

The Xero Beautiful Business Fund is open to Xero small business customers in Australia, New Zealand, Canada (excluding Quebec), Singapore, South Africa, the US and the UK and will recognise companies who are eager to take the next step in various aspects of their business.

There are low barriers to entry and to apply

Xero small business customers will need to submit a 90-second pitch video and complete a brief written form for as many categories as they would like to enter:

  1. Innovating for sustainability: For small businesses who want to take the next step on their sustainability journey. For example, it could be to move to sustainable packaging, implement energy-efficient equipment or carbon-neutral transport.
  2. Trailblazing with technology: For small businesses seeking to innovate. This could include digitalising parts of their operations or integrating new emerging technologies.
  3. Strengthening community connection: For small businesses or non-profits who strive to give back to their communities. It could be to contribute to philanthropy, social good, or make an impact on the community in a meaningful way.
  4. Upskilling for the future: For small businesses seeking to support upskilling for themselves or their employees. This could include access to training and other professional development opportunities.

Each submission should be future-focused and detail how the funding would benefit the small business.

“Supporting and celebrating small businesses and their owners is at the core of Xero’s mission, and we’re energised by the opportunity to empower these companies and trailblazers with funding that can help them achieve the next level of success,” said Sukhinder Singh Cassidy, Xero CEO.

“We already know that so many of our customers embody Xero’s values, and we’re pleased to be awarding funds to help our customers in an area like sustainability or upskilling, where they may not have had the cash to do so.”

A total of 28 regional winners, one from each region for each category, will be determined by regional judging panels before being put forward to the global judging panel to select the global winner for each of the four categories.

Good luck! Winners will be announced later this year.

Considering Xero for your business? Notch Above’s Certified Xero Bookkeepers in Brisbane are here to answer any questions or to help your business upgrade to or optimise using Xero. Contact us on 1300 015 130.

Source: Xero

xero user

Apply for Xero Beautiful Business Fund

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Xero Users can register to apply for a share in $750k Xero funding

Xero has announced the launch of their Xero Beautiful Business Fund, an initiative backing business for the future with a share of $750,000 funding available to Xero customers globally so your business can keep doing what it does best.

It starts by registering your interest for more information here »

Complete a quick online form to receive further updates about the Xero Beautiful Business Fund when it opens for applications from 23 August 2023.

Apply in one or more categories

Small businesses using Xero in Australia, Canada, New Zealand, Singapore, South Africa, the UK and the US can apply.

There are four categories and no limit on how many you can enter. If you think you qualify for each, Xero encourages you to go for it:

  1. Innovating for sustainability
  2. Trailblazing with technology
  3. Strengthening community connection
  4. Upskilling for the future

Key dates

  • Applications open on 23 August 2023 and close on 6 October 2023
  • When entries open on 23 August, complete your application along with a pitch video
  • Winners will be announced November 2023.

Good luck!

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

Moving to new Xero Reports

business budgeting

Reviewing Costs to Increase Cash and Drive Profits

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All businesses should review their expenses periodically.

Prudent expense management helps ensure that valuable cash resources are used wisely. And sometimes, a business may NEED TO reduce expenses as a matter of survival.

No matter what the circumstances, here are some Best Practices in reviewing and managing expenses.

1. Look first at non-core functions

When cost-cutting, focus FIRST on activities which do NOT directly generate a profit, that is, the non-core functions.

The core functions of your business drive revenue and profit, help you to differentiate yourself in the market and usually involve interaction with your customers. These core activities could be inefficient… but look first at the support (or non-core) functions including finance, legal,  administration, the office, human resources, data processing, supply-chain management, and logistics.

2. Look for redundant activities

Every activity or initiative in a business has a lifespan. That means even a really beneficial activity will eventually become inefficient or redundant. Expense reviews are an opportunity to look for redundant positions or processes that can be eliminated or restructured.

3. Look into the future

When considering cost-cutting options, think longer term than just the immediate savings. If something is going to be discontinued in the future anyway, maybe now is a good time to bring it to an early close? For example, no point continuing to invest in your office, training programs or IT systems if these are to be discontinued down the line.

4. Be transparent with employees

Payroll may be the subject of cost cutting. It’s likely your employees have a good idea what is going on and an honest presentation of the facts will bring the best results for the organization. Set reasonable expectations about the future to build a track record and trust.

5. Keep up some marketing presence

How the market perceives your situation is important. Completely ‘falling off the radar’ may raise questions among prospects, clients and referral partners. Maintaining a presence, for example, in social media is an inexpensive way to ‘be seen’ in the market.

6. Nothing is too small…

All of those ‘minor expenses’ add up. Don’t ignore office supplies, snacks, furniture and that fancy coffee machine.

7. Stop autopay

Sounds simple… but most businesses are paying for things without properly scrutinizing whether they are adding value. Autopay makes this scrutiny even harder… and delays the cancellation of underutilized subscriptions.

8. Renegotiate outdated contracts

Look especially at suppliers where you have a long-term relationship. It may be time to revisit the pricing and terms of payment. Sometimes just asking the question about costs will trigger your suppliers to offer a better deal.

And maybe you’re paying for things you don’t need, like cell phones assigned to ex-employees or seldom-used printers or copiers.

Keep a record of all long-term contracts and set alerts so you can revisit these several months ahead of expiration. Then negotiate, instead of simply letting the contract renew with the original terms.

Should you undertake an expense review in your business? Follow these Best Practices as a way to generate more profit and cash.

Certified Xero Bookkeepers

Notch Above Bookkeeping are Certified Xero bookkeepers offering 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.

1 July Changes

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Changes business owners need to know about

There are legal, financial, and other changes your business will have to be across very soon. Not sure what they are or what to do? Don’t worry, we have you covered.

It’s been a big year for changes in areas like people management, pay and tax. Here’s a rundown of some key changes that will come into effect 1 July and what they mean for your business and your employees.

1. SUPER GUARANTEE INCREASES

If you haven’t already, then it’s time to get your payroll systems sorted as the superannuation guarantee increases to 11% from 1 July. The super guarantees for the current quarter will stay at 10.5%.

Also, make sure you’re across the gradual increases, which will see the super guarantee reach 12% by July 2025.

To work out how this will impact employees’ pay, have a look at whether their contract states their salary is inclusive of superannuation or not.

2. WAGES GO UP

Employees should also be aware that from 1 July, wage increases will come into effect following a ruling from the Fair Work Commission.

For employees who aren’t covered by an award, the minimum wage will go up from 1 July to $882.80 per week, or $23.23 per hour, and will apply from the first full pay period starting on or after 1 July 2023.

For employees covered by an award, minimum award wages will increase by 5.75%, also applying to the first full pay period starting on or after 1 July 2023.

3. FAIR WORK COMMISSION CHANGES

From 1 July 2023, the application fee will increase to $83.30. The fee applies to dismissal, general protections, bullying, and sexual harassment at work applications made under sections 365, 372, 394, 773, and 789FC of the Fair Work Act 2009.

There is no fee to make an application to deal with a sexual harassment dispute under section 527F of the Fair Work Act.

Also effective from 1 July, the high-income threshold in unfair dismissal cases will increase to $167,500 and the compensation limit will be $83,750 for dismissals occurring on or after 1 July 2023.

4. PAID PARENTAL LEAVE CHANGES

From 1 July, amendments to the Paid Parental Leave Scheme will come into effect.

Notably, the Dad and Partner Pay (DAPP) scheme, which currently provides up to two weeks of paid leave, will now be combined with the 18-week paid parental leave scheme. This means eligible parent couples or single parents can share their 20 weeks of leave – aimed at greater gender equity in parental caring responsibilities.

There are other changes, too, such as the whole 20 weeks of leave of instalments can be received flexibly in multiple blocks within 24 months of the child’s birth or adoption date, removing the previous requirement of 12 weeks in one continuous period.

Also, note that employees now have greater rights to request an additional 12 months of leave (24 in total) – and employers need to show reasonable business grounds on which to refuse.

5. CHILDCARE SUBSIDIES

For those who employ parents with young children, it’s worth noting that childcare rebates will change from 1 July. They should result in any employees with a family income of less than $530,000 getting a higher level of subsidy for the cost of childcare.

For example, families earning up to $80,000 will get an increased maximum Child Care Subsidy (CCS) amount, from 85% to 90%. If they earn over $80,000, they may get a subsidy starting from 90%, but it will go down by 1% for each $5,000 of income the family earns.

While these changes are applied automatically, it is worth being aware that they are coming.

6. DOMESTIC VIOLENCE LEAVE INTRODUCED

From 1 February, employers with 15 or more employees were required to provide their employees with 10 days of paid family and domestic violence leave (FDVL) per year.

For smaller employers who employ less than 15 employees, this entitlement will operate from 1 August 2023.

Paid family and domestic violence leave is quite a sensitive topic, and there need to be procedures in place – on everything from how the HR or manager handles requests to the privacy issues around how it gets recorded on a pay slip.

7. PENSION AGE AND ELIGIBILITY INCREASES

For those businesses employing older Australians, it’s worth noting that from 1 July, the pension age will be raised to 67 for those born on or after 1 January 1957.

Not only that but asset and income eligibility tests will also be revamped, which means singles can earn $204 a fortnight and couples $360 a fortnight, before losing their full pension.

8. ENERGY BILL RELIEF ON ITS WAY

With soaring power bills contributing significantly to business operating costs, $650 in bill relief is on its way from July.

The total amount of bill relief will vary by state. To be eligible, your business must be on a separately metered business tariff with your electricity retailer – so if you run a business from home, you probably won’t qualify.

Certified Xero Bookkeepers

Notch Above Bookkeeping are Certified Xero bookkeepers offering 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.

compass

Goal setting

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A compass for your business

Goals provide a compass for our businesses and enable us to celebrate when we succeed.

Goals also help tie teams together with a common purpose.

Surprisingly, many business leaders cannot articulate a clear set of goals, yet goal-setting lays the foundation for strong business relationships.

Recently, we worked with a group of businesses to set goals in the areas mentioned below.

These goals are all related in interesting ways. It can take time to get clear on goals but the business benefits are substantial.

What are your business goals? Can we help you define your goals? Contact the team at Notch Above Bookkeeping on 1300  015 130.

goal setting infographic

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

payroll

Payday super proposed

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Superannuation system update in consultation

Following a media release in May, the Government announced that from 1 July 2026, employers will be required to pay super for their employees at the same time as their salary and wages.

The start date will provide employers, super funds, payroll providers and other parts of the superannuation system with sufficient time to prepare for the change. This is not yet law.

Treasury and the ATO will consult closely with industry and stakeholders on these changes in the second half of 2023. This measure is aimed at closing the gap on billions of dollars in unpaid super.

The upside for small business is the bank account better reflecting the actual cash flow position. With most accounting software packages heavy lifting the additional administration required, employers who outsource their payroll will face additional compliance costs.

For more information, see the Hon Stephen Jones MP joint media release here or contact our team at Notch Above.

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.

Moving to new Xero Reports

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Xero is retiring older versions of their reports in July

Xero will be transitioning some favourite ‘starred’ reports from the old version to the new version.

When users click on these reports in their favourites list, they will be automatically redirected to the new version of that report. This change is being made because Xero is retiring older versions of their reports on 31 July 2023 and they want to ensure that Xero users are prepared.

The new versions offer more flexibility and customisation, quicker access to insights and deeper analysis of business performance. Xero is aware that this change may take some time to get used to and is giving users plenty of time to make the switch.

Using new Xero Reports

Xero is urging users who haven’t yet switched to new reports to start moving their work across now. This way, there is time to adjust before older versions are retired:

  • Users can take a product tour of some of Xero’s most popular reports, such as the new Profit & Loss or Balance Sheet reports, and find a tips and tricks panel on the right-hand side showing links to support articles and how-to videos
  • Check out Xero’s reporting playlist on YouTube for help tailoring reports in Xero
  • Start using Xero’s layout importer tool in the Profit & Loss, Balance Sheet and Budget Variance reports to bring saved layouts across to new versions
  • If needed, users can return to the older versions via the overflow menu in the Report Centre until 31 July 2023.

Read full Xero article here »

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.