How Is Your Company Adapting To Digital Transformation?

Companies around the world have highly anticipated the need for digital transformation as it is taking shape in all aspects of operation. Over the next five years, massive change will be evident. Digital Darwinism’s tight grip is proof that the pressure to transform continues to intensify. However, not all organisations can adapt fast enough.

In a new global survey conducted by Harvard Business Review Analytic Services, with 376 business leaders participating in the survey, almost all of the participants believe that the pressure to transform will only increase day after day. Although the benefits of transformation have been continuously highlighted, many businesses are still having apprehensions and are not 100% open to change. So what keeps these organisations from embracing digital transformation?

According to the survey, only 7% of business leaders are extremely open to change. Most businesses fear that their inability to change fast enough will reduce their chances for survival. About a third of respondents admitted that their organisation has not completely switched to digital technology.

The path to embracing digital transformation is not easy. This is because changes in systems, structures and processes must be taken into consideration. There is also a need for greater investment in culture change and employee support. It is also essential for IT departments to move into leading roles to keep an eye on innovation. There is also a demand for aptitudes, ways of working and new skills. Without a doubt, digital transformation does not offer one-size -fits-all solution. There is no exact timetable as to when an organisation can completely adapt.

These are the steps to preparing your organisation to digital transformation:

Build a change-embracing culture

It is difficult to introduce change to people if they do not know its purpose and benefits. Everyone in your organisation should understand why a change is necessary for your company. Communicating your strategy will also help you prepare for the next big change. Since change is the only thing inevitable in this world, your company should develop a culture that welcomes change.

Create new organisational structure

The survey revealed that 89% of respondents are already taking steps to creating new organisational structures and teams that will support business models and digital operations. The structure needs to be kept flued so it will have the ability to keep up with the dynamic nature of the digital economy.

Explore and learn

Digital innovation should be embraced rather than feared. Digital organisation should take the transformation a step further by exploiting data in different ways. The shift will also make way for organisations to develop faster responses and use assets to the fullest.

Rethink IT

Most legacy IT systems are rigid and slow for digital organisation. Speed is important for digital business. Aside from using new technology, organisations must also take the time to rethink IT’s role. IT should be introduced to new business models, services and products. It is expected for IT people to collaborate closely.

How To Keep Your Business Safe From Fraud?

If you are the type of business owner who looks over your shoulder, checking whether or not your employees are committing fraud is a sign that you are experiencing embezzlement. It has been found that 28% of small business owners have experienced embezzlement over the years. This is alarming because before fraud can be committed, an employee has to earn a business owner’s trust. Embezzlement is costly as it results in paying penalties and interest on underpaid or unpaid bills and taxes.

There are three factors that can lead to fraud:

-Rationalisation
-Opportunity
-Pressure

Bookkeeping reduces the risk of embezzlement. Also, you need to check reports regularly even if they are delegated to to a bookkeeper. Since you are the business owner, you will be the one who will get assessed interest and penalties especially for missed tax payments. The ATO will chase you for the unpaid taxes.

How to ensure your employees do not commit fraud?

Unfortunately, frauds are discovered when it is too late. The good news is you can limit opportunities for theft with these following steps:

Run a background check on your employees

Anyone can pretend to be a great employee and even fake credentials. Business owners must make it a habit to run a background check before deciding on hiring a bookkeeping. You will never know an employee’s reputation unless you take time to know them.

Delegate tasks and responsibilities

It is difficult to monitor signs of fraud if you delegate responsibilities to one person. Responsibilities must be separated or assigned to different people so you can easily check if there are traces of fraud.

Check transaction history

More often than not, fraud is committed through checks and credit card. These transactions will only be discovered if you check the transaction history. Business owners must take the time to set up automatic payments, review reports, pay bills electronically, avoid signing blank checks and use secure checks.

Monitor payroll, accounts receivable and payable

Aside from monitoring reports, it is also important to monitor accounts receivable, accounts payable and payroll. Accounts receivable refer to open invoices while accounts payable refers to unpaid bills. Payroll must also be monitored such as the deductions, commissions, wages, overtime and timesheets.

It takes time and effort to ensure fraud is kept at bay, but it is even more expensive to let fraud go unnoticed. Aside from penalties and interest, your company may also run the risk of going out of business because of cash flow problems.

4 Ways To Cut Down Time In Bookkeeping

There is a lot of work involved in starting a business and bookkeeping is one of them. Bookkeeping is essential in making sure that your business runs smoothly. If it takes an extended amount of time to carry out your bookkeeping tasks, there are 4 ways you can reduce the time spent on this task.

Automate Your Payroll System

Manually processing the paychecks of your employee demands a large chunk of your time because you need to make sure that the details are correct. You will also have to print and sign the checks. The hours you spend on payroll processing can be reduced by using automated payroll systems. With automated payroll, you will be able to make time-consuming processes such as printing, signing and approving hours easier. The only tasks you need to do is to approve the payment and checks. It will be beneficial for you and your employees as they get the checks faster and you also get to manage other aspects of your business.

Sign Up For An Online Banking Account

In the digital age, almost all institutions have embraced technology. With that said, creating an online banking account will be more convenient for you to take care of your transactions. Instead of having frequent trips to the bank, you can choose online banking to deposit checks or withdraw funds. With just a few clicks, you will be able to move your money around. Transactions such as paying vendors or issuing refunds will not consume your preciious time. All you have to do is to enable automatic payments in your online banking account and you are good to go. An instant access to your debits, credits and account balances is another benefit you can get from having an online banking account.

Switch to Bookkeeping Software

Reliable bookkeeping software keeps any bookkeeping task to a minimum. Bookkeeping software allows you to record deposits, debits, creating reporting, tracking bank accounts and many others. As the bookkeeping software gives you the ability to reduce manual tasks, it will be easy for you to generate accurate reports. You just need to dedicate regular time to prevent your business from falling too far behind from your obligations.

Separate Personal and Business Finances

It is still surprising that there are still business owners who do not separate accounts. Having separate savings accounts will help you manage your business accounts by accurately tracking how much you are spending for your business. If you have the same personal and business accounts, monitoring your spending habits will be all too confusing. It is also wise to carry a business card and a personal card at all times as you never know when you are going to spend something for your business.

5 Signs You Have A Great Bookkeeper

A business will not be complete without hiring a bookkeeper. In searching for a great bookkeeper, there are some qualifications that must be taken into consideration. Keep in mind that you will be entrusting the most important aspect of your business and an incompetent bookkeeper will not be able to provide sound advice and recommendation.

Aside from training and accreditation, your bookkeeper should also be experienced. It is not easy to monitor your business and a less experienced and less qualified bookkeeper will not help you accomplish your financial and business goals.

If you have been keeping a bookkeeper for quite a long time, here are some signs that you have hired a great one:

1. They completely understand the process.

A bookkeeper who knows the ins and outs of your business will understand how it works. Being able to understand your process enables bookkeepers to find the best solution possible to ensure that your business will become successful in the end. A bookkeeper who has the ability to understand the process will see the areas of your business that you can streamline.

2. They ask questions.

Some business owners may not entertain questions as they find it annoying. However, bookkeepers want to ensure that every transaction made is correctly allocated. This is why a bookkeeper who really cares for your business will ask questions instead of simply guessing which direction your business is going to take. A business owner may assume that everything is going fine, but upon inspection, you will realise that the figures are not correct.

3. They know their scope.

The accountant’s job differs from the bookkeeper’s. A great bookkeeper knows what they should do and they will even collaborate with the accountant to gain the best solution so your business will have a healthy financial state.

4. They do their homework.

Business strategies need to change as technology changes. Since trends come and go, bookkeepers should take the initiative to keep up with the changes. These days, cloud technology is one way to make every transaction easy and hassle-free. A reliable and trusted bookkeeper should know when to make the switch. A business owner may not easily agree to the changes, but explaining how the transformation will create a positive impact on the business will make a difference in convincing the business owner.

5. They can be trusted.

It is not easy to hire a trusted bookkeepers these days. Some business owners are not comfortable sharing their financial details with their friends or even family. A bookkeeper should know how to keep confidential information private.

5 Danger Signs Your Business Is Failing

Going out of business is the last thing a business owner wants to do. This is because doing so signifies that the business is already failing. When your company is taking a turn for the worse, the signs are going to be evident. Unfortunately, some businesses fail without warning. Here are five signs your business is on the brink of trouble.

1. Problems with cash flow

Your profit and loss sheet may not signify that you are struggling around your cash flow, but not paying your bills on time means that something is wrong. Your cash flow is important in operating your business. If it seems impossible to ensure a steady flow of cash, it only goes to show that your business is not doing well.

2. Lack of innovation

As your business grows, embracing the new technology is inevitable. However, if your company does not innovate or come up with new things, it is a warning sign of a dying business. When customers are bored and you are no longer encouraging new customers, your business no longer offers things that will keep customers come back for more.

3. Low sales

Another danger sign of a dying business is having low sales. When your business fails to make a sale, you will no longer have enough cash flow to ensure business continuity. Sales ensure your business continues to operate. If you begin to notice a period of low sales, it may be time to push the panic button.

4. Negative reviews

When people are talking about your business in a positive manner, it shows that you are in the right direction. However, if people are talking about your business, but in a negative way, it means that your business is as good as dead. You will need to think about the next step to take especially when you are no longer getting any positive word of mouth.

5. Lack of learning and development

Your business needs innovation, change and differentiation to survive. Welcoming growth and changes paves the way for development. Providing training to your employees is a sign that you remain relevant in the industry. When you are no longer seeing any development and learning, the chances of growing your business are decreasing.

It takes years to enjoy the fruits of your hard work as a business owner. This is why when planning to start your own business, the key recipes must be included in your strategic plan. Proper cash flow management is one way you can protect your business from bankruptcy. Hiring a bookkeeper will help you stay on the right track.

4 Techniques To Help You Trim Down Your Business Expenses

For small business owners who cut corners to ensure survival, saving money should be a priority. No one is exempted from recession. However, trimming down expenses is not a good reason to set aside plans to grow your business. You may want to take a look at your spending habits for you to find out whether you are cutting costs or increasing efficiency. There are simple techniques you can use to streamline your business operations. These ways can create a positive impact on your business.

1. Automate Business Processes

Nowadays, businesses consider embracing technology as a wise move because it reduces repetitive tasks and operational costs. Have you ever heard of cloud technology? This technology enables business owners and employees to work efficiently. Mistakes are minimised and producitivity is increased when you switch to cloud. Technology reduces operational cost in more ways than one.

If you perceive payroll to be one of the greatest burdens of operating your business, incorporating payroll software will ensure that the data you enter is true and correct.

Another reason technology cuts costs, is by lowering marketing costs.Since traditional forms of marketing are not only outdated but also costly, it is important for businesses to be more effective and targeted in more ways than one.

You will also pay less on office supplies because of Skype and other voice technology services that make communication and collaboration much easier.

2.  Use Video Conferencing Tools

Travel expenses can also hurt your business. When you need to meet employees in another location, it will mean spending money to organise presentations and meetings. These days, there are video conferencing tools you can use for free. These tools allow you to touch base with your clients and employees anytime, anywhere. Location will never be a problem with this technology.

3. Develop Key Performance Indicators (KPIs) Dashboard

When running a business, it is important you are aware of your company’s performance on a daily, weekly or monthly basis. KPIs help you understand how your company is performing at a glance. Even employees need to have KPIs as this is also a way to manage them. While it may be challenge to build KPIs at first, it will be a breeze with a lot of effort.

4. Use The Service You Paid For

It might be difficult to streamline your business if you are still sticking to traditional business processes. If you have paid for a service, why not use it? If you have signed up for a service you are not using, it is better to cancel them. You can always sign up again in a month if you do decide to use them. Keep in mind that the services are paid on a monthly basis and it will be an additional expense if you pay for it without using the service.

 

4 Benefits of Going Paperless

Going paperless in a traditional business environment is seemingly a drastic move. It requires you to step out of your comfort zone and deviate from the usual process. Most companies are more comfortable using paper than computers. However, as paper starts to become obsolete, digital files will make record-keeping easy. It is also imperative that businesses shifting from traditional to advanced business environment should increase levels of security. Vital information can be lost or stolen at the drop of a hat without putting a security plan in place. If you are still having second thoughts about going digital, here are the significant benefits that will help you make the right decision.

It is cost effective.

For small business owners, cost-cutting is a constant practice that ensures a steady flow of cash in times of rainy days. Expense reduction involves minimising spending habits especially when purchasing office supplies such as paper, ink and many others. Although you need to spend money on the transition, the long-term benefits you will enjoy outweigh the cost.

It prevents overcrowding office space.

Paper can take up a ton of space in your office. You need boxes, cabinets and storerooms for your documents. Aside from running the risk of losing important bookkeeping files, you will need to free up closets to give way to new files. Once you go paperless, problems with office space will become a thing of the past. Since digital files are stored remotely, you will no longer have to waste money on physical file storage.

It saves time.

Filing documents can be time-consuming as you need to be accurate and make sure that receipts are stored correctly. It will also be difficult for you to access information instantaneously as you need to dig from a pile of documents. Paperless filing will reduce time spent on accessing valuable information. In just a few clicks, you will be able to get the documents you need.

It improves level of security.

When filing documents, it is also important that sensitive files are protected. Digital documents are kept in a safe place where layers of security prevents unauthorised individuals from accessing the files. If employees leave, it is easy for small business owners to keep documents confidential because of advanced file storage method.

When it comes to transitioning from traditional to advanced business environment, going paperless is not an easy task. This means that you have to be prepared by creating a long-term plan and providing extensive training to employees. You will also have to invest in additional software especially in terms of implementing policies on security.

The Steps To Proper Cash Flow Management

There are many challenges associated with managing a small business. Aside from following best practices to keep your business on its feet, you also need to make sure that your cash flow is properly monitored. Cash flow management is more than just ensuring that you have enough money for future business endeavors. For your business to survive, you have to manage accounts, collect and reconcile payments and send invoices. For seasoned business owners, these tasks are considered a breeze. However, if you are managing a fledgling company, each task is deemed daunting and challenging.

Even if you have a bookkeeper to take care of your finances, you still need to monitor business activities. Although bookkeepers make each task easier by ensuring you are stress-free around BAS time, being keen on the information on your financial report is essential.

Since many small businesses consider using bookkeeping software a better way to deal with numbers, why not use this practice to your advantage? As these programs provide features that enable you to capture information on receipts, track invoices and even generate reports in an instant, managing your cash flow will not be a difficult task.

Here is how you can work side by side with your bookkeeper in managing your cash flow:

Plan Accordingly

You need to have enough cash for a rainy day. Just because your business is generating a decent profit does not necessarily mean you should be complacent. It is important to anticipate needs by planning accordingly. Ask your bookkeeper if you have saved enough money for monthly expenses, taxes and other financial obligation.

Stay on top of bookkeeping game

Do not let bookkeeping stress you despite the fact that it is an insurmountable task. No matter how busy you are, you have to dedicate at least 30 minutes for the bookkeeping task. This way, you will know if there are some areas that badly need your attention. It prevents problems associated with BAS. Never allow these small problems to grow into a huge task.

Provide incentives to customers who pay on time

Chasing customers is not an easy task. If you have customers who pay in a timely manner, giving discounts or incentives will motivate them to pay on time. Incentives are more cost-effective as compared with spending months following up on customers who do not pay.

Pay more attention to cash flow than profit

There are businesses that are focused on profits, but the fact that profits naturally flow, you will never notice whether or not you still have enough cash for investments and expenses. It is important to pay attention to cash flow because without it, you will not be able to make future plans for your business.

Advanced Business Techhnology vs Traditional Business Environment

Getting things done is such a challenge when you have a traditional business environment while almost everyone is moving towards the cloud. For one, you need to dedicate grueling hours to finish a task. Putting off the task will have a negative implication as it will result in wasting time. Workflow management is essential to accomplishing your business goals. How are you going to accomplish these goals if each task is delay-causing and time-consuming?

This is where cloud technology becomes more of a need than a want. Here are 4 reasons it is time to consider switching to cloud technology:

1. Improved workflow

Have you been stuck in an endless routine of paperwork? Do you have to cancel a meeting just because you have not finished generating a financial report? A constant pile of paperwork can be very stressful. You need to make sure that everything gets done accurately and in real-time. Manual processes can take hours to complete. Do you have all the time in the world to take care of all tasks in a day? Bookkeeping tasks involve storing receipts, keeping records, monitoring income and expenses and preparing reports. It takes a very dedicated bookkeeper to do all these. Cloud technology works side by side with the bookkeeper to save time and money. When you can capture images of your receipt, putting these files in your organisation’s bookkeeping system will be a breeze.

2. Easy access to your financial information

You need a regular update of your financial health. How would you be able to know about your business performance if you do not have access to the summary of your financial statements? Cloud technology lets you access financial information anytime, anywhere and on any device. All you need is an Internet connection to get instant access to essential bookkeeping files.

3. Know how much money you have

You will never know whether you can grow your business without determining how much money you have and where your money is going. Having knowledge of your true cash flow will help you make the right decisions. All of these will be possible once you embrace cloud technology.

4. Prevent fraud

You need total control of important financial information to find out if there is any fraudulent activity within your organisation. A simple oversight of fraudulent transactions can create a ripple effect on your business. Vigilance coupled with using cloud software will reduce the risk of fraud. It will also be easy for you to provide preventive measures when you see any irregularities before they affect the entire business performance.

Do You Know How Your Business Is Doing?

Hiring a bookkeeper keeps every business owner sane as they are provided with regular financial reports that determine the financial state of their business. Managing payroll, monitoring expenses, tracking income and paying taxes are just some of the tasks a bookkeeper should carry out. While bookkeepers know best, you still need to take part in ensuring that your business is in good hands. It all starts with asking the right questions.

Is my business generating profit?

Many business owners are completely clueless about their business performance. More often than not, they rely on bookkeepers to provide numbers, but without basic bookkeeping knowledge, understanding the records will be a challenge. Business owners who are eager to know where their business currently stands should know whether or not their business is profitable. Your bookkeeper can make comparisons between financial performances in the previous years. Once you know how to compare business performance, you will have an idea if you still have sufficient cash.

Am I overspending?

Since monitoring your expenses ensure your cashflow is intact, you also have to ask your bookkeeper how much you are spending on a regular basis. When paying wages, make sure computations are correct. You should also take note that the benchmarks for wages costs will vary from business to business.

How can I grow my business?

It is never easy to move forward if you have no idea how to grow your customer base. However, making an investment to seasoned business owners is already a breeze because they have the ability to integrate customer relationship management and job management software packages. As a result, business owners can gain a better insight into their current customer base. When you have an idea who your customer base is, you can formulate marketing initiatives and planning so you will be able to grow your business.

What can I do to improve my financial literacy?

Business owners need to sit down with their bookkeeper to obtain information tailored to the needs of their business. Each and every business has needs and these needs will not be addressed unless a business owner has an honest conversation with the bookkeeper. Even if you are the business owner, there are still some aspects of your business that you need help with. You should know who your top customers are. Your bookkeeper can provide recommendations and even help you understand how your business works.