business audit – Business Continuum

APIntel Wrap Up: Gaining Insights from Xero Practice Manager Data

Last month the Business Continuum team participated in APIntel (Accounting Practice Intelligence), a pre-Xerocon event held to demonstrate how accounting practices could achieve better profitability with Xero Practice Manager. Three industry leaders shared insights to help practice owners make the most of data insights to improve workflow, find efficiencies and achieve business growth, including our very own Tim Dowling.

In case you missed it, here’s a summary of the advice from the three speakers at APIntel.

Kit out your practice | Paul Murray, AccountKit

Paul talked about adopting a policy of always seeking better ways of doing things, and using tools that enhance staff visibility of client and practice decisions leads to better productivity, engagement and retention. He also reminded us to ensure integration with cloud-based software solutions to avoid unnecessary double handling of data. He also demonstrated how to use AccountKit to create stunning and precise client entity maps that illustrate complex entities in one impressive image that takes just a few clicks to create.

Print…File…Find | Andrew Sims, SuiteFiles

Andrew discussed the benefits of storing and managing practice files in the cloud, and how this can integrate with Xero Practice Manager to create efficiencies. Andrew emphasised the necessity of simplifying setup and filing of ongoing communications with your client. SuiteFiles is a file management solution that offers email and document templates that can be pre-populated with Xero Practice Manager data. This means your communications are consistent, up-to-date and use the right client information, straight from the source.

Professional client communications can be the difference between an impressed or an unhappy client, so it’s an important process to get right. With the use of multiple cloud-based solutions, Andrew stressed the importance of filing emails and attachments to maintain ‘one source of truth’ from any device. This ensures staff have access to the latest correspondence and files, reducing the risk of errors or miscommunication. Andrew also suggested eliminating outdated versions of documents and email templates (It’s very 2005).

Transform Practice Data Into Relationship Insights | Tim Dowling, Business Continuum

Tim challenged the audience to think about growing profitability even if not actively looking to grow the client base. Growth should not be for growth’s sake, but better profitability is always worth striving towards. With almost endless amounts of data now available to us, it can be difficult to know what to concentrate on. Tim suggested these three areas:

client wealth information
firm service utilisation
client referral and churn

With this data on hand, it can form the basis of open discussions with clients, with the aim of improving your range of services as well as the underlying quality.

Lastly, Tim emphasised that selling is not a dirty word. All successful and evolving practices concentrate on achieving stickier, more engaged and more profitable clients. Focusing on client satisfaction has always been, and will always be, essential for success—we simply have better ways of measuring it with the many cloud-based software solutions on the market.

As the event finished up, it was a great chance for the Business Continuum team to catch everyone for a drink and a chat before Xerocon.

Use Xero to Give Your Business the Shark Tank Treatment

The latest series of Shark Tank on Channel Ten is captivating. It features entrepreneurs pitching to a group of self-made investors (the ‘sharks’). Each pitch features an entrepreneur asking the investors to purchase a stake of their business with their own money.

The sharks are:

Janine Allis, founder of Boost Juice Bars

Andrew Banks, founder of Morgan & Banks and Talent2 International

Steve Baxter, tech entrepreneur and multimillionaire

Dr Glen Richards, founder of Greencross Vets

Naomi Simson, founder of RedBalloon

The breadth and depth of innovation amongst these entrepreneurs is impressive. But what really fascinates is the sharks’ penetrating questions.

With just a brief investigation (or so it seems on TV) the sharks clarify the opportunities and weaknesses of a business. Nothing frustrates the sharks more than an entrepreneur that doesn’t know the numbers. And regardless of whether you plan to pitch your business to investors (on TV or otherwise), it’s vital to have a detailed and depth knowledge of your financials.

Give your business the Shark Tank treatment

Appraise your business with the cool, calculating and experienced eyes of your inner shark. It can help you identify opportunities, move through challenges and seek more growth and efficiencies.

Cloud-based finance software solution Xero is the ideal tool to give you the bigger picture insights you’ll need. Whether you simply review these numbers yourself, or you’re going into a Shark Tank-style pitching situation with investors, using Xero to understand the numbers is a vital investment of your time and energy.

How to use Xero to create reports to answer typical Shark Tank style questions

Xero gives you the ability to generate complex detailed reports that give yourself or a potential investor a terrific overview of your business. Using the typical questions often posed on Shark Tank, you can use Xero to create the reports to see the answers for yourself. Of course, this is just a snapshot of what you can do with Xero—its features go far beyond this kind of analysis.

What is your gross margin?
What are your debtor days?
What is your average selling price?
What is your average revenue per customer?

What are the biggest expenses of your business?
What is your customer lifetime value?
What percentage of customers are return customers? What are your manufacturing/production costs – cost of goods sold?

It’s not just the numbers

Of course, there are some elements that interest the shark beyond just the numbers, and it’s important to give these questions considerations as well. Elements like brand appeal, value of the market and your own dedication to your business come up often. But, overwhelmingly, there are two simple questions the sharks always ask:

What customer problem are you solving?
Why are you the one to solve it?

These are questions only you can answer and it is worth taking the time to consider your responses honestly. It’s a simple strategy that could be a game-changer for you.

The value of the expert opinions

Shark Tank serves as a reminder that it’s important to take any opportunity to get expert advice. Sometimes on Shark Tank the sharks don’t invest but they give excellent advice. Make sure to seek out and listen to that advice for your business whenever possible.

The art of the counteroffer

The fascinating element of Shark Tank is the negotiation element, so learn all you can about the art of negotiation if you’re going to be pitching for investment soon. Knowing the value of a well-crafted pitch can be the difference between success and failure.

In conclusion, whether you are actively seeking investment or simply looking for a tactic to give yourself a fresh perspective on your business, you need to ensure the numbers stack up. Using Xero’s many tools to know your numbers better might just help you get a shark to invest in your business!