Year-end spending, time working through spreadsheets, and reconciling for the ATO always creates an environment for reflection.
Invariably the greatest time is spent clearing up and deciphering a raft of receipts, payroll matters, and investment documentation occurs where there has been no investment in streamlined automated processes, so now we must play catch up.
In our business world, we are lucky to have access to a never ending list of technology applications at our fingertips. These have the ability to help us improve our own processes month-on-month. Even until recently I had been reconciling share statements manually on spreadsheets (the love affair of every Accountant). However, I have decided to take the plunge to Sharesight, an online system designed for keeping track of share portfolios. This investment has saved hours of administration time by sucking in my portfolio, then spitting out a current status on capital gains and total revenue over time. All from two clicks of a button!
Let’s not be delusional as I agree there are times technology isn’t always the answer – no school like the old school. Nonetheless, recognising where time needs to be invested to deliver a result vs. where life needs to be kept simple is key.
My rule – where compliance is involved there’s a necessity to automate with integrated credible systems.
For example, as a business owner you will need to maintain taxation records. Let’s consider the investment case for Xero. The cost ranges generally from $840+ for a year – paid monthly and without any commitment! Xero are proud of the fact that their customers are staying longer and longer each year with the company, and that they have dedicated research and development targets to keep their system the best in class and fully integrated with government reporting. So, let’s work through the logic mathematically:
Say as an owner you want your wage to be $100k per year or $50 per hour.
Let’s assume you hold back investing in a payroll and timesheeting system, and your payroll takes 2 hours per week to collect timesheets, process them, calculate super & pay super plus lodging Single-touch-payroll (STP) to the ATO remitting PAYGW on your BAS return
Total Cost per year – $5,200
Now assume Xero is implemented:
Timesheets – employees do this each week; Tax calcs – Done automatically and prepopulated on the activity statement; Payslips – automated by Xero and employee self serve; STP lodgement on tick; Super lodgement through Xero integration
Time saved per week = 1 hour. Total Value saved per year = $2,600
Net benefit implementing Xero – $1,760 per year
This doesn’t even factor in the benefits of invoicing, supplier invoice documentation, the massive array of custom bespoke systems that automate directly into the system or the single ledger concept.
Understanding how technology can streamline and be used as a tool to leverage the number of hours in your day cannot be understated.
The only resource we cannot increase is time, and each year we lose a whopping 525,600 minutes that cannot be regained!
Embrace your value and spend your time doing the activities that make the most impact to your work and business. Streamline where possible and invest in the tools that give you back time!
Now over and out….I’m off to the beach…..
