It’s no secret that digitalisation has revolutionised the way we do business. From automating tedious administrative tasks to improving customer experience, it’s a powerful tool that can help to drive success on both a small and large scale.

Now more than ever, businesses are streamlining their operations with affordable technology that allows them to free up resources, save on costs, and improve their service overall. This is especially beneficial for smaller businesses with less than five employees. Most importantly, for small businesses the process of digitalising doesn’t have to break the bank if you follow the right approach. 

Make a clear, realistic plan

Digitalisation is a major change for most businesses, so it’s crucial that you have a clear plan of attack to ensure the process is as efficient and effective as possible. The first step is to consider your current operations and determine the specific pain points that you want to address. For example, you may decide that automating your sales processes is essential as it will eliminate the need to manually create sales orders and invoices, saving you time and money.

As you plan your digitalisation journey, it’s essential to consider what will be realistic for your business in both the short and long term. Implementing several big changes at once can be expensive and the rapid change can quickly become overwhelming and confusing for employees. Instead, start by prioritising the areas where technology will have the most significant impact and continue to innovate from there.

Prepare for organisational changes

One of the biggest advantages of digitalisation is its ability to improve and streamline tasks that were once performed solely by employees. While this can save you and your team valuable time and money, it also means that job roles within your business are bound to change.

Planning for change management as part of your digitalisation process will help you to better manage the transition and keep your employees engaged and motivated as their roles evolve. For example, if implementing new sales technology will save your team multiple hours per week, you may want employees to start using this time to explore new business opportunities or nurture customer relationships. By identifying these organisational changes and providing a clear plan, stakeholders will be more likely to see how digitalisation will improve their roles and the wider business.

Invest in the right digitalisation technology

Taking the time to research and consider the best technology options for your business is essential, as the best solution will vary depending on your budget, size, and goals. As a small business, it’s important to invest in technology that can scale with you as you grow. Keeping your goals in mind as you decide which option is best for your long-term needs is essential, as changing systems down the track will only be a waste of time, money, and resources.

It’s also important to avoid investing in isolated solutions that don’t integrate well with your existing or planned future technology. Isolated systems can quickly become outdated and can be difficult to implement seamlessly into your day-to-day processes. Making the digitalisation of your business as seamless as possible for your employees and stakeholders is crucial to ensuring it’s a worthwhile investment.

Prioritise cyber-security 

Investing in a good cybersecurity process should go hand-in-hand with your digitalisation plan. This is essential as digitising your operations often means that important information and sensitive data will be stored on cloud-based systems, which can increase exposure to cyber hacks.

A great cybersecurity system should include reliable software as well as employee education and training on how to keep data safe from cyber-attacks. Every employee plays a role in safeguarding your business from cyber threats, so it’s essential that you cover all bases to protect your business as much as possible. 

Provided by Craig Matthews, Chief Merchandise Officer at Office Brands. Australia’s largest independent business supplies dealer group, providing B2B and B2C retail, wholesale, and logistics solutions.

Plunging steel prices have helped bring building product price inflation to its lowest in almost three years but a bumpy road remains with accelerating inflation of other materials and labour shortages continuing to drive up the cost of building says Master Builders Australia chief economist Shane Garrett.

“During the June 2023 quarter, the cost of building materials increased by another 0.6 per cent, the smallest quarterly increase since the end of 2020.”

“While the slowdown in the overall cost of home building materials is welcome, there has still been a sizeable increase of 7.4 per cent over the past 12 months.

“The past year has seen sizeable drops in the cost of several crucial building materials. The 10.0 per cent drop in steel product prices over the past year was the most significant change, with a welcome reduction of 4.4 per cent in the cost of structural timber also occurring.

“Steel and timber were the source of the biggest cost headaches over recent years – the fact that prices here are now in reverse is something of a relief.

“However, the outlook is bumpy as even though the general trend in building materials prices is a favourable one, there has been a worrying acceleration in the cost of concrete, cement and sand products, a category where prices are now 16.2 per cent higher than a year ago.

“Total building construction prices rose 1.0 per cent in the June quarter and 6.5 per cent over the past twelve months predominately driven by labour shortages,” Mr Garrett said.

Master Builders Australia CEO Denita Wawn said the surge in building costs over recent years has taken a heavy toll on the cost of newly built homes and infrastructure across Australia.

“Latest inflation figures show that new dwelling costs rose by 7.8 per cent over the past year, exacerbating the housing affordability crisis.”

“The rental market has also been hit hard by the surge in new home building costs. During the June 2023 quarter, rental inflation hit its fastest pace since 1988.

“With building and construction costs skyrocketing since the pandemic, it is important that government policies prioritise productivity improvements, reduce supply constraints and maintain flexibility.

“The Federal Government’s proposed industrial relations reforms will have damaging consequences for the industry and further impact the increasing costs of construction,” Ms Wawn said.

Shopify has announced its 2023 Summer Editions, with a host of new Shopify features and products to help businesses get ahead of the curve so they can tackle today’s biggest challenges. This entails other brand-new AI capabilities, as well as several other products and features across the Shopify platform that help merchants easily run and grow their business. 

Here are the new Shopify features that will be available for Australian retailers:

More AI tools within Shopify Magic:  Shopify Magic is a suite of AI-enabled features that are integrated across Shopify’s products and workflows to make it easier for businesses to start, run, and grow their business. Now, Shopify Magic will now include:

• Sidekick – a first-of-its-kind AI-powered, purpose built for commerce assistant that will answer questions about business operations. Shopify’s founder and CEO Tobi Lütke gave a preview of what Sidekick can do from administrative tasks such as responding to customer inquiries to tackling creative challenges.
  • Merchants simply ask Sidekick questions ranging from, “how to set up a discount for a holiday sale,” to “help me segment my customers so I can better engage them in my marketing.”  
• AI-driven email campaigns – Make customer emails smarter and easier. All Shopify Magic needs is just a few words to produce engaging, tailored email newsletters, announcements, and more. It also powers intelligent recommendations for email sent time in order to drive higher click-through rates to a merchant’s store, automatically.

In addition to AI products, new Shopify features include: 

• Marketplace Connect: To integrate with major marketplaces, including Amazon, Walmart, eBay and Etsy, to reach even more customers wherever they shop 
• An even better Checkout: Featuring over a dozen new APIs to create customizable checkout experiences, making the best checkout in the world even better. 

Moneytech, a leading non-bank business lender, has identified delayed invoice payment as one of the biggest issues facing Australian small and medium enterprises (SMEs) this new financial year.

Uncertainty about economic conditions, supply chain issues, cost of materials, and lack of access to additional funds are just some of the factors hampering general business activity according to the Australian Bureau of Statistics.[1]

These factors are slowing invoice payments, with delayed payments impacting cash flow for small businesses at a higher rate than larger operations. SME operators, who are generally accepting of already lengthy 90 and 120-day payment terms, are now waiting even longer if invoice payments are delayed.

“These conditions are strangling SMEs,” said Moneytech CEO Nick McGrath.  “Our internal research shows SME customers chasing invoice payments to maintain cash flow as their main business concern prior to seeking finance products.”

To combat slow invoice payment and improve cashflow, SMEs can tighten their own internal processes and also seek external assistance to ensure their business activity is not negatively impacted in FY23-24.

15% of businesses reported having sought debt or equity finance[2] and debtor finance is one financial product which can alleviate small and medium businesses cash flow issues.

“If a business’ cash is tied up in outstanding invoices, debtor finance helps free up cash by supplying up to 100% of invoices as soon as they are raised, instead of waiting 90 or 120 days, or more, for payment,” said McGrath. “Debtor finance can be used for better cash flow management, realising the full value of customer invoices, paying salaries, paying suppliers, and investing in growth opportunities. Moneytech’s straightforward, simplified approach to business lending ensures customers can invest in their businesses’ growth and development.”

With poor cash flow and insufficient collateral or security being two of the top three barriers to accessing finance[3], many SME operators are dipping into their personal savings or mortgage to cover business costs.  Moneytech’s products generally take no security against primary places of residence giving business owners the ability to separate business and personal assets.

For businesses facing slow invoice payment, Nick McGrath, CEO of Moneytech, shares his top tips for businesses owners to consider for effective planning around the new financial year and identifying any potential cash flow hurdles.

Assess finance

“By outsourcing an independent accountant to do an in-depth analysis of the business’ finance, business owners can gain a fresh perspective of their finances. Using a strategic budget can also help predict the financial implications for the upcoming year and may identify new opportunities for business growth. The budget should include financial forecasts including profit and loss, balance sheet and cash flow statements.”

Reassess strategic plan

“Reviewing the business’ short-term and long-term goals can help evaluate the current strategy in place and ensure they are aligned. Undertaking a situational and SWOT analysis can be of use, especially if you leverage customer’s feedback as a starting point for developing solutions to meet customer feedback. The key is to keep any plan flexible so your business can adapt to any changes in the environment and make the most of potential opportunities.”

Utilise a sustainable cash flow option

“SMEs struggling with cash flow, should consider both immediate and long-term support. Moneytech’s trade and debtor finance solution frees up a business’ cash flow tied up in outstanding invoices to be redirected towards staff wages, equipment or stock. 

Drive Personnel, a specialist labour hire company providing recruitment and labour solutions in the construction industry, has primarily used debtor finance from Moneytech to cover weekly wages while awaiting salary invoice payment from larger, multinational corporations. Josh Fowler, Drive Personnel’s CEO, notes using debtor finance has improved cash flow and given Drive Personnel more opportunity for business growth.

“Since starting, Drive Personnel has experienced consecutive years of 50% growth,” said Josh. “In our first year, our existing lending facility wasn’t equipped to deliver what we needed. Moneytech has helped our business grow significantly, specifically in our time management, payroll compliance and hired staff’s salary payment.”

Josh, who otherwise can be waiting up to 120 days for invoice payment, is at the mercy of good cash flow to ensure his direct labour hires are paid on time every week. Rather than dip into his personal savings and mortgage to cover the shortfall, Josh’s debtor finance can be accessed as and when he needs it and paid-down as he goes rather an paying a lump sum at the end of each month.

[1]-3 https://www.abs.gov.au/statistics/industry/technology-and-innovation/characteristics-australian-business/latest-release

[2] https://www.abs.gov.au/statistics/industry/technology-and-innovation/characteristics-australian-business/latest-release

[3] https://www.abs.gov.au/statistics/industry/technology-and-innovation/characteristics-australian-business/latest-release

Synology has announced the DiskStation DS224+ and DS124, the two newest additions to Synology’s range of data solutions for professionals, small teams, and edge deployments.

Powered by the versatile Synology DiskStation Manager (DSM) operating system, these storage devices offer comprehensive tools to protect and manage important data, access files remotely, and monitor physical properties, all within a compact desktop format.

Streamlined file management with anywhere access

The Diskstation DS224+ and DS124 deliver intuitive file management and sharing with Synology Drive, a private cloud solution combining cross-platform access with advanced privacy controls. Professionals in all fields can be more productive with the convenience of working from anywhere and the simplicity of centralized data.

Learn more about file management

Versatile backups for better business continuity

Synology’s new devices offer a multitude of ways to back up data. Users can leverage them to continuously or manually back up workstations, laptops, and mobile devices, or by following a user-created backup schedule on Windows and macOS systems.

For an increased level of protection, users can create backups of the folders, system settings, and software packages stored on their Synology device, storing them in the cloud, on secondary Synology systems, and on external devices. Additionally users can create point-in-time snapshots of their device’s data for rapid restoration, which in turn can be stored locally or remotely.

Learn more about data protection

Private video surveillance management

With support for more than 8,300 validated IP cameras and ONVIF devices, Synology Surveillance Station video management system (VMS) transforms the DS224+ and DS124 into a powerful surveillance management and recording platform. Users can quickly set up and manage cameras through a highly configurable interface, making it easy to encrypt, back up, and archive recordings.

Adding optional dual recording to Synology C2 Surveillance enables storing footage in the cloud for improved remote access and as an added backup. End-to-end encryption protects streams from unauthorized access and low-latency recording ensures footage is recorded up to the last seconds before a camera stream becomes unavailable.

Learn more about Surveillance Station

DiskStation DS224+: Edge deployments for teams

The DS224+ is designed to be a versatile edge deployment solution for small to moderate-sized teams, offering one drive of data redundancy in a RAID configuration or two drive bays for storage. From system-to-system syncing solutions, to hybrid storage and public cloud services, the DS224+ enables multi-site data synchronization using a variety of methods that support diverse, global deployments.

“The DS224+ is ideal for teams and branch offices looking to sync up with their central office,“ said Michael Wang, Product Manager at Synology Inc. “The range of synchronization features it supports right out of the box makes it ready to slot in to just about any existing deployment.”

DS124: Streamlined workflows for professionals

The DS124 is purpose-built to help small business owners and professionals boost their productivity by consolidating their data. Whether at the office or on the go, mobile apps for Synology Photos and Synology Drive enable hassle-free backups and file synchronization. On-demand sync gives users the ability to offload much of their locally-stored data to the DS124, minimizing the need for costly storage upgrades on laptops and workstations.

Julien Chen, Product Manager at Synology Inc, said: “The DS124’s small desktop form factor and low power consumption make it especially well-suited for entrepreneurs, business owners, and freelance creative professionals, who can get more done with less overhead after streamlining their workflows with the DS124.“

Availability

The Synology DiskStation DS224+ and DS124 are available from Synology resellers.

New research reveals that 90 per cent of Australian online retailers expect zero growth in 2023 as a litany of challenges including rampant inflation, surging interest rates and wage pressures weigh on consumer spending and demand.  

The findings were derived from a survey of 200 online retailers and conducted by leading parcel delivery service CouriersPlease.The results highlight the ongoing pessimism across Australia with respondents flagging cashflow availability as their primary concern, followed by customer retention and overhead costs. The full survey results, including age and State breakdowns, can be found here: E-Commerce Under Pressure: A Survey of the Biggest Challenges Facing Online Retailers Today 

Commenting on the survey results, Richard Thame, CEO at CouriersPlease said the findings were a stark reminder of the challenges faced by online retailers of all sizes and regardless of jurisdiction, but that he wasn’t concerned, given the strength and resilience of online retailers. 

“While the economic outlook is uncertain, I have no doubt that the E-Commerce sector will overcome the challenging environment and emerge ever stronger on the other side. As one of Australia’s leading parcel delivery services, we ship and deliver every day from across a network of over 1200 franchisees and contractors. In 2022 we delivered more than 30 million parcels, an increase of two million when compared with 2021. Both years were fraught with their own economic challenges, but as our records show, online retailers managed to adapt and strategise to secure sales.” 

State-based segmentation of the data provides unique insights and a valuable temperature check into the varying outlooks held across the country. When asked about sales revenue estimates, online retailers in Victoria were most pessimistic with 57 per cent expecting sales revenue to decrease in 2023. This was followed by South Australian online retailers (55%) and Queensland online retailers (52%).  

Conversely, West Australian online retailers were resoundingly optimistic with 60 per cent of businesses surveyed not expecting to see any drop in sales revenue for the calendar year and 13 per cent stating they expected to see sales revenue increase.  

Regarding organisational size, the mood of smaller SMEs with 16-50 employees was most bleak (57%) followed by microbusiness with 1-15 employees (50%), larger businesses with more than 200 employees (46%), and larger SMEs with 51- 200 employees (42%) saying they expect to see a drop in sales revenue this year. While cash flow availability was the dominant concern for microbusinesses (40%), SMEs employing 16-50 employees were most concerned about customer retention (37%) followed by staff shortages (35%). 

For larger SMEs employing 51-200 people, the dominant concerns were equally weighted between cash flow availability and overhead costs (36%). This contrasted with larger businesses employing more than 200 employees who flagged their most acute concerns were equally weighted across staff shortages, staff retention, competitor activity, cashflow availability and overhead costs.  

On a state-by-state basis, the findings also revealed the diverging views of online retailers regarding which challenges they were most concerned about. Whilst cash flow availability and customer retention were flagged equally as the biggest issues for West Australian businesses (47%), in South Australia only 28 per cent raised these as major concerns, with staff retention and overhead costs taking precedence (46%). In New South Wales, customer retention was the most acute concern (35%) followed by cash flow availability (34%). Cash flow availability was also the number one concern in Victoria (34%) and Queensland (45%). 

Richard explains: “The data reveals online retailers are facing a varying number of significant challenges and that there isn’t one universal issue affecting all businesses. Concerns such as cash flow constraints and the ultra-competitive labour market can’t be resolved overnight, but by keeping the customer experience at the heart of their business journey, such as providing convenient delivery options or offering loyalty incentives, online retailers can mitigate avoidable revenue loss.”  

The full survey results, including age and State breakdowns, can be found here: E-Commerce Under Pressure: A Survey of the Biggest Challenges Facing Online Retailers Today 

Dual cab utes may attract FBT.

There is an FBT exemption for eligible commercial vehicles, including dual cab utes, but this only applies if private use is limited.

If you’re unsure what is considered limited private use, here are some examples:

• travel between home and work

• travel that’s incidental to the work you do

• non-work travel that’s minor, infrequent and irregular.

If you or your employees drive the work ute to weekend footy matches, towing the boat to go fishing on Sundays, or going on camping trips, it’s likely you’ll go above and beyond the definition of limited private use.

In short, the FBT exemption applies only to vehicles that are predominantly used for work purposes.

If an employee’s use of a dual cab ute doesn’t meet the conditions of limited private use, it’s a car fringe benefit, or residual benefit and FBT applies.

The ATO recommends employers have policies in place to limit the private use of these vehicles.

The ATO uses third party data sources, including motor vehicle registry information to identify FBT non-compliance and penalties may apply.

Remember to check the facts to ensure you don’t end up with an FBT liability you are not expecting.

Find out more at www.ato.gov.au/CarFringeBenefits or talk to a registered tax professional.

Xero, the small business platform, today released research revealing some of the most common learnings shared by Australian small business owners. The findings highlight that hiring the wrong or inexperienced staff and working for free or at low cost are considered the most costly business mistakes, impacting more than one in five (22%) small business owners.

The ‘Do Better Business’ research, which surveyed more than 1,000 Australian small business owners and leaders, not only sheds light on the challenges faced, but offers invaluable insights for businesses embarking on a new financial year, and provides helpful learnings for aspiring entrepreneurs.

“Small businesses make up more than 97 percent of all businesses in Australia and form an integral part of our communities. We know running a small business can be incredibly rewarding, enabling Australians to pursue their passions or achieve greater flexibility. But, as our research has highlighted, it also comes with its unique set of challenges, which have only been exacerbated by a turbulent economic climate,” said Will Buckley, Xero Australia Country Manager.

“As the new financial year commences, it’s a timely opportunity for business owners to reflect on the year that was and embrace key learnings that will pave the way for future success.”

Taking risks and learning from setbacks

Owning a small business is a constant learning process, with the majority (83%) of those surveyed admitting to making costly mistakes over the course of running their business. In addition to hiring challenges and working for free, working with the wrong partners, suppliers and investors (18%) and working with family and friends (12%) were other blunders. Additionally, nearly one fifth (19%) reported spending every dollar of their personal savings in the early years of running their business.

Among the biggest learnings was a need to implement strong financial management practices, with nearly three quarters (73%) of those surveyed rating this in the top three priorities they believed small businesses starting up should focus on. This was followed by building a strong network of industry contacts (63%), working with an accountant or bookkeeper (46%), and asking for help when struggling (46%).

Greater flexibility driving business ownership

There are many reasons driving Australians to business ownership, but the survey revealed a desire to be their own boss as the number one reason for 64 percent. This was followed by seeking greater flexibility (61%), and wanting to pursue a passion or dream (41%). Nearly three quarters (71%) of small business owners, however, admit to delaying starting their own business, with financial concerns being the number one reason holding them back (35%), followed by a fear of failure (21%). Despite this, 65 percent of business owners surveyed by Xero say there’s never a perfect time to start a business, but they wish they’d done it sooner.

Small business ownership is also not without its sacrifices, with one in five (20%) small business owners from the survey reporting they missed a significant life moment like the birth of their child, a wedding or birthday in the early years of running their business. The majority of those surveyed (86%) also wish they could prioritise their personal boundaries more while running their business, especially around their physical and mental health (43%) and spending time with their family, friends or partner (40%).

“Fostering an environment where Australians feel confident to pursue business ownership and are supported throughout their entrepreneurial journey is essential to ensuring a prosperous small business community and a resilient economy. We hope that by understanding some of the challenges facing small businesses, together with industry and governments, we can provide the right tools and technology to ensure businesses have the best possible chance to thrive this financial year and into the future,” said Buckley.

The generational divide and young small business owners holding back

The survey revealed it’s tougher for younger Australians to get into business ownership, with Gen Z reporting they were more likely to face negativity and discouragement from friends, family and associates about starting their own business venture (77%) compared to Baby Boomers (60%).

The fear of failure was also more common amongst young business owners and entrepreneurs with 29 percent of Millennials saying they delayed starting their business because they didn’t want to fail, compared to just 12 percent of Baby Boomers. Despite this, the flexibility of being a business owner was a central reason for 68 percent of Gen X business owners, with 60 percent saying they are now achieving this goal.

Paperform, the world’s most powerful online form builder based in Australia, today announces the launch of its e-signature product Papersign — helping businesses further streamline digital signatures while saving time and money on software.

Amid the economic downturn, which has forced businesses to reevaluate spending and streamline processes, Papersign enables businesses to save on their software budgets, while automating the process of spinning up and collecting signatures on company-branded documents.

Industry incumbents like DocuSign already claim to help businesses reduce the time they spend collecting signatures by up to 50%, while speeding up contract turnaround time by 85%. Papersign promises even better savings through its tight integration with Paperform’s online form-building software, helping businesses to draft, create and sign documents all via a single platform.

Diony McPherson, co-founder and COO of Paperform said: “At Paperform, we’re always looking for ways to free up time for business people, so they can focus on what matters. Companies like DocuSign have done a great job of digitising what used to be a slow manual process, but we wanted to take e-signatures one step further and change the way people think about e-signature software.

“Papersign is to digital signatures what Canva is to graphic design. We’ve built in features that will surprise and delight users, even on the free plan. It will make you think twice about how businesses can use software to change their entire operating model. And by integrating the e-signature process with our form builder, businesses can look to save even more time.”

Paperform’s latest move with Papersign, seeks to capitalise on Asia Pacific’s speedy uptake of digital signatures. According to Deloitte, the e-signature market will grow by over $14 billion USD by 2026 (up from $4 billion USD today) — with Asia Pacific and Europe expected to be the fastest-growing regions globally by 2026.

Dean McPherson, co-founder and CTO of Paperform adds, “As a product-led business, we had the idea to integrate digital signatures on Paperform when many of our customers needed to spend additional time and cost to have their forms signed. Papersign solves these challenges in one fell swoop, making it as seamless as possible for them to get their documents signed.”

Paperform was founded in 2016 by Diony and Dean, a husband-and-wife duo, with a vision to facilitate a world where business leaders spend less time on work and more time on the things that matter in life. Having seen first hand the detrimental impact startup’s hustle culture has had on its people and business, Diony and Dean decided to take on a sustainable growth approach to bootstrap Paperform and have the autonomy and leadership to grow the business.

What started as an online form-building company quickly turned into a ‘digital swiss army knife’ for companies, enabling them to create and automate registration pages, payment pages, ecommerce sites, restaurant order forms, surveys, quizzes, application forms, proposals, project scopes, onboarding forms, invitations, and more. Now, Paperform has over 10,000 paying users — without any venture capital or other external funding whatsoever.