When correctly applied, technology makes a world of difference to the efficiency and profitability of any business. GoFi8ure Executive Director Lisa Martin explains why you should embrace technology in 2022.
Letโs face it, business owners can be reluctant to utilise new technology, and this can have a detrimental impact on their business.
GoFi8ureโs Lisa Martin says often their new clients need some convincing to try something new, but once they see what it does for their businessโs performance, they are sold.
But thatโs not always the case. Lisa remembers one client who, when asked for an online video-meeting to review his financial statements and tax returns, admitted to not even having downloaded the Zoom app. The client hadnโt grasped the fact that the alternative of meeting physically face-to-face, when it suited him, involved significantly more time, expense and inconvenience.
โThen you have the other extreme where people apply too much tech, but lack enabling skills. Therefore, it all becomes too overwhelming.
โToday at the very least you should have mobile connectivity, internet banking, some accounting software with Bank Feeds, and a strong, reliable Internet connection that wonโt handicap your PCโs performance.โ
For your business to run smoothly, technology is a vital resource, explains Lisa. It helps you manage and execute both effectively and efficiently in order to run your business successfully.
But that doesnโt mean going overboard either. Lisa has met business owners whoโve lost track of how many business-related apps theyโre signed up to. Many apps quickly become a burden, and having all that new technology can mean you end up more time-poor than ever.
The more information technology youโre signed up to, the more programmes you have bombarding you 24/7 with data and messaging, clogging your inbox and vying for your attention, she says. โYou might need to install a tool to manage your inbox!โ
Donโt be distracted
Business owners now require leadership techniques to separate urgent and important tasks from non-urgent ones,โ explains Lisa. โWe need to turn off our tools and technology in order to work without distractions. Not be a slave to it.โ
Running a business means wearing many hats and responsibilities, and things can become all-consuming, she says. โSo, think of technology as an enabler โ a means to take a break and yet still be available when needed. A way to manage your workload.โ
People can be so focused on income and covering costs, they fail to see the bigger picture for themselves and their business too. This can lead to penny-pinching and short-term thinking when selecting business software. Lisa recalls one business couple who baulked at the extra $30 monthly fee between โStarterโ and โStandardโ versions of a popular accounting software package.
The tech difference
Every business sector has its own set of applicable technologies to boost efficiency. For example, consider the vast savings in time for retailers thanks to Point-of-Sale (POS) technology and its inventory add-ons.
Lisa has witnessed efficiency gains from architectural, project management, consultancy, and building and construction firms that utilise โfront-endโ technologies to capture time, cost and materials data.
โThat software instantly generates receipts, invoices on cost of goods sold, time spent on multiple jobs and at different stages of a project โ all enabling clients, and clients of clients, to be invoiced regularly, so cashflow remains manageable.โ
Invoiced time then flows through to payroll software, allowing overtime, leave and bonuses to all be factored in. โSo, time and cost for your staff and resources flows through to the necessary software, thereby enabling you to invoice out and receive money accurately, and pay your staff whatโs owed.
โThat software also keeps you compliant with Inland Revenue for GST and payroll; as well as the Department of Labour in regard to annual leave and any final payments,โ says Lisa.
Businesses that simply want to produce professional invoices with all the correct information can do so too. But, again, you need the right technology.
Looking through her own clientsโ received invoices, Lisa is astounded by the number of small businesses and contractors who donโt know how to raise a simple tax invoice.
โMany still just mock-up a rough invoice in an email, enclosing their bank account details.
Thatโs not doing it correctly or making the best use of technology.
โIf you donโt know what youโre doing, find an advisor who can perhaps provide you with 10 simple tips to set things up properly. And if you donโt think you can afford the software your business needs, consider what expenditure you can trim.โ
Ignorance is no excuse
Inland Revenueโs myIR portal was given a face-lift in 2021, but business owners are still not utilising it properly. People donโt always read their messages, live up to their responsibilities, or understand their income summary and payments page. Itโs understandable that people can be fearful, so GoFi8ure has to put them in the picture, says Lisa.
โSome people just stick their head in the sand. The constant alerts that GST is overdue, the letters and messages for Inland Revenue โ they just ignore them and hope theyโll go away. They wonโt. One day they might try to take out a mortgage, and find their account has been red-flagged.
โAs Iโve said before, ignorance is no excuseโ.
She points out that Inland Revenue has also dumbed down the โlook and feelโ of its portals, and its communications, so that old chestnut about it being hard to navigate no longer holds water. And theyโre targeting a younger demographic.
โThe bottom line is โ if youโre serious about being in business and youโre above the line with ownership, accountability and responsibility, then youโll do what it takes to work with the system and the provider to remain on the right side of all regulators,โ says Lisa.
โBut if youโre a โblame, excuses and denialโ type of person, youโll probably do whatever it takes to avoid technology and so it wonโt help you at all.โ
New challenges
Today thereโre technologies to assist you across all facets of business management, covering everything from bank transactions and bill payments to evaluating assets.
Lisaโs advice is to research all options thoroughly. Exercise proper time management, and utilise the right tools for planning and strategizing.
โMost of all, acquire the essential skills to ensure you, your staff and your clients maximise the performance of the technologies youโve invested in.
โIt’s the right application of technology that will maximise business continuity and risk management throughout the life of your business, right up until itโs time to exit,โ she says.
When it comes to technology adoption, Lisa believes itโs wise to focus on making incremental, rather than wholesale, updates. If you make major wholesale changes, youโll struggle to bring your clients and partners with you.โ
Work more closely with your advisors too, she adds. โAvoid techspeak โ insist on using language you can understand.
โAnd if you donโt have a current accounting provider, get one. Youโll get a great return on that investment โ someone who is prepared to sit down with you face to face and talk you through every aspect of managing your business, including how to get more sales and higher margins, and what technology you should be implementing.
โRemember, if youโre struggling with a particular business process, chances are there is a technology, software-as-a-service for example, that will speed things up. โOne to make that process more accurate and efficient, and save your precious time.
Remember โ if thereโs a better way, it more often than not involves technology, and your advisor can tell you what it is.
โAnd the really scary thing is, if youโre not using the best technology for the job, you competitors probably are,โ says Lisa. โSo, what are you waiting for?
