Making the most of technology

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.

Let’s face it, business owners can be reluctant to utilise new technology, and this can have a detrimental impact on their business.

GoFi8ure’s Lisa Martin says often their new clients need some convincing to try something new, but once they see what it does for their business’s performance, they are sold.

But that’s 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 hadn’t grasped the fact that the alternative of meeting physically face-to-face, when it suited him, involved significantly more time, expense and inconvenience.

“Then you have the other extreme where people apply too much tech, but lack enabling skills. Therefore, it all becomes too overwhelming.

“Today at the very least you should have mobile connectivity, internet banking, some accounting software with Bank Feeds, and a strong, reliable Internet connection that won’t handicap your PC’s performance.”

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 doesn’t mean going overboard either. Lisa has met business owners who’ve lost track of how many business-related apps they’re 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 you’re 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. “You might need to install a tool to manage your inbox!”

Don’t be distracted

Business owners now require leadership techniques to separate urgent and important tasks from non-urgent ones,” explains Lisa. “We need to turn off our tools and technology in order to work without distractions. Not be a slave to it.”

Running a business means wearing many hats and responsibilities, and things can become all-consuming, she says. “So, think of technology as an enabler – a means to take a break and yet still be available when needed. A way to manage your workload.”

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 ‘Starter’ and ‘Standard’ 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 ‘front-end’ technologies to capture time, cost and materials data.

“That software instantly generates receipts, invoices on cost of goods sold, time spent on multiple jobs and at different stages of a project – all enabling clients, and clients of clients, to be invoiced regularly, so cashflow remains manageable.”

Invoiced time then flows through to payroll software, allowing overtime, leave and bonuses to all be factored in. “So, 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 what’s owed.

“That 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,” 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 clients’ received invoices, Lisa is astounded by the number of small businesses and contractors who don’t know how to raise a simple tax invoice.

“Many still just mock-up a rough invoice in an email, enclosing their bank account details.

That’s not doing it correctly or making the best use of technology.

“If you don’t know what you’re doing, find an advisor who can perhaps provide you with 10 simple tips to set things up properly. And if you don’t think you can afford the software your business needs, consider what expenditure you can trim.”

Ignorance is no excuse

Inland Revenue’s myIR portal was given a face-lift in 2021, but business owners are still not utilising it properly. People don’t always read their messages, live up to their responsibilities, or understand their income summary and payments page. It’s understandable that people can be fearful, so GoFi8ure has to put them in the picture, says Lisa.

“Some people just stick their head in the sand. The constant alerts that GST is overdue, the letters and messages for Inland Revenue – they just ignore them and hope they’ll go away. They won’t. One day they might try to take out a mortgage, and find their account has been red-flagged.

“As I’ve said before, ignorance is no excuse”.

She points out that Inland Revenue has also dumbed down the ‘look and feel’ of its portals, and its communications, so that old chestnut about it being hard to navigate no longer holds water. And they’re targeting a younger demographic.

“The bottom line is – if you’re serious about being in business and you’re above the line with ownership, accountability and responsibility, then you’ll do what it takes to work with the system and the provider to remain on the right side of all regulators,” says Lisa.

“But if you’re a ‘blame, excuses and denial’ type of person, you’ll probably do whatever it takes to avoid technology and so it won’t help you at all.”

New challenges

Today there’re technologies to assist you across all facets of business management, covering everything from bank transactions and bill payments to evaluating assets.

Lisa’s advice is to research all options thoroughly. Exercise proper time management, and utilise the right tools for planning and strategizing.

“Most of all, acquire the essential skills to ensure you, your staff and your clients maximise the performance of the technologies you’ve invested in.

“It’s the right application of technology that will maximise business continuity and risk management throughout the life of your business, right up until it’s time to exit,” she says.

When it comes to technology adoption, Lisa believes it’s wise to focus on making incremental, rather than wholesale, updates. If you make major wholesale changes, you’ll struggle to bring your clients and partners with you.”

Work more closely with your advisors too, she adds. “Avoid techspeak – insist on using language you can understand.

“And if you don’t have a current accounting provider, get one. You’ll get a great return on that investment – 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.

“Remember, if you’re struggling with a particular business process, chances are there is a technology, software-as-a-service for example, that will speed things up. “One to make that process more accurate and efficient, and save your precious time.

Remember – if there’s a better way, it more often than not involves technology, and your advisor can tell you what it is.

“And the really scary thing is, if you’re not using the best technology for the job, you competitors probably are,” says Lisa. “So, what are you waiting for?

www.gofi8ure.co.nz