Tag: covid

How can you prepare for FY22-23 and avoid the Covid Hangover!

Posted on | by Danielle Graham

EOFY is almost upon us, which means, once again, it’s time to wrap up your books for tax season. And this year, more than ever, it is critical to conclude the financial year on a high note.

Why is that you ask? Well, where do we start…

We’ve talked before about not getting caught in a Covid hangover. This is caused by the combination of evaporating government stimulus, increasing employee recruitment and retention costs, supply chain constraints and the downturn in consumer confidence. All of which has created a state of shock for any business that was unprepared for the sudden change.

But now, we see a few more ingredients being thrown into the mix.

 

Who’s interested in Interest rates?

Perhaps the most relatable of these recent additions has been the shift in interest rates. Interest rates – or, to use the official term, ‘monetary policy’ – is one of the Reserve Bank’s main tools to combat inflation. The theory being that the increased price of money reduces demand and, therefore, prices (i.e. inflation).

That interest rates are rising is perhaps not so much of a shock in itself; it would seem highly improbable to most people that rates would remain essentially at 0% forever. Rather, it is the pace and rate of increase.

Interest rates are now 0.85% and are forecast to hit around 2% by Christmas and then peak around 3% – 4% in roughly one year. Whilst depositors may rejoice, borrowers will cringe – businesses and individuals alike. The extra cost to service debt will be around $3,500 pa (roughly $300 per month) more for every $100,000 borrowed. Suddenly, a $1M Home Mortgage or Line of Credit doesn’t look so attractive.

The knock-on effect of this is cash-flow tightness, which for businesses, particularly small businesses, can mean chasing debtors and juggling cash flow. And inevitably, more write-offs.

 

So, what’s the plan?

How wonderful it would be if there were some handy instruction manuals lying about so that we would know how exactly we could not only get through this tumultuous time but thrive despite it—something like a practical stage direction that would tell us precisely what to do.

Ideally, this would come in the form of something Tennessee Williams would have thoughtfully put together (a notoriously descriptive fellow who was heavy on detail). But alas, we have something akin to Shakespeare’s more light-on approach in A Winters’s Tale…

‘Exit, pursued by a bear’!

 

If in doubt – preserve your reserves

They say cash flow is king and if there is no other plan in sight – then at least ensure your cash reserves are sufficient to weather the rocky road ahead. But with consumer confidence rapidly declining, supply chain impacts causing delays in stock, business loan repayments on the up and electricity prices soaring – it is little wonder small businesses are suffering. With each of these jig-saw pieces falling into place, there is less and less cash in the bank in reserve.

It’s no secret that most small businesses that fail do so because they run out of cash. Without cash, employees, suppliers and lenders don’t get paid, and with interest rates at the start of an upward trajectory, the cash reservoir is in further doubt.

Preserving that vital cash flow is imperative to a healthy future for any business. Any viable option a business has to preserve that cash flow is worth consideration, and whilst you can’t change the interest rate, you can make small changes to help combat the impact.

 

It’s not all doom and gloom.

Amazingly, despite the current financial situation, most Australian businesses are still optimistic about the future. Moreover, they plan on investing in improving their technology and growing their business in the 2022-23 financial year. According to recent research conducted by Honeycomb Strategy on behalf of Banjo Loans, 61% of SMEs plan on investing in new technology as a direct result of the pandemic.*

It would seem that Australian businesses are a hardy bunch. Despite growing geopolitical tensions and rising costs (just about everywhere!), we are confident in our ability to succeed. However, the reality remains that to do that, any business must overcome the hesitancy consumers have about parting with their hard-earned cash when it comes to issuing their invoices.

It’s all about getting ahead of the curve and getting the jump on your competitors. If you aren’t adequately prepared, it will only get harder to remain competitive in the current market. When that market is complicated by decreasing consumer confidence – the investment needs to be focused on internal improvements and ensuring your customers can comfortably afford your fees.

For businesses, collecting from your outstanding debtors is the easiest and most logical way to build up your cash reserves. If you can get paid on time and close those outstanding accounts, you will have more money in the bank to invest in your growth.

What’s more, if your clients can get the service they need today without breaking the bank, they will be more inclined to invest in getting the financial or legal advice they need to prosper.

 

Money in the bank

If your customers are pinching pennies because they want to preserve their cash flow, it makes sense to give them every option you can to achieve this. With QuickFee payment plans, your customers have the option to pay their invoices over monthly instalments while you get paid in full upfront. It’s a win-win situation that helps businesses maintain a healthy cash flow whilst their customers enjoy the flexibility of smaller monthly payments.

With QuickFee’s secure online payment portal, you can use our Fee Funding solution to clean up your books this end of financial year. 

 

If you struggle getting paid for the work you’ve done, call our QuickFee team, who will provide you with tips and tricks on using our Fee Funding and Secure Online Payment solution to clean up your books this end of financial year.

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Australian businesses are starting to feel the pinch

Posted on | by Danielle Graham

The hip pocket of many Australian businesses is feeling the pinch of the ever-increasing costs of doing business. In fact, the Australian Bureau of Statistics reports that more than half of all Australian businesses have reported experiencing increases in their cost of doing business over the last three months to April 2022.

However, according to the ABS, only half of those businesses have increased their prices. Which begs the question, how can any business survive these mounting cost pressures when they choose to absorb the increasing costs rather than pass them along to their customers? If no additional funds are coming in through invoicing, then any savings must surely be found internally.

If you do nothing else, any additional income must come from your customers, which means increasing your customer base. Whilst this sounds like an elegant solution, this option can only be successful if you maintain your service levels and don’t let customer satisfaction decline. You may get an initial boost in income but forgo long-term customer loyalty.

What is driving the increasing costs for business?

With unemployment rates at levels unseen since the 1970s in Australia, the Great Resignation is in full swing. As a result, employees can be more selective in what roles they choose and look for the best package on offer. So, employers need to have many tools in their toolkit to offer new talent and retain existing ‘stars’. Tools such as within or above market wages, flexible working arrangements, or extended paid maternity/paternity leave. All this costs money.

If you are using a hybrid working model with combined work from home and office days, you may not fully utilise your office and parking spaces. Providing flexibility to your team may be ticking the employee satisfaction box but is it the most cost-effective way to do business.

Now that our borders are open again and flights are getting back on track, we are seeing increases in business travel and customer events. After a couple of years away from customer drinks, lunches, dinners and events, there is plenty of catching up to do. It can get expensive when you factor in the drinks, meals, flights, accommodation, parking, and transfers. Whilst it is all for a good reason and does cement the customer relationship, there is no doubt that getting back into relationship building is costly.

It’s not just business feeling the pinch – your customers are in the same boat

As we start to recover from what seems like a litany of crises – droughts, bushfires, floods, and COVID-19 – we are feeling the fatigue of having to endure ongoing stressors.

The cost of living is a hot topic lately and it is simply because we are feeling the pinch of many things all at once.

With offices opening back up, employees are heading back into the office in increasing numbers.

But being back in the office means employees need to start budgeting for things they haven’t had to consider when working from home. Such as more stops at the petrol station, tolls, public transport tickets, take away coffees and even work clothes. Maintaining a wardrobe of shorts and t-shirts for a couple of years has undoubtedly been kinder to wallets than having to splash out on office wear every now and again. Not to mention the occasional coffee or lunch at the local food court.

Increases in everyday living expenses are felt almost across the board. Whilst the anxiety you feel when filling the car with petrol has been lessened recently after the federal government halved the fuel excise, it is still by no means an inexpensive endeavour. With supply chain impacts due to drought, fires, floods and most significantly, COVID, our groceries are without a doubt costing more with every shop.

Add in recent interest rate hikes – and the almost certain notion that they will rise further–and the average mortgage increases are set to rise. For many Australians, this will mean increases in mortgage repayments, loans, and credit cards, and with less disposable income to hand, many will need to tighten their belts.

This means that your customers have less cash to spare and will be less likely to part easily with their left-over funds.

What are your options?

Your choices are relatively simple, carry on as you are, continue to see the cracks of increasing cost pressures, or do something. Whilst something is better than nothing, some ‘things’ are certainly better than others.

Streamlining your internal business processes and eliminating inefficiencies is a good start. For example, removing manual processes such as clunky payments and implementing integrated solutions will help streamline your payments process and help you get paid faster.

It’s also worth considering the payment process from your customers’ perspective. If you can find a solution that streamlines your payments and is a simple, easy process for your customer, you will be off to a head start. Making your payment process as easy as possible removes the first hurdle for your customers. The next hurdle to consider is your customers’ financial situation. For any customers with financial limitations that need your services — you just have to find the right solution for your business. 

With less disposable income available, customers will be selective in what services they take on. When finances are tight, and there is uncertainty around what costs will go up next, providing your customers with certainty and flexibility when it comes to payment will ease their concerns.

Providing flexible payment options that allow your customer to extend their payment period and pay using various payment methods provides them with clarity on what expenses to expect each month and budget accordingly.

Fortunately, not all payment plans are created equal, and QuickFee offers financing plans for professionals with an effortless and transparent customer experience. Your customers can take advantage of the flexibility of payment plan options that allows them to pay in full or in instalments using their Visa, Mastercard or Amex credit or debit cards.

Interested in offering QuickFee’s payment solution to your customers? Contact us today at 02 8090 7700 to learn how QuickFee can help

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The ATO honeymoon is over – Don’t get caught with a COVID hangover

Posted on | by Danielle Graham

With the world starting to recover a sense of normalcy after the ravages of COVID, we are starting to get back to living the lives we led in that seemingly free and easy world of pre-pandemic times.

It was a time when we didn’t have crumpled up face masks stuffed into the pockets of our activewear when we used our car gear sticks as make-shift mask hangers.

Business also did it tough, though the government was able to step in to help enterprises through various fiscal arrangements.

 

Business has never been on worse terms with the ATO

But now, as we merge back into a sense of normalcy, the ATO, in particular, is less inclined to look past overdue debt and is indeed coming after any business that owes more than $100,000 in tax. The pandemic saw the ATO put such bold actions on hold so Australia could get on with staying in business.

Now the honeymoon is very much over. Any business that is not on the front foot with outstanding debt will suffer the consequences and be hit with a COVID leniency hangover if they don’t act swiftly to ensure the health of their cash flow.

What happened when the stimulus was turned off?

For larger firms, there was work around options such as work remotely and downsize office space to save costs; however, not all industries had such options. For example, hairdressers, chefs, and pet groomers can’t work from home if they are required to go into isolation today – for them, there is no work if they are isolating.

With stimulus now a thing of the past, business costs growing, increasing pressures on the cost of living and wage growth flat, the current economic landscape is perilous for the unprepared. Businesses can no longer delay paying their ATO commitments lest they harm their credit rating.

It is quite clear that now more than ever, Australian businesses need a healthy client book with a steady cash flow.

The perfect storm

The withdrawal of stimulus and concessions will undoubtably impact business in Australia.

Further, acute staff shortages, increases in staff costs due to increased sick leave payments, growing employee demands as a result of the great resignation and the general increase in the cost of living are all adding pressure to an already tenuous economic stability some businesses are maintaining.

Pair this with the supply chain shortages across multiple industries and a downturn in consumer activity, and it’s an almost perfect storm for business failure.

We are all under the same pressure

It’s not just small businesses that have been hit hard recently. We have seen some big players go down, with building companies seemingly falling like dominoes lately. For every business that closes – big or small – the knock-on effect for every link in the supply chain takes a hit.

From the stationery suppliers right through to the accounting and legal firms that support them, every client that goes under comes with associated cash flow impacts. The cost of replacing lost business is significant and there is no guarantee that there will be plentiful new business opportunities in this current financial climate.

 

How can you weather the storm?

For small and big businesses alike, cash flow is king, and if you can help preserve your client’s cash flow and still get paid what you are worth, you should pursue every opportunity. Professional service firms can no longer afford to be a bank for their clients.
It’s not so much a case of wanting to be paid what you are worth right now; it is more a case of needing to be paid what you are worth, on time.

Acknowledging a client is struggling and offering a payment plan solution will support your client’s needs and provide your business with full, upfront payment so that both can get on with the business of doing business.

If you would like to hear more about how QuickFee can help you avoid the COVID stimulus hangover, support your client base and get paid today, contact our team today on 02 8090 7700.

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Fintech Happy Hour – Episode 2:
Top 7 companies or start-ups for accountants in Australia

Posted on | by Valerie Baillairge | Leave a Comment on Fintech Happy Hour – Episode 2:
Top 7 companies or start-ups for accountants in Australia

The Best Accounting Tech Companies In Australia

It is no secret that competition to win accounting clients is getting fiercer and fiercer. With accountants acting as the gatekeepers of small businesses, we look at what technology has come into the market for accounts over the last few years?

One of the greatest changes that has happened in the accounting world is the cloud.

The shift to the cloud has been enormous across the board. It has impacted our ability to work on any file, at any time, in any place. Meaning you could work on client matters at home, during a lockdown, at the office or even the beach.

 

 

1.  Xero

The sheer volume of accountants and their clients embracing Xero over the last ten years has been transformational. Before Xero came along, how would you have gone through a lockdown situation without being able to see how your business is performing? The number of companies embracing Xero now and creating plugins is significant. 

 

2.  Futrli

Futrli helps their clients save money by analysing and finding gaps in their cash flow and then helps them to plug that gap. That not only helps the accountant, but that information can be passed onto the customer, who in turn, can do their own cash flow analysis. It aids the accountant by enabling them to have a visual conversation with their client rather than a spoken one.  

 

3.  Swoop

It’s not all about tech! The accountant’s job is to interpret what comes out of the tech, and Swoop helps the business to access the money and services it needs to grow. Whether that be funding via government grants, savings on international money transfers or a range of other options that can be better prescribed when you are using the right analytical tools in the first place.

 

4. Practice Ignition

Practice Ignition takes the routine and mundane tasks of sending and following up on client proposals and makes it seamless – the time-saving value of that alone is significant. In addition, the proposals themselves are put together in such a fantastic way with second to none presentation. Being able to plug into Xero, QuickBooks and MYOB is also invaluable.

 

5.  QuickFee

Accountant’s love getting paid and love seeing their clients get paid. If there is a technology that allows your clients to have a positive experience when paying a bill, then that is a game-changer. QuickFee allows your clients to pay in the time they need. Knowing that both you and your client is taking care of is phenomenal.

 

6.  Business Fitness

Business Fitness has end to end technology that creates efficiencies. The How Now document management product takes the standardised processes and creates productivity.

 

7.  Paytron

Paytron automates and simplifies processes. They also allow you to handle the international payment all on one platform. It’s convenient and solves a problem that is annoying by taking away the static and friction in a business process and allowing the business to do what it’s good at doing.

If we look to the future – what sectors of the accounting industry may be ripe for disruption in the next few years? Anything routine such as simple data matching processes will likely be replaced. A computer can do a routing process better than any human can, leaving people to what they are good at.

How To Best Tackle Payment Objections

Posted on | by Valerie Baillairge | Leave a Comment on How To Best Tackle Payment Objections

Win more work and have less payment disputes  

You’ve probably been faced with payment objections more than once. We’ve all heard it before: “The price is too high for me”. This can be one of the most frustrating situations for businesses, especially those who are selling services and can spend a considerable amount of time preparing a quote.

Fee objections are common in sales. There are several reasons why prospects would reject a quote. Sometimes, it is only part of an expectation that pushing back on cost will get them a discount. However, a ‘no’ can also mean that the person doesn’t understand the “value” they are getting for the cost. 

Whatever you’re selling, the best response to a price objection is to showcase the most valuable parts of your products/services. You don’t need extensive training to learn how to handle payment disputes. You simply need to further investigate the reasons behind your clients’ objections.

 

What Motivates Clients To Reject An Offer?

Businesses are in need of advice now more than ever, from legal and accounting to communications and crisis management. Meanwhile, outsourced professional services are often seen as “optional” by prospects who don’t understand how important it is to seek expertise. The ones that need your services the most would often be the most hesitant and reluctant to pay for it.

It is however important to not undervalue the service you are offering as a first approach. While discounting has its place in the sales process, being too keen to reduce your margins could lower your service perceived value. You should get paid what you are worth, and fee rejection offers you a window to really demonstrate your true value.

Price disputes are normally the results of one of these three circumstances:

  1. Unrealistic expectations. One of the reasons why your client might be declining your fees might be that they don’t understand the full scope of what they are paying for. If they say that your fees just seem high, this might mean that they don’t understand the ROI they might get from your services. It puts you in a position to objectively define what is included in your offer. Make it clear what you can accomplish on a short and long term for them and their business. Using clear and concrete examples, or introducing case studies and other clients’ success stories as proof points can reassure them.
  2. Cash flow and budget problems. If your client affirms that they can’t afford your services at the moment, it is important to get a better understanding of where the issue is truly coming from. First of all, you can ask them if the price is the only thing that’s keeping them from signing. This gives the person the opportunity to express any other concerns they might have.

    Once you’ve cleared all other objections, it is time to explore how you can make your fees more affordable. An easy solution to cash flow problems is to offer flexible payment solutions. QuickFee offers client-centric flexible payment solutions that let your clients pay over time instead of in a lump sum.

    Alternatively, you can also explore solutions to fit your services into your clients’ budget. You can ask how much your client is ready to pay and redefine the scope of a project accordingly. If you decide to discount your price, make sure that it serves your business long-term strategy. You can offer a lower fee for a period of time for example and then default back to your normal price, or accept to discount under the condition of signing a longer term agreement.

  3. Competition. Your client might already satisfied with their current providers or they might have found cheaper quotes online. “Expensive” is relative. Once you find out what the person is comparing your product or service fees to, you can then uncover what extra value you’re bringing to justify the extra cost. You must put on your investigator hat to discover your client’s true needs and see if they are being met. 
    Once you find the gaps, you can customise your offer and differentiate on value.

     

How To Showcase The Real Value Of Your Services?

Lack of trust in your brand or services might be the underlaying problem behind a fee objection, as well as not understanding the need or urgency for a specific service. To convince a prospect, the first step is to address the above. 

Improve Trust In Your Expertise And Your Brand
Improving your ability to present yourself as a trustworthy expert in your field starts by showing empathy, listening carefully to your clients and prospects and investing in your own brand.

It is important to understand that a sale is not about you, but about your client. Make empathy a priority during sales meetings. A sale starts by building the relationship with the client. Put yourself in your prospects’ shoes and turn the conversation towards their own needs instead of defending your products or services. The key is to not to try too hard to impress and only offer advice once your client had a chance to thoroughly explain their situation. Positioning yourself as someone who can listen and acknowledge your client’s concerns will present you as a trustworthy, genuine advisor. This quality will increase the value of your services in the eyes of your prospect and help reduce friction when discussing fees.

You might also want to build more brand awareness and create content that showcases your expertise. Case studies and clients’ success stories are a good way to prove the quality of your service. You can also produce white papers, e-books or video clips which include free advice.  Building expert content will help back up your claims and show evidence of your expertise.

Brand expert Stephen King once said: “A product can be copied by a competitor; a brand is unique. A product can be quickly outdated; a successful brand is timeless.” Make sure to emphasise the authority your business has in the market. Positioning your brand right can help convince your prospects of the extra value you offer and justify higher fees. 

Reinforce The Need And Urgency Of Your Services For Your Clients

Are your services truly aligning with the needs of your prospects?

Pause and listen to your clients before responding to understand your client’s needs. Once you’ve acknowledged your client’s objections, ask open-ended questions to clarify and understand what are their current objectives. They might not realise how much added value your services could bring to help them reach their goals faster.

If you see an opportunity, present them with an overview of what results they could get by hiring your services. Make sure to give concrete examples and include numbers if possible. It is also time to share relevant stories and expert content you might have created. Relatable clients’ testimonials can create more confidence in your services.

 

Offer Your Clients Flexible Payment Options

If cash flow problems are still an issue, expanding your payments options could help you win more clients and reduce payment objections. QuickFee offers a wide range of flexible payment options that suit every client’s needs. 

If you’d like to learn more about flexible payment options, schedule a demo with one of our experts to learn more.

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How including flexible payment options in your marketing strategy can help grow your legal practice?

Posted on | by Valerie Baillairge | Leave a Comment on How including flexible payment options in your marketing strategy can help grow your legal practice?

Why Payment Options Should Be Part of Your Legal Marketing Strategy

The 2020 annual benchmarking study conducted by the Australasian Legal Practice Management Association (ALPMA) has identified revenue growth, cashflow and lock up as the main financial challenges for law firms, with work in progress (WIP) and debtor days often exceeding 90 days.

As clients seek certainty in fees and flexibility when it comes to payment, many firms had to move away from traditional billing, looking into alternative to ensure their practice’s profitability. With the impact of COVID-19 and many clients accessing Government stimulus and Job Keeper programs, it is now, more than ever, time to rethink your
payment collection strategy.

Consumers are making decisions based on their favourite payment methods, so offering greater flexibility can help you convert more prospects. Best of all? It’s incredibly easy to include payment options in your legal marketing strategy.

 

4 Easy Steps to Showcase Your Payment Methods

Step 1: Offer alternative payment methods.

Want to really stand out from the competition? There are several flexible payment
frameworks offered on the market. If you are seeking a client-centric approach with payment plans specifically created for legal services, QuickFee offers solutions adapted to your client’s needs. Here is a list of the different payment solutions currently offered:

Step 2: Create a dedicated payments or pricing page on your firm’s website.

Did you know that pricing and payment pages tend to be the most visited spots on websites? All you have to do is add an online payment portal link or payment landing page to your site’s navigation bar. It’s not the only thing prospective clients will consider, but it might help get them in the door. See an example here

Step 3: Give your clients a payment link at every single touchpoint.

Online payment methods are appealing because they’re convenient. Increase that convenience by adding your online payment portal everywhere. That means including it on invoices, flyers, and any other communications so that the link will always be available.
As a bonus: This can also help reduce your accounts receivable over time.

It’s a good idea to include your payment link(s) in all the following places:

  • Invoices
  • Emails
  • Web pages
  • Banners
  • Table tents
  • Flyers

Step 4: Include payment methods in your call-to-action.

If your firm is already committed to a strong legal marketing strategy, it’s even easier to start promoting payment options in your PPC campaigns. Add “Now accepting flexible payments” to every call-to-actions, on your forms or web pages.

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Fintech Happy Hour – Episode 1:
5 things businesses can do in lockdown

Posted on | by Valerie Baillairge | Leave a Comment on Fintech Happy Hour – Episode 1:
5 things businesses can do in lockdown

Five things businesses can do in lockdown

At some point, we all go through a challenging time, and these are especially exacerbated during lockdown. Here are five things you can do during a lockdown or testing times with your business.

 

 

1.  Continue to connect and engage with your team.

The pandemic is completely redefining the way teams communicate and work. It is important for businesses to continue and connect with team. Some ways teams can engage online can be activities like Pino and Picasso and team zoom online drinks.

 

2.  Taking a break

Sometimes we get caught up and working long hours. Whether it be going out on your lunch break and taking a walk in the sunshine or taking it a step further and taking a day of annual leave or a couple of weeks of leave, it gives you time to reset and comeback reinvigorated.

 

3.  Look after your customers

Now is the time to build loyalty with your customers. After all, these are people whom you have worked so hard to get on board to become your clients. It can not only build a stronger relationship, but it can become a better business environment.  It may be as small as a check-in phone call to see how they are going or holding a virtual event with them.

 

4. Utilise technology

We live in a technology-driven world, and many of these platforms can help streamlines your business. For example, Slack is used both within QuickFee and to connect externally with people outside of the business and can be used across many different platforms too.

 

5.  Block out time for creative thinking

While working remotely has many advantages and can save you time, it can mean you lose some of the valuable time you may have previously used for creative thinking. Such as during the drive to and from the office. Ensure you block out some time in your diary or calendar to have time to yourself and allow creative or inspiring thoughts to develop.