News Pulse for July 10, 2018

A daily download of SME, startup, fintech and tax news from around Australia.

Dragging SMEs into digital future would boost the economy

Around 7.30 tomorrow morning – same as most mornings – small business people around the country will log on and check out their finances. How the business is trading, who they owe money to, who owes them money.

A big chunk of them won’t like what they see.

Digital solutions one answer to small business inefficiencies: Xero

New Zealand-based accounting software company Xero says that small businesses are plagued by processes that are unnecessarily inefficient and the prolific use of analogue processes that digital solutions can simplify.

According to Xero Australia managing director Trent Innes, today’s small business ecosystem is still filled with friction and for small businesses to thrive in the future, there’s a need to see barriers like unnecessarily inefficient and prolific use of analogue processes removed.

Labor policy would effectively tax small businesses as foreigners

When Bill ShortenHon Bill Shorten MP,  Federal Member for Maribyrnong Leader of the Opposition from 13.10.13 announced his policy on taxing distributions from family discretionary trusts on July 30, 2017, he did so under the banner of, “A Fairer Tax System For All Australians”. A close look at the policy clearly shows small business owners with trusts are not regarded as Australians, because they will effectively be taxed as foreign tax payers.

The policy is meant to attack high-wealth individuals based on the claim that “wealthy individuals are much more likely to benefit from a trust than low and middle-income earners”. A review of the taxation statistics produced by the Australian Tax Office for the 2014-15 year highlights how far Labor will go to justify this policy.

MYOB hits out at ‘categorically incorrect’ analysts

The chief executive of Australian tech stalwart MYOB has flagged increased investment in research and development and criticised a “categorically incorrect” research analyst report from Morgan Stanley, which tipped it to fall away dramatically due to continued competition with ASX-listed rival Xero.

The accounting software company had been looking to rebuild investor enthusiasm after it pulled out of a $180 million deal to buy competitor Reckon’s accounting software products  at the end of May, when Morgan Stanley published a damaging report claiming it had been left behind in the cloud computing era by Xero, and that its market share would fall 20 per cent over the next five years to just 30 per cent.

Australia’s open banking journey

Australia has begun its trek towards an open banking regime but has a lot to learn from the UK, which is much further down the open banking track.

A group of influential financial services executives recently sat down with Chris Michael, the chief technology officer with the UK’s Open Banking Implementation Entity (OBIE) to mull over the issues in constructing a workable open banking regime.

Xero finds “alarming” stats showing SMEs only plan for short-term 

New data from Xero finds 73% of small businesses only plan up to six months ahead.

Small businesses are not looking far enough head and are focusing too much on their day-to-day, according to new data from global small business platform Xero. The majority of small businesses (73%) are only planning up to six months ahead and one in three of those businesses only have a day-to-day focus. Just 6% of businesses surveyed had a five-year plan.

Tips, comments or suggestions? Let me know in the comments, send me an email or tweet me @simeonduncan.

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