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Beautiful accounting software
Top 5 Finance Mistakes
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President, Xero USAHi! I’m Jamie Sutherland.
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• Global leader in online accounting
• 160,000+ paying businesses
• 6000+ Xero accounting partners
• 400+ staff (US HQ in San Francisco)
• A new release every 3 weeks
• Unlimited users with different roles
• Bank feeds from 5000+ institutions
2007 2008 2009 2010 2011
Introducing Xero
2012
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TheFacts
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Marketplace Facts
• ~500,000 small businesses open their doors each year
• ~65% of new jobs are created by small businesses
• ~2,000 startups get venture capital funding in the US each year
• ~50,000 startups get funded by angels each year
Good
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Marketplace Facts
• ~500,000 small businesses open their doors each year
• ~65% of new jobs are created by small businesses
• ~2,000 startups get venture capital funding in the US each year
• ~50,000 startups get funded by angels each year
• 67% of small business don’t last longer than 5 years
• Over 90% of tech startups fail
Good
Bad
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Why?
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Financials Matter
ComplianceBusinessSuccess
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Financials Matter
ComplianceBusinessSuccess
Insight & decision making
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Financials Matter
ComplianceBusinessSuccess
Insight & decision making
Cashflow
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Financials Matter
ComplianceBusinessSuccess
Insight & decision making
CashflowManages sales &
customers
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Financials Matter
ComplianceBusinessSuccess
Insight & decision making
CashflowManages sales &
customers
Monitor expenses &
vendors
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Financials Matter
ComplianceBusinessSuccess
Insight & decision making
CashflowManages sales &
customers
Monitor expenses &
vendors
Funding sources
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Finance Quiz
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What is the biggest expense for most businesses?1.
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What is the biggest expense for most businesses?
Answer
1.
Staff
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At the end of the month you subtract your income from your expenses. Does that equal cash flow?
2.
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At the end of the month you subtract your income from your expenses. Does that equal cash flow?
2.
Answer No
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“What is the strangest item your client has tried to deduct from income”?
3.
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“What is the strangest item your client has tried to deduct from income”?
a) A family vacation disguised as a business trip
3.
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“What is the strangest item your client has tried to deduct from income”?
a) A family vacation disguised as a business tripb) Traffic tickets
3.
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“What is the strangest item your client has tried to deduct from income”?
a) A family vacation disguised as a business tripb) Traffic ticketsc) Escorts
3.
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“What is the strangest item your client has tried to deduct from income”?
a) A family vacation disguised as a business tripb) Traffic ticketsc) Escortsd) Gambling losses
3.
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“What is the strangest item your client has tried to deduct from income”?
a) A family vacation disguised as a business tripb) Traffic ticketsc) Escortsd) Gambling lossese) Clothes for their dog
3.
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Top 5 Finance Mistakes
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1. Cash flow projection mistakes
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Understanding Cash Flow
YourBusiness
VendorsCustomers
ExpensesSales
Money OutMoney In
$ $
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Ask yourself:
What money do we need to get through next week/month?
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2. Suck at collecting payment
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Get Paid Faster
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Get Paid Faster
• Invoice promptly
• Set shorter payment terms
• Email invoices with link to pay
• Accept credit cards
• Get an upfront deposit/retainer
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3. Waiting too long to track spending
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4. Not keeping financials up to date
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5. Aren’t using an accountant
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225%⬆
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• Get taxes done
• Keep me out of jail
• Proactive advice
• Monthly reporting
• Improve cashflow
• Someone who knows your game-plan
New age accountants have emerged...
Old school accountant
New school accountant
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$300/month
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Questions?
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XeroBeautiful accounting software
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