CONTENTS

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Windows® 7 is here

Microsoft will be updating its Operating System with the launch of Windows® 7 on 22 October 2009.
If you intend to upgrade to the Windows® 7 operating system, you may also need to install an update for your MYOB software.

Please visit www.myob.com.au/windows7 for more information regarding your MYOB software and Windows® 7 compatibility.

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MYOB’s Spotlight on Add-on Solutions

• Improve your cash flow
• Real time job/sales management/visibility of mobile workforce
• Eliminates paperwork, filing, and unnecessary ‘administration’

What ConnectiX customers are saying:

Rob from Rob Adams Refrigeration says - “CWA helps me to spend 100% of my time running my business, and saves me 20 hours per week which equates to 50% saving of hiring a part time person”

A Complete Field services solution

ConnectiX enables real time customer information to mobile workers in the field, through the use of wireless technology and your existing MYOB Company File.

From the ConnectiX Command Centre jobs/appointments can be created, scheduled and sent to mobile staff in real time using a PDA, Tablet or Laptop on the mobile phone network. 

Once a task has been assigned, the role of the Command Centre is changed to monitor information from the field.  Mobile staff can be “seen” in the field, by viewing their location and what they are working on.
Once they have completed the task they can send notes, times and materials used back to the office ready for automatic invoicing, saving time for both field and office staff. 

Visit ConnectiX for your complete mobile accounting solution

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The client connection - making the most of CRM

The challenges of the economic downturn have forced franchisees to focus on what really drives their business. For almost every kind of business, that focus starts with the customer and how businesses can work more effectively to increase sales.

There are some industries with businesses starting to see more opportunity in the market. But whether they can make the most of this is going to be down to how well they manage their customer relationships.

Creating a loyal customer base is not just about having a great product and fantastic service, it’s also about putting systems and practices in place so you can generate more leads, create sales opportunities and, perhaps most importantly, continually meet and exceed customer expectations.

One way to increase your business’ sales is to have a customer relationship management (CRM) system in place to manage your sales activities.

However CRM programs are only truly effective when they are adopted by the sales team as a daily part of their routine, in order to optimise the sales process and help to strengthen customer relationships.

Here are six tips to help employees adopt and get the most out of a new CRM system.

Keep it simple

A CRM solution that easily integrates into existing daily routines is crucial. Investing in CRM software that incorporates into an already familiar application, or integrates into an existing system, will make the implementation of a new CRM system less painful for all involved.

Answer the "what's in it for me?" question

It’s not unusual for staff to view CRM sceptically. In order for them to see CRM as a tool that will help them increase sales, and meet their own performance targets more easily, it’s important to spend some time explaining how a new CRM approach will benefit them directly and not just the company as a whole.

Work the way they work

Most sales people use Microsoft Outlook® throughout the day to communicate with customers. If your chosen CRM software doesn't actually work within Outlook make sure it at least syncs seamlessly with that program.

Give them one piece at a time

To avoid overwhelming your sales force, rollout the software implementation gradually. By taking a managed approach to implementation you can ensure they learn and use every function of the new solution in their daily routine.

KPI the adoption of your new CRM solution

Once the CRM application is implemented and the sales force is trained provide them with key performance indicators (KPI) and measure their progress.

Communicate

Invite the sales team to review weekly or monthly reports and share feedback as a way of continually reinforcing the value of the system.

MYOB ClientConnect is a simple to use CRM tool that operates within Microsoft Outlook®.  Three options are available in the range to suit businesses of any size. To learn more, visit www.range

Tim Reed
CEO MYOB

To celebrate the launch of our new Customer Relationship Management (CRM) tool - MYOB ClientConnect, we are giving you the chance to WIN $15,000 CASH*.

myobclientconnect.myob.com.au

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Hot Topics Webinars

Looking for that short sharp training option?

MYOB’s Hot Topics Webinars are a series of one hour online training sessions that tackle the top software questions you requested in 2009.

From cash flow to jobs, budgeting to BAS. It’s all here and delivered in a way that suits even the busiest lifestyle.

Hot Topics Webinars cost just $49.50 per webinar session. Book 3-5 sessions and SAVE 10%. Book 6 sessions or more and SAVE 15%.

Join our MYOB Training specialists from the comfort of your home or office as they take you through the information you need. Sessions are interactive, which means you’ll be able to ask questions at any time. Every question answered!

MYOB Hot Topic Webinars address these sizzling issues:

• Cash Flow Management
  
• Jobs and Categories
  
• Better Budgeting
  
• Fixing Errors
  
• BAS Preparation and Reporting
  
• Customising Forms
  
• Importing and Exporting Data
  
• Multicurrency.

Dates and Times

All topics are available at either 10.00am - 11.00am or 12.00pm - 1.00pm

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Day-to-day processes webinar - only one event left

Learn even more without leaving the front door 

In addition to our Hot Topics Webinars, the ever popular classroom and workshop series, Day-to-day processes is also now available as a webinar for a limited time.

The webinar is available as 5 X 1 hour sessions over a number weeks (please refer to the schedule below). 

If you’re time poor or like “bite sized” learning, this is the course for you.

Who should attend?

If you’ve set up your MYOB Company File and are sick of struggling through your day to day processes, this course will help you:

• Create customer quotes, orders and invoices
• Process customer payments
• Create adjustment notes for sales returns
• Create supplier quotes, purchase orders and bills      
• Record supplier payments
• Record money received and spent
• Deal with petty cash
• Prepare and print bank deposit
• Complete a bank reconciliation.

Alternatively, this course is great for any new staff wanting to learn how to use their MYOB software for basic day-to-day processing.

What is a webinar?

• Web-based seminar transmitted over the internet
• Easily accessible from your home or office
• Two trainers, enabling online discussion - ask questions as you learn.

All attendees will be sent a hard copy manual to review before the webinar begins.

The MYOB Day-to-day processes webinar costs $250 or $225 for current MYOB Cover members and sessions are limited.  Call the training team on 1300 555 151 or book online today.

Dates and times

When booking, select the event and a time. All webinars are available on the below dates at 12:00pm-1:00pm or 6:30pm-7.30pm (AEST). 

• 4 November 2009
  
• 9 November 2009
  
• 11 November 2009
  
• 18 November 2009
  
• 25 November 2009
  

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Measuring your business performance

Understanding your business and knowing what actions to take is essential if your business is to grow and prosper. 

Key Performance Indicators (KPIs) are one method to measure your business’ performance and identify areas that need improvement.

KPIs focus on critical aspects of your business that need improvement and/or on aspects of the business that need to be maintained at their existing level. Read more about how to use KPIs to improve performance on myBRC.com.au

If you own or run a business in retail, you might also like to read myBRC’s article on diagnosing your retail business’ health, with indicators specific to your sector.

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Monitoring the Financial Performance of your Business

By Joe Kaleb, of www.australianbiz.com.au

It is very important to monitor a wide range of “performance indicators” in your business, in order to ensure that appropriate and timely decisions and plans can be made. Given that sales, profit margins and cash flow are the lifeblood of any business, owners should place particular emphasis on receiving regular reports on these areas of the business.

Knowing the financial position becomes even more important as the business grows, especially if your plan is to grow the business substantially. Lack of a precise and timely knowledge of the current financial position can lead to business failure and have other consequences for the directors/owners. 

FINANCIAL STATEMENTS

The minimum financial information for any business should be periodic financial statements consisting of at least a Balance Sheet and Profit and Loss Statement.

Businesses that provide credit to customers also need to control their debtors through monthly aged debtors trial balances. Those who have a significant investment in stock should control that through perpetual inventory records. Regular debtor and inventory reports will help prevent too much capital being tied up in these areas and allows for prompt follow up action. For example changing inventory ordering patterns and allowing immediate follow up on debtors to prevent bad debts.

One disadvantage of financial statements is that they show the results of the business after the event and as such they are a lag indicator.

If prepared solely on an annual basis (and often this happens well after the end of the year) there is a considerable lag. More frequent reporting periods are needed for more important data as well as use made of other financial and non-financial indicators. Examples are number of enquiries, number of customers per day, average sales value, number of quoted jobs lost, customer satisfaction and so on.

Thus for best results, financial statements and other key performance indicators (KPIs) should be prepared on a regular and consistent basis and compared with prior periods. Monitoring performance using successive monthly or quarterly accounts can show trends that otherwise might not be apparent.

The following are some important KPIs that should be monitored:    

Stock turnover - Days

Reflects the number of days that it takes to sell inventory. The lower the ratio means the quicker the stock is sold

Debtors’ turnover - Days

Reflects average length of time from sale to cash collection. The lower the ratio means the quicker that accounts are paid. From a cash flow perspective, it is important to keep days outstanding to a minimum.

Current Ratio

Indicates the extent to which current assets cover current liabilities and is a measure of the ability to meet short term obligations. The rough rule of thumb is a ratio of 2:1. That is for every $1 of liabilities (within 12 months); there should be at least $2 in current assets to meet such liabilities.

Debt/equity

This is a measure of the extent to which a business relies on external borrowings to fund its on-going operations. The higher the ratio, the more heavily that debt financing is used. In order to provide a reliable measure, assets should be valued at market value.

Interest coverage

Provides a measure of the ability of the business to meet its interest commitments out of profits and is linked to the debt/equity ratio. The rough rule of thumb used by banks is a ratio of 3:1. That is, operating profit before income tax exceeding interest expense 3 times.

Return on investment

Represents the after-tax return that owners are receiving on their investment and should be compared with alternative forms of investment.

Gross profit margin

An indication of the profitability of the business and reflects control over cost of sales and pricing policies. This ratio should be compared with prior periods and to any available industry data

Breakeven sales

Reflects the sales that need to be generated in order to cover expenses. In other words, this is the level of activity at which neither a profit nor loss is incurred, or where total costs equate with total revenue. This is a very important ratio that every owner should monitor on a monthly basis.

PROFIT & LOSS AND CASH FLOW BUDGETS

Business owners should also prepare monthly profit & loss budgets for at least a 12 month period and more importantly to assess the impact that these projections have on the future cash flow of the business. Budgets should be compared to actual results and variances acted upon on a timely basis. 

For more accurate reporting, particularly in respect of manufacturers, wholesalers and retailers, it is preferable that the profit & loss and cash flow budgets are linked and have a number of in-built features including:       

• The profit & loss budget should have columns that separate income and expenses that include GST or have no GST.  Note the amounts in the profit & loss budget are recorded on a GST-exclusive basis, whereas on the cash flow budget, they appear on a GST-inclusive basis  
• The cash flow budget should automatically calculate GST owed to the ATO depending on whether the business is using either monthly or quarterly GST reporting and whether GST is paid on either a cash or accruals basis 
• It is common for operating expenses on the profit & loss budget to be amortised evenly during the 12 month period and the cash flow budget records these payments on either a monthly or quarterly basis. For example rates & taxes, insurance, light & power, and fringe benefits tax are usually paid quarterly, whilst all other operating expenses are usually paid monthly    
• By entering an interest rate, the profit & loss budget should have the facility to calculate interest paid each month on the overdraft, or interest received where the account is in credit at the end of the month
• Opening balances (e.g. bank overdraft/credit balance, GST liability/refund, debtors & creditors) need to be recorded on the cash flow budget
• The collection and payment percentage rates for debtors and creditors (e.g. current, 30 days, etc) should be recorded to better reflect the impact of sales and purchases on the cash flow budget
• The cash flow budget should include common items such as PAYG instalments/income tax, loan repayments, plant & equipment purchases, dividends, and loans made to the business.

Joe Kaleb is a practising Chartered Accountant and CEO of the small business information website www.australianbiz.com.au. The site provides practical tax and business articles, finance calculators, including the above monthly KPI, and linked profit & loss and cash flow budget calculators, common business templates, and other tools to assist business owners to better manage their business and income tax obligations. The site also provides other services including professional indemnity and business insurance quotes, commercial, property, factoring and leasing finance and a comprehensive directory of Australian accounting firms to assist businesses to find an accountant. 

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The 5 essentials of growing your business

International business improvement consultant and author Bill Lang presents a series of business-building seminars to help your business thrive, even in turbulent times.

In late 2009 and early 2010, Bill will expand on the business growth insights from his latest book, Scores on the BoardTM - the 5 part system for building skills, teams and businesses, including:

1. The 5 simple steps that are guaranteed to grow your business
2. How you can incorporate the activities of world-best-practice organisations into your business
3. How to create high-performing teams that continually strive to improve their effectiveness
4. The importance of developing leadership, coaching and mentoring skills
5. Practical tips to get your employees turning up, turned on and tuned in
6. How to achieve every business owner’s ultimate goal: ‘results without dramas’.

These seminars are normally valued at $97, but for a limited time MYOB Cover members can profit from Bill’s vast business-building expertise at no charge.

Visit www.scoresontheboard.com/thebook/myobpromotion to register your interest. But hurry - there are only 50 free seats to Bill’s seminar series, so it’s first-in, best-business!

Learn the practical tips that the characters in the book use to grow their businesses. Find out what advice Tony, Accountant and business advisor, gives Peter the small business owner that plants the seeds for business growth, and gets him spending less time in his business, and more time on it.

Know a growth-oriented business owner that would like to learn the 5 essentials of growing a business? Feel free to pass on this offer - but tell them to be quick, the seats won’t last!

Can’t wait for the seminars? Discover Bill’s business-building secrets today! Scores on the BoardTM - the 5 part system for building skills, teams and businesses is out now.

Visit www.scoresontheboard.com/thebook - buy online and save 20%, or download the first chapter absolutely free.

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Get Smarter Training Seminar Feedback

The Get Seminar series started with a sold out session at Nunawading and here’s what some of the attendees had to say:

“Being self taught, I found the seminar a great safety check to ensure I am across everything I need to know as a bookkeeper.” Vicki Thomas - Independent Bookkeeper, Doncaster East

“An excellent seminar I learnt a lot from the information presented and appreciate the manual to be able to review what was said at my own pace.  The presenters were excellent in their presentation of the information.” Cheryl Turner - Living Kitchens, Surrey Hills

“Best MYOB seminar I have attended in 6 years. Got so much info out of it. The presenters were excellent. They obviously work well together and were informative but added a bit of humour.”  Ruth Rankin - Merri Creek Management Committee, East Brunswick

Remember there are still sessions left and as an MYOB Cover member you can Register now online for the special price of $107.10* (RRP $119) or download and return the registration form

Get Smarter gives you the inside knowledge on how to correctly apply new compliance changes in your MYOB software. You’ll also learn smarter ways to improve your everyday processes and boost your productivity.

Join Accountant and small business expert Mark Holton, together with an MYOB Trainer and get the smarts on:

1. How to map your business processes so they are effective and efficient - every time
2. How to help cash flow by banking faster and paying smarter using banking tools in your MYOB software
3. Meet your changing PAYG and superannuation obligations so you avoid ATO penalties
4. New Fair Work legislation and how it impacts your business
5. Ensure your business and MYOB software is Fair Work compliant
6. Smarter sales processes to reduce data entry and avoid costly mistakes
7. How to ease the burden of financial reporting by building a smarter Accounts List
8. And more.

 
Spaces are limited, so be quick to ensure your place

Register online and you’ll also receive:

1. A comprehensive seminar manual worth $45
2. Morning or Afternoon Tea
3. Three months access to checklists, resources and interactive discussion forum via the Get Smarter web page
4. Three months free trial of an automated backup tool valued at up to $150.

For more detailed information, or to book, call MYOB Training on 1300 555 151 today.

*No further discounts apply.

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Take the EASY MONEY quiz for your chance to win $15,000 with MYOB ClientConnect

To celebrate the launch of our new Customer Relationship Management (CRM) tool - MYOB ClientConnect, we are giving you the chance to WIN $15,000 CASH*.

The smarter way to access your critical sales and contact information

MYOB ClientConnect is an easy-to-use CRM system program that operates within Microsoft Outlook®. If you know Microsoft Outlook you know MYOB ClientConnect.

Good luck and remember to tell friends and colleagues how easy it is to win $15,000* with MYOB ClientConnect.

Find out more by calling 1300 555 111 or visit myob.com.au/clientconnect

*Entry only open to Aust residents 18+. Individuals that complete the quiz to enter can only enter via the quiz once. Individuals that make a qualifying purchase to enter can only enter once for each qualifying purchase. Starts 12/10/09. Entries close 12 noon AEDST on 23/11/09. Draw at 178 Albert Street, Windsor, Victoria 3181 on 25/11/09 at 12 noon. Winner’s name published in The Australian on 9/12/09. Prize: AU$15,000 cash. Prize awarded to individual named on entry form. Promoter: MYOB Australia Pty Ltd (ABN 13 086 760 198) of 12 Wesley Court, Burwood East, Victoria 3151. See myobclientconnect.myob.com.au for full terms and conditions. NSW LTPS/09/8942, VIC 09/3151, ACT TP09/3861, SA T09/ 2334.

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MYOB Business Accounting Software

How else can I track the performance of my business?

To see how profitable your business has been you would view the Profit & Loss Accrual report. You can however use other reports to get an idea of how your business is currently travelling.

To see amounts owed to you by your customers.

1. Click on Reports and select the Sales tab
2. Click on the Ageing Summary and then click on the Customise button near the bottom
3. Enter a date for this report
   Note: This date is not a cut-off date for the report it is only an ageing date.
   
   
4. You will see each customer and the Total Amount Due.

To see amounts you owe to your suppliers.

1. Click on Reports and select the Purchases tab
2. Click on the Ageing Summary and then click on the Customise button near the bottom
3. Enter a date for this report
   Note: This date is not a cut-off date for the report it is only an ageing date.
   
   
   
4. You will see each supplier and the Total Amount Due.

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How can I track the performance of my business?

MYOB RetailManager has reports that will allow you to report on the profit made by your business, in any given period of time.

• Go to Tools and select Reporting
• Click on Profit
  
  

You will now be able to see the different reports.

Discount Averages and Discount Detailed

In Order for this report to show data, you would need to have entered a sale with a discount.

Profit By Category

If you have used the Department and Categories Assistant to create categories, you can use this report to view your most profitable categories.

Profit By Custom

In order for this report to show data, you would need to use the custom fields on the stock card.

These reports can provide you with an idea of your profitability based on the specific report you have selected and the filters you have used.