Xero’s Starter Plan just got better

Xero Starter Plans for SMEs

It’s been a tough year for small Kiwi businesses, so it’s always nice to get a little bit of good news. Last month Xero announced changes to its Starter plan, the entry-level Xero monthly subscription – a way to support small businesses during the pandemic as on-the-go accounting is more important than ever.

Check out the upgrades to the Xero Starter plan, effective from September 14, 2020:

Previously

Now

Bank reconciliations

Limited to 20 per month

Unlimited

Invoices

Limited to 5 per month

20 per month

The Starter plan is $27.50 per month, although new users can pay $13.75 per month for the first four months – and you can try Xero for free for 30 days. Remember that if you’re an SME Financial client, you get a discount on your Xero subscription, which we pass onto you.

The bank reconciliation feature keeps your numbers accurate, and you can set up bank rules to automatically reconcile regular transactions, saving you time. You also have Hubdoc, which means you can automatically get bills and receipts into Xero, making reconciliation easier. With the new higher limit on invoices, the Starter pack means you can send an invoice almost every working day of the month. Check out this video for invoicing shortcuts, and don’t forget to set up automatic reminders to help you manage outstanding accounts.

With these changes, the Starter plan is perfect for small businesses. It is designed to provide you with the flexibility to grow, at an affordable price. The Starter plan might be ideal if you’re a sole trader, a freelancer, contractor or tradie. It might even work if you’re a better-established small business owner doing only a small number of invoices each month. A few of our clients are switching from the Standard plan at $60 per month down to the Starter and saving themselves over $30 a month.

SME Financial is a Xero Gold Partner, which means our team gets a high level of training and support from Xero. We pass on that knowledge to our customers through our Xero training services and ongoing Xero support.

You can explore all the features here, and the changes are already in place so if you’re currently a Starter pack user you can start using them right now.

Questions about Xero? Wondering whether you’re in the right plan for your business needs? We can help. Get in touch with SME Financial today.

Considering Buying a Business? 7 Top Tips to consider

Top tips for buying a business

Wondering how to go about buying a business? Taking over an existing business can be a great way to get go out on your own as a business owner, or to grow your profits if you are already running a business successfully.

Established businesses have put in the groundwork of the business set up, so you can get up and running on day one without a lengthy formation process.

7 Things You’ll Need to consider

  1. Why is the business for sale? – It’s important to understand the motivation for the sale, whether strategic or whether an emergency sale. There may also be hidden reasons for the sale which your research can uncover.
  2. Research – Do more than you think you need to! Market research, investigation, learning and questioning about the potential business, the locale, the industry, the customers, the suppliers, the competitors, the market and the nature of the goods or services being sold will ensure you don’t rush into a decision just because it looks like a good deal.
  3. Due diligence – You’ll need to see detailed financial records, contracts, licenses, supplier agreements, lists of equipment, assets and inventory, lists of liabilities, loans and debts, and all employee records before making your decision. We can help review this – we’ve seen every type of record imaginable over the years.
  4. A good business growth plan – That covers one year, two to three years and possibly five years as well. This will help you to look at the longer-term and big picture, assess the potential of the business and give a realistic picture of what you are committing to.
  5. Independent advice – one of our core services is business advisory and we often work with other industry experts like a business broker or lawyer. You might think a business looks like a great potential, but objective observers may pick up issues or queries that you have not.
  6. Finance – Whether it’s your own funds, a business loan or short term finance options, you will need to work with your advisors and refer to the business plan to assess how much you will really need for the initial purchase, transition period, and future investment.
  7. Commitment to the work – Being prepared for responsibility required to run a business. Running a business does require certain skills, as well as time, energy and money. You need to be clear about your reasons for going into business and to be sure you are up for the challenge!

When considering a business, SME Financial can help you to analyse the financial reports, activity statements, tax returns and sales and purchases records to give you an independent overview of the financial performance and potential of the business.

We can assist in understanding the financial performance and benchmarks of a business you are considering buying, so that you make the best decision possible!