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Top 5 Finance Mistakes

Sunday, August 18, 13

President, Xero USAHi! I’m Jamie Sutherland.


• 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


TheFacts


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


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


Why?


Financials Matter

ComplianceBusinessSuccess


Financials Matter


Insight & decision making


Financials Matter



Cashflow


Financials Matter



CashflowManages sales &

customers


Financials Matter




customers

Monitor expenses &

vendors


Financials Matter




customers

Monitor expenses &

vendors

Funding sources


Finance Quiz


What is the biggest expense for most businesses?1.


What is the biggest expense for most businesses?

Answer

1.

Staff


At the end of the month you subtract your income from your expenses. Does that equal cash flow?

2.


At the end of the month you subtract your income from your expenses. Does that equal cash flow?

2.

Answer No


“What is the strangest item your client has tried to deduct from income”?

3.



a) A family vacation disguised as a business trip

3.



a) A family vacation disguised as a business tripb) Traffic tickets

3.



a) A family vacation disguised as a business tripb) Traffic ticketsc) Escorts

3.



a) A family vacation disguised as a business tripb) Traffic ticketsc) Escortsd) Gambling losses

3.



a) A family vacation disguised as a business tripb) Traffic ticketsc) Escortsd) Gambling lossese) Clothes for their dog

3.


Top 5 Finance Mistakes


1. Cash flow projection mistakes


Understanding Cash Flow

YourBusiness

VendorsCustomers

ExpensesSales

Money OutMoney In

$ $


http://visual.ly/small-business-landscape-0










Ask yourself:

What money do we need to get through next week/month?


2. Suck at collecting payment


Get Paid Faster


Get Paid Faster

• Invoice promptly

• Set shorter payment terms

• Email invoices with link to pay

• Accept credit cards

• Get an upfront deposit/retainer


3. Waiting too long to track spending


4. Not keeping financials up to date


5. Aren’t using an accountant


225%⬆


• Get taxes done

• Keep me out of jail

• Proactive advice

• Monthly reporting

• Improve cashflow

• Someone who knows your game-plan

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Questions?


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