SME Business Sales Raise in September, Eurozone Up Bailout Fund

According to the recent ANZ small business sales trends report, small business sales lifted for the fifth consecutive month in September. The report shows small business turnover increased by 5.2% year on year.

Based on ANZ data on the value of credit, debit and Eftpos transactions through its merchant terminals and ANZ card transactions processed through other systems for businesses, at least two-years-old with annual turnover less than $5 million.


ANZ Head of Australian Economics and Property Research, Ivan Colhoun, said year-to-date growth is "fairly flat" at 1.7%. "And with headline inflation running at around 3.5% y/y in 2011, this implies real (inflation-adjusted) small business sales growth is still relatively weak in September," says Colhoun.

The report also shows that it is because services and trade sectors outperformed retailers, with small retailers recorded 2.6% year on year growth versus 6.8% annual growth for non-retail and services small business.

Meanwhile, the Eurozone is set to shore up its bailout fund, with German MPs saying the plan could boost the fund's lending capacity to more than one trillion euro ($A1.34 trillion). A document obtained by The Associated Press shows the currency zone wants to boost the 440 billion euro ($A587.65 billion) bailout fund by offering sovereign bond buyers an insurance against possible losses and by attracting capital from private investors and sovereign wealth funds.

Eurozone governments hope that the enhanced European Financial Stability Fund, or EFSF, will be able to protect countries such as Italy and Spain from being engulfed in the debt crisis. To do that, however, it needs to be bigger or see its lending powers magnified. Leading German opposition MPs, who were briefed earlier on Monday by Chancellor Angela Merkel on the plan, said the fund's lending capacity will be boosted "beyond one trillion" (euros).

But the draft document by the eurozone working group - which Germany's government was sharing with key MPs on Monday - did not provide a headline figure for the bailout fund, stressing "a more precise number on the extent of leverage can only be determined after contacts with potential investors" and rating agencies.

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 Shoebooks is a premium provider of software for accounting for SME businesses in Australia. Check out Shoebooks accounting online software services and experience the advantages of our online invoicing software for your business. Shoebooks is located at Unit 12, 118 Church Street, Hawthorn Victoria 3122, Australia. Call Shoebooks at +613-9818-1515

Australia: Popular Place for Cloud Computing

Not many countries have grasped the advantages and benefits that cloud computing offers like Australia.

In the new survey conducted by Forrester on behalf of VMware, Australia’s fondness for cloud computing, the accounting software for business, has once again been emphasized. This was according to the report of itWire.

Cloud computing has been perceived as a strategic business investment by some 47 per cent of businesses in Australia. This is in comparison to other markets as its number one benefit is cost reduction.

Compared to over a year ago, there has been an increase of seven percent in small businesses in Australia that already use the accounting software for business. This is shown with 67 per cent of them using cloud computing.


"What is clear from the survey is that Australian companies are ahead of the game when it comes to cloud computing," says Duncan Bennet, Managing Director of VMware Australia and New Zealand.

Solid financial results have been enjoyed by VMware in the third quarter of this year.

Cloud Computing Users Should Ensure Good Relationship with Provider

With many companies now using cloud computing solutions, companies using these latest cloud computing solutions have been urged to make sure that they have a good relationship with the manufacturer that is providing them.

According to Seth Robinson, one of the authors of the CompTIA second annual Trends in Cloud Computing report, the so-called Service Level Agreements, or SLA, is a key factor in any deal to purchase and secure a cloud computing contract.

Robinson further said that a SLA is "very important" and an agreement must be reached prior to any investment in technology taking place. This is so because there are so many companies that go directly to the internet and just pick up services and sign off on things and begin using them.

Likewise, with the cloud, many companies are trusting a significant portion of their IT to third party provider which increases security risks if not done properly. So it is at times like these that it is a must that companies focus on having a healthy relationship with the cloud computing provider.

Cloud computing is the delivery of computing as a service rather than a product, whereby shared resources, software, and information are provided to computers and other devices as a utility (like the electricity grid) over a network (typically the Internet).

Cloud computing provides computation, software, data access, and storage services that do not require end-user knowledge of the physical location and configuration of the system that delivers the services. So it can store information derived from software for accounting like information input into invoicing software or any other accounting software for business.

Robinson’s comments emerged as James Peel, the product manager at Opsview – an open source platform, stated that in order to ensure that the cloud computing service is being deployed in an efficient manner, companies in the UK must monitor the way staff use these services.

UK vice-chairman of EuroCloud, Phil Wainewright, had recently praised cloud computing for its offer of high levels of security and how difficult it makes it for outsiders to access stored information.

Auditor-General Could Spell Trouble for SME Businesses

According to the opposition, it could mean disaster for businesses as there is a move to sharpen the teeth of the auditor-general.

The private member’s bill of independent MP Rob Oakeshott that targets to give the auditor-general greater powers to follow money trails and to ensure the government gets its money is being debated by the Senate.

The audits will be extended to government business enterprises such as NBN Co. should the bill be passed.

Furthermore, the bill will also allow the investigation on how federal money has been used by states and territories and assess the performance of contractors such as home insulators.


Due to the risks of audits, many small and medium sized enterprises may already opt to avoid government contracts. This was told to the Chamber by Liberal Senator Mathias Cormann. With this, those who will tender for such contracts are only those companies that have resources that are enough to comply with an investigation.

"It will get rid of the pesky competition from small and medium tier businesses who will just give up because there is so much red tape involved," said Cormann.

On the other hand, Senator Nick Xenophon believes in the importance of improving the scope of the auditor-general particularly in ethics, and effectiveness of government programs.

According to Labor Senator Mark Bishop, the bill contains the appropriate restrictions of the extent of power of the auditor-general.

"It's not a frolic on its own by the auditor-general. It's not able to cavalier and investigate near and far, the audit is limited,” he said.

The Commonwealth is the primary focus of the auditor-general.

For now, debates continue on the Auditor-General Amendment Bill 2011

Source: www.smh.com.au

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Shoebooks is a premium provider of software for accounting for SME businesses in Australia. Check out Shoebooks accounting online software services and experience the advantages of our online invoicing software for your business. Shoebooks is located at Unit 12, 118 Church Street, Hawthorn Victoria 3122, Australia. Call Shoebooks at +613-9818-1515 begin_of_the_skype_highlighting              +613-9818-1515     

Fair Tax Scheme: Lift the GST

Despite the Australian government's edict of the Goods and Services Tax (GST) issues as taboo subjects in the recently held tax summit, business groups are still set to ignore the edict by advocating for the lifting of the GST and changing the mining tax.

Moreover, accountants, Australia accounting software providers and the common Australian citizens stated that the lifting of the GST rate could help make the Australian tax system fairer.

The Goods and Services Tax (GST) is a broad sales value added tax of 10% on most goods and services transactions in Australia.


According to yourmoney.com.au survey, data showed that there is a strong demand for the simplification of the tax system. Some common suggestions were the introduction of a low flat rate of tax, lifting of the GST, and compensation of low income earners – who are typically spending a much bigger percentage of their money on basic goods and services.

According to a research by CPA Australia, one of three professional accounting bodies in Australia, if the GST is increased to 15 or 20 per cent and along with cuts to business and personal tax rates, this would improve the economy and raise the standard of living.

Moreover, according to the Australian Industry Group, increasing the rate of the GST - or a broadening of its application to more goods and services is a way to pay for the removal of inefficient state taxes.

The Gillard government has flatly decided changing the GST. They even declared it off the discussion at the recently held week's two-day tax summit in Canberra.

The 2-day Federal Tax Summit in Canberra held last October 4 and 5, 2011 had focused on its own agenda, including helping businesses hit by the two-speed economy. Moreover, Prime Minister Julia Gillard and Treasurer Wayne Swan have marked changes for businesses squeezed by the patchwork economy, with plans to alter tax treatment of losses.


The summit was attended by 184 people, which includes delegates from business, unions, community groups, and state and federal politics. It was held as part of the post-election deal with country independents to support Ms. Gillard's minority government.

5 Key Cloud Computing Ways Revolutionizing the Business World

What initially started as a simple tool is now becoming a very popular accounting software for businesses as it offers businesses a way to save money. Companies are already doing their working practices in ways that suit the cloud computing technology.

Eighty percent of the 900 organizations surveyed by KPMG are saying that they have plans of adopting the cloud computing technology. Ten percent of them are already using the accounting software at present.

Basically, cloud computing is “the process of sharing IT resources to achieve more power and productivity with fewer costs and roadblocks”.



Here are the five key ways as to how cloud computing revolutionizes the business world.

1. Breaks down barriers to entry

Cloud computing basically removed in-house implementations and large capital outlays. New technologies and innovations are no longer limited to big companies that have the resources to create such. Furthermore, companies no longer need to purchase expensive server equipment since cloud computing, as a bookkeeping software, will take care of keeping data and information and only charges a fee for the resources used.

Google, Amazon, and Microsoft also make use of cloud computing to extend their services.

2. Allows businesses to react with agility

Business operations will always include changes in situations needed to address business demands. This is where cloud computing helps businesses. Should a business need to be over specified due to peak usage or if it is underspecified in order to manage heavy load sessions, cloud computing provides the services. Businesses are able to access their IT resources using flexible and dynamic systems.

With cloud computing, the instant and unexpected cyclical demands of businesses are addressed more effectively and efficiently with cloud computing.

3. It uses pay-per-use cost model

IT functions of businesses mean the need to pay for spaces whether or not the space is needed or is too big for the demand. In most cases, companies have to buy more desktop computers, machines for internal server rooms, as well as space for offset servers. What’s worse is that, as the demand increases, so does the need to add more of these expensive materials and equipment.

Cloud computing has changed the trend. Since it operates on a need basis, businesses only need to pay for the space that it uses. They only need to pay more when the need for greater space arises. With cloud computing, no idle space is being paid for.

4. Less maintenance, more innovation

It is said that around $8 for every $10 is used by businesses for maintenance rather than innovation. With cloud computing, this maintenance cost is reduced as the maintenance operations are already shouldered by the technology which is being done offsite. The pay-per-use scheme already includes upgrades and maintenance.

5. Being able to build products that are adaptable to today’s fast-moving businesses.

Conventional methods of storing and accessing data of businesses include purchasing software in boxes and installing it on all computers in the office. With cloud computing, applications are hosted by a central server and are used by businesses via the internet. Security of data is ensured with the said accounting software.

Cloud computing is very beneficial to businesses for their accounting software needs.

"What's remarkable about the cloud is you can do this type of work on demand. We've never had information ability like this before,” said Eugene Kolker, Chief Data Officer at Seattle Children’s Hospital.

Factors for a Successful Cloud Computing

Cloud computing is a new accounting software for small business that deploys information in the “clouds”. This helps a business save space as they no longer need many computers to store data and information. The data are stored in a data center and web servers provide the information.

However, much as it is considered advantageous, there are users still who fail even after they have used the said online accounting software. In order for a successful cloud accounting operation to happen, then the following factors have to be considered.




1. As opposed to cloud computing focusing on infrastructure, it would be better to focus on the four key areas namely: strategy, business processes, technology, and people skills.

The usual mistake people make is focusing on infrastructure first and then checking if the deployment has met the overall strategy or not. What must be done instead is to invest in business management, people, and processes before using the technology in order to ensure success in the cloud computing. The strategy has to be built first and then technology and people skills are checked to see if they are aligned with the overall strategy.

2. According to the report of the SearchCloudComputing by Intel, a computer parts manufacturer, the right application software, storage, network connectivity, data and processing must be put together for the creation of an efficient system.

This is known to result to a large pool of storage space that will eventually lead to higher levels of utilization and efficiency.

The report added that making all components of cloud computing work in a flexible manner is the key to a successful cloud computing.

Recently, the cloud is said to be recording huge take-ups at this current time.

CIOs Embrace the Benefits of Cloud Computing

While majority are convinced of the advantages of cloud computing to companies, Chief Information Officers (CIOs) are giving their thumbs-up to the new accounting software for business.

According to the research conducted by Xantus, an independent management consultancy, 23 percent of CIOs are presently using the technology as reported by ComputerWeekly.com.

In addition to that number, the accounting solution will be adopted by another 53 percent in the next 12 months.

However, there are still a number of companies that are unsure of the benefits of cloud computing which makes them hesitant to use it.

Agility was named as one of the key draws of cloud computing wherein the increase in storage offers them new options overnight.

Among the other findings of the survey include:

• 23% of CIOs are currently using cloud;
• 53% plan to use cloud in the next 12 months;
• 90% have conducted a feasibility study into cloud;
• 50% say integration of cloud with existing systems is a potential show-stopper;
• Security only ranked fifth in the list of CIO concerns;
• Most CIOs expected an ROI of 10-25% on the cloud;
• Public sector more bullish than private sector.

The benefits of cloud computing include:

• Reduced cost- as cloud computing is paid incrementally
• Increased storage- the cloud offers greater storage data than any computer system.
• Highly automated- IT personnel no longer have to worry about updating software
• Flexibility- more flexible than past methods
• More mobility- since it is online, it can be accessed from any computer, anywhere, anytime
• Allow IT to shift focus- server updates are no longer necessary.

Cloud computing continues to serve businesses today as far as data storage is concerned.

With today’s competition and risks for hacking, using business accounting software can be very beneficial. It saves a company time and effort, as well as money for hiring an employee to perform accounting processes. Cloud computing is undeniably a very efficient business accounting software and must, therefore, be adopted by business owners.