COVER STORY
that early growth was “stunted” from the sheer amount of time and expense it took to become business literate. Our research also found that two-thirds
(63 per cent) of small firms admitted to having less than one day’s corporate financial experience or business education prior to the launch of their business. Furthermore, more than three quarters (78 per cent) of small business owners had never submitted a tax return before starting up, with two thirds (66 per cent) admitting they’d been hit with tax return fines – with the most common fine being between £300 and £400. The repercussions can be even more severe, with 50,000 small businesses failing each year due to cash flow issues. We also found a troubling lack of
awareness of the implications of MTD for VAT. We surveyed 500 SMBs last year and found that at 38 per cent of SMBs are concerned about a lack of understanding of the legislation.
Zoya: How does Xero’s app pass / align with HMRC’s facilitator requirements? Damon: Xero has worked closely with HMRC for over three years and has been recognised as Making Tax Digital ready in advance of the deadline. This new feature will be complimentary as part of any Xero subscription that supports VAT, at no extra cost.
Zoya: How does Xero’s accounting app differentiate over others in the market? Damon: I think it’s on a multi-level; Xero allows businesses to operate faster whereby Xero can automatically handle tasks that used to take up time, for example importing bank transactions to sending invoice reminders; to feel confident in so far as data is now stored safely in one place enabling business tracking. Businesses can also invite accountants or bookkeepers into Xero so they’ll ensure the business meets tax obligations; to add more software meaning businesses can look after staff with Xero Payroll and drive project profitability with Xero Projects. It is all fully integrated with Xero to keep business information in one place. When using Xero, you can also take full advantage of a thriving ecosystem seamlessly integrating with 700+ apps; business owners
www.smeweb.com
we have done a lot of radio and press broadcasts in partnership with Xero, to highlight the fact that the change that HMRC requires for MTD is not very difficult, but of course that change is cumbersome, and there is a huge list on HMRC’s website on compliance and software and it’s not expensive. Even Xero’s is a more comprehensive package. It means businesses will be forced
Damon Anderson, Director, partner, Xero
can also do business from anywhere and from any device. i.e. it’s easy for a business to access Xero tools and their corporate data from anywhere via the internet, keeping essentials like invoicing and payroll at their fingertips.
to go digital and the platform will help everyone, particularly business owners who may not naturally be numbers focussed. The beauty of it means accounting on a piece of software everyone has access to.
I HAVE WORKED WITH XERO SEVERAL TIMES OVER THE LAST FEW YEARS AND THEIRS’ IS A GREAT TEAM AND AM ENJOYING WORKING WITH THEM THROUGH THEIR GROWTH
Zoya: Sarah, why did you choose to work with Xero? Sarah: Xero is also a platform for small businesses and aims to help small businesses thrive. I have worked with Xero several times over the last few years and theirs’ is a great team and am enjoying working with them through their growth. I champion small businesses as does Xero, to help SMEs to problem solve and become more efficient. The campaign is about highlighting a
topic usually brushed under the carpet and has not been as newsworthy and with the HMRC’s deadline looming, it has seemed all the more important to focus SMEs with all the noise of Brexit, distracting businesses from getting on with their commitments. So for the campaign
Zoya: What is the investment for an SME to integrate with Xero’s systems? Damon: We have different pricing structures to reflect the varying budgets our SME customers are operating under, and our subscriptions start at just £10 a month. Often the costs of the software is absorbed by the SMEs accountant.
Zoya: Does Xero provide SMEs in – house corporate training and user support? Damon: We provide a lot of support to our small business subscribers, whether in the form of our platform Xero Central which harnesses the power of user behaviour to offer smarter advice, or through our education programme that includes hosting webinars.
Zoya: Sarah, what qualities do you possess to be a successful entrepreneur? Sarah: I am resilient, eternally positive, and a realistic person and am quite self – propelled. It’s true that being an entrepreneur can be a lonely place, but I surround myself with people I really like and respect.
Zoya: What inspires you to stay creative in business? Sarah: I am regularly inspired by people; I am amazed when watching my kids grow and get back up from any challenges. I have relished and learned a lot about creativity for example from my days at Pizza Express and how we created value. Recently, I was at The Prince’s Trust event and I was inspired yet again by the young kids who have created such phenomenal businesses. I am always open to inspiration. ■
* A survey of 500 SMEs was commissioned by Xero in March 2019
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