Tailored Accounts facebook   +61 2 6169 5196

Software for Healthcare and Special Care Start-ups: Choose XERO

With only a few accounting software options on the market, it seems healthcare and special care industry start-ups under NDIS have only two options to choose between: MYOB or XERO. However, NDIS-related services can be complicated, and the two systems are not necessarily equal in terms of their benefit to users. Given your limited budget as a start-up business, you might want to learn more about these two software options before making your choice.

Here is Tailored Accounts’ take in the issue. 

Comparing MYOB with XERO is like ranking Taxi Services against Uber. XERO creates a community of accountants, bookkeepers, application developers, and business owners, where ideas are exchangeable. It acts as a platform that can facilitate communication between those in the industry. MYOB is trying to follow in their footsteps; however, XERO is still the market leader for three reasons.

Read more...

Is it possible that dark days are ahead for the third sector of society?

Sadly, it seems likely.Although some of us believed that non-for-profit (NFP) organisations would never be in financial trouble, the 2015 Australian Charities Report shows that 42% of charities experienceda reduction in income since2014. There are two possible causes: decreases ingrantsand membership reduction.

Let's look at an example of the former case. Recently, NDIS (National Disability Insurance Scheme) has been implemented, meaning that organisations working with vulnerable people are no longer eligible for grant money. This is a significant change-previously organisations were solely responsible for disability care and thus given sizable funding. The NDIS may be good news for some, but such changes cause problems for the charities themselves.

Read more...

Time for change: Accounts Health Check Tools for Not-For-Profit organisations

By Teddy Nam

The Not for Profits (NFP) sector in Australia is considered diverse and large (approximately 600,000 NFPs in 2010 per the Productivity Commission report), contributing toannual revenue over $100 Billion and representing 8% of the Australia’s workforce (ABS, 2016). With the chief goal of achieving missions beneficial to the public, NFPs are expected to meeta higher standard of public expectations; balancing this withseeking and managing funding has been identified as the greatest problem.

Following the Government policy changes regarding grants in the NFP sector, organisations started to experiencethe impact of increased competition – diminishing funding and enhanced accountability requirements. Specifically, NFPs are expected to convince funds providers of the value of their mission while ensuring efficiency and stewardship of the organisation. This situation creates opportunities for NFPs to manage financials more strategically by reassessing the efficiency of core operations against their budget and demonstrating measurable effectiveness.

Read more...

The important role of CFOs in Not-For-Profit Associations

Recent changes in government policy have resulted in substantial impacts on the Not-For-Profit (NFP) association sector. Government grants to NFP associations are expected to decline, contributing to the resourcing pressures for many NFP associations in Australia. Financial resources from memberships, donations, and government grants were core funds used to sustain NFP associations for many years. However, the concern in the sector now would be their survival under the increasing budget constraints. 

The recent changes in the National Disability Insurance Scheme (NDIS) removed many existing grants paid directly to the NFP association sector. According to market research conducted by BDO in 2016, most associations were not ready for the changes in the new scheme even after the NDIS was rolled out. The complexity of the changes required more effective change management. Typical associations in the healthcare and community well-being industry needed significant training and transitional support. 

A significant strategy for NFP associations to effectively adapt to change is the development of new leadership. It should begin with Board reforms to create an “A-team”, who is willing to  lead the association through changes. In order to achieve this changing leadership need, the role of Chief Financial Officer (CFO) is crucial. CFOs can assist their CEOs and Board members with strategic decisions on budget, financial health analysis and estimation. 

Read more...

Tailored Accounts reviews “NDIS Readiness Report 2016” by BDO Australia

Are Not-For-Profit Organisations ready for NDIS new model?

Over the past three years, and particularly since the NDIS Rollout arrived at all states in Australia, there is a projection of a fundamental change to support the NDIS new model. The new model allows NDIS participants to gain control over the funding without going through disability service providers.

Not-For-Profits Organisations have experienced challenges in adapting with the new NDIS model. They will have to change their fund reception structure from government block grants to individually funded clients. The major concerns of Not-For-Profit organisations are reflected in “NDIS Readiness Report 2016” by BDO Australia.

 

Key findings of the research consider the uncertainties of Not-For-Profit organisations in adapting with the NDIS change. Concerns regarding standard of service delivery and re-position of “Not-For-Profit” status are mentioned as an evidence of change resistance amongst Not-For-Profit organisations. Technology, financial, and human resource have now become crucial to enhance the “readiness” of these organisations.

In the complex and highly individualised system of NDIS, prominent challenges are identified as long term organisational survival and financial sustainability. It is clear to realise the Not-For-Profit organisations have yet had their strategy to adapt their service scheme and finance reform to serve Australians with disabilities under the new NDIS model.

Read more...
Subscribe to this RSS feed