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EOFY 2022: How Much A Move To Xero Will Save You

Author: Harry Hoang | CEO of Tailored Accounts

The end of financial year is approaching us rapidly. Here at Tailored Accounts, we are already planning our payment summaries for the end of year reconciliation! However, we know that April through to July is the period when we are flooded with enquiries concerning moves from an existing accounting system to a new system like Xero, so we are ready for this surge of interest too!

Transitioning into a different system can be a big endeavour but it is also important to keep the potential benefits in mind. One of the biggest questions our clients like to ask us is "How much will I save?". We'll be answering this question today with the case of one of our largest-staffed client company's transition to Xero, showing you how much you can save by moving from a large corporate accounting method to a more de-centralized system like Xero and its add-ons.

The client was previously using Attaché, for which they were paying around $40,000 per year plus around $5,000 extra for upgrades and general support. However, the highest costs were felt in the inefficiency of recording transactions using this clumsy software. Large investments of time from the payroll and accounting team meant serious losses to the company!

By moving this client to Xero, here are the straight savings in dollars that were collected:

  • Software subscription cost: From $40,000 down to $8,020 per year ($720 for Xero + $4,500 for Keypay + $1,800 for Receipt bank + $1,000 for Power BI). A straight saving of 80%;
  • Paperwork handling and warehouse storage (turning hard copies to soft copies) cost: From $9,600 per year down to $0 as XERO + Receipt Bank will enable clients to be 100% paperless. Savings of 100%;
  • Time-saving for payroll handling (staff) & processing (payroll team): Around 15 minutes per staff + 3 hours per payroll clerk per week. Annual savings of around 1,456 hours or $36,400;
  • Time savings for account payable handling (staff & manager) & processing (AP team): Around 30 minutes per staff & manager + 3 hours per AP clerk per week. Annual saving of around 208 hours or $6,240;
  • Time savings for senior accountant & CFO in producing reports: Around 2 hours per week per person. Annual savings of around 208 hours or $8,320;
  • Improvements in financial data that help Managers & the Board to make the right decision at the right time: Including identifying waste or overspending budget cost items (including salary); Pressuring sale team to meet KPI; Retaining recurring income and customers. The estimated annual saving will be a minimum of $100,000 per year for a business of this size.

Overall, that's a saving of almost $200,000 per year for a business turning over around $10 million. Our client will save over $2 million in just the next 10 years!

If you want us to review your system and produce a business plan to show you how much your business would save, we can get it done for NO upfront cost!

So what are you waiting for?

Read more...

New Financial Year: It might be time to change to Xero - But how much will I save?

The end of financial year is approaching rapidly. Here at Tailored Accounts, we are already planning our payment summaries for the end of year reconciliation! However, we also know that April through to July is the period when we are generally flooded with enquiries concerning moving from existing accounting system to new system like Xero, so we are ready for this surge of interest too!

We are exciting to announce that over the next three months, we are going to transition one of our largest-staffed client companies from their existing system to Xero. We will use this client as an example, to show you how much customers can save by moving from a large corporate accounting method to a more de-centralized system like Xero and its add-ons.

The client in question was previously using Attaché, for which they were paying around $40,000 per year plus around $5,000 extra for upgrades and general support. However, the highest costs were felt in the inefficiency of recording transactions using this clumsy software. Large investments of time from the payroll and accounting team meant serious losses to the company!

By moving this client to Xero, here are the straight savings in dollars that were collected:

  • Software subscription cost: From $40,000 down to $8,020 per year ($720 for Xero + $4,500 for Keypay + $1,800 for Receipt bank + $1,000 for Power BI). A straight saving of 80%;
  • Paperwork handling and warehouse storage (turning hard copies to soft copies) cost: From $9,600 per year down to $0 as XERO + Receipt Bank will enable clients to be 100% paperless. Savings of 100%;
  • Time saving for payroll handling (staff) & processing (payroll team) is around 15 minutes per staff + 3 hours per payroll clerk per week. Annual savings of around 1,456 hours or $36,400;
  • Time savings for account payable handling (staff & manager) & processing (AP team) is around 30 minutes per staff & manager + 3 hours per AP clerk per week. Annual saving of around 208 hours or $6,240;
  • Time savings for senior accountant & CFO in producing report is around 2 hours per week per person. Annual savings of around 208 hours or $8,320;
  • Improvements in financial data that help Managers & the Board to make right decision at the right time including: Identifying waste or overspending budget cost items (including salary); Pressuring sale team to meet KPI; Retaining recurring income and customer. The estimated annual saving will be a minimum of $100,000 per year for a business of this size.

Overall, that's a saving of almost $200,000 per year for a business turning over around $10 millions. Over 10 years, our client will end up saving over $2 millions!

If you want us to review your system and produce a business plan to show you how much your business would save, we can get it done for NO upfront cost! So what are you waiting for?

Read more...
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