Open Banking Offers Big Business Opportunities to Small Firms

Open Banking is set to revolutionise bookkeeping, offering to small businesses some opportunities that previously have only been available to bring firms.

Cloud accounting software platform Xero is on the forefront of the changes, promising small firms that they will be able to grow and run their businesses more effectively.

Open Banking is set to be introduced for all Xero customers from September 2019, so we thought that we would take an in-depth look at the changes and how they can benefit small and medium sized businesses.

Small businesses waste 120 days a year on admin

Small businesses spend an average of 120 working days each year on repetitive administration tasks, with accounting tasks costing firms the most.

Sage, a market leader in cloud-based accountancy software, found that around 5% of a small businesses man hours are taken up by administrative tasks globally.

Compared with other countries in the study, Britain performs slightly worse with around 5.6% of staff time spent on back office tasks like invoicing and recruitment.

Sage argues that productivity is suffering because small businesses are spending too much time on tasks that don’t add value to the business.

Cloud Accountant in the UK

Cloud Accounting is the new exciting trend sweeping the UK (exciting if you are an accountant!).

Xero: Fifth of Accountants still use ‘Dark Age Technology’

Cloud-based software company Xero has urged British firms to embrace new technology and step out of the ‘dark ages’ of accounting.
If they fail to update their systems, businesses and their accountants could be left behind in the middle of upcoming changes like Making Tax Digital.
The New Zealand software company kicked off the London-leg of the Xerocon 2017 tour by releasing a new ‘Digital or Die’ report, highlighting some of the most important issues facing the accountancy industry.

Dutch bank ABN AMRO has teamed up with invoice management company InvoiceSharing to produce a new automated invoice accounting solution for SMEs.

The ‘touchfree’ add on will integrate with an SME’s online accounting platform to provide deeper accounting insights, allowing companies to estimate future working capital and secure funding.