Xero: Taking advantage of the most disruptive technology ever / “you guys are really disrupting Intuit.”

Chris Teeling for Xero writes:  In November I delivered the keynote for the Clayton Christensen seminar at the Business Influentials day. It also provided a great opportunity to chat for a couple of hours with the “world’s number 1 business thinker”.

Themes from that conversation continue to be reported as Xero was called out on Forbes this week as a leading cloud disruptor.

Clayton writes about how industry disruption has historically followed the same pattern: a new business comes to market with a product, based on a new technology, that simply and elegantly solves a customer’s problem, is easily accessible and affordable. The disruptor not only sneaks up on the competition to become the leader, but grows the market by meeting peoples’ needs who found the incumbent’s product too expensive and complex.

A great example are the mainframe companies (Boroughs and the like) as mini computers, PC’s and Microsoft appeared. Rather than sell a handful of expensive mainframes to a few enterprises, computer companies like IBM could sell millions of PCs to millions of consumers – most of whom had never owned a computer before. Today the pure play mainframe companies are gone and only IBM survived to leap to mini, PC and now cloud.

Cloud is supercharging Clayton’s disruption model. You can enter the market, go bigger faster and immediately disrupt incumbents around the world.

Over the course of our chat Clayton recognized that Xero is uniquely positioned. From our CEO Rod’s product insight identifying the cloud opportunity seven years ago, building a company in the cloud, and the fact that Xero has crept up on all the global incumbents at once with a simple, beautiful product that people love.

What disruption means for the small business cloud

In 1987 the capital value of mainframe companies was $146 billion and as mini computers and PC’s appeared, the market value of computer companies grew to over a trillion dollars by 2004. That is almost 10x. I believe this is playing out in cloud today and it’s the dawn of a new era with small business technology being the high growth business segment.

Xero and our already 300+ strong Add-on ecosystem are making solutions available to small businesses that were previously only available to enterprises. They’re easier to use and they’re incredibly affordable in relation to their value. This not only helps small business prosper, it makes the entire technology market value exponentially larger.

How much larger? I can’t guess today, but it’s clear that cloud applications are the future and there are hundreds of millions of small businesses all with jobs they need done by technology in a beautiful and affordable way.

Our chat ended with Clayton and I reflecting on Scott Cook and Intuit’s success disrupting Microsoft in the early north american PC era and the reality that Xero is repeating this phenomenon today but on a global scale. Most memorable was when Clay, who stands at over 6 foot 8 inches, grabbed my shoulder with a planet-sized hand, smiled and told me “you guys are really disrupting Intuit.”

Great to hear from one of the smartest business minds in the world. A truly humbling experience.

How can you take advantage of the cloud disruption?

There are a variety of different ways to take advantage of  the small business cloud revolution. Here are a few we’re seeing:

1. Small business software developers are creating add-ons that leverage the investment in the thriving ecosystem
2. Accountants and bookkeepers are changing their models to value based billing and pricing bundles, and adding business development resources to hunt business. Many are operating out of their region and even country
3. Bookkeepers are creating new virtual services leveraging the wide variety of cloud tools
4. Business owners are becoming exporters by  presenting themselves globally using websites and social media
5. Return to work parents are operating from home and aligning their work hours with their lifestyle

How are you taking advantage of  this market shift in the small business space? Share your stories in the comments.

Dianne Jewell
8 January 2014 #

The cloud environment has enabled me to be an attractive ‘one-man-band proposition’ to the SME market because more is able to be done, quicker and professional software need not be a big investment anymore. I can run many applications on a subscription basis. The big guys in town better watch out and the ABS better get ready for new statistics showing the lower rate of small businesses failing because the cloud signifies a macro-environmental change Its exciting and fun for me and entrepreneurs like me working in the Cloud bookkeeping/accounting/cloudapps space.
One small step for man…one giant step for back office (and front office) efficiencies!

Evielyn Chapman
8 January 2014 #

The Cloud Revolution has provided me with my whole business model. Aligning businesses current systems & procedures with cloud & mobile technology solutions. It’s a fantastic & exciting place to be in at the moment!

Craig
8 January 2014 #

This is so true. In my business we sell salon software to small and medium businesses. Historically this market has been dominated by vendors selling Windows desktop products often for $5-10k. That is a big chunk of change for a small business, especially when starting out. With our cloud software they can now have a full featured product that they can be using in minutes (no sale people to hassle them) with no big cash outlay. Windows desktop software could soon be a thing of the past for small businesses.

robbie dellow
8 January 2014 #

Craig … good comment. Small typo on 2nd last line though … could -> should.

Evielyn Chapman
8 January 2014 #

Nice one Robbie… Totally agree!

Intuit Hits 52-Week High: INTU @ $77.35

Zacks Equity Research writes:  Shares of Intuit Inc. (INTU - Snapshot Report) hit a new 52-week high on Jan 7 of $77.35, eventually closing at $77.06. The closing share price represents a decent one-year return of about 25.06%. Average volume of shares traded over the last three months stands at approximately 1,777K.

Some of the optimism is due to the recovery in the U.S. small business employment, which grew in Dec 2013. This marked the second month of job growth in the sector which was stalled from May through Oct 2013, as reported by Intuit.

Intuit is a leading provider of business and financial management solutions to small and medium-sized businesses (SMB), consumers, accounting professionals and financial institutions.

Moreover, Intuit’s acquisition strategy is expected to positively impact the company. The synergies from the acquisitions of Demandforce, Prestwick Services, LLC and Docstoc, Inc. will help the company to gain traction in the SMB segment.

Additionally, the higher adoption rate of its cloud-based services and products is another positive factor. Moreover, the company’s accelerated share buyback program would aid the bottom line.

The company also witnessed positive estimate revisions for fiscal 2013. Over the last 60 days, Intuit has witnessed five upward revisions compared to one downward revision for fiscal 2013. The Zacks Consensus Estimate for fiscal 2013 went up by 3 cents to $3.17.

However, competition from leading payroll solution provider Paychex Inc. (PAYX - Snapshot Report) in the SMB arena, seasonality of Intuit’s tax business and the ongoing uncertainty in the economy concern us.

Currently, Intuit has a Zacks Rank #2 (Buy). Apart from Intuit, investors can also look at stocks like Western Digital (WDC - Analyst Report) and Broadridge Financial Solutions (BR - Snapshot Report). While Western Digital sports a Zacks Rank #1 (Strong Buy), Broadridge Financial has a Zacks Rank #2.

10 Accounting Solutions for Small Businesses

Sara Angeles for BusinessNewsDaily.com writes:  Looking for an accounting solution for your small business? Business owners need all the help they can get. Instead of being inundated with crunching numbers, balancing incomes with expenses, and figuring out how much to pay whom and how much to pay Uncle Sam, the right accounting solution can do away with the grunt work.

Spreadsheets, handwritten invoices and sticky notes aren't only ancient by today's tech standards, but are also colossal time wasters compared to the many new tools available. Or maybe you've just had enough with clunky software from the days of digital yore. Instead, here are 10 accounting apps, software and Web-based solutions to help you manage financials online, on the cloud, and on the go.

1. QuickBooks Online — Anytime, anywhere accounting solution

QuickBooks, the popular desktop accounting software, is available online for anytime, anywhere access via mobile devices. Users on the go can perform all types of accounting tasks, such as custom invoices with the company logo, expense reports with digital receipts, payroll with tax calculations and deductions, and real-time bank and credit card data. Other time-saving features include tax reports, credit card or wire transfer payments, device syncing and accountant or bookkeeper collaboration.[The Best Accounting Software].

2. Sage One — All-in-one accounting solution

Sage One is an online accounting, invoicing and task-tracking platform for small businesses. It quickly records and categorizes income and expenses, generates accounting reports, links bank and credit card accounts, and automatically applies payments against invoices. Sage One can also send invoices to customers; track pending, sent and overdue invoices; email payment reminders; and accept credit card payments via Sage Payment Solutions or PayPal. In addition, the Sage One platform can also create and manage tasks and provide cloud-based collaboration for teams and customers.
Sage One costs $24 a month. There are no contracts and users can cancel at any time. A free 15-day trial is currently available with no credit card required.

3. FreshBooks — Cloud-based accounting solution

FreshBooks is a cloud-based accounting solution that is accessible on desktop and mobile devices. It combines all the tools small business owners need to manage expenses, send invoices and track time — anytime, anywhere. Users can easily import expenses from a bank account or credit card, or by taking a snapshot of the receipt. It also lets small businesses get paid faster by enabling them to accept credit cards, PayPal or via 12 other payment gateways. FreshBooks also features an easy-to-use and intuitive interface, data encryption and automatic data backups to multiple datacenters to keep information safe and secure.
FreshBooks accounts start at $19.95 a month. Try the service with a 30-day free trial.

4. Zoho Books — Simple online accounting software

Zoho Books is an online accounting software that provides small businesses with all the tools they need to stay on top of their finances. Zoho Books tracks money coming in by creating and sending invoices and money going out by tracking expenses and vendor balances. Users can also connect their bank and credit card accounts, which automatically fetches and categorizes transactions. Additionally, account holders can invite other users — such as their accountant or adviser — and integrate the software with Google Apps, Google Checkout, PayPal, Authorize.Net, and other Zoho business tools, such as Zoho Projects and Zoho CRM.
Zoho starts at $24 a month or at a discounted $240 yearly subscription. A 30-day free trial is also available.

5. Xero — Online accounting for small businesses

Xero is an online accounting system that lets small business owners spend more time running their business and less time managing their books. Designed with small businesses in mind, Xero can handle everything from invoices and customer payments to expense management, purchase orders, payroll, inventory tracking, bank account reconciliation, financial reporting and more. Xero can integrate with a wide range of eCommerce, point-of-sale (POS), customer relationship management (CRM) and other business applications.
Try Xero for free at xero.com.

6. GoDaddy Bookkeeping — Taxes made easy

GoDaddy Bookkeeping, formerly Outright, is a Web-based accounting platform that helps users with tax preparation. It simplifies bookkeeping by automatically organizing sales and expense data into IRS tax categories, which is then used to automatically fill out your Schedule C. GoDaddy Bookkeeping also keeps track of collected sales tax, calculates owed taxes — such as your Quarterly Estimated and Annual Taxes — and sends alerts for upcoming tax deadlines. Other features include customizable invoices that thank customers when payment is received; financial reports that give you insights into profits, losses and expenditures; data backup; and 256-bit data encryption that meet TRUSTe standards to keep your information secure.
GoDaddy Bookkeeping offers a free, limited account that lets users import bank and merchant accounts, use IRS categorization and generate reports. A paid account of $9.99 a month is required to create, send and track invoices and generate tax worksheets and reports.

7. Snap Payroll — Calculate paychecks in a snap

Snap Payroll, by Intuit, is an iOS app that makes it easy to pay employees. All users have to do is enter the hours worked and pay rate and the app calculates the paycheck amount and how much to deduct for taxes. The app is automatically updated with the latest tax changes, so users don't have to spend time keeping up with new regulations and tax rates. Other features include the ability to save employee and payroll information; paycheck history that includes payee name, date and paycheck amount; and offers anytime, anywhere access using an iOS 7 mobile device.
Snap Payroll can be downloaded for free at the Apple App Store.

8. Harvest — Tracking and more

Harvest is a time-tracking app that integrates billing and invoicing tools. Users enter start and stop times to create timesheets, which can be translated to billable hours and generated to invoices. Users can also log expenses, digitally store receipts, create reports and connect to more than 50 business apps, such as Salesforce, Basecamp and Google Apps. The app is conveniently accessible online via desktop or mobile devices.
Harvest plans start at $12 a month with a 30-day free trial.

9. CurdBee — Billing for small businesses and freelancers

CurdBee is a Web application that offers everything small businesses and freelancers need to get paid. With CurdBee, users can create estimates and convert them to invoices; track time; manage expenses; and accept online payments. Users can also create customer profiles, where recurring invoices can be sent as needed or on a daily, weekly, monthly or yearly basis. CurdBee can also generate charts and other reports, allowing users to view their finances at a glance, monitor productivity, and view pending and overdue invoices.
CurdBee offers free and paid accounts starting at $5 a month, or $50 a year.

10. Simple Invoices — Free invoicing

Simple Invoices is an open-source invoice system that gives small businesses everything they need to create, send and track invoices. It offers customizable invoice templates that can be exported to multiple formats, including PDF, Microsoft Word, Excel or plain text. The app can also send invoices via email, set up recurring invoices, and accept payments via PayPal or Eway Merchant Hosted payment gateways. Users can also create estimates, quotes, reports and other types of financial documents.
Simple Invoices can be downloaded for free at simpleinvoices.org. The software can be installed on a Windows device or as a Web-app on a server, or it can be hosted by one of Simple Invoice's service providers.
 

Bill.com and Tax1099.com Offer Automated 1099-MISC e-Filing Service

Neelam Saboo, Product Manager, Bill.com writes: As the deadlines for this year’s tax season approach fast, Bill.com has partnered with TechAtlantis to eliminate the pain points of e-filing 1099-MISC forms. Tax1099.com, an application created by TechAtlantis, provides an automated, paperless, and painless way to e-file 1099s.
The integrated solution imports relevant 1099 data from your Bill.com account. Tax1099 creates an initial file of vendor and payment data for you to review and edit before it creates the 1099-MISC forms for each recipient. Once the forms are created, you review and approve them to be sent to recipients and e-filed with the IRS and state tax agencies. After the IRS receives the 1099s, you will receive a confirmation email verifying that the process is complete.
In addition to Tax1099’s automated e-filing capabilities, the company also offers tax identification number (TIN) matching to reduce the incidence of receiving B Notices from the IRS. But if you do receive B Notices, the solution also provides services to resolve them.

Unlike other competitive products, the integration eliminates the need for any manual data entry. Data flows from your Bill.com account to the Tax1099 application.
The solution:

• Eliminates manual data entry and reduces potential errors
• Eliminates clerical work of printing and mailing 1099 forms
• Enables you to be completely paperless

For more details on the integrated product, read the Solution Overview. Click here to get started with getting your 1099 data ready for filing.
To see a walk-through of the Bill.com and Tax1099.com integration, watch the video below:

Beware These 5 Terrible Tax Surprises

Kay Bell for BankRate & NASDAQ writes: You've always followed the sage advice of the late singer-songwriter Jim Croce: You don't tug on Superman's cape, you don't spit into the wind, and you don't try to pull a fast one on the Internal Revenue Service.  OK, maybe that last one wasn't one of Jim's lyrics, but the sentiment -- know the consequences before you act -- still applies.

Unfortunately, that's not always easy to do when it comes to Uncle Sam's tax collectors.

The tax law is complex and difficult for even experts to negotiate. Just when you think you've followed all the rules and researched all the angles, a tax regulation blindsides you.

Here are five terrible tax surprises that you might encounter during tax season and how to deal with the consequences.

1. Unemployment benefits

Yes, it's true. Under tax law, unemployment is considered wage income, and the IRS wants a cut of it.

Now that you're over the shock and anger, what can you do? When you apply for unemployment benefits, consider having federal income taxes withheld. This process is similar to regular payroll withholding. In this case, the form you fill out is the federal W-4V, Voluntary Withholding Request, or a similar IRS-acceptable document that the paying agency has created. This way, taxes will be withheld at the rate of 10 percent of each unemployment payment.

If you feel like you just can't surrender a chunk of each unemployment check to withholding, you should look into paying estimated taxes. This will help you avoid owing a large lump-sum tax bill when you file.

2. Alimony received

You survived the divorce. Now you have the IRS to deal with if you're getting alimony.

Ending a marriage is never a happy event. But at least you got a good settlement, and those regular checks from your (insert your own description here) ex-spouse are completely warranted. They also are completely taxable.

Alimony, separate maintenance payments and similar recompense from your former spouse are taxable to you in the year you receive them. Child support money, however, is not taxable. If your divorce decree calls for alimony and child support and specifies amounts for each, you only owe the IRS for the alimony payments. To avoid a big bill in April, make your IRS payments on alimony and other untaxed income via estimated tax filings.

The one good tax surprise here is for the ex who's paying spousal support. Those check amounts are tax deductible.

3. Forgiven debt

"Forgive but collect" is the IRS motto when it comes to canceled debt.

Getting your credit card bill cut from $8,000 to $4,000 certainly helped your personal bottom line. But it also could be a boon to the U.S. Treasury. Why? The tax law generally considers the amount you get any creditor to write off as earned, and therefore taxable, income to you. Expect the accommodating debtholder to send you (and the IRS) a Form 1099-C or similar statement detailing your discharge of indebtedness as miscellaneous income.

Not every debt settlement, however, has to pad Uncle Sam's pocket. Under the Mortgage Debt Relief Act that became law in 2007, some homeowners who are granted forgiveness of mortgage debt won't have to pay taxes on that amount.

There are some restrictions. The forgiven debt amount is limited to up to $2 million, or $1 million for a married person filing a separate tax return. The tax relief only applies to mortgage debt discharged by a lender between 2007 and 2013. And the forgiven loan must have been taken out to buy or build a primary residence, not a second or vacation home.

4. Prize winnings

Think you're pretty lucky because you won $1,000 in a radio contest? Uncle Sam is even luckier. He's due part of your winnings.

Prize winnings are included in the long list of "other" income that tax law says is taxable. And it's not just limited to cash awards. You have to pay taxes on the fair market value of any property you win.

Be careful when reporting the amount of a noncash prize. In most cases, companies and groups that award prizes, cash and property will send you a 1099 form declaring the value of what you won. If your tax return reports substantially less than what the giver claims, your underreporting could mean a long, hard look from an IRS auditor.

And don't forget about gambling proceeds. They're taxable, too, but at least you get the chance to reduce the tax bite here by subtracting any betting losses from your winnings.

5. Some Social Security benefits

You spent the last 40 years fattening the U.S. Treasury thanks to those dang Social Security taxes that came out of every paycheck. Now you're retiring, and it's time to get your tax money back, free and clear, right?

Well, maybe. Maybe not.

Generally, if Social Security benefits are your only income, your benefits are not taxable. But if you collect Social Security plus other income, as much as 85 percent of those government checks could be subject to tax. To figure out just how much in taxes your Social Security might cost you, you'll have to do some calculating using the work sheet found in your tax Form 1040 or 1040a.

If you discover that you will owe taxes on some of your Social Security benefits, there are two ways to deal with them. You can make estimated tax payments on the government check amounts. Or you can have federal income tax withheld from your benefits by completing Form W-4V, Voluntary Withholding Request, and filing it with the Social Security Administration.

Bullish Moving Average Cross by Intuit (INTU) / A current look at the stock

Adrienne Chilton  for FNNO.com writes: Intuit (NASDAQ:INTU) shares have crossed bullishly above their 10-day moving average of $76.21 on a volume of 345K shares. This may provide short-term investors a chance for a long position, as such a crossover often suggests higher prices in the near term.

Intuit (NASDAQ:INTU) is currently priced 1.3% above its average consensus analyst price target of $75.56. The stock should find initial support at its 50-day moving average (MA) of $73.73 and further support at its 200-day MA of $65.74.

In the past 52 weeks, Intuit share prices have been bracketed by a low of $53.38 and a high of $76.89 and are now at $76.52, 43% above that low price. Over the last five market days, the 200-day moving average (MA) has gone up 0.2% while the 50-day MA has advanced 0.5%.

Intuit Inc. develops and markets business and financial management software solutions for small and medium sized businesses, financial institutions, consumers, and accounting professionals The Company provides software for small business management and payroll processing, personal finance, and tax preparation and filing.

Point Of Sale Apps / Go mobile with your business using these apps

AppsAdvice.com writes: 

Overview

Point of sale systems have gone mobile with the iPhone and iPad. You no longer need to be tied down to a checkout counter. You can actually accept credit card transactions on your iPhone or iPad through special apps and special cases or dongles. There seem to be endless options in this category of apps. We check out the best apps and services in this AppGuide.

Essential Apps

• Free

  Square Register

  by Square, Inc.

  Square is the easy and no-hassle POS essential. You get everything pretty much for free. Square will send you a free credit card reader, the app is free, and the service is low cost. The design and use of the app is amongst the best in this category of apps. You can create your own inventory to make adding items to the bill quick and easy. Universal support also enables iPad owners to take full advantage of this system. For swiped transactions there is a flat 2.75% taken out and for bigger businesses, you have a choice of a $275 monthly rate with no charges per swipe.
• Free

  Intuit GoPayment

  by Intuit Inc.

  Intuit GoPayment Credit Card Terminal is the essential app for larger scale needs. You can add up to 50 people on the same account. Sync to QuickBooks is included. The app is brought to you by the same folks that make Quicken, TurboTax and QuickBooks, which should give you some confidence in the app/service. This service will send you a free credit card reader for your iPhone. This service charges 2.75% on card swipes and 3.75% on keyed in transactions. Those that process tons of transactions can take advantage of a special plan. For $12.95 a month your rates drop to 1.75% on card swipes and 2.75% on keyed in transactions. GoPayment is an excellent alternative to Square for those that need it.

Notable Apps

• Free

  PayPal Here

  by PayPal, an eBay Company

  PayPal Here is very similar to Square Register. It is available for both iPhone and iPad. When you initially register for PayPal Here, you are asked if you want a credit card reader sent to you. These items are free and are similar to most other card readers that the competitors offer. We feel that you can do slightly more with PayPal Here than you can with Square. For example, you can accept a check as payment. If a customer has a PayPal account, they are able to pay you with their account as well. Funds are usually available right away in your PayPal account and if you have the PayPal debit card, then you can access those funds at the time, too. All card swipes and PayPal transactions have the same rate of 2.7%, no hidden fees or commitments thrown in. Unfortunately, this app doesn't always connect to the server when you want or need it to, and with a point of sale app, connection is very important. This app would be essential if it didn't have so many connection issues. Hopefully PayPal can fix the issue soon!
• Free

  Credit Card Terminal

  by Inner Fence, LLC

  Credit Card Terminal is a fantastic offering in the POS app space. The service is a bit more expensive than the competition. The monthly rate is $25. Swipe transactions will cost you 1.74% to 3.79% (depending on the card) plus $0.24. Manual transactions will cost you 2.09% to 3.79% plus $0.24. The rates are not terrible, but they are a little more pricey than some of the alternatives out there. When you activate your account you can either get the free credit card reader or a $50 iTunes gift card. The app is absolutely beautiful and is now universal. Credit Card Terminal is a wonderful option that many should consider if the rates don’t scare you off.
• Free

  PayAnywhere – Accept Credit Cards

  by North American Bancard

  Pay Anywhere is a more user friendly version of Phone Swipe. The backend is provided by the same people. The app is more polished and the service is easier to sign up for. The rates are comparable to other providers. Swiped transactions will cost you 2.69% and manual transactions will cost you 3.49% plus $0.19. There is no monthly fee and no cost for the card reader. Pay Anywhere is another viable alternative to Square.

Decent Apps

• Free

  Cashier | Point of Sale (POS) Register

  by Cashier Live

  Cashier is a very simple POS app to get you started. Simply sign up with your email and business information. Within the app, you are able to scan barcodes of items and create an inventory. Open your register every business day with exact numbers so you can keep track of your till. Run reports when you need to. You can accept payments in the form of cash, check, and credit cards. You can also send receipts to your customers via email. This app doesn't offer a fee per swipe option like most of the other apps in this guide do. Instead, you pay monthly and the company offers three different pricing tiers all with different features.
• Free

  SalesVu iPhone POS

  by SalesVu

  SalesVu is a powerful little app. This particular app is geared towards the iPhone. The iPad version is mentioned below. This app offers ordering, inventory management, employee management, discount options, and even integration with Quickbooks. There are so many more features and this app proves to be a great tool for bigger businesses. The downside to this app is the fact that it still isn't optimized for the iPhone 5.
• Free

  Flint Mobile

  by Flint Mobile, Inc.

  Flint Mobile Pay is another simple POS app. It doesn't require a card reader, so you don't have to wait a week or so for the little gadget to begin taking orders. Simply scan the card number from the credit card, enter the security code, and billing zip code. No photos are taken or saved to the phone. You can also manually type in the card info. This app also includes electronic receipts, ability to input tips, ability to include sales taxes, and even send out loyalty offers to customers.
• Free

  Phone Swipe – Credit Card Reader

  by North American Bancard

  Phone Swipe is a fantastic iPhone and iPad app. The service comes with a free card reader and low transaction rates. We were unable to find the rates, which is a bad thing. The app includes many of the same features found in the other apps including an inventory database. If you are looking for a nice polished iPad alternative to Square this is an option.