cloud computing

Late payments and lost payments

17th February 2015 by Alan Leave a Comment

And online tools that can help!

As we research topics that could be interest to our clients, we do occasionally come across something that really makes us think. Only a few days ago, we came across a post from October 2014 that we could relate to and, we are sure, so can many of our customers.

Time is of the essence

Tempus fugit (time flies), as the famous Latin saying goes and it is certainly true when it comes invoicing for the work completed by business on behalf of other businesses.

Increasingly, small and online businesses are realising the potential of email their invoices to companies, ready for payment. Some larger businesses, perhaps more cumbersome and lumbering in their accounting procedures, may send out paper invoices. Before this paper invoice is generated and mailed to clients, the hoops that have been jumped through and the swings that have been swung in order to generate it will have been fairly gargantuan.

Keeping track of these paper invoices can be an entirely separate task in itself and, in larger organisations, it is. Once one section has produced the invoice, another section within accounting is responsible for chasing and securing payment. For corporations, this is a huge task…

The 30, 60 or 90 day rule that could be preventing businesses from growing

But, it is not just the time spent in chasing payments that is the issue here; for suppliers, there is a far more pressing concern. How many times have you completed work for someone, submitted your invoice only to be told that the company has a 30, 60 or, worse still, a 90 day payment window?

Although irritating, these payment windows and slow payments from companies have never really been challenged… until now and it is the power of cloud based accounting that is really beginning to push the boundaries of what is an acceptable time lapse between submitting an invoice and being paid.

What is an acceptable time frame between invoice and payment? The answer is… there isn’t. In order for commerce to flow, and for small businesses to manage their cash flow (as well as the larger organisations too), the time has come to kick the 30, 60 or 90 payment period in to touch.

Cloud based invoicing, claim some experts, is introducing transparency, ease of administration and speed to both invoicing and payments, excellent news for the small and local businesses out there trying to manage a cash flow.

A cruel reality

Running a business is about taking a degree of acceptable risk; someone likes your products or services. You may charge a small deposit but, in most cases, businesses will complete the work before payment.

The invoice is submitted and then you must wait… and wait… and possibly wait a little longer. In all this time, you are attempting to manage a cash flow that may have dwindled to nothing, or very little. Late payments, the cruel reality in many a case, are responsible for driving many businesses to the wall.

And, if you think it only affects you, think again. One global insurance company estimates that there is around $2 trillion locked into late payments at any one time across the globe.

And the solution is…

As well-being clear about YOUR payment terms – payment due on receipt is a nice way of saying ‘pay now’ – there are other tricks too…

Discounts – before you all faint at such a ridiculous suggestion, experts suggest turning the ‘fines’ for late payments on its head. Include a payment fee, they suggest, on the invoice amount (adding 20% for example) but, if payment is received within xx number of days (you set the time), this 20% is automatically deducted.
Get a 3^rd party to do it… and chase – some businesses are also realising that investing in their cash flow is important and thus, outsource their invoicing and chasing payments to a third company. For those of us who ‘hate asking for money’, this is a perfect way of completing the transaction.

Cloud computing – does it have the answer?

The crux of the article from 2014 was simple; a clever chap had realised that the issue lay in not only generating invoices, but keeping track of them and speeding up the whole process. At the time, he was working for the Danish Government, who generated thousands of invoices per year as well as paying thousands of invoicing per year to suppliers, large and small.

Developing an online system, he not only made the whole payment system faster and more transparent, but doing business with government departments became a far easier process; local, smaller suppliers felt more confident doing business with departments, and working on larger projects too, for payment was easier and quicker to come by.

Invoicing software – generate invoices and track payments

Running a business is hard enough without worrying about generating the right invoices for the right people for the right amount… and keeping tabs on who has paid and who hasn’t. Larger businesses create their own system and for the smaller business, short on time and skills, there are many online invoicing systems that are just right for your business; some are paid for and some are free.

However, type in accounting or invoicing software and you will have a plethora of apps and programs to choose from. Your invoices and money are important, thus the issue of trust is important when it comes to such things, so exactly how do you make your choice?

Subscriptions and size

Many online invoicing systems offer a subscription service by which you buy ‘enough’ invoicing capacity for your business; this works especially well for businesses who may not generate many invoices within a monthly period, enabling you to keep costs down. The dashboard of the online application should be easy to use, self-explanatory and, if possible, offer you the features that are not superfluous to requirements. In other words, make sure it does everything you want without the fancy (expensive) extras.

For example, if you have recurring payments or send out invoices in batches, does the program offer this ability?

Security

Just like accessing your bank account online, the security for any online invoicing app should be at a high level. Also called ‘bank level security’, there should be three factors that are apparent (but you may need to read the small print to find them!):

Encryption – data needs to be encrypted to prevent it being useful to hackers
Bank level security – as we have already mentioned, any online app you use, especially where you are creating links to bank accounts or online payment systems such as PayPal should have the highest level of security
Redundancy – this refers to the storage of your data by the provider; in most cases, there will be two server sites, one a replica of the other. Should the system be hacked or compromised due to weather and other natural disasters, you should be able to still access your mirrored data from the ‘other’ site.

Billing

These invoicing apps can also be used as a billing gateway; in other words, your customer receives the invoice and they pay via online means. Again, such sites need to have all the security and data encryption expected, as you customers will expect this too. Look for online solutions that off you a range of payment gateways that are popular, such as PayPal and Google Checkout. If your online business operates globally, the more options you have for payment the better.

However, there are processing fees – either on a per transaction basis or a monthly one – from some payment providers, which can seriously cut into your profit margins. Check these fees carefully.

Ease of use

A common issue with many services of this ilk is the fact that using them requires a PhD in in Mathematical Computing. If they offer a free trial – as most online software programs do – why not opt for a dummy run, to see how easy it is to use, as well as whether the program suits your business? Many of these software programs offer brilliant features which you don’t realise how useful they are until you have them – for example, tracking sales and payments are two essential components of keeping tabs on the financial health of your business.

Scalability

You may be expecting your business to grow in the coming months and that is all fine and dandy… until you realise the online program you have been using will not scale up with your business and you are back to square one.

Those that offer a modular approach work really well; buying more chunks as you need them, as well as add-ons are a perfect of scaling up, without having to buy the ultimate package.

And finally…

Help and support are two key components of online invoicing and financial tracking programs. Many of these apps offer instant chat options, perfect if you have a quick question or query. Email support is also invaluable but, sometimes, there is no compensation for having a telephone chat…

De-mystifying the Cloud

5th December 2014 by Alan Leave a Comment

” Every cloud has a silver-lining…”

” I wondered lonely as a cloud… “

We could go on and on with some delightful quotations about clouds… in terms of weather, emotions, love and our inner soul but, the topic of today’s post is not weather, climate or inner demons and unrequited love.

The cloud to which we are referring to is cloud computing.

Unless you have not turned on your laptop, surfed the web on your phone or had a gambol through Internet Land via your tablet for decades, then you cannot have failed to have heard about the cloud or cloud computing.

However, ask all those so-called ‘experts’ what it is and HOW you can use, and you may find the answer sadly lacking in detail…

And here’s why: we have a notion that as a cloud, it is floating, mysterious, non-physical, supernatural and a place that only the initiated can access…

WRONG.

It is actually a jolly big computer. In fact, it is more than one very big, gigantic, humongous computer; there are several of them and they are all dotted about this planet of ours. The cloud is a physical place. It does not float and they are not mysterious… or it won’t be after you have read this post!

What you need to access the cloud

An internet connection.

And that us really all. Cloud computing is about you, the user, accessing space on a remote server (the cloud). You access this place via your laptop, PC, tablet, phone or any other device that connects to the Internet. You save things to this space, rather than to your device. Thus saving memory. And we all know how slow our smart phones can get when we have thousands of images or video eating up memory space.

Cloud services

And in step the services provided by a range of providers. These are all companies – mostly very well-known ones – who have oodles of space on their servers (clouds) at very secure locations that they will ‘rent’ to you for a fee; some offer a small portion for FREE too!

In exchange for this rent, you can use X amount of storage space for images, videos, vines, blogs, documents etc.

But, before you spend your money, is cloud computing here to stay?

Like many technological advances, at the time they were all the rage and seemed like a good idea and then they disappeared, superseded by something bigger and better.

But, cloud computing seems here to stay. There are oodles of applications and cloud computing packages that have been developed and are being developed to the help individuals and businesses. Just take a look at the online, cloud based accounting packages – really simple to use, and all your data safely stored when plague, pestilence and fire cannot reach it (but, if they did, all your data is securely backed up and in theory, you can still access it).

Surveys, statistics and data

These statistics are from a 2013 survey of a rather large proportion of IT-based managers (around 3,500 of them!) and this is what they were saying over a year ago:

Over a third of them suggested that the reason they liked and used The Cloud was because they could store and access a variety of information using several different devices – in other words, they could access documents on whatever device they had to hand, whether that was being sat at the work based PC or the tablet on their commute home etc.
Saving money, structure and people – cloud computing for some of the larger companies has seen then save around 14% in terms of budget spend on IT people and departments and 87% overall in terms of some project budgets that they swapped to cloud computing services. But, those companies offer cloud services have taking up this mantel by expanding their services as a result of cloud popularity.
Increasing in popularity – back in 2013, 65% of American companies adopted cloud computing for some, if not all of their projects. This figure is expected to increase.
Improvement – companies suggested that overall, they saw a 90% increase in the efficiency of their IT department since moving some or all of their projects to the cloud.
Adaptability and competitiveness – small business felt that they were able to complete better with larger competitors as they too have ease of access to cloud computing services; no longer do they need to invest in expensive machinery, equipment and expensive specialists…

Do we need to persuade you anymore?

Which cloud computing services will you use?

There are oodles of platforms and services that you and your business can benefit from. Here we have rounded up just three of what we think are great introductions to the world of cloud computing…

Dropbox

Heard of Dropbox? Great for personal storage and for business use, although there is a current monthly fee of £11 per user for this service, although it does promise increase productivity as there is minimal training as the platform is so easy to use.

With over 300 million user worldwide, Dropbox is enjoying huge success. You can sign up for 2GB of storage for free, a perfect way to offload some of those photos from your phone and free up memory.

Users rate this platform highly and we think it is a great way to experience the cloud without getting in a cold sweat and tizzwazz.

Google Drive

Those of us on Gmail may have already come across the delights of Google Drive; attachments that need saving after you have worked on them can be saved to your portion of Google drive… and if you have forgotten your memory stick or need access without the rigmarole of getting Maureen from accounts to access you email, then Google Drive is rather a handy way of doing it.

There are also many third party apps that connect with Google Drive so all round, we think this is a winner, as do 190 million users worldwide that use it every month (you can also pay a monthly fee for unlimited storage!)

Microsoft SkyDrive… now known as OneDrive

Cloud. Sky. Get it?!

Offering 15GB of free storage, you can snaffle more by simply connecting certain devices, and using certain platforms – OneDrive will direct you – and this is made it one of the most popular cloud storage services ever.

Like other cloud services, they charge a monthly fee if you want a bigger portion of the cloud and this is where people are finding it really pays; SkyDrive’s monthly fees are much, much lower than others, with the basic package starting at £1.99 a month (offers change, so check before you sign up!).

Simplicity itself

Here at Locally we love keeping things simple and so, if you are yet to discover cloud computing for you personally, then make it the goal for this month that you take a brows round the three we have mentioned.

Once you feel comfortable, why not take a look at what cloud computing can offer your business? Secure, shareable with people you want to share with, cloud services far safer than you think.

In this wonky world of ours where terrorism, weather and general chaos can strike at any time, many of the facilities run by cloud service companies really are bomb proof, with the highest grade military security you could ever possibly imagine…

Tempus Fugit! How do you charge for your time?

11th September 2014 by Alan Leave a Comment

Time does truly fly.

We’ve all seen the usual photos of friend’s children, scrubbed clean after the summer holidays ready for the new school term, posted on Facebook in crisp clean uniforms, with comments underneath that usually say something along the lines of, “where has the time gone?!”

But, time flying past can have a serious consequence; if a project is bleeding time, you are losing money…

Bleeding time?!

Sounds painful and unnecessary but when we say this we mean effectively undercharging for the amount of time you spend on a project. In fact, it can be quite a wake up call. Especially when you come across a program that can link what you input on the timesheet with creating an accurate invoice…

However, like most things, the internet has the answer; there are a plethora of applications and software that can effectively and efficiently track the amount of time you spend on a project.

How do you charge for your time?

Go on, admit it! You hazard a guess and, at best, hope that it hits the mark. You probably don’t bother re-negotiating for the odd few minutes here and there of the over time you do but, if you can see the project running and running you will, hopefully, re-negotiate a better deal.

If you are a one-man band, this may be OK-ish; when problems can become apparent is when it comes to leaking time (and therefore, money) is when you have a team of people working on various projects at once.

Which is why you may need one of the many online applications or programs to help you note the amount of time each employee spend on each project or assignment.

The cloud computing options

Remember our article on cloud computing? Well this is a great way of investing in programs that do not need downloading or expensive updates. These time sheet type applications can be free but other charge a monthly fee for their use.

Of course, as with all things, you need to research each of these applications thoroughly, checking that what they offer for the price you can afford is something useful; don’t be bamboozled into spending money you don’t have!

Likewise, as with all cloud applications etc., check out the security too; online reviews are a great place to start for which timesheet programs could be a contender for your business.

Some ideas…

There are some great online timesheets that can function from a basic timesheet, to setting up projects so that more than one employee can input their time for each project. This way you can see what time is being spent on each portion of a project; you can then adjust your quotation system but also assess if there are some aspects that can be streamlined to make them flow quicker.

We’ve come across some great applications, all with varying degrees of complexities including Basecamp www.basecamp.com and Timegenie www.thetimegenie.com

One application that we find useful is Toggl. Not only do you complete timesheet per project but they can also be used to create invoices – meaning you streaming the amount of time spent on creating invoices – take a look https://www.toggl.com/tour/web

Who could Toggl be useful for?

Anybody who charges by a ‘time unit’ and is intended for anyone who wants an overview of time spent on projects. It bills itself as an easy-to-use programme that can be up and running within minutes.

They draw their customers from across a wide sectors of industry and from across the globe, including consultants, book-keepers, designers, students for example and they also say they have small to large businesses using their application too – from charities, not-for-profit organisations to big, global companies.

Security and reliability

We have all, however, been in that dreadful position when we have tried to use an online program to complete a simple, yet essential task only to find that we are attempting to do so when there is essential maintenance or a glitch in the system.

So when checking for security and reliability with any cloud service is that they are duplicated and backed up – so if the night time cleaner inadvertently pulls the plug, your important data is not lost.

You will also find, like Toggl does, that cloud services talk about ‘uptime’ and you are looking for a high percentage of time – Toggl say they have an uptime of 99.9%, with data backed up every 12 hours, as well as being encrypted and stored in several separate locations. All in all, it seems that they take security and reliability seriously.

Should you pay? Or is free good enough?

Depending on what you want to use the service force, and how complex you need the functions to be, there may be a charge but, in all honesty, the majority of cloud services such as timesheet and connected invoicing are reasonable.

You will also find that many of these application and programs reel you in with a 30 day free trial for example but look out for…

Contracts, termination fees and the like which may mean that once signed up, you are tied in for months…
There are discounts available with many of these online services, such as for charities, not for profit organisations, students etc. as well as for larger companies
As easy as they say they are to use, you may struggle with some features – what is the support like? Is there a cost to this?
Many are run from countries across the globe – if you are on a different time zone, how does support work then? It will be no good if you have a burning question but it can’t be answered as the sun’s not up in America yet…
Synchronicity is great too and so you may want to check if you can access it or have updates etc. across the range of technology you use

Is it for you?

It could be and with a bit of research and some tome spent getting to know the program, you could find that you actually charge for the time spent on a project!