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New research from AMP Bank has highlighted the challenges faced by Australia’s 2.4 million SME owners – those working solo, running side hustles, or employing fewer than four people – when it comes to managing their financial administration.
For many Australian small-business owners, financial admin is one of the most time-consuming tasks on their to-do list, according to AMP Bank.
According to the research, one in three said it is their most difficult admin task, followed by marketing and sales (22 per cent) and legal and compliance (20.3 per cent). Additionally, more than one in three (35 per cent) small-business owners feel they could be working more efficiently.
Close to 90 per cent – approximately 2.4 million – of Australian businesses are either self-employed or employ one to four people. The majority of these businesses also have an annual turnover of less than $200,000, with a quarter of them (around 640,000) generating less than $50,000 annually.
To help address this issue, AMP Bank has integrated its digital banking platform with Xero, the global small business platform, to simplify financial administration.
This new feature allows AMP Bank customers to easily link their bank accounts with Xero and automatically sync payment records in real time.
If a business owner makes a payment through the AMP Bank app, such as to a supplier, the transaction will automatically appear in their Xero account, removing the need for manual data entry. The integration allows users to categorise payments in the same way they are categorised within Xero, covering both current and past transactions.
This streamlined process simplifies account reconciliation, tracking income and expenses, and maintaining accurate financial records. As a result, small-business owners gain greater control over their finances, making tax reporting more straightforward.
John Arnott, director of small business and personal banking at AMP Bank, said: “We want small business owners – those that don’t necessarily have the luxury of bookkeepers and accounting support – to rest assured knowing their finances are in good order and that tax time will be simpler.
“The ability to automatically import bank transactions into Xero’s accounting software using our new fully mobile AMP Bank app will help achieve this,” Arnott said. “This is the first of a range of new features and tech we’ll be adding to the mobile app over the coming months as AMP Bank redefines the banking experience for Australia’s small business owners.”
Ian Boyd, general manager of partnerships at Xero, said: “Small business owners juggle multiple responsibilities, especially those running solo or with a smaller team. We know that managing the books often brings added stress and time spent away from building the business.
“We’re happy to have a new integration with AMP Bank, particularly given their focus to support some of the country’s smallest operators to better manage their business.”
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