Xero unveils its suite of managing employees tools and announces first Australian beta from Planday acquisition

Managing a workforce in today’s ever changing regulatory environment is taking its toll on small business employers in Australia, with almost half (48%) stating managing employees processes is negatively impacting their mental health, according to a new report from Xhttps://www.xero.com/au/ero , the global small 1 business platform.

The study showed many small businesses are struggling to stay on top of regulation or award requirements around employee entitlements and payments, with more than half (56%) agreeing it’s stressful or confusing and 37 percent worrying their staff will be paid incorrectly due to confusing payroll obligations. In Australia, the payroll regulatory landscape is ever-changing, with Single Touch Payroll being a prime example.

The new findings in the Changing world of work report from Xero, shine a light on the workforce challenges faced by Australian small business employers, the workplace experiences of employees, and the critical role of technology in this new world of work.

The Australian report was released at Xerocon Sydney, where Xero unveiled its suite of employee management tools, including the first Australian beta trial from its acquired workforce management platform, Planday.

Technology to help managing employees

According to the report, payroll compliance is driving software adoption, with more than half (51%) of employers reporting that software helps them with managing compliance. As a result, a third (38%) said software has helped to reduce their stress levels, with more than half (56%) agreeing technology that can help forecast payroll costs would make them less stressed about their workforce.

In addition to a changing regulatory environment, almost a third (29%) of employers said accurately tracking employee time and attendance was a top driver of technology adoption. Over the past 12 months, more than half (54%) of employers found that staff didn’t have ideal rostering.

After retaining staff, the second most common concern for employers when managing staff is that they aren’t as productive as they could be. The average employer said it takes staff up to four months to get up to speed and reach full productivity, with employers in hospitality saying it takes up to five months. Conversely, two in four (42%) employees say poor communication hampers productivity.

Anna Curzon, Chief Product Officer at Xero, said: “Payroll compliance continues to be a major challenge for employing businesses, with more than half of Australian small business owners finding the ever-changing regulatory environment stressful and confusing. We strive to make it easier for employers to manage their employees, and to empower employees with self-service functionality. Our connected product suite gives employers critical tech tools to create an empowering and positive experience for employees and to help them attract and retain talent in an increasingly competitive environment.”

Planday beta unveiled as next step towards payroll integration

To help make essential employee-related processes more seamless for small businesses and their people, Xero is building an integration with its Xero Australian Payroll product and Planday.

The beta, announced today, marks an important stage of Planday’s entry into Australia where it will enhance Xero’s broader set of employee management tools including Xero Payroll, Xero Expenses and Xero Me (a simple self-service app for employees timesheet, leave and expense management). Xero Payroll plus Planday empowers small businesses with accurate employee time and attendance data and seamless scheduling, to help support payroll compliance and rostering, while also enhancing the employee experience through a range of intuitive people management tools.

The Planday beta is available now for eligible small businesses using the Retail and Clerks Awards in Australia. Customers can register their interest to learn more about Planday here.

“Our research shows poor communication, slow organisational processes and outdated technology is causing headaches for many small business employees and their employees,” added Curzon. “This isn’t surprising when a third tell us they still use spreadsheets to manage employee leave, time and attendance. We are committed to making employment management easier and will continue to evolve our offering for employers, accountants and bookkeepers and employees”

Navigating high salary expectations in a high inflationary environment

Additionally, the pandemic and its associated long border closures have also taken their toll on small business, with three in five (58%) employers believing that managing business disruptions caused by COVID-19 is still one of their top challenges. Additionally, the impact of inflation on costs and services is one of the biggest concerns for 48 percent of employers, with Australia’s inflation rate hitting a 21 year high of 6.1 percent in the June quarter this year.

Inflation is compounding the issue of labour shortages which are being felt widely. Thirty-four percent of employers are seeing talent shortages as their biggest challenge in securing and retaining talent. To secure and retain talent, employers are also expecting to pay top dollar, with 39 percent citing a rise in staffing costs and a rise in salary expectations (31%) as one of their top challenges over the next 12 months.

When looking for a new role, compensation is the main incentive for employees, with three quarters of employees ranking pay and bonuses in their top three important factors.

“Employees are prepared to walk if employers don’t match their expectations for better pay, with one in five leaving their last employer due to low pay,” said Joseph Lyons, Managing Director, APAC, at Xero. “With almost a third of employees planning to look for new opportunities over the next 12 months, employers will be under pressure to retain staff, amid ongoing labour shortages and rising costs.”

The report was launched at Xerocon Sydney, one of the world’s premier events for cloud accounting leaders. Accounting and bookkeeping partners and the Xero app community are gathering over two days at Sydney’s ICC to hear the latest from industry leaders, gain expert insight into the newest Xero tools and features to save time, grow their business and drive their clients’ success.

Xero, the global small business platform, today released Crunch: Cash flow challenges facing small businesses, Part II, a Xero Small Business Insights special report which identifies late payments, rising expenses, and seasonal slowdowns as causes of cash flow ‘crunches’.

Prepared by Accenture with the support of Xero, the report analyses comprehensive inflow and outflow data from over 200,000 businesses across Australia, New Zealand and the United Kingdom to understand ‘cash flow red flags’ – the early warning indicators that a small business is heading for cash flow trouble.

It found that 48 percent of invoices issued by Aussie small businesses in 2021 were paid late, with 10 percent paid more than a month after they were due. On average, small businesses in Australia are paid 6.4 days late, costing small businesses $1.1 billion per year due to payment delays.

“Late payments create a flow-on effect for small businesses, creating unnecessary accounting complications and threatening owners’ ability to meet their own obligations – such as rent or wages – in time,” said Rachael Powell, Chief Customer Officer, Xero. “While increases in expense costs and seasonal fluctuations in demand are often beyond our control, small businesses and national economies alike can send a clear message that late payments aren’t acceptable, and come together to develop policies and penalties for those who refuse to take the hint.”

In its analysis of Australian small businesses, the report found that:

• Those that received the majority (60-80%) of their payments late experienced 17% more cash flow crunches (where cash outflows exceed inflows) compared with small businesses that were generally paid on time.
• While utilities costs remained relatively stable in 2021, Aussie small businesses have faced sharp increases in rental costs and payroll expenses, which rose 9 percent year-on-year (y/y) and 13 percent y/y respectively in the last quarter of 2021.
• The average Australian small business tends to experience a revenue speed bump in January and February, receiving nearly 20 percent less revenue in each of these months than the other 10 months of the year.

Joseph Lyons, Managing Director, APAC, Xero, said: “Aussie small businesses are facing rising expenses – amid a sharp uptick in rent, energy, fuel and payroll costs that started last year.” “These pressures are unlikely to subside anytime soon, making cash flow stress one of the big issues for small businesses in the coming months. In this climate, it’s more important than ever that we take serious action in cracking down on avoidable late payments and equipping small businesses to build cash reserves for those leaner months.”

Late payments, rising expenses and seasonal slow downs a global issue

Crunch: Cash flow challenges facing small businesses, Part II follows on from Part I, which was aunched in July. The three cash flow red flags identified – late payments, rising expenses and seasonal slowdowns – put ongoing pressure on small businesses in each of the three countries analysed (Australia, New Zealand and the United Kingdom). Reducing late payments to affect less than 20 percent of invoices could reduce negative cash flow months by up to 17 percent for some businesses.

To minimise and counteract cash flow red flags, the report makes several recommendations, including that small businesses consider adopting online invoice payment options for faster payment; or work with their accountant or bookkeeper to stay on top of government programs that offer payment plans to assist relief for rising costs of small business to smooth out expenses.

“If small businesses and their accounting partners and governments can actively look out for these red flags in their financial data, they’ll find it easier to work together on ways to anticipate cash flow crunches and avoid them with better planning and more timely action,” said Powell.

The report, including the insights and analysis contained within it, was prepared using Xero Small Business Insights data, publicly available data and Accenture estimates for the purpose of informing and developing policies to support small businesses.

The report and its findings was released during Xerocon Sydney, one of the world’s premier events for cloud accounting leaders, where delegates from Xero’s Australia, New Zealand and Asia accounting and bookkeeping and Xero app partner community have gathered at Sydney’s ICC to hear the latest from industry leaders and updates from Xero.

Younger workers are more reluctant than their older colleagues to return to the workplace full-time as employers seek to encourage staff back into the office, the ADP® Research Institute’s People at Work 2022: A Global Workforce View reveals.

In Australia, more than half (54%) of 18-24 year olds and nearly two thirds (65%) of 25-34 year olds surveyed would consider looking for another job if their employer insisted on a full-time return to the workplace. This is compared to 46% of the 45-54 age bracket and only 27% of the 55 and over demographic. 

The data suggests that extended COVID lockdowns have heralded a shift in worker habits that is unlikely to be reversed in the long term. Younger employees, according to the report, have vastly shifted expectations and hopes for the workplace of the future, including a greater expectation of flexibility. Travel time and surging travel costs are also acting as further detractors to full-time office work. 

Kylie Baullo, Managing Director, Australia and New Zealand, ADP, comments: “After experiencing extended lockdowns in many states, remote and flexible working has become an expectation for many Australians. Returning to in-person work full time is a daunting proposition for workers, particularly the younger generations, and companies should consider their future workplace arrangements.”

“Whilst remote work was a necessity during peak COVID waves, businesses must now be more purposeful and conscious of the evolving needs of workers and employers as they navigate future working arrangements – whether that includes a return to office or remote arrangements.      Businesses should consider not only where employees prefer to work, but also how they work most effectively. Engaging and supporting people leaders to align how work is done with where work is done.”     

“This data calls out a strong employee voice. As businesses review how and where work will be done in the future, it is vital to collaborate with their employees. Face-to-face sessions between leaders and employees are helpful to ensure the different needs of generations and other individual scenarios are considered and planned for.”

“Although returning to the workplace presents social and career benefits for young people, this research shows that the majority of workers of this age are opposed to a full time return. Resistance is especially strong in the slightly older 25-34 and 35-44 year old cohorts, who are more likely to have had a taste of office work before the COVID-19 pandemic, and are better able to compare in-office and work-from-home arrangements. With this insight, these cohorts are telling us they are looking for a combination of the ability to work remotely whilst having team days and cross-functional collaboration, and development opportunities in the office.

“To ensure career opportunities are not missed, businesses will need to consider how to entice staff to work in-person, as well as provide a balanced workplace by also meeting the needs and wants of staff through flexible options.”

“The physical office space is more than ever becoming a consideration.  Where people are looking for a workspace that enables and facilitates collaboration and quiet space, a seamless transition between office and remote.”

For more information on ADP’s payroll and HR software solutions, go to au.adp.com.

Tradies to spend big on technology while focusing on combatting mental health challenges

• 60% of construction industry leaders are concerned about their health and wellbeing
• 41% of those concerned named a lack of work-life balance as a primary contributing factor
• More than 80% of construction firms are planning to spend on advanced technology over the next five years

Today, Optus Enterprise and Business has released new research that shows how the construction industry is turning to new technology and is updating business practices to address mental health challenges that are plaguing the industry.

The Optus Business Construction Industry Pulse 2022 report, conducted by ACA Research, found 45% of construction business owners say their employees had issues with mental health and wellbeing during the first two years of the pandemic.

60% of those business decision makers said they were concerned about their own health and wellbeing, with 41% citing a lack of work-life balance as the culprit.

David Coventry, VP Business and Enterprise Customers at Optus, said, “Work-life balance became a real focus for many Australians during the pandemic and we’ve seen priorities change in response to lockdowns and other COVID-19 measures had on our mental health.

“The Optus Business Construction Industry Pulse 2022 reported that 35% of businesses are expecting an increase in their investment in technology over the next 12 months. This is heartening to see considering the positive impact technology can have on helping business leaders get more hours back in their day.”

More than 40% of business owners and decision makers surveyed said they were adapting work practices to ensure they minimise mental health and wellbeing issues, but a concerning 24% said they were doing nothing to manage mental health and wellbeing.

Construction firms of all sizes are planning to spend money on fairly advanced technology over the next five years, whether that’s 3D printing, drones, Internet of Things (IoT) devices, augmented and virtual reality or AI-based applications.

For 60% of the businesses serviced, technology is key to achieving their goals and strategies as a business. Technology has a large role to play also in managing finances, efficiency, suppliers and compliance, helping business owners and workers get more hours back in their day.

Chris Lockwood, National CEO of MATES in Construction, said “MATES, a charity, was created by the Construction Industry to address the problem of suicide in our industry, with workers lost to suicide at six times the rate of workplace accidents and our young workers at even higher risk. The MATES program addresses this through evidence-based workshops and 24/7 helpline support to workers and their families: because every life saved is someone’s son, daughter, husband or father.

“Together, we’ve reduced suicide rates by 8% since the inception of MATES in 2008 and we were recognised in 2021 by World Health Organisation as Global Best Practise in Suicide Prevention.

“The Optus Business Construction Industry Pulse 2022 report highlights the mental health challenges facing workers in the construction industry. Industry working together helps to build awareness that suicide is not an individual problem, it’s bigger than that, we all have a responsibility to look out for each other on site.”

Other top outcomes achieved through technology included better engagement with employees (33%), better engagement with customers (32%) and increased revenue (30%).

For the full FY23 Optus Enterprise and Business Construction Industry Pulse, click here.

Major Australian banks, ANZ, Commonwealth Bank (CBA), National Australia Bank Limited (NAB), and Westpac, announce their support behind Australian Payments Plus’ (AP+) development and establishment of an open, standards-based national identity infrastructure called ConnectID, to protect customer privacy and drive productivity in the Digital Economy.

Lynn Kraus, CEO AP+ said “This is a major milestone for the Australian industry’s adoption of digital identity, aiming to securely and simply deliver a seamless online identity verification experience to solve real world issues. This includes proving your identity online for age verification, setting up mobile phone plans, employee onboarding, travel bookings, loan applications and can even extend through to insurance pay outs.

For customers this means they will be able to verify their identity online simply and safely using ConnectID, an Australian digital identity network. ConnectID makes it easy to verify who you are online, using the organisations you already trust. It also allows you to share only the information that is required, at the time it is needed, giving customers complete control over how their personal information is used and peace of mind knowing their data is being kept safe at every step.

A strong digital identity ecosystem as envisaged for ConnectID, not only provides more control and security for customers, but recent global reports have estimated the economic benefit and value for countries like Australia, equates to around 3% GDP by 2030^[1].

The newly formed Australian Payments Plus (AP+), brings together digital identity initiatives of BPAY and eftpos in a combined best-in-class proposition demonstrating the benefits behind the recent consolidation of Australia’s three domestic payment organisations, BPAY Group, eftpos and NPP Australia into the one entity.

Ms Kraus said: “Customer trials are expected in late 2022 followed by a market launch next year. ConnectID is already accredited under the Australian Government’s Trusted Digital Identity Framework (TDIF).”

“We are excited that AP+ can deliver innovation, security, and convenience to the daily lives of Australian consumers and businesses through the creation of a national digital identity ecosystem with ConnectID,” Ms Kraus said.

“In Australia there is a real need to facilitate identity verification methods to reduce costs and enhance compliance outcomes for businesses, help reduce the hassle as well as instances of fraud and identity theft for Australians, while improving the ‘digital trust’ between customers and vendors.”

Andrew Black, Managing Director ConnectID AP+ said: “Australians trust the security and reliability of their banks and payments providers, for that reason developing a robust, standards-based digital identity ecosystem that can be used by major banks and trusted Australian organisations is a natural extension for AP+.”

“ConnectID is committed to help Australian banks, businesses and local retailers protect the sovereignty and security of Australian payments and identity data,” Mr Black added.

Delivering more control and better privacy protection for consumers to share and receive verified personal identity information online, the participation of some of Australia’s largest banks in ConnectID would provide the scale and trust needed to drive widespread consumer and business adoption.

CBA’s General Manager, Open Data, Katherine Sleeth said: “We are pleased to help our customers have more control of their data and privacy, enabling them to share their personal information with approved merchants, backed by the security of the CommBank app. The quick online process will save customers time and help keep them safe online.”

NAB Chief Digital, Data and Analytics Officer, Angela Mentis, said the bank was proud to play an integral role in bringing digital identity to the Australian market, with customer empowerment top of mind for the bank throughout the process.

“NAB’s priority in helping bring digital identity to life has been to empower customers with choice – to verify their identity how and when they want, whilst ensuring privacy and personal data is protected,” Ms Mentis said.

“We think that digital identity will be the most crucial enabler of safe and secure interactions in our future economy, and are certain that customers can have trust in this solution.”

The ConnectID team is collaboratively working with governments, businesses, online merchants, banks and other identity providers with a view to building identity into our national payments infrastructure, as well as other commercial applications for all Australians and Australian businesses.

ConnectID is taking an inclusive, economy-wide approach, working with organisations from sectors such as banking, telecom, online retail, government, insurance, utilities, transportation, real estate, not-for-profit and the start-up and fintech community.

Australian Payments Plus’ ConnectID facilitates an ‘exchange’ between identity providers, organisations that securely hold identity data on behalf of their customers, and merchants or government departments that need to verify who they are dealing with or receive identity information that they can trust. AP+ is uniquely placed to offer this service, particularly for interactions requiring a payment.

While ConnectID securely facilitates the identity verification or data exchange, it does not see or store the identity data. Identity service providers store consumer identities and take responsibility for providing this secure information only under the consent of the customer.

As interoperability is key to the ConnectID solution, it is designed to complement identity and credential-related services provided by government and work within the Federal Government’s Trusted Digital Identity Framework (TDIF) financial industry privacy and security frameworks, as well as emerging international standards in distributed digital identity credentials.

Queensland company directors should be on high alert as the state’s corporate insolvencies begin to return to pre-pandemic levels and the Australian Taxation Office (ATO) ramps up compliance-based debt recovery as it focuses on protecting the revenue for the federal government.

New figures released by the Australian Securities & Investment Commission (ASIC) have revealed June 2022 saw the highest number (108) of Queensland companies entering insolvencies, external administration and controller appointments since March 20201.

The construction industry led the recent cases (27 per cent) followed by accommodation and food services (19 per cent).2

RSM Brisbane Managing Partner Steve Healey said these figures, combined with a recent surge in ATO-issued Director Penalty Notices (DPN), could mean potential financial ruin for directors of small and large Queensland businesses alike.

“With the number of insolvencies on the rise, and the ATO making it more difficult for directors to avoid personal liability through a company payment arrangement, the stakes for personal financial ruin are even higher for all directors,” Mr Healey said.

“In recent years we’ve seen the ATO apply the brakes on practical compliance and DPNs and instead focus on supporting businesses through its administration of initiatives like JobKeeper and the cash flow boost.

“As recent ATO activity has shown however, this phase of the pandemic cycle has well and truly come to an end, and the ATO is again aggressively pursuing companies for non-compliance related to PAYG withholding tax, superannuation contributions and GST.

“The Federal Government is now dealing with trillions of dollars of debt3 and an increasing interest rate environment, in the face of soaring inflation.

“As debt subsequently becomes more expensive and we enter what’s expected to be a rough economic patch, it comes as no surprise the ATO will be protecting the revenue.”

With multiple tax performance programs within the ATO – Top 100 Justified Trust, Top 100 Taxpayers, Top 500 Private Group, Top 1000 Combined Assurance and Next 5000 Private Group – Mr Healey said the personal liability of directors within these programs is amplified, with payment arrangements for certain tax debts being increasingly difficult to be granted.

“We’re now seeing the ATO using very sophisticated software with artificial intelligence and analytics to identify who it’s going to be targeting, but it’s only a matter of time before they come knocking on the doors of the businesses who fall within the tax performance programs,” Mr Healey said.

“With the recent collapses of multiple building and construction companies, it’s highly likely there will be a much closer look into property developers and builders who occupy these programs, with an increase in DPNs being issued subsequently increasing the number of companies we will see enter administration.

“At the end of the day, the ATO’s purpose is to protect the revenue of the nation, and whilst it has an underlying approach to compliance that taxpayers are generally obliging by the law – often referred to as light touch compliance – publicly listed, privately owned and wealthy private groups need to be very mindful of upholding these requirements.”

Another recent report by the ATO has revealed Queensland has the third largest shadow economy tip-offs registered with more than 9,200 recorded in the 2021-22 financial year, behind New South Wales and Victoria.

Building and construction, road freight transport and consulting services were among the industries that recorded the largest incidences of tip-offs.

Transforming home, office and workplace organisation, Brother International Australia has today announced the launch of its new P-touch desktop label printers. Designed with busy workers and multiple environments in mind, the new labelling range will support users with organisation, personalisation and identification. 

Designed to meet the needs of a broad range of users, the PT-D Series is made up of three models – PT-D410, PT-D460BT, and PT-D610BT label printers – for basic to advanced use.

Providing ease of use, legibility, fast typing and simple desktop handling, all versions feature a built-in QWERTY keyboard and a large graphical display with a built-in print preview. Users of the PT-D610BT will also enjoy a full colour display.

Customers also have the option to use the devices either as standalone label printers or with their PC or Mac. Users of PT-D460BT & PT-D610BT can also print ready-made templates from their smartphones with Brother’s iPrint&Label App, thanks to Bluetooth connectivity.

Producing labels that stand the test of time, all models within the PT-D Series are compatible with TZe tapes up to 18mm (24mm for the PT-D610BT). Made to last, chemical, temperature and water resistance makes these labels perfect for use around the home or in the office.

Providing great functionality and the ability to customise labels for purpose, each device is pre-loaded with over 15 built-in fonts, 120+ decorative frames and 700+ symbols. Barcode and cable labelling functionality also empowers users to take their organisation to the next level.

All of this functionality can be achieved quickly, with print speed up to 30mm/s (20mm/s for PT-D410).
 
 On the range, David Molloy, Mobile Print & Labelling Specialist at Brother International Australia, said: “When we speak to customers, we hear that organisation is a challenge for them. This has only been amplified as more and more people are working flexibly.

“Our new range has been created with this in mind. We wanted to create one solution whether it’s for cable management at home, storage boxes in a warehouse, or organising files in the office. Having three printers with a diverse range of functionality also allows organisations to select the product that best fits their needs, with the flexibility to ‘trade up’ in future, without changing systems.

Brother PT-D410 Compact Label Printer

 
Available: September 2022
RRP:  $94
Retailers: Exclusively available from Officeworks
Key features:

• Use it as a portable, standalone device, or connect it to your PC via USB cable for more advanced features
• Easy-to-read graphic display
• Use P-touch Editor to create, edit and print your labels and easily connect to existing databases
• Prints 3.5, 6, 9, 12 and 18mm labels
• 15 convenient built-in fonts, 120 frames and 700 symbols for complete customisation
• Cable labelling functionality
• QWERTY and numeric keyboard
• Print labels from your PC or Mac
• Easy to print and apply

Website: visit here

 
 
 
Brother PT-D460BT Versatile Label Printer

Available: September 2022
RRP:  $159
Retailers: Available via B2B channels and Amazon
Key features:

• Use as a standalone label printer or connect to your smart device via Bluetooth for more advanced features
• Use P-touch Editor to create, edit and print your labels and easily connect to existing databases
• Easy-to-read graphic display
• Prints 3.5, 6, 9, 12 and 18mm labels
• 16 convenient built-in fonts, 140 frames and 800 symbols for complete customisation
• Store up to 70 label templates for quick reprinting
• Cable labelling functionality
• QWERTY and numeric keyboard
• Print labels from your PC or Mac
• Prints barcodes

Website: visit here  

 

Brother PT-D610BT Versatile Label Printer

Available: September 2022
RRP: $189
Retailers: Available via B2B channels and Officeworks
Key features:

• Use as a standalone label printer or connect to your smart device via Bluetooth for more advanced features
• Use P-touch Editor to create, edit and print your labels and easily connect to existing databases
• Full colour, high-resolution display with backlight
• Prints 3.5, 6, 9, 12, 18 and 24mm labels
• 17 convenient built-in fonts, 160 frames and 900 symbols for complete customisation
• Store up to 99 label templates and use the automatic tape cutter for quick reprinting
• Cable labelling functionality
• QWERTY and numeric keyboard
• Print labels from your PC or Mac
• Prints barcodes

Website:visit here

Australian businesses have ambitious plans for international expansion, as new data from global fintech Airwallex reveals more than two thirds of small-to-medium Aussie businesses (69 per cent) plan to be operating outside Australia by 2027.

Airwallex’s inaugural Australian Business Growth Index found a third of SMEs surveyed (34 per cent) currently have operations overseas, but this is projected to more than double in the next five years.

The independent research, which surveyed more than 200 Australian small-to-medium enterprises (SMEs), found that businesses already operating in international markets are experiencing commercial success. Of these businesses, two in five surveyed (42 per cent) reported being profitable and more than half are breaking even (52 per cent).

“Aussie businesses are bolstering their position to weather the current economic challenges,” said Sam Kothari, Head of Growth for ANZ at Airwallex. “International expansion is now being used as a strategy to remain resilient and viable by tapping into new markets and widening the pool of potential customers.”

Moving overseas has unlocked new customer segments for SMEs and broadened their overall market share, with 80 per cent saying the volume of new customers they’ve gained from moving into new markets has been “significant”. 

The research also found that despite sustained economic hardship, including rising inflation and disrupted global supply chains, 96 per cent of SMEs who are already operating overseas, and 99 per cent of those planning to do so in the next twelve months, recorded growth last year. 

“Australians are innovators, and there is growing global demand for the products and services they provide,” added Sam. “We have seen this firsthand; Airwallex is the chosen partner to many Australian businesses looking to alleviate the global roadblocks associated with setting up shop in international markets, including opening accounts overseas, high FX fees and managing employee expenses. We see ourselves playing a central role in opening the door for Australian businesses to access borderless opportunities all around the world.” 

For SMEs trading overseas, the region where they have seen the biggest growth in sales and revenue was Southeast Asia. Almost two in five respondents (39 per cent) said this market had been their biggest generator of revenue outside of Australia in the past year, closely followed by the U.S. (29 per cent).

These markets were echoed in terms of where the most beneficial prospects lie, with a quarter (26 per cent) of SMEs operating or planning to operate overseas identifying Southeast Asia as the most lucrative in the year ahead. 

The U.S. followed closely behind Southeast Asia, with 25 per cent of businesses with an international footprint or ambition naming the States out as the next most attractive market in the near future, surpassing China (18 per cent) and EMEA/UK (15 per cent).

Sustainability sells – the reusable water bottle business sweeping the world up

memobottle is one Australian-founded business which is enjoying commercial success in overseas markets, with 50 per cent of its revenue now being generated from international expansion, mainly in the Southeast Asia region. 

In the past twelve months, the reusable water bottle movement has on-boarded distributors in Indonesia and Singapore, and exhibited at trade shows in the U.S. and Europe. 

memobottle Director and co-founder Jonathan Byrt cites the business’ focus on international markets as crucial to its success during the pandemic period. 

“Having a global presence during this tumultuous 24 months has allowed us to switch marketing and revenue focus between regions. Being in multiple markets unlocked opportunities for the business which have allowed us to grow and expand. Our operations in China and the U.S. kept our revenue steady while Australia and Europe battled with sustained lockdowns and geopolitical events,” said Jonathan.  

“The majority of sales from a recent product launch (65 per cent) came from customers in the States. If we had all our eggs in one basket, this wouldn’t have been possible.”

In orbit around the world – Orbitkey has their eyes on international expansion

Melbourne-founded Orbitkey has established a strong presence in the U.S. in recent years, which has become its dominant market above Australia, representing almost a third of its total sales (31 per cent). The business now has its sights on Asia, where it has a small but growing presence. For Orbitkey’s co-founder and Managing Director Rex Kuo, Orbitkey was always destined to scale beyond its home market.

“As a product design company that prides itself on user-centred design and innovation, our products are designed for a global audience – not just Australians. We see great value and potential in the Asian market, where demand is growing exponentially from existing customers –- all of the signals are clear that expansion in this market looks lucrative,” said Rex.

“It’s not just demand that makes Southeast Asia such an attractive business proposition. Cheaper and more competitive payment gateways are becoming more easily accessible than ever before, eliminating a large proportion of high transaction and currency conversion fees that were associated previously whilst doing B2C commerce in the region.” 

“We’re investing the revenue that was previously swallowed up by high transaction costs to maximise the opportunities for our growth in Southeast Asia, including locating a third-party logistics (3PL) in Hong Kong which has made shipping to countries in Asia cheaper than ever before.” 

“All of these components are coming together to make Southeast Asia one of the most dynamic business environments in the world. 9 per cent of our total sales come from the region as present but this will surpass into double digits in no time.”