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Connecting your business to the world

The internet has connected the world and made pretty much anything seem possible. In the business arena, there are a myriad of new tools and services available online to help you manage your finances, your communications, your ordering processes and even your staff. One of the most interesting innovations is a new model of software provision called 'Software as a Service' or SaaS.

SaaS is also known as 'on-demand software' because, as the name suggests, you use it on the internet when you need it instead of purchasing it outright and installing it on your office computer or network.

With SaaS solutions, there's normally no upfront cost and no fixed contract period. A small monthly fee enables you to access the type and level of software that's traditionally only been feasible given the size and budget of a large company. The regular fee also relieves you from worrying about paying for software upgrades or maintenance, that's all taken care of by the SaaS provider.

One SaaS provider that's making headlines in New Zealand is Xero. The company was founded in New Zealand in 2006 by award-winning technology entrepreneur Rod Drury and small business accountant Hamish Edwards. Now listed on the NZ Stock Exchange and expanding its operations into the UK, online at Xero (www.Xero.com) you'll find an accounting system that's designed specifically for small and medium businesses.

Once registered with Xero, you can simply log in and manage your 'books' anytime, anywhere as long as you have an internet connection (Mac users will need to install Firefox as a browser).

I mentioned that with SaaS solutions you don't need to worry about the cost of upgrades - you also don't need to worry about the administration of upgrades. With SaaS, everyone is always working on the latest system version and updates can happen at great speed. At Xero for example, it's not uncommon for feedback to move from being a request to a reality within hours.

Being internet-based, SaaS solutions can also make the most of the hyperlinking technology we've come to know and love. Again with Xero as an example, as the administrator you can give people such as your accountant (or directors) access to the system. Access can be long term or short term - you can keep an eye who logs on and uninvite users or only give them access for a set date range. Simply authorise the system to email an invitation that will contain a hyperlink to a password protected logon page. Your accountant can cast a seasoned eye and make adjustments as you go rather than just once a year, and your directors can keep up to speed without you having to produce reports for them.

So there are many positive reasons for considering SaaS solutions. The most obvious downside is that to use them, you need a reliable (and preferably high-speed) internet connection.

You might also find it disconcerting to think of your financial details and other business data being 'out there' in cyberspace. Peace of mind is in the reputation and substance of the organisation you're dealing with and most importantly, it's in the fine print! Read it all, ask questions and if you're in doubt, check with your professional advisors.