by MHolland | Aug 15, 2025 | Business Tips, Cloud-based Accounting, Systems
You’re either going to automate or you’re going to hire more people.
There is no third option.
The business graveyard is full of companies that clung to manual processes because “that’s how we’ve always done it.” They didn’t die because AI took their jobs. They died because they refused to adapt.
One of the hot topics these days is whether AI will wipe out a massive number of white-collar jobs.
The short answer? No, it won’t.
Why not?
Because automation has been happening for centuries — and people are still working. Not just in manual or service jobs, either.
Take aviation as an example:
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In the 1800s, there were no pilots.
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In the 1950s, were there proportionately more pilots or fewer than today in 2025? Clearly fewer.
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Are airplanes more automated and computerized now than in 1955? Absolutely.
Automation didn’t kill the airline industry — it helped it explode. It enabled more flights, more routes, more passengers, and more jobs.
The same principle applies today. Automation doesn’t destroy opportunity — it destroys complacency. If you don’t keep up, you get left behind.
The Accounting Example
In just the past 15 years, we’ve seen accounting software evolve to:
- Pull all the details from source documents and even suggest where to post transactions.
- Pay all bills online — no more cheque printing or mailing.
- Reconcile banks daily through automated feeds.
- Integrate operational software directly into accounting systems.
- Route bills to department heads on their smartphones for quick approval.
Has this wiped out accounting jobs? No.
It’s shifted the skill set. Today’s accountants need more focus, more adaptability, and stronger critical thinking. Those who embraced the changes thrived. Those who didn’t? Marginalized and sidelined — just like buggy whip makers when the car came along.
Automate or Hire — Pick One
If you run a business, here’s the real question:
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Can this process be automated?
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Is there cloud software I can buy to do it?
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Can I connect my operational data directly to my accounting system?
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If no off-the-shelf solution exists, can I hire someone to build it?
If you choose not to automate — or think it’s too expensive — then you have no choice but to hire people.
Now compare the costs. Is it more expensive to bring on more staff, or to invest, say, $30–$50K in software that eliminates bottlenecks and stops duplicate data entry?
Data duplication is one of the biggest wastes in any business. Every time the same data is keyed in twice, error rates go up. That’s not theory — it’s a law of averages.
How to Fix It
- Ensure accuracy at the source. Hold the person entering data accountable for getting it right the first time.
- Validate at the managerial level. Don’t just trust the input — verify it.
Do this across all your data flows, and errors drop dramatically.
The Payoff
Run the numbers. A one-time $50K investment in automation can pay for itself in less than a year compared to the ongoing cost of a full-time data-entry hire. And unlike a human hire, automation doesn’t take sick days, quit, or need training every six months.
The bottom line: Automate where you can. Hire where you must. But don’t waste money doing what software can do better, faster, and more accurately.
Thanks for reading…
by MHolland | Jul 31, 2025 | Business Tips, Systems
If your business feels like it relies too much on you—or a few “star employees”—it’s a sign you’re missing two critical tools – Performance Standards and a Playbook.
These two elements are the foundation of a business that runs smoothly, trains new staff quickly, and delivers consistent results. Most companies only have one (or neither). Here’s how they work—and why you need both.
Performance Standards – Defining “What Great Looks Like”
Performance Standards (PS) are outcome‑driven. They define the operational and service results you expect from a process or a role.
Think of them as the bar your team must clear. They focus on results, not steps, like:
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Delivering on time
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Maintaining quality and accuracy
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Completing work without rework
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Creating a great service experience (how phones are answered, how emails are written, or the “extras” that delight clients)
Good Performance Standards are measurable. Here’s an Accounts Payable (AP) example:
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Zero payments without a 3‑way match (PO, invoice, receipt)
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99% of vendor bills entered within 2 business days
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Payment runs Wednesdays only, early‑pay discounts captured if ≥1.0% effective annualized
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Exception rate <2% per month, all exceptions resolved in 5 business days
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Fraud controls: dual approval for any payment >$10k; vendor master changes segregated
A Performance Standard is not a motherhood statement; it is something measurable in physical reality. If you can’t measure it, you can’t manage it—and Performance Standards give you the yardstick for accountability.
Playbook – Making the Work Repeatable
If Performance Standards are the “what,” your Playbook is the “how.”
A Playbook is a step‑by‑step guide or checklist that ensures your team can consistently hit the standards—even when you’re not in the room.
Continuing with the AP example, a Playbook might include:
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Invoice intake: where they arrive, naming convention, and upload to Xero/HubDoc
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3‑way match SOP: screenshot‑rich walkthrough in ApprovalMax with edge‑case examples
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Payment‑run checklist: start‑to‑finish steps plus what to do if the bank file rejects
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Vendor setup process: template emails, required banking data, and sample remittance PDFs
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Payment method decision tree: when to use Plooto vs. wire vs. cheque, including FX handling
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Weekly reconciliation routine: report template, exception log, and sign‑off process
A strong Playbook turns tribal knowledge into documented knowledge, making it easy for any trained staffer to perform consistently—and for new hires to get up to speed fast. What is tribal knowledge? It is the stuff people keep in their heads on how they perform processes. The problem? When they leave, the knowledge leaves with them, and you are back at ground zero, with your replacement hire.
Why You Need Both
Businesses often get stuck because they only have one side of the system:
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Standards with no Playbook: You know the result you want, but everyone does it differently. Errors and inconsistency creep in.
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Playbook with no Standards: People follow steps, but you don’t know if the outcome meets expectations. You get activity, not results.
When you have both, you create a system that:
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Sets the bar (Performance Standards)
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Shows the way (Playbook)
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Makes results measurable and repeatable
This combination is what allows your business to scale without stress, protect quality, and remove dependency on any single person.
Take Action in Your Business
If you’re ready to stop firefighting and start scaling, here’s where to begin:
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Write 3‑5 clear Performance Standards for each critical process.
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Track performance weekly so everyone knows if the standard is met.
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Build a simple Playbook so any trained team member can hit the standard every time.
When you combine clear standards with a repeatable playbook, your business becomes trainable, scalable, and a whole lot easier to manage.
Thanks for reading…
by MHolland | Jul 25, 2025 | Business Tips, Cloud-based Accounting, Systems
by MHolland | Jul 18, 2025 | Business Tips, Systems
As my Blog readers know, I am a big fan of Freedom (the reality and the app😁)…
This week I want to share with you a blog from the Freedom app on taking a digital detox.
Why is this so important for business? Because focus, like awesome service, has become a competitive advantage.
I use the Freedom app to block distractions that come in the form of notifications from messaging apps, emails, and the desire to look at the latest news!
What I have not been aware of is how often I pick up my phone. I think if most of us started tracking just the number of times we pick up the phone in a day, we’d be shocked. Even with the Freedom app.
Can you (be honest with yourself 😉):
- Go for a bike ride, to the gym, or for a jog without your phone?
- Go for dinner without your phone (or just leave it in the car)?
- Keep your phone off the dining table when eating?
- Go to an event without your phone?
- Work for 90 minutes with your phone in another room?
Apparently studies how that people unlock their phone on average 96 times a day! 😕Yikes!
What is the cost? Loss of sleep, less depth in your relationships, inability to focus, irritability, neck pain (from looking all the time).
The biggest cost is simply the inability to sustain focus.
Here is a test – can you read, in one sitting, a full chapter of a Classic book, like a novel written by Dostoevsky?
Try it. See how you go.
Here is the link for the full blog:
Digital Detox in 2025
One last note – did you know that most of the creators of digital content and software in Silicon Valley forbid their children from using smart phones?
Hmmm, I wonder why? Could it be the same reason that Colombian drug lords never use the addictive stuff they sell?
Thanks for reading…
by MHolland | Jul 11, 2025 | Accounts Payables, Accounts Receivables, Business Tips, Cash Flow, Systems
Entrepreneurs tend to put all their attention on the Income Statement…
They want to know how much their sales are, their gross profit, and, of course, net profit.
What is the Balance Sheet good for? It does not tell you anything about operations, right?
Wrong.
Here is something you may not have known – the Income Statement lives inside the Balance Sheet.
The two statements are intricately linked, joined at the hip.
The Income Statement lives inside the Equity section of your Balance Sheet.
Think of it like this – Net Profit, or Net Loss lives inside the Equity section of your Balance Sheet.
How to Fix a Broken Income Statement
Whenever I have looked at an Income Statement that I suspect is incorrect, or just a plain mess, I go the Balance Sheet to fix.
In fact, the only way to correct a messy Income Statement is by going to the Balance Sheet.
Because…
All the Dead Bodies are on the Balance Sheet
Let us look at one dead body that ends up on the Balance Sheet and is the most glaring one.
Inventory.
Inventory and Cost of Goods Sold, which is on the Income Statement, are interconnected.
When you buy goods for resale, they go to the Balance Sheet, as an asset.
Once sold, they move to the Income Statement as an expense. If you have a real-time costing system that tracks when items are sold, then you will have few problems.
The system is tracking as goods are sold and moving them to your Income Statement, as a cost, or expense.
Inventory Hides a Lot of Dead Bodies
When you have manufactured goods, or grown plants in the case of a grower, you may not be counting inventory every month.
If your inventory is over-valued on the Balance Sheet, then your cost of goods sold (an expense) on the Income Statement is under-stated.
If cost of goods sold are understated, then Net Profit is over-stated.
You are happy at the high profits, and it is a fake high because a dead body is living on your Balance Sheet – inventory that does not exist because it has been sold.
When does that dead body get unburied? When you do an inventory count, often at year-end. By then it is too late. You have relied on 11 months of over-stated Net Profits. Your happy feeling comes crashing down.
Culprit Number Two – Bad Debts
The other big culprit hiding dead bodies on the Balance Sheet is Accounts Receivable.
Past sales that ended up as Revenue on your Income Statement, may now be living inside your accounts receivable, dead as a doornail. Uncollectable.
The fix?
Well, first, try hard to collect them, or even send them to a collection agency if you have to.
If they are dead, move them to the Income Statement as Bad Debt expense.
Most people wait until year-end to cleanup, giving false numbers on your monthly Income Statements.
Culprit Number Three – Deferred Costs
Often business owners will defer costs under the premise that there is future value in those costs.
In other words, current expenses get treated as assets.
But are they?
Is there value in those costs being capitalized on your Balance Sheet.
Unless you can sell those capitalized costs as an asset, write them off. Software development is something that could be considered an asset. Most deferred costs should be written off.
Culprit Number Four – Under-Performing Assets
Old, worn out and unused assets should be removed and written off as an expense to the Income Statement.
This is less common a problem and can be done once a year at year-end.
Culprit Number Five – Deferred Revenue
Some businesses report as sales what should go on the Balance Sheet as a liability.
When you receive cash for something not delivered yet, that is a deposit, and should be recorded on the Balance Sheet, as deferred revenue.
Only when you have performed the service or sold the goods should that be moved to the Income Statement as sales.
Culprit Number Six – Unrecorded Liabilities
It is important to ensure that all supplier bills are recorded as expenses in the month incurred. These bills are expenses and could overstate your Net Profit by under-stating your expenses.
Also, if expenses are recorded in the incorrect period, it makes your monthly Income Statements have wild swings. One month shows a big profit, the next month a loss.
Culprit Number Seven – Unreconciled Loans
Loans and mortgages that carry interest should be reconciled and recorded each month.
The interest expense needs to be recorded on the Income Statement.
The above seven culprits cover most of the dead bodies that might be buried on your Balance Sheet.
Thanks for reading…