Client Snapshot

• Industry: Consumer Goods Importer (Protective Clothing Sector)

• Stage: Start-up in Rapid Growth

• Legal Structure: Sole Trader (Unincorporated)

Operational Setup

• Recordkeeping: Cash-based via bank statements and spreadsheets

• Accounts Payable: Single supplier for COGS, invoicing bi-monthly

• Other Expenses: 10–15 credit card payments per month

• Accounts Receivable: Manual invoicing, paid by bank transfer

• Inventory: Spreadsheet-based tracking of 5–10 product types

• BAS Lodgement: Quarterly via external tax accountant

The Challenge

As the business grew and planned for a permanent retail location, it became clear that the existing manual back-end systems were no longer scalable.

Pain Points Identified:

• Manual invoicing and tax reporting

• Time-consuming inventory management

• Spreadsheet based P&L summaries

• No real-time visibility on sales and expenses

• No card payment acceptance at point-of-sale

Xero System Setup

• Inventory Module: 8 product categories integrated with AP & invoicing; automatic stock level updates

• Sales Invoicing: Via desktop and mobile app, linked to product catalogue

• Accounts Payable: Semi-automated invoice capture

• Payroll: Single employee, monthly cycle, with automated PAYG and Super lodgement

• Expenses: Auto-categorised via bank feed and card rules

• Custom Reporting: Tailored P&L and inventory summaries

• BAS: Automated preparation and online lodgement

• Fixed Assets: Built-in depreciation schedule to support tax return preparation

The Solution

To keep things simple while supporting growth, we designed a streamlined financial system with minimal complexity and provider overlap.

Key Recommendations:

• Transition to a Pty Ltd structure to limit liability and benefit from the 25% corporate tax rate

• Register the owner as an employee on a $45,000 salary to take advantage of lower personal tax brackets

• Implement Xero’s Grow Plan with custom configuration

• An EFTPOS solution with no ongoing fees—despite a slightly higher processing fee— selected as an ideal fit for a business with growing but still modest sales.

The Result

✅ 60% reduction in time spent on financial admin
✅ Real-time reporting at your fingertips
✅ Fully scalable system with low overhead

Outcome

The business now operates with confidence, clarity, and control — equipped to grow its retail presence with systems that scale effortlessly.