Big insights into small business: Australia’s Hubble telescope of business data What is Xero Small Business Insights? Xero Small Business Insights (Xero SBI) is a snapshot of Australian small business health, updated monthly. It uses anonymised, aggregated data selected from over 500,000 Xero subscribers. By analysing information from a large group of subscribers, Xero SBI is able to track the performance of Australian small business. Traditional measures of small business activity by the Australian Bureau of Statistics, for example, tend to be less frequently updated. It’s our hope that policymakers and large enterprises can use Xero Small Business Insights to make more informed decisions that benefit the small business economy. Small Business Insights “Here is a bold new dataset that excites, that informs, and that will assist with business decisions that need to be made. Here is an advance in the way data is collected and disseminated that I think will reshape the way small business and perhaps all business is conducted in Australia. It is the business statistician’s version of the ground-breaking Hubble telescope.” — Bernard Salt Special Advisor to KPMG and Managing Director of The Demographics Group How’s the health of small businesses? * Published January 2018. All data is for month of November 2017 unless noted. Getting Paid The average 30-day invoice was paid in 34.7 days in November, the second-best figure for 2017. Tasmania led the nation, with small businesses on the Apple Isle paid in less than 30 days. New South Wales and Victoria were laggards at almost 36 days. Cash Flow Some 54 percent of small businesses had positive cash flow in November. To put that in perspective, the month is usually cash flow negative. It was the first November in three years that most businesses had more money coming in the door than going out. Trading Overseas The value of small business imports and exports fell 9.9% in November. The metric can move twice that amount in some months, based on foreign currency transactions processed through the Xero platform. Hiring People Headcount at small businesses rose 0.8% in November, led by a 2.2% surge in casual employment ahead of Christmas. If the pattern of past years holds, many of these casual roles could disappear in the first months of 2018. “ Fastest paying state Take a bow, Tasmania: 30-day invoices get paid in 29.8 days on the island state. Slowest paying state Victorian small businesses wait almost 36 days for payment on a 30-day invoice. Industry that enjoys fastest payments Retail, where small businesses get paid in 26.2 days, or almost four days early. Industry that suffers slowest payments Manufacturing, where small businesses wait 41 days to get paid. 34.7 DAYS 54 % -9.9 % 36DAYS 29.8DAYS 41DAYS 26.2DAYS 0.8 %

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Page 1: Big insights into small business - Xero fileBig insights into small business: ... Xero Small Business Insights to make more informed decisions ... was the first November in three

Big insights into small business: Australia’s Hubble telescope of business data

What is Xero Small Business Insights?Xero Small Business Insights (Xero SBI) is a snapshot of Australian small business health, updated monthly. It uses anonymised, aggregated data selected from over 500,000 Xero subscribers. By analysing information from a large group of subscribers, Xero SBI is able to track the performance of Australian small business. Traditional measures of small business activity by the Australian Bureau of Statistics, for example, tend to be less frequently updated.

It’s our hope that policymakers and large enterprises can use Xero Small Business Insights to make more informed decisions that benefit the small business economy.

Small Business Insights

“Here is a bold new dataset that excites, that informs, and that will assist with business decisions that need to be made. Here is an advance in the way data is collected and disseminated that I think will reshape the way small business and perhaps all business is conducted in Australia. It is the business statistician’s version of the ground-breaking Hubble telescope.”

— Bernard SaltSpecial Advisor to KPMG and Managing Director of The Demographics Group

How’s the health of small businesses?* Published January 2018. All data is for month of November 2017 unless noted.

Getting PaidThe average 30-day invoice was paid in 34.7 days in November, the second-best figure for 2017. Tasmania led the nation, with small businesses on the Apple Isle paid in less than 30 days. New South Wales and Victoria were laggards at almost 36 days.

Cash FlowSome 54 percent of small businesses had positive cash flow in November. To put that in perspective, the month is usually cash flow negative. It was the first November in three years that most businesses had more money coming in the door than going out.

Trading OverseasThe value of small business imports and exports fell 9.9% in November. The metric can move twice that amount in some months, based on foreign currency transactions processed through the Xero platform.

Hiring PeopleHeadcount at small businesses rose 0.8% in November, led by a 2.2% surge in casual employment ahead of Christmas. If the pattern of past years holds, many of these casual roles could disappear in the first months of 2018.“

Fastest paying stateTake a bow, Tasmania: 30-day invoices get paid in 29.8 days on the island state.

Slowest paying stateVictorian small businesses wait almost 36 days for payment on a 30-day invoice.

Industry that enjoys fastest paymentsRetail, where small businesses get paid in 26.2 days, or almost four days early.

Industry that suffers slowest paymentsManufacturing, where small businesses wait 41 days to get paid.

34.7DAYS 54% -9.9%

36DAYS 29.8DAYS

41DAYS 26.2DAYS

0.8%