January 2026
The landscape for product-based businesses is moving fast. Here is a quick scan of what is shaping decisions this month:
- Australian retailers use AI to turn painful returns into better inventory and loyalty.
- Xero rolls out enterprise-grade analytics inside the core ledger.
- Australian payment reforms put card surcharges and SME margins back in the spotlight.
- Monzo’s free HMRC-recognised tax tool highlights the true cost of SME compliance software.
- Europe’s new digital omnibus promises lighter rules and more flexible cloud for SMEs.
- The FCA opens a fresh review into AI in retail finance while keeping the rulebook tech neutral.
1. "Australian retailers use AI to turn refunds into revenue"
New analysis from Retailbiz reports that Australian retailers are increasingly turning to artificial intelligence to simplify and automate returns and exchanges while strengthening loyalty programmes. AI tools are assessing eligibility, scanning photos of goods and deciding whether items can be resold, discounted or diverted to secondary markets. Many of these systems are tightly coupled with loyalty platforms so that more refunds become store credit instead of pure cash out the door. Retailbiz
Why it matters for your advisory practice
For inventory-heavy brands, returns are where margin quietly evaporates. AI-driven returns workflows that update stock positions faster and feed demand data back into planning depend on a clean, real-time view of inventory. That is exactly the kind of foundation platforms like Unleashed provide when they sit at the centre of the stack.
Advisory angle: use this as a hook to ask retail and ecommerce clients how returns data flows today. If the journey from refund to updated stock level still runs through spreadsheets and inboxes, position Unleashed plus ecommerce integrations as the backbone for smarter, automated returns.
2. "Xero brings enterprise-grade analytics to small businesses"
In January Xero announced new analytics capabilities powered by its Syft acquisition, putting dashboards, short-term cashflow projections, scenario planning and business health scorecards directly inside the accounting platform. Small firms can now access reporting and insight tools that were previously the preserve of larger enterprises, including the ability to ask natural language questions about their numbers. Xero
Why it matters for your advisory practice
Advisors who standardise on modern app stacks now have richer analytics on the finance side with no extra tooling. The real opportunity is to connect this to operational data from inventory, production and warehousing so product businesses can see the full picture from SKU to profit and loss, not just top line revenue and costs.
Advisory angle: talk to clients about pairing Xero’s analytics with data from Unleashed and other apps in their stack. That might mean standard KPI scorecards for margin by product, channel or customer segment instead of generic revenue charts.
3. "Card surcharge reforms put total cost to serve under the microscope"
As Australia edges closer to new rules that would curb or ban card surcharges on everyday debit transactions, industry bodies representing small businesses are warning that blanket bans could squeeze already thin margins. They argue that if surcharges disappear, many small firms will have little choice but to bake higher payment costs into prices or absorb them directly. Business Daily Media
Why it matters for your advisory practice
For product businesses already juggling freight, input inflation and labour costs, payments fees are another part of the margin puzzle. If clients can no longer use surcharges to signal costs, they will need a much clearer handle on total cost to serve by SKU, customer and channel to avoid quietly eroding profitability.
Advisory angle: use this story to open a total cost to serve discussion. Map card fees, freight, returns and warehousing alongside SKU-level margins inside tools like Unleashed, then revisit pricing and payment options based on hard data rather than guesswork.
4. "Monzo’s free tax tool exposes the true cost of SME compliance software"
Digital bank Monzo has launched a free, HMRC-recognised tax tool for sole traders and small businesses, powered by Sage technology. Users with eligible business accounts will be able to store digital records and submit Making Tax Digital updates to HMRC directly from the banking app. In its launch materials Monzo highlighted that UK small businesses are already spending billions each year on tax and accounting software to keep up with digital filing requirements. Business Info
Why it matters for your advisory practice
Compliance tools are converging with banking and becoming more invisible, but the underlying spend on software and services is still significant. For product-based SMEs this reinforces the shift toward integrated, digital finance infrastructure where tax, accounts and cash sit in connected apps rather than separate silos.
Advisory angle: when clients talk about tax tools, widen the conversation to their wider stack. If they are investing in digital tax and accounting, it is the ideal time to connect those tools to operational systems like Unleashed so tax, stock and margin data stay aligned instead of drifting apart.
5. "Europe’s digital omnibus promises lighter rules and more flexible cloud for SMEs"
The European Commission’s new Digital Omnibus package aims to simplify and align rules covering artificial intelligence, cybersecurity and data. The proposals are framed as a way to cut administrative overhead for businesses and unlock higher quality data for innovation. They include a European Business Wallet for cross-border digital identity and documents, as well as targeted adjustments to cloud switching and data portability rules inspired by the Data Act. Compliance Corylated
Why it matters for your advisory practice
If adopted, the package should make it easier for SMEs to comply with digital and data rules while keeping options open on cloud providers. That is good news for modular app stacks built around best-of-breed tools like Unleashed, rather than a single vendor’s all-in-one platform that is hard to exit.
Advisory angle: use this as a timely rationale for reviewing EU clients’ data and app architecture. You can position interoperable, API-friendly systems as the safest route in an environment where switching costs and data portability are getting more regulatory attention.
6. "The FCA’s AI review puts governance in the spotlight for finance apps"
The UK’s Financial Conduct Authority has launched a review into how advanced artificial intelligence could reshape retail financial markets and consumer outcomes. The review, led by executive director Sheldon Mills, will look at competition, market structure and risks to consumers. The FCA has repeated that it does not plan to introduce AI-specific rules for now, but a recent Treasury Committee report has urged regulators to give clearer guidance on how existing consumer protection rules apply and what senior managers need to understand about AI systems.
Why it matters for your advisory practice
Most product-based SMEs will not read FCA updates, but they will feel the downstream effects in banking, lending, payments and insurance tools. A tech-neutral approach means innovation in AI features can continue, but advisors and app vendors are expected to apply existing conduct and governance standards to those features just as they would to any other part of the stack.
Advisory angle: fold this into risk conversations with UK clients who are using AI-infused finance tools alongside Unleashed. It is a good moment to check vendor governance, data lineage and override controls so you can reassure owners that “AI in the stack” does not mean losing visibility or accountability.
About The Edge
The Edge is a monthly scan of the most useful developments for accountants and consultants working with product-based businesses. Each edition curates a handful of standout stories from around the world and translates them into practical angles you can use in scoping, implementation and ongoing conversations with clients, from inventory and warehousing, to CRM, ecommerce and AI. No fluff, no generic tech hype. Just the shifts that matter for the way your product clients operate day to day.
