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What Is Included In Bookkeeping Services?

Tue, 18 Oct 2022 02:49:56 GMT

If you own a small or medium-sized business, you're likely juggling multiple responsibilities at once. If you're struggling to stay on top of your accounts, you may find it more beneficial to outsource this job to a bookkeeper. If bookkeeping is an unfamiliar prospect to you, read on to learn all about the different types of accounting management offered as part of this service.

GST

Goods and Services Tax (otherwise known as GST) is a type of Value Added Tax (VAT) which is remitted to the government following being paid by the customer. It is placed on most goods and services which are sold for domestic consumption, so everything from children’s toys to makeup products. Very little is exempt!

As a business, you will be required to cover the price of GST by adding it to the cost of your items when you sell them. Hence, our bookkeeping services will allow you to add GST to your products easily, as we will calculate the sum to be applied to your wares and log all transactions so that your business doesn't fall behind with any owed taxes of this kind.

Your payroll is the mass expenditure on wages and salaries incurred by your business in a total accounting period, incorporating both your employees’ payments and their taxes.

It's important for payroll bookkeepers to manage sums by dividing the total number into the different kinds of payments your employees receive, such as pension contributions and subscriptions to other schemes or unions, which can ensure your accounts become more organised and money is handed over on time.

Payroll

Cashflow

This is the aspect of bookkeeping that concerns the money that comes in and out of a business, essentially tracking every payment that is made and then logging it in a computer program which allows accountants to decipher trends in the company’s overall financial health. This is essential if a business is to run responsibly, as a bookkeeper can advise when the accounts are not looking stable, or if there have been any major changes to the nature of the typical money transfers.

Cashflow management also involves basics such as liaising with customers and suppliers, processing bill payments and ensuring these are dealt with on time, and recording receipts so that they are not forgotten about by management.

Reporting

One final aspect of our service is the act of drawing up reports. These keep you in the know about your financial health by alerting you to profit and losses. Bookkeeping accountants can also provide you with balance sheets – a summary of the financial condition of your company – so that you are never left in the dark when it comes to evaluating your monetary decisions.

Here at Early Bird Accounts , we can provide you with a helpful, experienced bookkeeper for your own business. Just contact us through our website for more information.

Expert Bookkeeping Tips for Your Small Business

Thu, 08 Sep 2022 23:06:14 GMT

Starting your own business is exciting, but taking care of your finances can be daunting. With 50% of small businesses failing within five years, how do you ensure your new venture stays afloat?

Taking care of your small business's finances is essential if you wish to succeed. In this blog post, we've outlined five top bookkeeping tips for small business owners.

1. Keep your personal and business finances separate

The lines between a small business owner's finances and that of their company can easily become blurred, so it's important to ensure you keep your accounts separate. This will make things a whole lot easier when it comes to inspecting your accounts and submitting your tax returns, as well as helping to protect you financially should anything happen to your business.

Keep an eye on your financial records to ensure all invoices and payments have been correctly handled. We recommend setting aside time once every fortnight to set your financial records straight and address any issues before they develop into larger problems.

There is automated software available to help you manage your finances, however, we still recommend manually checking your records regularly in case of any mistakes.

2. Check your financial health regularly

3. Keep a record of all expenses

Keeping track of expenses can save you time, hassle and confusion in the long run. You'll need a record of your expenses when it comes to submitting your tax returns, as well as receipts for any purchases you are able to claim back.

Digitizing your receipts can make it easier to find what you're looking for in the future, and is far more organised than keeping a drawer full of loose paper!

4. Stay on top of your taxes

Missing tax return deadlines can result in hefty fines, so it's important to stay up to date with your taxes. Give yourself plenty of time to put together your tax return, and keep your financial records clear and well organised throughout the year unless you want to cause yourself a headache when tax season rolls around.

5. Hire a professional bookkeeper

Whilst it may be tempting to handle your small business's finances by yourself, the margin for error is large. Hiring a professional bookkeeper ensures your business stays on track and you understand your financial options. Bookkeeping is also time-consuming, so relying on the services of a professional accountant can free up your time to focus on other areas of the business.

Small Business Accountant Tamworth

At Early Bird Accounts , our experienced and qualified bookkeepers provide a professional service to small businesses across Tamworth. From monitoring your financial records to assisting payroll, Early Bird Accounts cover all aspects of small business finances. To book an appointment with our professional bookkeepers, visit our website .

July Key Dates

Fri, 08 Jul 2022 23:02:59 GMT

Australia’s Minimum Wage Increase: What Can This Mean For Your Small Business?

Thu, 30 Jun 2022 22:57:14 GMT

If you own or operate a small business, you’re most likely interested in what the upcoming national minimum wage increase might mean for you. Read on for some helpful information.

What Changes Can We Expect?

Following a review by the Fair Work Commission, the federal government intends to raise the minimum wage by 5.2% and to implement an increase of 4.6% for award wage earners. These changes will occur in stages.

The current minimum wage for Australian workers is $20.33 per hour, which equates to $772.60 per 38-hour week before tax. Casual employees covered by this wage also receive a casual loading of at least 25%. An increase of 5.2% means the new minimum wage will sit at $21.38 per hour or $812.60 per 38-hour week.

We can expect the first increase on July 1, 2022. If your business pays employees on a weekly basis, the wage increase will apply to you in the first full pay period week on or after July 1.

When Will The Changes Happen?

What Are The Stages?

The wage increase rollout will be staggered by industry. While most businesses will begin paying the new wage from July 1, award rates in aviation, tourism or hospitality will not have to implement the change until October 1, 2022.

Are All My Employees Impacted?

You might find that your employees will be affected differently. Those employees currently on minimum wage or not covered by an award will receive the increase, but employees paid junior rates or working under registered agreements will have different entitlements, so you will need to check these carefully. Any employees already paid above the minimum wage will not be affected.

What Does The Wage Increase Mean For My Business?

The wage rise is compulsory and non-negotiable and is designed to help Australians manage the cost of living and cope with inflation.

It will see changes to employee entitlements, such as annual leave or allowances.

You will need to ensure employees receive the full minimum wage and that this is reflected in your payroll or accounting software.

Small businesses are under more stress than ever, and as a modest increase, you might be feeling the pressure, but it is unlikely to put undue strain on your business.

What About Single Touch Payroll?

For Trusted Accountants, Choose Early Bird Tamworth

It’s so important to keep your business finances under control, and at Early Bird Accounts Tamworth , we pride ourselves on reliable, professional and efficient bookkeeping and accounting services . We handle all areas of the bookkeeping process so that you don’t have to! Contact us today at (02) 5701 5562 to speak to our team or to book an appointment .

With the continuation of Single Touch Payroll (STP), it’s important to be sure you’re paying employees correctly. This is a key point of information for the ATO, who will use the STP to monitor payments, data and records. It’s crucial to ensure you pay your employees correctly, on time, and at or above the minimum wage.

Financial Planning to Ensure Financial Independence for Women

Fri, 10 Jun 2022 20:56:37 GMT

Financial independence is an important goal for many people. It means you have the ability to support yourself financially, without relying on others for assistance. It also means you control your finances because you make your own financial decisions, rather than someone else making them for you.

Regardless of who you are, financial independence makes it easier for you to achieve your dreams. It also gives you the peace of mind of knowing that you have the finances to live the life you want to live.

For women, financial independence can be more elusive, as women typically face financial hurdles such as lower pay, career gaps while they care for their families, and other financial barriers. Additionally, women generally live longer than men, so they must plan financially for longer periods, and they must have enough financial knowledge to make decisions on their own in the event their spouse dies before they do.

Here are ways women can effectively manage their finances and plan for the future.

Find an advisor you trust

Too many well-intentioned advice columns offer advice designed to “fix” women, focusing on what they do wrong with their money. This advice is outdated. You don’t need to be fixed, but you may need some guidance on what the best strategies are for you.

Find an advisor who is willing to guide you by respecting where you are, where you want to go, how you want to spend your money, and what your unique financial needs are. Choose an advisor who works with your personality, your goals, and your concerns, and takes your insights seriously.

Regardless of your gender, there are some important steps that can help you obtain financial independence. These include:

Deciding what you want
Creating a budget
Setting aside a certain amount of savings
Having an emergency fund
Paying down debt.

Follow age-old advice

Think of your retirement

Part of taking charge of your financial future is thinking about your retirement. If you work for a company that offers a retirement plan, take advantage of it. If you don’t, consider opening your own retirement savings accounts. The earlier you do it, the longer you have to save for your retirement, which is important because you could live well into your 90s.

Invest your money

You need money in savings but you also need your money working for you. That means investing. You don’t have to invest in risky stocks if that doesn’t suit your personality or meet your needs. But investing can bring you back a higher return than savings accounts will. A diversified portfolio will limit your exposure to losses and give you more potential for growth.

Have a comprehensive financial plan

A budget will help you with your monthly spending, but a comprehensive financial plan takes into account your entire situation, including your income, expenses, assets, investments, retirement needs, estate planning needs, income taxes, and how they work together to help you achieve your goals.

Financial independence involves you having the money you need to live the lifestyle you want, but it also means being confident in making your own financial decisions. It’s about having control over your money and making sure your money is working towards your goals.

3 Tips for Working Smarter and Gaining Personal Time

Fri, 03 Jun 2022 20:53:01 GMT

You’ve probably heard the maxim that it’s better to work smarter than harder. Working smarter means allocating your time, energy and money so vital tasks get done more efficiently, freeing up your personal time.

Too many business owners think they must keep working harder—taking on more responsibilities and working longer hours—to be successful. It makes sense, because you’re responsible for your business, but that route leads to work overload and burn out. Ultimately, your business will be unsustainable if you keep pushing yourself to work harder.

Here are 3 tips to working smarter.

1. Commit to deep work

How often do you get five minutes into a project just to be distracted by your email notifications or text messages? It’s difficult to cognitively focus on a task while being so distracted. Your mind has to bounce back and forth between different activities, and it takes time to transition every time a new email comes in.

Set aside time each day where your cell phone is on silent, your email notifications are off and you can’t check your social media. Use that time to focus on your most cognitively demanding tasks. Eliminating distractions frees up your brain to focus on the activity at hand, which in turn enables you to get your work done more quickly.

Deep work was developed by Cal Newport , who has written a book on the subject.

There are many fantastic platforms and software-as-a-service tools to help you run your business, but not all of them are right for you. It’s easy to get tempted by the latest app that claims to make your life easier. Before you sign up for another subscription service, make sure it actually benefits you.

Don’t sign up for something because it’s marketed as saving time, make sure it actually will save you time. Otherwise, it just becomes one more tool that you have to log into and use to justify the expense. Productivity apps aren’t productive if you’ve already got your team logged into three other apps. Get rid of platforms that are redundant or don’t meet your needs. Don’t use any platforms because you can—investigate them to make sure they solve a problem for you or make a process more efficient.

That said, when you do find a tool that makes your life easier and more efficient, buy it and use it. You can purchase software to make invoicing easier, simplify project management, and even manage your time.

2. Find the right business management tools

3. Increase your rates

If you haven’t increased your rates in a while it’s a great time to consider doing so. Increasing your rates means you can focus on higher paying clients, earning you more money in less time. You don’t have to raise your rates a huge amount, either. Increase them enough that if you lose a few clients, your business won’t suffer financially. Then focus on finding new clients who will pay you at your higher rate.

Final Thoughts

Being a successful business owner means working hard—but it doesn’t mean you have to keep working harder. Finding ways to work smarter—by increasing your rates, investigating management tools and committing to deep work—will help you in t

4 Benefits to Hiring a Bookkeeper for Your Business

Wed, 25 May 2022 20:50:01 GMT

Bookkeepers can be highly beneficial for businesses of any size. They offer expertise and insight into areas that you may not have experience in. They can also take some tasks off your to-do list, freeing up your time and energy to focus on other matters.

Here are 4 benefits to hiring bookkeepers to help you manage your business.

Expertise

A bookkeeper is an expert at managing, sorting and recording your business’s financial transactions. They’ve spent time developing their skills and experience. During that time, they’ve also seen and resolved bookkeeping-related issues that you may come up against. Their expertise makes them more efficient at managing those issues.

Beyond that, they understand business trends and challenges others in your industry face, and can help you move through those as well. They also know what questions to ask to help you make important decisions and can share best practices with you.

Your bookkeeper not only helps you maintain accurate records, they understand your financial circumstances. They help you assess how to make important business decisions, such as whether now is a good time to grow or when you should hold back. They can also identify trends in your industry and help you take advantage of those opportunities.

Finally, they can assist you with budgeting, and sticking to your budget. They’ll help you come up with a realistic financial plan that enables your business to grow while achieving short- and long-term goals.

Guidance

Time savings

As a business owner, you likely have many activities to focus on. In bookkeeping alone there are numerous tasks to be responsible for, such as:

Collecting and recording transaction data
Sorting receipts
Classifying expenses
Invoicing customers
Paying vendors
Managing payroll.

Bookkeepers take on those tasks so you don’t have to. It’s not just about the energy you put into them, it’s about the fact that unless you’re an expert at bookkeeping, it’ll likely take you longer to complete these activities than it would take a bookkeeper.

Think of the time you spend during an average week managing your books, then think of the time you spend during a high-pressure week, such as during tax season. That can add up to a lot of extra hours.

By hiring a bookkeeper, you save yourself that valuable time for other activities such as marketing, perfecting your products or even spending time with family.

Money savings

There’s a time cost to doing your own books, but there’s also a potential money cost in the form of missed opportunities. The time you spend doing your own books is time you could potentially be out creating or taking advantage of new opportunities for your business. Your bookkeeper frees you up so you have the time and energy to identify potential opportunities. They can also advise you on whether you’re in a fiscal position to jump on those possibilities.

Additionally, the expertise bookkeepers bring to their activities means they’re likely to save you from costly mistakes that could affect your finances.

Final Thoughts

Hiring a bookkeeper is a sound business decision as it gives you access to expertise and guidance you might not otherwise have, and it frees up your time and money to take advantage of other business opportunities.

The Difference Between Bookkeeping And Accounting

Wed, 30 Mar 2022 20:45:24 GMT

Despite the fact that they are both financial services, there are considerable differences between accounting and bookkeeping . However, they are both critical roles in any organisation, so it's important to understand how they work together. Read on to learn more about the responsibilities of bookkeepers and accountants as well as the differences between them.

What Is Bookkeeping?

Bookkeeping is the process of keeping track of your transactions in order to maintain accurate records of your incomings and outlays. Regular financial reporting is required so that you have a better understanding of the financial situation at your company, which will help you to make better business choices and complete the essential tax filings and reports.

In addition to inputting data into a company's financial software, bookkeepers are also in charge of balancing control accounts as well as doing double-entry bookkeeping. This information gives you accurate and up-to-date fiscal data about your company.

Processing invoices, receipts and bills
Processing and maintaining payroll systems
Recording business transactions
Managing your accounts payable and accounts receivable
Preparing and lodging your Business Activity Statements (BAS)
Providing daily/weekly/monthly financial information regarding the standing of the business.
Advising on appropriate software systems, and setting those systems up for your business
Assisting you in ensuring you have the best systems and processes for daily business management – making sure those systems work in the real world.
Letting you know when you may need another professional to help you deal with specific situations (think legal or HR advice)

Typical Tasks Performed By Professional Bookkeepers:

What Is Accounting?

Accounting is the process of collecting financial information and then presenting it in an understandable and helpful format. This enables you to evaluate the information that you have in order to make critical decisions about the business.

Your accountant will be able to tell you the amount of taxable profit (or loss) your business is generating, what your cash flow situation is and what the current worth of your company's assets are. As part of their work, they should be able to dig deeper into the numbers to provide you with a greater knowledge of trends and variations.

Typical accounting tasks include:

Tax advice and planning
Budgeting
Preparing annual financial statements and reports
Analysing business performance
Auditing
Cash flow forecasting

The Differences Between Bookkeeping And Accounting

Accounting and bookkeeping are closely related in several ways, and you may discover that your bookkeeper or accountant is capable of all or parts of both tasks. However, there are some key differences between them, including:

Overall Role

Qualifications

Bookkeeping (especially as performed by a Professional Bookkeeper ) is an aspect of Accounting – just like a surgeon and a GP are both doctors ….

Bookkeeping is the process of keeping track of all financial transactions, and some regular reporting on behalf of the business: think monthly management reports, BAS lodgement, Single Touch Payroll and Superannuation lodgements.

A BAS Agent can liaise with the ATO regarding your BAS liabilities, and payroll lodgements.

A Professional Bookkeeper can provide regular reports (Profit & Loss, Balance Sheet, Cashflow Statement), and can help you interpret them.

To a certain extent, a BAS Agent can liaise with banks/financial institutions for you.

And they are often the middleperson between you and the tax agent/ATO/ Banks etc – translating the jargon to terms you’ll understand.

Professional Bookkeepers are keenly interested in the daily functioning of your business – its results, productivity, efficiency – and will work actively with you to improve all the above.

Accounting is the process of analysing the financial situation of a company and communicating that information to the appropriate stakeholders.

Accountants (aka Tax Agents) will be the main interface between you and the ATO regarding your tax affairs. They will be calculating the taxable income of the business, and its tax liabilities. They’ll be advising you on the best trading structure for your business. They’ll also be advising on your exit strategies, retirement – i.e., the ‘big picture’ stuff.

Accountants require at least a bachelor’s degree and must meet the strict requirements of the accounting code of practice. Tax Agents must be registered with the Tax Professionals Board (the TPB) and will have stringent ongoing professional education requirements.

Professional Bookkeepers, require a minimum certificate IV in accounting / Bookkeeping, and MUST also be registered BAS Agents (also with the TPB). In addition, a Professional Bookkeeper should be a member of a professional body (Rachel is a Member in Practice with the Institute of Certified Bookkeepers) and will have similar ongoing professional education requirements to those of tax agents.

Decision Making

When it comes to decision-making, professional bookkeepers can play a significant role by recording and reconciling the financial data and ensuring that ATO lodgements are up to date, and that payments are also either up to date, or on a payment plan. They will be ‘johnny on the spot’ for daily financial decisions.

The Tax Agent (accountant) will take the information provided by the Bookkeeper and use this to provide the above-mentioned big picture information.

Make sure to get in touch with our expert and friendly team at Early Bird Accounts for all your business's bookkeeping needs.

Rachel has over a decade of industry experience, an advanced diploma, a passion for taking the stress out of running a business and enabling businesses owners to go on doing what they do best.

About the Author

6 Important Questions Your Bookkeeper Will Ask About Your Small Business

Fri, 17 Dec 2021 15:34:54 GMT

Using a professional bookkeeper makes life much easier for small- and medium-sized businesses.

Not only can you be assured that the information needed to complete your tax return will be accurate and complete, but bookkeepers also ensure you have the correct systems and processes in place to record all the financial information you need for managing and growing your business effectively.

Before commencing work on your books, your bookkeeper will want to know the answer to six important questions about your business.

Read on to discover what these questions are and why they matter when it comes to your financial management and record-keeping.

What Kind of Business Are You Running?

There are a variety of different bookkeeping methods and options, some of which are going to be more suitable for particular businesses.

In addition, more complicated businesses will likely require more bookkeeping time, which will affect cost. Knowing the scope and nature of your business helps your bookkeeper decide on the best way to keep your books in good shape.

Assets and liabilities don't just help to determine the financial health of your business, they also have tax implications. For example, some assets depreciate over time, and some liabilities may be tax-deductible.

In addition, if your liabilities are draining your business of capital, a bookkeeper can often come up with ways to reduce them or manage them more effectively.

What Assets Do You Own and What Liabilities Do You Have?

Do You Have an Inventory and Is it Listed On Your Balance Sheet?

An inventory contains details of all the materials, items, and components your business has in its possession. An inventory should be updated in real-time so that you always know what, exactly, you're currently in possession of.

The inventory also plays a key role in prompting the ordering of fresh materials, chasing invoices, and similar tasks.

For accounting purposes, an inventory is classed as an asset. Listing it on your balance sheet provides a more accurate and comprehensive view of your true financial position. For example, a business may only have a small amount of working capital, but a large inventory.

Do You Have Payroll?

If you have employees, the law requires that certain payments and deductions are made. Payroll is a key part of bookkeeping activity if you have one.

Are Your Tax Returns Correct and Up-To-Date?

Do You Have Plans to Expand or Scale Back Your Business in the Next 24 Months?

If your tax returns are error-ridden and/or behind, the ATO may penalise you. Although some leniency is granted due to global events in 2020, this isn't inexhaustible.

In addition, without accurate tax returns, you've no way of working out the true financial position of your company.

If your income is likely to change significantly in the next couple of years, this has implications for the amount of tax you'll need to know.

The more notice your bookkeeper has of your intended plans, the more likely they are to be able to streamline your tax obligations.

Contact Us

To find out more about how professional bookkeeping services could benefit your company, call the team at Early Bird Accounts (02) 5701 5562 .

Rachel has over a decade of industry experience, an advanced diploma, a passion for taking the stress out of running a business and enabling businesses owners to go on doing what they do best.

About the Author

What does a professional bookkeeper DO? And why would I NEED one?

Thu, 01 Apr 2021 15:30:35 GMT

With the advent of computerised ‘accounting packages’ – think MYOB, Quickbooks, Reckon, Xero – it’s easier than ever for the small business to think they don’t need a bookkeeper. After all the computer does it all for them right? The problem with this thinking, is that – as with any computer system – the information you get out of the system, is only as good as the information that goes in. So, just because you can now enter the data to the system yourself, it doesn’t mean that you should. The requirements on a bookkeeper are many, and varied.

Changes in GST laws, and the requirement to lodge Business Activity Statements – BAS’s – have resulted in changes to how bookkeepers work, and what they are required to do. For example, did you know that you are required to check every suppliers Australian Business Number, and their GST Registration Status every year?

Professional bookkeepers have extensive training, have to meet minimum hours of practicing, and regular Continuing Professional Education requirements in order to both achieve their BAS agent registration, and to maintain it. A professional bookkeeper is required to hold both Public Liability, and Professional Indemnity insurance.

A Professional Bookkeeper can provide a whole host of information and advice regarding your business, from the third-party view of someone who is not emotionally involved in the business itself. They can take a management view – and oversee the actual bookkeeping work being performed in-house, or they can perform part – or all – of the bookkeeping on your behalf. Or, they can be a specialist who is called in for certain tasks and processes.

But wait, I hear you say… I already have an accountant, why a bookkeeper too? In my experience, accountants are generally not all that interested in helping with the day-to-day running of a business’s books. And this day-to-day management, is precisely what a bookkeeper is interested in, and wants to help with. Your certified bookkeeper and accountant should work hand-in-hand to assist you manage the business.

An example may go: You as the business owner plans the future of your business, along with your business coach. Your accountant helps you with the budgeting, and planning for purchases of equipment, and property, and also of course your tax planning. Then you take your budget, and plans to your bookkeeper, who helps you manage the cash needed for the budget, and equipment purchases. The bookkeeper can then also prepare and lodge your BAS, and then at the end of the year, hand over to the accountant who will prepare your tax returns, and assist with planning for the next 12 months and longer.

During all of this, plans are being revised with your business coach as you adjust to changing business environments, or (un)expected changes in your business. The bookkeeper assists with the provision of accurate and timely information to help you plan, and see what is happening in your business. In many instances, with the correct software, this information can be accurate to the day or at least week. (With the advent of new cloud-based technology, we are moving towards what is being called ‘live’ accounting….)

In addition to this day-to-day assistance, a professional bookkeeper can be used as an external specialist. They can:

Review your systems to ensure that they are sufficient, efficient, and current
Review your entire bookkeeping system to ensure that you are using the most appropriate software, which will make sure that your books are run as close to ‘live’ as possible, as accurately as possible, and in some cases, with as much automation as possible
Act as a third-party, external ‘check’ to your internal systems. For example: Do you deal in a large amount of cash? If you do, your staff could receive cash from customers, and enter that receipt to the bookkeeping system, then the bookkeeper could bank the cash, and reconcile the bank records…. This would very quickly determine if all cash being received by the business is making it to the bank, and being recorded correctly.
As a regular reviewer of the operations of your business – in preparing month-end or BAS work the bookkeeper has a good overall, current view of what is happening in your business.
As a source of information in your planning processes – if I do x, what happens to the cashflow?
As a valuable member of the business who will ensure that all FairWork (payroll) and GST requirements are met, and who is firmly ‘on your side’.

Above all, a professional bookkeeper wants to see your business succeed almost as much as you do, and they will bring a wealth of information and experience which can be used to benefit your business

Rachel has over a decade of industry experience, an advanced diploma, a passion for taking the stress out of running a business and enabling businesses owners to go on doing what they do best.

About the Author

Whats In A Bookkeeping System?

Thu, 01 Apr 2021 15:27:21 GMT

A bookkeeping system needs to do many things. The three key items are

It needs to run ‘the books’ for your business
It needs to provide information that you need to run your business
it needs to work inside your business – that is it needs to be functional within the day-to-day practices of your business.

When a business is in the ‘start-up’ phase, a pen and paper, or an Excel spreadsheet, combined with a manual invoice book, or a word template may be enough to run the books. As your business gets bigger, you spend more time working, and have less time or desire to spend on bookwork. At this point, you’re probably going to consider a computerised bookkeeping system. There are many of these out there, all with different features, and different pricing. Not so long ago, you could only buy a ‘desktop’ software licence – that is a program which worked on one computer, or in one location. Then about 5 years ago, a program called Xero launched onto the scene, with a 100% cloud-based bookkeeping/accounting system . For Australia at that time, it was a radical and major change. So now you can buy software that is a hybrid (you install the software on any computer, but store your file securely ‘in the cloud’), or software that is just in the cloud. Obviously there are many different options, different providers (Xero, MYOB, Quickbooks just to name the big ones), and different pricing levels.

So when you consider a computerised bookkeeping system, you’ll need to consider what it is that you need the system to do. Does it need to:

Invoice customers
Record supplier bills
Manage cash
Manage inventory / stock on hand
Manage loans, credit cards
Account for GST and income taxes,
Process Wages, and other payroll expenses
Does it need to be scalable? This is, do you intend to grow your business outside of your current needs, and will the chosen software cope with that, or will you need to change programs? Changing programs is time-consuming, expensive and stressful ….

Once you know what you need the system to do, you are in a much better position to examine all the different options, and to choose the right one for you. Other items that you’ll want to consider include

Does your accountant have software that they recommend? If you like software that they don’t, will this cause a problem? Can you talk to other people using the software? Preferably people in your industry…. Most software suppliers are happy to tell you what’s great about their program, but not so forthcoming with the shortfalls it has (and they all have some!)
Is there an industry-based software that would work for you?
What support does the provider offer, or do you know a professional bookkeeper/accountant that can offer training and support?

A bit of time spent on considering these aspects of your bookkeeping needs may save you hours of time, and untold stress later on …

If you’d like any more information we’d be happy to discuss your individual needs….

Rachel has over a decade of industry experience, an advanced diploma, a passion for taking the stress out of running a business and enabling businesses owners to go on doing what they do best.

About the Author

The Bookkeeper’s top 10 tips for New Businesses

Thu, 01 Apr 2021 15:23:07 GMT

Starting a new business can be both an exciting and challenging time, even for the experienced businessperson. There are so many things to get in order, such as marketing, premises, staffing, equipment, etc. Getting all aspects of your business off on the right footing is ultra-important, and your record-keeping is no exception. This is where a good bookkeeper comes in. Invest some time in sourcing a good bookkeeper, and tick off our top 10 tips to get your business off to a good start!

Starting a business can be both an exciting and challenging process, even for the experienced businesspeople. Premises, staff, equipment, etc. To have a good kick start it’s important to get a bookkeeper to give you a helping hand.

Gone are the days when you picked a brand of software and made your business systems fit its parameters. There have been significant advancements in accounting software and many of the new features are yielding significant efficiencies and labour-saving advantages to small businesses. Speak to a bookkeeper and assess the functional and informational needs of your business and pick the software that best fits your business needs.

1. Get the right software

2. Understand your software

3. Configure your software properly

4. Build reporting disciplines

5. Build a strong accounting team

6. Confine each person’s role

7. Focus on cash flow

8. Build good systems

9. Understand Tax Office reporting obligations

10. Manage employee obligations

Having selected the right software, you (and any appropriate staff) should understand how to operate the software and how to extract information from it to better run your business.

Your software should be configured so that it delivers you the information you need to make the right business decisions. It also needs to be properly configured to report to statutory authorities such as the Tax Office. This all starts with ensuring that your general ledger is appropriately customised to your business.

Great software is important but more important is the information that flows from it. Historic information about your business enables you to make the best decisions possible about the direction of your business. Decide on the type, timing and frequency of reporting, and on the roles undertaken by various individuals in producing reports. Many businesses underperform or even fail simply because they did not use, or did not know how to use, the information that was right at their fingertips.

Ensure that your bookkeeper, accountant and any internal administrative staff have a close working relationship. This will ensure that each person has a clear understanding of their role, which will avoid duplication and issues falling between the cracks. Building a strong accounting team will improve the effectiveness of the reporting function and the quality of the information at your disposal.

The best leveraging of yours and your employees’ time is to confine each person’s role to the highest and best use of their time. In particular, as a business owner, you should not do tasks that limit your ability to operate at a higher level, as it will be to the detriment of your business’s profitability. Look at the bookkeeping function in this light and decide what tasks your bookkeeper should do to provide you and your employees with the greatest leverage of their time.

One of the most common reasons that a small business fails (especially in its early days) is cash flow. Failing to plan and manage cash flow will deprive your business of the lifeblood it needs to survive and thrive. Managing the billing cycle and collections will ensure you keep cash flow up. Prompt billing and receivables management are simple functions, but let them slide and you will run out of money. Forward cash flow planning is important in the early days in particular so that you can preserve cash flow and meet obligations as and when they fall due.

Many businesses fail or get themselves into trouble early because they fail to understand their record-keeping obligations for income tax and GST purposes. The ability to understand what you owe the Tax Office and when is crucial. If you understand what your obligations are, you should be able to avoid any nasty surprises and comfortably handle any level of enquiry from the Tax Office.

Systems and processes drive efficiency in business, so look carefully at your record-keeping function and build robust systems around record-keeping procedures, source record filing, and reporting. Document the system and assign responsibilities to the appropriate persons, including employees, bookkeeper and accountant.

Australia is one of the more difficult places in the world to be a small business employer. There are a myriad of government and other authorities to deal with including the Fair Work Commission, Tax Office, Offices of State Revenue and Workers Compensation each with their own set of rules and administration practices. Consider whether you want to face this workload alone or whether you should seek outsourced assistance from a bookkeeper.

Rachel has over a decade of industry experience, an advanced diploma, a passion for taking the stress out of running a business and enabling businesses owners to go on doing what they do best.

About the Author

SINGLE TOUCH PAYROLL

Sat, 01 Jun 2019 15:19:47 GMT

‘ Compliance is dead!’ scream the doomsayers in both the accounting and bookkeeping industries …. But what do they really mean? Is compliance dead? And what is it anyway?
If by compliance, you mean the days of a bookkeeper or accountant just doing the data entry to get to a set of useful figures, then yes those days are numbered… but anyone working in the industry will acknowledge that if by compliance you mean the lodging of required information with the Federal and State governments (think GST, PAYG-W, Payroll & Land Taxes just to name a few), then clearly this is not dead.

Even more than compliance not being dead, the Federal Government is actually ramping up your lodgement requirements. The advent of ‘live data’ from programs such as Xero means that we now have access to more and better information than we’ve ever had. And the government now wants to monitor our business activities ever more closely, and faster too.

The newest rollout of compliance affecting EVERY employer in the country is this thing called Single Touch Payroll (or STP for short). Maybe you’ve heard of it? Employers with more than 20 staff are already required to be enrolled and submitting data… For all the others, you’ll be required to enrol for STP from 1 July 2019.

But what is it? STP is the requirement to lodge yearly figures with the Australian Taxation Office (ATO) EVERY time you pay your employees – in some instances, even if you’re the only employee of your business … So, every time you pay your employees, you’ll also be telling the ATO following things about your business:

Who your employees are;
What their gross earnings to date are;
What tax you have withheld from their gross payments; and
How much their superannuation to date is.

Why has it been introduced? So that the government can keep an eye on your obligations as an employer – it’s a chance for them to make sure that EVERY employer is paying super and PAYG-W as they need to. Hopefully, it will even out the playing field so that those businesses who get ahead by doing the wrong thing won’t be able to do that anymore.

In practical terms, it’s probably only going to take a couple of minutes per pay run to lodge this information with the ATO – once you have the right program to do it.

If you don’t already use an online accounting program, you’ll need to have access to one of the appropriate STP solutions – and there are some low-cost solutions out there for 4 or fewer employees.

Wondering how this will affect your business ? Contact us today for a personalised review of your payroll lodgement and STP lodgement requirements…