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Do You Have Five Minutes to Expand Your Business?

Often our MYOB and QuickBooks bookkeeping clients are so busy involved working in their business that they tell us, their bookkeepers, that they’ve no time to work on their business.

Here’s a simple habit that you can form and stick to everyday. Then watch the results. All you need is five minutes.

Can you find 5 minutes to at least one of these things to expand your business?

• Send a quick note / email to a prospect, colleague, friend or acquaintance.
• Invite a friend or business associate to lunch for next week–even if they cannot go, spend a few minutes “just catching up.”
• Scan the local paper and jot a little note of “Congrats” to someone you recognize.
• Have a look at your diary. Think of another opportunity to develop with a client you saw yesterday, then follow up with your client.
• Call someone whose project you’ll be starting in the next two weeks and tell them you’re looking forward to seeing or working with them again. Ask how they’ve been.

If you’re looking for some more ideas Contact us

A good bookkeeping system is recording Expenses and Income in appropriate accounts

As mobile bookkeepers servicing Ormeau, Yatala, Coomera, Eagleby and Beenleigh, we are often asked how we can be of benefit to the small business owner.

Bookkeeping can be seen as an unnecessay expense by some business owners, whereas for others, it’s seen an essential part of their business.

Very often it comes down to a lack of understanding, or full appreciation of what bookkeepers actually do, and how bookeeping benefits businesses in Ormeau, Yatala, Coomera, Eagleby and Beenleigh.

The basic building block to a good bookkeeping system is recording expenses and income in appropriate accounts.

The tricky part is to make certain that whoever enters the data understands the true nature of each and every expense, and is able to put it in its right place. Contact us NOW for a free appraisal of your bookkeeping system

Data Entry
Businesses need to have up to date and accurate account of their business income and expenses. While concentrating on their core business, financial record keeping can easily become overwhelming for many business owners. Out of date or poorly prepared records can actually hinder their business.

Professionally prepared financial records provide powerful information tools that enable better management of the business.

These records and reports enhance any interactions with accountants and financial institutions, so the business owner has an accurate picture of the financial status to make better business decisions.

In any business, money comes in, and money goes out. Generally money that comes in (Income) is through sales of goods, products, or through providing a service (i.e being paid to do a job such as bookkeeping, for a client).

Need help with your bookkeeping?
Contact us NOW for a free appraisal of your bookkeeping system

Other money that may come in to a business could be through loans from the business owner (private funds), the Bank or financial institution, Grants or capital injection from other sources.

Money that comes out of the business can fall into a number of different categories also. This money may be classed as expenses, including purchasing raw materials / components/ products all involved in making up the goods being sold. Other reasons that money comes out of the business maybe for personal use (Drawings), wages or to pay back loans.

This is where a basic understanding of accounting is very important, and it is the where the skills of bookkeeping are truly recognised.

Not all businesses are the same, and where an item may be seen as an expense in one business (i.e cutlery for a catering business) would more likely be a personal expense in another business (i.e an electrician buying cutlery would most unlikely be using that cutlery to further his business).

When the tax office (ATO) comes to audit a business, claims for items that are not business related can result in heavy fines. A recent example has been with the Australian Taxation Office scrutinising owners of investment properties that have been making purchases for materials used in their family home and claiming them as a deduction for their investment properties.

Clients will often fill their work vehicle with fuel at a service station, and then buy confectionary, bread, milk and other grocery items at the same time, all in a single transaction. When that transaction is recorded, the bookkeeper must ensure that only the fuel component of the transaction is recorded as a business expense, and the other items would be reflected as a personal expense, (i.e Drawings).

Incorrect data entry would not only misrepresent the total spent on fuel at the end of the reporting period (which would affect calculations in costings and future budgeting) but it would also affect the total “Cost of Goods Sold” and “Profit and Loss” figures.

Contact us NOW for a free appraisal of your bookkeeping system

The Yatala Enterprise Area (YEA) is one of the most important industrial land resources, particularly for larger-scale industry, in South East Queensland.

The 3,000 hectare area, zoned for commercial and industrial use, is located at the northern end of the city, straddling the Pacific Highway, central to the Gold Coast-Brisbane growth corridor.

The area is experiencing strong economic growth thanks to the long list of advantages it offers to new and existing investors. This is increasing demand for bookkeepers and in particular mobile bookkeeping services, as small business owners struggle to keep upto date with their paperwork

Whether your business has an accounting software program such as MYOB or Quickbooks, or whether you are still using a manual bookkeeping system, it’s importanat that a growing small business in the Yatala Enterprise Area has their bookkeeping under control.

Modern road, rail, air and sea transport services, world-class infrastructure and services, competitive land prices and an enviable quality of life in a sub-tropical climate, combine to make this young and dynamic growth area an ideal location to start up or relocate your business.

Yatala is located in the fastest growing corridor of Australia, with access to a constant influx of people who are available for employment. There is a sense of countryside meeting the city at Yatala, so everyone is relaxed enough to talk freely with other business owners and also to help each other when needed.

Contact our Ormeau Bookkeepers for a free consultation regarding your bookkeeping requirements

When hiring a good bookkeeper, many small business owners will ask around for a referral. Others will surf the internet looking for a mobile bookkeeping service in the local area. Where do you find a local bookkeeper, and how do you know that you are hiring the best bookkeeper for your business? Contact Us for more information

With increasing data cross checking by the ATO, and the financial obligations of business owners, its vital to keep track of your bookwork. You need to have someone in charge of your bookkeeping who not only has the training, but also the experience to get the work done efficiently and accurately. It can be a challenge to find the right bookkeeper, so here’s a few tips to look for:

Why Hire a Bookkeeper?
Bookkeepers are not the same as accountants, though you may find your accountant will offer to do your bookkeeping. When they do that, you’ll find that your accountant is hiring and / or outsourcing a bookkeeper, and making a nice profit for this additional service.

The accountant is there to provide financial advice and recommendations, to help you with any issues relating to taxation. The accountant will be working from the bookkeeper’s figures. The bookkeeper records income and expenses, reconciles the bank accounts, and administers payroll.

Your bookkeeper can be hired in a full-time, part-time or contract position depending on your needs. Prior to hiring your bookkeeper, you need to ascertain the level of qualification and experience that your bookkeeper has. Contact Us for more information

Bookkeeping – Training and Education
In Australia, there is no formal qualification for bookkeeping. Educational Institutions and Bookkeeping Organizations offer training and certificates, but as at July 2008, there is no legislated formal qualification required for a bookkeeper to operate. They may have a Certificate IV in Finance – which is a stepping stone towards an accountancy qualification, they may have a degree in accounting.

Many experienced bookkeepers have no formal qualifications and can be far more valuable than a freshly qualified bookkeeper straight out of TAFE or university

Bookkeeping – Experience
Nothing beats the School of Hard Knocks qualifications. Hiring a bookkeeper that has a couple of certificates and no experience can lead to disaster. Many bookkeepers start out by working in the accounts department of a large company, and move on to work in a more senior role in smaller companies, before embarking as a freelance, or contract bookkeeper.

Ask your potential bookkeeper for references from any accountants that they have worked for / with. You’ll find that bookkeepers will deal with a number of accountants, as each client tends to have their own accountant. Contact Us for more information

Bookkeepers are a rare Breed
To be able to deal with number crunching all day, and find it interesting, takes a certain kind of personality. Attention to detail is a key factor with good bookkeepers. If they are disorganised or vague at the interview, then they may not be the person you are looking for.

Computer Literacy
With the advent of computerised accounting software packages, it is essential for a bookkeeper to be computer literate. The days of writing in ledgers and double entry bookkeeping are long gone. Having said that, you should ask your bookkeeper if they could perform the task without computer software. If they cannot, then you need to find another bookkeeper.

The old adage “Garbage In – Garbage Out” is certainly applicable to bookkeeping. If your bookkeeper does not have an understanding of basic bookkeeping principals and has to rely on the computer software, it’s a recipe for disaster

How Much Do You Pay A Bookkeeper?
How much you pay your bookkeeper is upto you. How much do you value your business? Do you see Bookkeeping as an expense or an investment in your business? The importance of keeping accurate financial records can not be stressed enough, and is often the reason that many businesses fail.

If you want to make a short-term saving by employing a cheap bookkeeper, then, chances are that your bookkeeper is not the best. Many times a cheap bookkeeper has cost a small business financially through lack of experience or poor record keeping. The fees that the bookkeeper charges will be an indication of their level of confidence and experience. You can expect to pay a bookkeeper anywhere between $20 – $70+ per hour. Contact Us for more information

One advantage of the introduction of the GST was initially to force you to review your finances on a quarterly basis resulting in a greater awareness of your ongoing financial position.

This has led to many small businesses around Ormeau and Yatala utilising a computerised accounting software package such as MYOB or Quickbooks to do the hackwork and present you with the necessary reports and if required even the BAS itself.
However, owning the software does not make you a bookkeeper, and whilst the software companies have done their best to make the packages easy to use, the operator still needs a basic understanding of bookkeeping.

Outsource your bookkeeping to free your time to do what you do best

We’ve helped many small business owners with book-keeping, and we can help you. By outsourcing your bookkeeping needs you can free up your time to do what you do best in working your business, while we do what we do best, working on the bookkeeping side of your business

The work of a bookkeeper is not the same as that of an accountant. Indeed, many accountancy firms employ or subcontract bookkeepers to prepare the figures for their financial reports.

Bookkeepers enter all the data, invoices, receipts, dockets, and match up the money that comes into a business with the money that goes out of the business.

The bookkeeper will reconcile the bank accounts, make sure that all the figures entered into the general ledger match the figures on the bank statement.

Accountants will look after the taxation matters of a business – they are professionally qualified and keep upto date with all the updates and changes in tax laws and rulings from the Australian Taxation Office

The finer points of accounting and taxation are best left to the professionals whose job among other functions is to keep you updated with changes in taxation as well as maximise your deductions. Your book keeper should be able to prepare a reconciled trial balance.

You can do the bookkeeping yourself if you have some knowledge of simple bookkeeping and know your way around a computer, but many small business owners do not have the time or the inclination to do the necessary bookwork each week

At one of the local DVD rental stores (not at the northern end of the Gold Coast), the new owner (we’ll call him Dave) is trying to build up his customer base. One of their customers ( we’ll call him Bob) has been a member of that store for some time, and welcomed the change of ownership.

The store promotes hiring 7 x “weekly” DVDs for $10. Simple enough, you would think. You select seven DVDs that you can hire for a week, for $10. So Bob selects some “weekly” DVDs, only to be told that they are “New Release Weekly” DVDs and Bob has to pay more.

“But how many days are in a week?” Bob asks. “Seven”, was the reply. So why aren’t you charging us the $10 ?

“Well, they aren’t weekly DVDs, they are New Release Weekly DVDs”
“Oh, so weekly DVDs are not the same as New Release Weekly DVDs?”

Bob’s not a three dollar customer, Bob is a $500 customer

Okay, so Bob may have had a misunderstanding based on poor advertising by Dave. It’s only a difference of three dollars (for that one sale). However, the attitude of Dave was one of indignance, that Bob was stupid, and because it was Bob’s mistake Bob would certainly be paying for it.

Dave didn’t consider that Bob can choose which store he can rent DVDs from, and why does he need to be insulted at this store, when Bob can go to another store and be treated with respect. The obvious jesture would have been for Dave not to worry about the three dollars, and retain a happy customer.

What Dave achieved was the three dollar sale, and NO MORE ever, from one customer. Dave’s not a bookkeeper, and maybe he doesn’t rely on bookkeeping when running his business week to week. Because as bookkeepers, we would tell Dave that what he didn’t consider, was the fact that Bob was not a three dollar customer, Bob is a $500 customer (annually) .[If you’re not sure about this concept contact us for more information.

If the DVD store owner did that with 10 customers, he’s lost $5000 annual turnover – But Dave’s made the extra $30, and been able to make his point.

Well done Dave! Will you still be in business in twelve months time? Or will you realise how much a three dollar customer is worth?

If you’re a small business owner / operator in / around Ormeau, Yatala, Coomera, Eagleby or Beenleigh, then contact us for a free initial consultation, and we’ll have a chat about your bookkeeping needs

In the last two days we’ve had calls from small business owners who understand that they cannot do everything that needs to be done to keep their business going.

The cost of hiring a bookkeeper may seem expensive until you consider the cost of trying to do the bookkeeping yourself. Contact us now for a free quote

One client had their brother-in-law set up the chart of accounts and show our client how to do the bookwork. That can work well sometimes, and can be a total disaster for others. Costly mistakes can occur by not setting up your bookkeeping system correctly, through giving an incorrect reflection of your business profit and loss, or incorrect calculations of the GST that is owed

As we fast approach the deadline for the September Quarter BAS returns, business owners begin to panic and search for quick solutions to their bookkeeping.

If you’ve been doing your own books and are not sure about how to complete the BAS, you can Contact us now.

We have clients that email us their MYOB / Quickbooks files and we can sort them out and submit the BAS electronically. If you are not sure whether you’ve done the data entry correctly, Contact us now and we’ll have a look over your data files.

Not only can we save you in accounting fees, we may also save you in your GST liabilities – after all, you can probably put the money to better use than the Australian Taxation Office, can’t you?

He regarded the bookkeeping to be an unnecessary expense

Many small business owners struggle with keeping their bookwork up to date. Yet good record keeping is an essential part of any successful small business.

How can you make an informed decision about your business if you don’t know where you are at financially with your business?

As a small business owner around Yatala, Ormeau, Beenleigh or Coomera, you may have an excellent understanding of your business, and can say that you have all the information in your head.

We recently had a bookkeeping client who knew his business so well, that he boasted one client accounted for more than two – thirds of his business turnover.

After going through the bookwork, we presented him some reports generated from the MYOB accounting software; this small business owner was shocked to learn that the client actually accounted for less than a third in terms of income, and was actually taking up about 80% of his time.

The business owner had no idea of where his business was, he hadn’t looked at sales figures, had a vague idea about his pending orders, and was heading for collapse.

Yet he took no notice of our warnings, because he regarded the bookkeeping to be an unnecessary expense, and only wanted the minimum of bookkeeping services.

Six months later he closed the doors on his business, before the creditors declared him a bankrupt. So he lost his whole business for the sake of a few hundred dollars in bookkeeping fees that he regarded as an expense.

Good record keeping should be the life-blood of your business, so ensure that you have a good bookkeeping system in place. Contact us for details