Bookkeepers and Business Owners! – Training you – Solving Problems – Or We do your books for you!

Bookkeeping – Train, Troubleshoot or we do the books for you! MYOB Reckon Xero & Set Up


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Cashflow Tips – Ways to raise cash for business – Some business cashflow tips

Cashflow Tips - Ways to raise cash for business – Some business cashflow tips

Cashflow Tips – Ways to raise cash for business – Some business cashflow tips

Handy ways to raise cash for business – some cashflow tips from an Australian Entrepreneur, Brad Sugars

1.  Know your expenses when discounting
Although discounting — through coupon sites like Groupon and BuyWithMe or even on your own — can help you attract new customers, selling anything at a loss won’t help you generate a positive cash flow.
My view? Never discount. But if you do, know the costs and impact of what you’re offering and be prepared for the fallout. Among other things, you’ll need to know your overall cost basis — that is, what you paid for something. You should also know your how much you should ideally charge, the cost of your offer and the profit margins on your product or service. How else will you know if your discount has you breaking even or operating at a loss?

2.  Bundle products and services
Even though discounting isn’t always recommended, adding value is. By creating bundles of products or services, for instance, businesses can inject tremendous amounts of perceived — and tangible — value into their offerings for very little cost.
A good example is the maintenance agreements some car manufacturers are now providing with the purchase of a new car. Not only does that type of offer help allay a major concern or frustration customers have – paying for a breakdown or time lost at the dealership – it also offers real value in terms of limiting out-of-pocket maintenance costs.
Put more simply, you can increase your price point initially since you’ve helped lower a perceived risk by offering something as basic as a guarantee.

3.  Create a back-end product or service
If you know your initial offer to reel in new customers won’t be profitable (loss leader), find ways to create higher price points on back-end products or services. Perhaps the first hour of catering is free, but subsequent hours shoot up in price. Or maybe an attorney will agree to draft your will for less if she thinks you’re a likely candidate for estate-planning consultations in the future.

4.  Encourage repeat business
If you’re in a volume-driven business like retail, landing repeat shoppers is your holy grail for cash flow, profit and growth. In most cases, you won’t start to profit on a customer until the third, fourth or even fifth transaction. For this reason, you need to devote your efforts toward getting customers coming back — and more often.
Consider loyalty programs, VIP offers and other frequent-shopper programs, which can be ideal vehicles for systematizing repeat business. Also keep in mind that the word “free” is a popular incentive among shoppers, and the costs of funding a freebie may easily be covered as long as you’re dealing with excess inventory or low-cost, but valuable add-ons.

5.  Pre-sell products or services
For owners who want to encourage sales sooner, pre-sell your products or services. You might couch the pre-sale as a way for consumers to plan for their future or get a jump on shopping. You can also offer to take old, out-dated products back at a pre-arranged price.

Taken from Entrepreneur article HERE

Need help? Not sure? Call for FREE 30min advice / strategy session today!

Email info@accountkeepingplus.com.au or call 0407 361 596 Australia

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Cashflow Tips – Cash Flow and Budgeting – What are they and how are they different?

Cashflow Tips - Cash Flow and Budgeting – What are they and how are they different?

Cash Flow and Budgeting – What are they and how are they different?

They may sound too hard or scary, but cash flow and a budgeting can show related information – so what are they and how are they different? There is a difference and each have different uses, but mainly they help the business owner in the financial management of the business or organisation.

Cash flow forecastis an estimate of the amount of money (actual cash) you expect to flow in and out of your business and includes all your future income and expenses. A forecast usually covers the next 12 months, or it can also cover a short-term period such as a week or month.

  • It predicts when the actual income and expenditure occurs in the actual bank account(s).
  • Does not consider accruals and adjustments such as depreciation, only ACTUAL cash in and out.
  • Large capital purchases such as assets (usually not recorded in a profit and loss and budget) are included in a cash flow forecast, as to HOW they will be paid – eg show loan money in and payments out – fully paid or the instalments on loans/finance.
  • The full year cash flow forecast is usually shown on a month by month basis. But in it can be broken down into fortnightly or even weekly depending on the requirements.
  • More info and a handy FREE template http://www.business.vic.gov.au/money-profit-and-accounting/getting-paid-on-time/cash-flow-statement-projection-with-template.

Budgetdetails overall what you plan to do with your finances based on expected sales and expected costs, and is similar to Profit and Loss (and a Balance Sheet). It is used to measure how you go against the budget – are you on track for what you want to achieve?

This is usually over 12 months, and focuses on profit. In addition:

  • Accruals and other non-cash adjustments such as depreciation are included;
  • Large capital purchases will be included;
  • A budget also provides a benchmark to then monitor performance – after each month accounts are finished we compare what actually occurred against what was budgeted or planned to occur;
  • Usually the full year budget is prepared in months like the Profit & Loss;
  • A budget is NOT used to monitor the amount of cash in the bank accounts. That is where the cash flow forecast comes in;
  • Some further information is here – http://www.infoentrepreneurs.org/en/guides/budgeting-and-business-planning/.

Both Cash Flow and Budget detail the planned financial goals the organisation is trying to achieve and are linked to the strategic and business plans of the organisation. The main difference is based on:

1.     The type of the transaction and;

2.     The timing when receipts and payments will occur.

As a simple example: A budget will record the income when you have sent out the invoice whereas your cash flow will record it when you actually receive the amount in your bank account. Always remember not to assume that debtors will pay the following month. Often it may be later which is why it is important to know your Average Debtor Days which may show that payment occurs typically 64 days after sending out the invoice. This would be reflected in the cash flow, but not the budget.

Need help? Not sure? Call for FREE 30min advice / strategy session today!

Call and you also get FREE “Avoid these GST mistakes” – There’s 18 that the Tax Office see regularly – Get them right!

Email info@accountkeepingplus.com.au or call 0407 361 596 Australia


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Cashflow Tips – 5 tips to get more from your accounts/bookkeeper – or how to be a better bookkeeper

Cashflow Tips - 5 tips to get more from your accounts/bookkeeper – or how to be a better bookkeeper

Cashflow Tips – 5 tips to get more from your accounts/bookkeeper – or how to be a better bookkeeper

Do I have the most suitable software for the business needs? Should I upgrade to the next level or another brand? We can help you for FREE – call for a chat!

  1. Expenses we can reduce? What areas of expenses have increased, and are there better deals to reduce costs?
  2. What areas/products of sales are growing? Can we see a trend in products or categories that are underperforming? What about the best performers – should we focus on building them more?
  3. Checklist of the bookkeeping tasks so we don’t forget? Do you have a checklist – there can be at least 10 and more tasks each week/month – invoicing, paying suppliers, payroll, super, Workcover, collating customer payments, reconcile bank statements, reconcile credit cards, petty cash – if you want a template to track the main bookkeeping tasks, call or email info@accountkeepingplus.com.au 
  4. Better Reports for more insight? What other reports does the software offer? I find that exploring other reports and seeing what customization is possible can reveal new reports and insights that help make better decisions!

DOWNLOAD a FREE “Bookkeeping Quarter Checklist” to get organised! CLICK HERE

Need help? Not sure? Call for FREE 30min advice / strategy session today!

Email info@accountkeepingplus.com.au or call 0407 361 596 Australia


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Cashflow Tips – A cool tool to see what affect changes make on Cashflow

Many run by gut or the bank balance early in running a business – but understanding your cash flow is critical to your business success, and a handy tool that bank NAB have created is an online cash flow improvement tool. Whether using MYOB, Reckon/Quickbooks or Xero for bookkeeping, Try it and see what you think! (Click icon to go to the page)

Cash Flow Imp CalcLet us know how you went…

For other NAB cool tools see Calculators and tools

Also see Cashflow Tips – 5 Ways to Keep Cash Flowing

Or Cashflow Tips – To Discount or ADD VALUE?

DOWNLOAD a Free “Bookkeeping Quarter Checklist” to get organised! CLICK HERE

Need help? Not sure? Call for FREE 30min advice / strategy session today!

Email info@accountkeepingplus.com.au or call 0407 361 596 Australia


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Cashflow Tips – Improving cashflow in small business – Tip – Invoice Promptly!

Cashflow Tips - Improving cashflow in small business – Tip – Invoice Promptly!

Cashflow Tips – Improving cashflow in small business – Tip – Invoice Promptly!

Small business owners are often uncomfortable about asking to be paid, yet the top way to improving your cashflow is by invoicing PROMPTLY!. When you run a business, (especially for service businesses) if you don’t invoice promptly as well as collect payment promptly (which causes a cash crisis in the first place), then consider the following consequences –

Consequences for your cashflow:

  1. Clients can quickly forget what they owe you;
  2. They are less likely to remember how much they loved your work and pay you promptly;
  3. They may conclude that you do not expect quick payment and will take their time in sending in their money.

Some ACTION steps:

  1. Where possible, issue invoices at the time services are delivered;
  2. Send your invoice by email to speed the process;
  3. If you can’t issue immediately, be sure to issue your invoices weekly, or at least twice per month on designated days, such as on the 15th and the last day of each month;
  4. Do it like clockwork – it will help to even out your cashflow.

Take-away message and case studyCreate the habit – invoice quickly and often!

Part of our service is assistance with cashflow budgets, debtor collection and reviewing supplier costs and terms. One of our clients said the business finance is now in the BEST shape it has ever been – for our 4-5 hrs work weekly involves managing the invoices, payment follow up unique method and now supplier payments! The owner now can catch up on quoting jobs and finalizing the sale to grow the business.

Could this assist you in your business and let you focus on your best skills and on running the business?

If you would like to speak with these clients, email me and I’ll supply contact details!

Get a FREE 30 min answer to your query, and FREE ongoing email or phone support – No-one offers as much! Call and you also get FREE “Avoid these GST mistakes” – There’s 18 that the Tax Office see regularly – Get them right!

Email info@accountkeepingplus.com.au or call 0407 361 596 Australia


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MYOB – Year End Business Tax Planning – Support to prepare the books/accounts well! MYOB Account Right

Support to prepare the books/accounts well! MYOB Account Right

Support to prepare the books/accounts well! MYOB Account Right

MYOB have a huge amount of resources to assist you in better books for your accountant, but more importantly for you to have an accurate set of books to UNDERSTAND and gain INSIGHT to MANAGE your business BETTER! Your books and accounts are a treasure-trove of information that tell you about the health of your business and what areas you can work on to improve your business financial results!

EOFY – End of Financial Year key dates

A great tool is this calendar where you can select the date to see key compliance tasks and actions that need to be taken – click this image – 

MYOB Key dates 2017

MYOB Account Right

There are End-of-year procedures that need to be carried out to prepare your company file for the coming year. By reconciling and completing the year in your company file, you are effectively bringing the company file up to date.

These include any adjustments you need to make to your company file so that it agrees with your accountant’s final records before you start a new year.

Your payroll, invoices, purchases statement reconciliations as well as finally your inventory should be counted, valued and, where necessary, adjusted in your company file.

The MYOB End of Period page is where you begin. The resources include end of Month, Financial and Payroll Year things that you should do. Overall it’s about checking the accounting records to ensure they are complete, accurate and reconciled to key support documents such as bank and credit card statements.

Other helpful Links

MYOB Essentials

For users of MYOB Essentials, see the end of year video on what to do. You can also find  FAQs and The Help Centre there.

http://help.myob.com.au/teachme/webcasts/essentials/index2.htm

Software Upgrades

You will be able to download the current update directly from Updates within the MYOB Account Right software in many versions, or from this page.

Want help with upgrading? – do you need to talk about what is available without obligation or any pressure? Then call Paul! 0407 361 596

Get a FREE 30 min answer to your query, and FREE ongoing email or phone support – No-one offers as much! Call and you also get FREE Avoid these GST mistakes” – There’s 18 that the Tax Office see regularly – Get them right! Email info@accountkeepingplus.com.au or call 0407 361 596 Australia


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Business Finance 101 – RESC – Reportable Employer Superannuation Contributions – a Summary

Business Finance 101 – RESC – Reportable Employer Superannuation Contributions – a Summary

Business Finance 101 – RESC – Reportable Employer Superannuation Contributions – a Summary

To ensure fairness in the application of income tests and to ensure that the government assistance is consistent and fair based on gross incomes, the Federal Government requires employers to record the reportable employer superannuation contributions figures on payment summaries from the financial year 2009-10 onwards.

Reportable Employer Superannuation Contributions (RESC) are the portion of the employer contribution that the employee has influenced, for example superannuation contributions made by the employer under the terms of a salary sacrifice agreement, made in a financial year (1 July to 30 June) to a superannuation fund for an employee.

Reportable employer superannuation contributions do not include – super guarantee contributions (SG), contributions mandated by industrial agreements that the employee does not influence, or post tax member contributions.

Which types of super payments are RESC?

Legislative Employer Contributions (Super Guarantee (SG))                                 No

Refers to the federal legislation based employer contribution of 9.50% in 2015-2017 tax years currently. Known as Concessional Contributions – the employer gets a tax concession (deduction) at year end.

Group Contract Employer Contributions such as a Collective Agreement          No

Refers to agreement such as those found in awards and enterprise bargaining documents that result in all affected employees being entitled to a greater employer contribution.

Employee Personal Deductions – treated as an AFTER tax deduction                 No

The Gross Payment amount on the employee’s payment summary is not reduced by this deduction. It is also known as Non-Concessional contribution.

Additional Employer Contributions BEFORE tax                                                         Yes

These are contributions which exceed what the employer needs to contribute.  The effect is for the gross payment to the employee is lower than what it would otherwise had been. Also known as Concessional Contribution.

Employee Personal Deductions – treated as a BEFORE tax deduction                 Yes

This is known as a salary sacrifice deduction and results in the Gross Payments figure on the employee’s payment summary being reduced. Also known as Concessional Contribution.

NOTE –

Superannuation Guarantee Act exempt employees  YES – If employee negotiated or influenced

If the employer choose to pay superannuation for SGA exempt employees, those contributions will be reportable as RESC only if the employee has negotiated and influenced the decision of the employer.

If the employer has made the decision themselves to go ahead and pay super in the above scenarios even though they may not be required to (by award or collective agreement), then that super will not be reportable as long as the employer can substantiate that this was done for example for Administrative Simplicity and it has not been influenced by the employee.

For more information refer to ATO for Reportable Superannuation ContributionsInstructions for employers (NAT 72916)

Need help? Not sure? Call for FREE 30min advice / strategy session today! 0407 361 596 Aust

***BEFORE you BUY Ask us for a competitive software price BELOW retail – No obligation!

You also get FREE 30 min to assist in setting up your company in the software, and FREE ongoing email or phone support – no-one offers as much! Call and you also get FREE “Avoid these GST mistakes” – There’s 18 that the Tax Office see regularly – Get them right!

Email info@accountkeepingplus.com.au or call 0407 361 596 Australia