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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Business Tips – Ideas to grow business sales

Business Tips – Ideas to grow business sales

Ideas to grow business sales

Here are a couple of ways your business can grow with some work and persistence!

Idea 1 – Add Complementary Products and Services
One way to increase sales and bring new customers to your sales base is adding new complementary products and services. But how do you decide what to add without turning your business into a third-rate department store?

Start by reviewing the definition of your business. For example, if you sell house siding, ask yourself, are you in the siding business or the exterior building materials business? The result may be that you redefine and expand your business to add gutters and downspouts, roofing and other coverings to your product line!
Another surprisingly simple way to build a list of new products or services is to ask your customers what else they might buy from you if your business sold it. A few friendly conversations with customers and staff will likely get you more information than thousands of dollars spent on professional customer surveys. Be sure to ask how much they would want to buy and how often to get a sense of whether the demand would be great enough to warrant the additional costs of building up this area of your business. (To learn how to build your network, read Small Business: It’s All About Relationships.)

Idea 2 – Look for New Market Niches
One way to find a new market niche is to seek alternative applications for your existing products and services, and we have a Cheez-y example of how this works. Kraft started out with a spreadable cheese product in a jar that could be spread on crackers for snacks – it was called Cheez Whiz. This was fine, but selling a cracker topping will only take you so far in this world. That’s why Kraft expanded the scope of Cheez Whiz and started promoting it as a base for a variety of dips and food toppings. Soon Cheez Whiz was an ingredient in all sorts of recipes. Kraft wasn’t satisfied with only human consumption though. One of the latest unique uses of Cheez Whiz comes from a California fishing lure and bait company that sells Cheez Whiz in a pre-packaged bait application, and it buys Cheez Whiz in 55 gallon drums!

If Kraft had stuck with the spreadable-cheese concept, sure, it would have covered a lot of crackers. But by thinking outside of its original intent, Kraft expanded the market and attracted customers it never would have targeted initially.

(Source and more Ideas Investopedia)

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Business Finance 101 – Research – How your accountant (and good bookkeeper) can help BOOST your business revenue!

Business Finance 101 – Research - How your accountant (and good bookkeeper) can help BOOST your business revenue!

Business – Research – How your accountant (and good bookkeeper) can help BOOST your business revenue!

Did you know research shows that for the third of business owners who worked with an accountant as an advisor, one in five (21%) saw a rise in their revenue over the last year.

Rose Powell reports in SMEs can make better use of their accountant to boost their bottom line – “Small business operators who used their accountant as a business advisor last year were 31% more likely to see an earning uplift, according to new research from the MYOB Business Monitor.

The vast majority of the 1005 business owners surveyed, 89% used an accountant last year.

Only 32% of owners reported having an advisory or consultative relationship with their accountant, compared with the 57% whose relationships were for compliance only, such as tax return completion or GST reporting. Just 11% did not have an accountant…. Adam Ferguson, general manager of the accountants division at MYOB, told StartupSmart that using an accountant as an advisor was especially valuable for start-up companies.

“The start-up phase of a business is very different to when it’s up and running. In that phase, your accountant can help with things like creating a business plan, applying for business loans, building out your business case,” says Ferguson.

For start-ups who are already in operational phase, the increasing use of cloud accounting systems enables accountants to provide feedback and ask the right questions about compliance and cash flow.

Ferguson says cloud accounting means compliance is no longer a year-end process, and increasingly a monthly one. This makes them well placed to advise on cashflow questions.

“An accountant can play a key role in helping a start-up, reporting on cash flow on a more regular basis, and understanding the dynamics that drive cashflow,” says Ferguson.

The report found companies that worked with an accountant as an advisor were less concerned about attracting and retaining customers, and were more likely to increase their overall investment in their business strategies.

“Once you’ve got your cash flow healthy, it becomes a question of how to use that and where to invest that to grow my business,” says Ferguson.

Over half, 53%, said they found their accountant advisor provided useful advice on how best to manage the money that flows through their businesses.

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Business Tips – Rise in revenue and business health – Businesses used their accountant as a business advisor

Business Tips - Rise in revenue and business health - Businesses used their accountant as a business advisor

Rise in revenue and business health – Businesses used their accountant as a business advisor

Rose Powell reports in SMEs can make better use of their accountant to boost their bottom line “For the third of business owners who worked with an accountant as an advisor, one in five (21%) saw a rise in their revenue over the last year.” Rose also wrote – “Small business operators who used their accountant as a business advisor last year were 31% more likely to see an earning uplift, according to new research from the 2013 MYOB Business Monitor.

The vast majority of the 1005 business owners surveyed, 89% used an accountant last year.

Only 32% of owners reported having an advisory or consultative relationship with their accountant, compared with the 57% whose relationships were for compliance only, such as tax return completion or GST reporting. Just 11% did not have an accountant…”

Adam Ferguson, general manager of the accountants division at MYOB, told StartupSmart that using an accountant as an advisor was especially valuable for start-up companies.”

“The start-up phase of a business is very different to when it’s up and running. In that phase, your accountant can help with things like creating a business plan, applying for business loans, building out your business case,” says Ferguson.

For start-ups who are already in operational phase, the increasing use of cloud accounting systems enables accountants to provide feedback and ask the right questions about compliance and cash flow.

Ferguson says cloud accounting means compliance is no longer a year-end process, and increasingly a monthly one. This makes them well placed to advise on cashflow questions.

“An accountant can play a key role in helping a start-up, reporting on cash flow on a more regular basis, and understanding the dynamics that drive cashflow,” says Ferguson.

The report found companies that worked with an accountant as an advisor were less concerned about attracting and retaining customers, and were more likely to increase their overall investment in their business strategies.

Once you’ve got your cash flow healthy, it becomes a question of how to use that and where to invest that to grow my business,” says Ferguson.

Over half, 53%, said they found their accountant advisor provided useful advice on how best to manage the money that flows through their businesses.

So talk and work with your accountant – if you need a recommendation, call us for FREE help!

“What is your tip? Consider posting a review or comment for us below!”

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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Business Finance 101 – How does the Cashflow Statement Work – Overview for Business Owners

Business Finance 101 – How does the Cashflow Statement Work - Overview for Business Owners

How does the Cashflow Statement Work – Overview for Business Owners

There are 2 popular financial statements that are commonly given for a business – a profit & loss or income statement, a balance sheet or statement of position, but rarely used is the cashflow statement (or statement of cash flows). The purpose of the cashflow statement is to highlight the major activities that directly and indirectly impact cash flows and hence affect the overall cash for the business.

Business owners usually know by “feel” what their cash flow is like, and they should monitor cash for a very good reason – without a sufficient cash balance at the right time, a company can miss golden opportunities or may even fall into bankruptcy. 

The cash flow statement answers questions that cannot be answered by the income statement and a balance sheet. For example a statement of cash flows can be used to answer questions like where did the company get the cash to pay dividend of nearly $14,000 in a year in which, according to profit & loss / income statement, it lost more than $10,000?

The cashflow statement is a valuable analytical tool for business managers as well as for investors and creditors, although managers tend to be more concerned with forecasted statements of cash flows that are prepared as a part of the budgeting process. The statement of cash flows can be used to answer crucial questions such as the following:

  1. Is the company generating sufficient positive cash flows from its ongoing operations to remain viable?
  2. Will the company be able to repay its debts?
  3. Will the company be able to pay its usual dividends?
  4. Why is there a difference between net profit/income and net cash flow for the year?
  5. To what extent will the company have to borrow money in order to make needed investments?

For the statement of cash flows to be useful, it is important to use a common definition of cash. It is also important that a statement be constructed using consistent guidelines for identifying activities that are sources of cash and uses of cash. The proper definition of cash is broadly defined to include both cash and cash equivalents.

Cash equivalents (applicable more for large companies) include short term, highly liquid investments such as treasury bills, commercial paper and money market funds that are made solely for the purpose of generating a return on temporary idle funds. Instead of simply holding cash, most large companies invest their excess cash reserves in these types of interest bearing assets that can be easily converted into cash. These short term liquid investments are usually included in marketable securities on the balance sheet. Since such assets are equivalent to cash, they are included with cash in preparing a statement of cash flows

The 3 sections of cash flow statement (each has an inflow and outflow section):

Business Finance 101 – How does the Cashflow Statement Work – Overview for Business Owners

How does the Cashflow Statement Work – Overview for Business Owners

Operating Activities: (mostly income statement / profit & loss)

Operating activities shows the cash effects of transactions such as –

  • cash receipts from sales of goods and services and
  • cash payments to suppliers and employees for acquisition of inventory, taxes, interest on loans

Investing Activities: (mostly long term assets)

Investing activities generally show long term assets (and sometimes debt/equity securities) which include –

  • sale/disposing of plant, equipment
  • sale of debt or equity securities
  • acquiring plant and equipment
  • acquiring debt or equity securities

Financing Activities: (mostly long term liabilities and equity)

Financing activities involve liability and stock holder’s equity items and include obtaining cash from creditors and repaying the amounts borrowed and obtaining capital from owners and providing them with a return on, and a return of, their investment.

  • Increase in debt / loans taken on
  • Payment/redemption of debt facilities / loans
  • Dividends paid

Next month we will work through an example

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Business Finance 101– 5 End of Financial Year tax tips 2018

Business Finance 101– 5 End of Financial Year tax tips 2018

5 End of Financial Year tax tips 2018

Time to plan for a good finish for EOFY and here are 5 tips to get started and prepare for 30 June.

1. Consider the ideal timing for asset sales

If you are thinking of selling a profitable asset this financial year, but are likely to earn a lower income in the next year, it may be worth postponing the sale until after 30 June, as the sale is income, less the original cost. However, if you expect an income windfall from 1 July, it may be worth bringing the sale forward. As always, your decisions depend on your expectations for future asset prices, so don’t postpone a sale for tax purposes if you are expecting your investment to fall in value!

2. Pre-pay investment loan interest 

If you have (or are considering establishing) a geared investment portfolio, you can pre-pay 12 months’ interest on your investment loan and claim the cost as a tax deduction in the current financial year.  This can assist to manage cashflow more efficiently, and potentially reduce your income tax liability this financial year.

3. Pre-pay income protection premiums 

If you are employed or self-employed, income protection insurance provides peace of mind about the security of your income in the event you are unable to work due to illness or injury. Premiums for this insurance are generally tax deductible; prepaying your annual premium prior to 30 June will allow you to claim a full year of cover in advance as a tax deduction.

4. Review your debtors and creditors

Review your accounts receivable / trade debtors – who is taking the longest to pay – is debt-collection failing – consider if it is simplest to write off (reverse) the sale and move on with more Profitable clients and prospects. Likewise – who do you owe? Can you pay them by end of year to tidy up your accounts – or if you are struggling – can you negotiate longer terms to keep things open with suppliers and keep the relationship going?

5. Offset capital gains with capital losses 

Generally, if you have incurred capital losses on your investments, you are able to offset these capital losses against any capital gains you have made. You can also use losses you have carried forward from previous years. Remember, income losses can only be offset against income; capital losses can only be offset against capital gains.

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Business Tips – Consistency in Marketing – Having an overall consistent message in marketing

Business Tips – Consistency in Marketing – Having an overall consistent message in marketing

Consistency in Marketing – Having an overall consistent message in marketing

Like most business owners, you needs clients, but having consistency in marketing is hard when you find you can’t stop to get them! It feels like you’re being pulled in many different directions (both personally and professionally) that you can’t find the time to have an overall consistent message in marketing.

When it comes to marketing, what is most effective for businesses these days? It used to be you could pay a lump of money annually (or break it into monthly payments) for a Yellow Pages ad and the phone would ring. Or attending a local networking event from time to time. But things have changed. There are so many choices, and advertising doesn’t really seem to work anymore, at least not in the traditional way. Most of us are not outgoing and hate the idea of reaching out and “selling” our services .

So, for many, the marketing just doesn’t happen.

Problem – Yet we know it’s necessary to market our business to build and grow a stable income and reach our goals. But given the time and budget limitations, how can we get past the marketing hurdle?

Answer – Do small consistent tasks that don’t take much time. When you approach it this way, you’ll actually get BETTER results!

In this age of online technology, doing small actions consistently is one of the BEST ways to get and keep your marketing rolling to consistently attract new clients and grow your business.

Some quick and effective things to do that you can spread out over a week, ONE per DAY. And then repeat the process!

  • Create / Update Your LinkedIn Profile – This is a most powerful social media profile you can have for your business. Get it done one chunk at a time.
  • List your business in one new online business directory – These get picked up by the search engines and you never know who will find you this way. Most are free or low cost. Be sure to include a key benefit you have to offer that sets you apart from your competition. This works for both local and virtual bookkeepers.
  • Make one or two phone calls per day to a present or past client – The point here is to talk to someone just to warm up the connection and let them know you are available if they have a need. This also works for connecting with colleagues, strategic networking partners, and any business connections you have or want to establish.
  • Update your Association/Industry profile – If you’re a Certified X (your industry) (or have a listing in any other type of certification or partner program directory) update or improve your profile information so it is appealing to potential clients who see it. Maybe make a special offer that is time sensitive.
  • Making connections in  Social Media like Twitter – Start following people you would like to make a real connection with. Then start sharing (tweeting) helpful information that would be useful to the type of clients you want to attract. Ultimately, you will want to be spending a little time on Twitter daily, if possible.

Getting the word out about your services so it can reach the customer/clients who need your help can be a lot of work, but the load is much lighter when you can approach it just one small action at a time. When it becomes a habit, you will build a true, rock-solid business as a result.

Marketing is not something that should be done all at once and then stop when you get too busy.

Try out this simple daily plan above, and see if it works for you.

Do you already have a daily marketing routine that works well for you? Tell us your tips!

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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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Business Tips – Borrow or loan? Pay cash or finance / loan for stock or equipment?

Business Tips – Borrow or loan? Pay cash or finance / loan for stock or equipment?

Borrow or loan? Pay cash or finance / loan for stock or equipment?

At a local Meet-Up (www.meetup.com), we had an interesting discussion about mistakes we’ve made in business. For example: Whether to pay outright or borrow for stock/equipment.

The example one business gave was paying outright for equipment that would be sign-written to advertise another business (he organized advertising for businesses). The issue was that spending $10,000 on the equipment took all the spare money the business owner had, while the payment for the advert was monthly over a multi-year contract.

Hindsight showed that it would have been better to get a loan for the equipment, then add his mark-up for the advert and service on top of the monthly re-payments, and he would still have his $10,000 to use for cashflow and marketing.

Have you had a similar experience?

What Better Business Decisions can you share?

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