Xero Certified Partner | Bookkeeping Services

Important financial report for your business financial success

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When it comes to small business accounting, most people know that it is important to keep your records updated for taxes. However, there are many more tips for small business accounting that you can use to grow, improve and expand your business. Here are some of the most important accounting reports for your small business that you should know about.

Profit and loss statement/income statement

The most important report for any business is the profit and loss statement, also called a P&L or income statement. This report tells you how much money a business makes, as well as a lot more. A well-run bookkeeping operation includes details for where you spend and where your money comes from. For example, I can look at my P&L for a quick summary of how much I make from writing, how much I make from advertising, how much I spend on business travel and how much I pay for computer and internet costs. Each business would have different accounts for its own income and spending categories.

Small business owners should look at this report at least monthly. It is also a good idea to look at trends, comparing current results to the same period in the prior year and comparing the most recent month with the last few months. This should tell you what’s working well and what isn’t, as well as help you focus on the most profitable parts of the business. This is exactly how I analyzed by business to help me reach $10,000+ in monthly income.

Balance sheet:

A balance sheet gives you a snapshot of what a business has and owes at any given time. For small businesses, assets typically include things like bank accounts, accounts receivables, and possibly an investment account. A balance sheet may also include assets like property, computers, equipment and other saleable physical and intangible property. Liabilities generally include things like credit cards, business loans and anything else your business owes.

The accounting equation is based on the balance sheet. It tells us that assets plus liabilities equals equity. The difference in what you have and what you owe should ideally be a positive number and one that grows over time.

When examining the balance sheet, also look at the short-term assets versus short-term liabilities. If you have payments owed soon, you won’t want to run out of cash without noticing that your assets are illiquid.

Accounts receivable aging

You don’t work for free, and your business isn’t a charity. Doing the work and sending the invoice is just part of the battle. You also have to make sure those payments get paid and collected. Your accounts receivable (A/R) aging report tells you how well you are doing on the collections side. Look out for customers who are perpetually late, usually pay on time and recently started paying late, and growing late balances from any customer.

I’ve been very lucky when it comes to collections, but part of that is choosing the right clients to work with. Upstanding companies like Due always pay quickly. Some less stable, less trustworthy or financially strained companies are more likely to pay late or stiff you when it comes time to pay the bill.

Revenue by customer:

Just as you should be looking at who owes you money, you should be looking at who gives you the most of it. Your revenue by customer report tells you how much you made from each customer over a period of time. Freelancers and professional service businesses rely heavily on repeat business in many industries. Building good relationships with quality clients can turn in to a lucrative, reliable, and healthy income stream.

However, beware of putting too much faith in any one income source. If too much revenue comes from one source, that is called “revenue concentration risk.” If one client leaving would ruin your entire business, you need to get more diverse in who your business serves. Putting too many eggs in one basket might just bankrupt your company.

Accounts payable aging

You probably wouldn’t like it if a company took too long to pay you. Do your vendors a favor and pay them on time as well. Your A/P aging report tells you who you owe and how much. As long as your books are updated, you can easily look and find who you need to pay so you don’t miss the due dates.

Paying late can sour relationships and may lead to late fees and other costs. Just pay on time. You might even get an early payment discount from some vendors. That’s a big win-win!

Credit Original Source: https://www.entrepreneur.com/article/325055

Smsf financial services: the way of savings success

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With lacking returns a year ago from most super funds, individuals are hoping to put their cash somewhere else, for the most part to self-managed super funds (SMSF). Be that as it may, before you exchange the more significant part of your retirement fund to an SMSF due to an awful superannuation return articulation, there are numerous things to consider while opting for SMSF Outsourcing Solutions.

Will A SMSF Outsourcing Services Truly Advantage Your Returns?

Many individuals cause a ruckus about the expenses superannuation funds to charge, however in all actuality, on the off chance that you don’t have sufficient energy, centre or information to deal with your super fund, an SMSF may not be for you. On the other hand, if you do have these things, then you could take a gander at far higher yearly returns on your retirement fund.

What Is Your Speculation System?

When you open SMSF Outsourcing Services, you viably turn into your fund chief. For the functional and authoritative part (which is around 10%), it will frequently SMSF Services Australia. The piece of a self-managed super fund that will take up the most time in sourcing and overseeing spots to contribute your cash. Building up a sound speculation system will enable you to receive the rewards of an SMSF and at last take control of your money. The auditing you managed super fund venture procedure ought to be a general event to stay aware of market patterns and changes.

Do You Comprehend Your Trustee Commitments?

The Taxation Office has made many endeavours in the course of the most recent couple of years to help train trustees on what their parts and duties are in the administration of SMSF Outsourcing Services through different publications.

These are the matters that you will have to keep in your mind. For further assistance feel free to Get in touch with Account Consultant.

Bookkeeping Services : Complete Business Financial Solution

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Bookkeepers have quite a varied role and while most mistakenly believe they only deal with basic number inputting, it is far more complex than that. Certified bookkeepers can deal with many financial matters within a business and you may be surprised with the services they can provide. What should you expect when hiring a Bookkeeping Services ?

Gathering Basic and Advanced Financial Information:

The books of a business can tell an owner so much about their business as a whole and the numbers do really count. In essence, a bookkeeper can create financial reports and analysis which can then be used to assess certain areas of a business. For instance, if you wanted to gather a report containing what monies have been spent on materials per month and what is recouped via paid invoices, bookkeepers can write a detailed financial report. This could then be used to see which areas are costing you more; however, bookkeepers can also carry out basic weekly bookkeeping for the business.

Bank Reconciliation:

This is quite a foreign concept to most and it isn’t hard as to why thousands of owners struggle to understand what bank reconciliation means. However, bookkeepers can offer this service and it can be useful for spotting errors. The way bank reconciliation works is very simply; the bookkeeper will obtain records from a bank for a certain period of time and compare these records to the cash balance records from the company. This is the time when the bookkeeper can pick up on potential errors made.

Checking Trial Balance Sheets:

Trial balance sheets may appear to be an accounting task but in reality it is a bookkeeping task and one which every bookkeeper should carry out. Bookkeepers should take the accounting worksheet and go over it with a fine-tooth comb to check everything is correct and in order. This is also the time when bookkeepers can pick up on any errors or mistakes made. However, it is a crucial service as it can prevent simple mistakes from becoming worse.

General Ledger Keeping:

The main service provided by every bookkeeper is to maintain financial ledgers of the day-to-day dealings of the business. This is a crucial part because without it a business cannot run. Every cent coming into the company and going out is recorded (either in single or double entry system) in these ledgers. Bookkeepers will also deal with accounts payable and accounts received which means they list every transaction the company owes and which it is owed also. Basically, every transaction made by the company is recorded and checked by the bookkeeper.

Know What to Expect:

For thousands of small business owners they often struggle to understand fully what to expect when choosing bookkeeping services. It can be exceptionally confusing if owners have never dealt with bookkeepers before and for many they have missed out simply because they aren’t aware of the additional services available. You can hire a bookkeeper for complete business financial services.

If you are small or medium size business owner and you struggling about the managing your business financial services then you need to hire certified Bookkeeping Services provider firm like account-consultant who can help you in manege all your financial needs like accounting, payroll, tax return & preparation, accounts payable & receivable and much more.

If you are still confused about the what are you looking for what your business need, then you can contact us here, we help you in all your business financial needs.

Top benefits of Small Business Outsource Bookkeeping Services

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Thousands of businesses worldwide outsource in some way or another and it’s increasingly popular to hire an outsourced bookkeeper. This may sound a little strange to those who know very little about outsourcing, though it has become very much possible to Bookkeeping Outsourcing Services today. However, what are the reasons as to why a small business should consider outsourcing their bookkeeping services?

Reason to Business Outsource Bookkeeping Services:

A Bookkeeper Offers Quick Turnaround Times with Quality:

It’s important to remember bookkeepers who don’t work as part of a large bookkeeping firm, have only a few things to keep their reputations alive. Firstly, bookkeepers rely on affordable prices and quality work. If they hand back a company’s books with several errors on them then they are less likely to be rehired and very unlikely to get work elsewhere. Secondly, bookkeepers need quick turnaround times in order to keep their clients happy and this is the biggest reason why small businesses need to outsource. Professionals know the competition is huge for them and unless they provide quality work in a short space of time, they won’t go far.

Freeing Internal Resources:

Small businesses don’t usually have a large team of people behind the scenes and look to double-up the workload as much as humanly possible. Unfortunately, having a member of the team dealing with their regular job as well as the bookkeeping services can often be a troubling thing. Sometimes the employee takes away precious hours that should be dedicated to their regular duties but are instead focused on bookkeeping. It’s fast becoming a problem for small businesses but when you outsource to a bookkeeper you remove this issue.

You Get the Full Story from a Professional Bookkeeper:

Hiring bookkeepers who are friends or family members are great but if they aren’t qualified they potentially hurt your business. It’s the same with allowing employees who have no real experience or qualifications to deal with bookkeeping; disaster is looming large. However, when you outsource and hire an bookkeeper you can learn much more than ever before. You can get a clear picture of your finances and can actually learn whether or not the business is in a strong position to expand or stay afloat for the upcoming months.

Reducing Office Space:

An important reason why small businesses should outsource bookkeeping services is down to lack of room. A small business doesn’t have a large office building, in fact most start off with a home-based office and eventually expand into a larger office but even then the space is tight. Being able to reduce office space, even by only one or two people, could make all the difference. Bookkeepers don’t have to work within the office when you outsource which is a real saver.

Outsourcing Makes Sense for Small Businesses:

Large companies may not find outsourcing to be the most effective solution for them personally however 9 times out of 10, small businesses disagree with this. It does make perfect sense for a small business to consider outsourcing bookkeeping services. It could make things much easier in the long-run and hiring a bookkeeper is so simple today.

Contact us here for Outsource your Bookkeeping services for your business.

Top 10 risks of bookkeeping doing by yourself

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Trying to save money by doing the bookkeeping yourself can be very costly. We’ve identified 10 danger items to be aware of.

Simple bookkeeping mistakes can become very costly, not only by incorrect allocations, but also in the time that’s spent tracking down the source of the errors.

Bookkeeping is a task that many business owners hate doing, and is often rushed, left to the last minute, or carried out late at night after a hard day at the office or on site. It’s time like that when the mistakes are made, and incorrect bookkeeping can expose owners to substantial fines if discovered by a Tax Office audit.

Here’s a list of ten common mistakes made by small business owners in DIY bookkeeping

1. GST

This is still an area of confusion particularly for start-up businessess. We often see sole traders charging GST without being GST registered.

2. Claiming GST credits without realising that your supplier is not registered fo GST

3. Claiming GST without valid tax invoices

4. Not understanding the accounting software package

As accounting software packages are simplified by programmers, they seem to get more complicated for the end user. Many of the functions are confusing for the business owner who may have no understanding of double entry bookkeeping. This can lead to business owners doubling their work in an effort to create the desired reports, and therefore producing inaccurate bookkeeping records.

5. Incorrectly allocating the data entry can result in missing valid tax deductions that should rightfully be claimed. Your accountant will generally not have time to go through each item, and may not fully understand your business. So if you’ve allocated data incorrectly, you r accountant may also miss those claimable items

6. Missing deadlines for Business Activity Statement (BAS) and PAYG lodgements

You could be subject to fines and penalty payments

7. Superannuation contributions -

Under the Superannuation Guarantee legislation, you are required to pay 9% of an employees ordinary time earnings – many small business owners are unsure what constitutes ordinary time

8. Bank reconciliations – many businesses do not understand the purpose of, or how to reconcile the bank account with the data entry – causing room for errors

9. Failing to issue invoices regularly

This can badly effect your cash flow, as well as leaving your business wide open to overdue debtors being overlooked

10. Backing Up your records

We’ve all experienced an inexplicable failing of our computer, be it a power surge or the hard drive just crashing – or even the computer being stolen. Where would you be if you’ve got no back up of your accounts?

You should make it a habit to back up every night, every week, and every month

Free Strategy Session

More importantly we’ll review your financials, and show you how to manage your cash flow, increase your income / revenue, and reduce your taxes.

Are you looking for a Bookkeeping Outsourcing Services?

Contact Us trustworthy outsourcing solutions for your business.

How bookkeeping works for small business ?

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Both a legal obligation and a business management tool, bookkeeping must be carried out rigorously, whether by an accountant or someone from the company. But what exactly does this mean for small businesses?

In Quebec, each company must keep up-to-date paper or electronic registers and keep them at the disposal of the competent authorities for six years. At any time, they can be requested by Revenu Québec for verification and must be made available to them within a reasonable time.

If the form of the books is not imposed, the information contained therein must make it possible to verify:

• The company's income and expenses, to be reconciled with receipts and disbursements;
• The amounts collected for the GST and the QST;
• Amounts of taxes paid, requests for credit or refunds of input tax;
• The useful information used to calculate source deductions and employer contributions.

At the same time, the supporting documents must also be kept for six years. It's about:

• Daily statements of turnover, invoices, cash register tapes and daily statements from credit card Payment terminals;
• Daily expense records, checks, canceled checks, credit card statements and receipts;
• Mileage statements for each motorist combining professional and personal use with the same vehicle;
• Supporting documents for travel;
• Supporting documents for fixed assets;
• The register of employees, with an indication of their salary and deductions made for each;

The different accounting systems

There are several accounting systems that are to be assessed according to the needs of the business.

• Single part accounting or cash accounting: transactions are recorded only once, either as expenses or as income. For clarity, the entries are grouped together in a one-page table called the income journal, and the outputs on another, called the expense journal.
• Double-entry or accrual accounting: transactions are recorded twice, once on credit and once on debit. Whatever type of bookkeeping services is chosen, the system must be reliable, precise, consistent, easy to use and understand, in order to allow easy access to the necessary information at any time. Procedures for checking the accounting entries must be put in place, and first of all the bank reconciliation which makes it possible to compare the bank's entries with those recorded in the accounts. It is done at least once a month upon receipt of the bank statement.
• The accounts can be kept in the form of spreadsheets, but this system is relatively cumbersome, the functionalities limited and part of the errors are only detectable at the end of the year, that is to say at the time to release the financial statements. Conversely, accounting software saves time, limits errors, automatically calculates taxes and makes precise financial forecasts. Today, most are available online and many are free or inexpensive.
• Good bookkeeping certainly helps meet legal obligations, but it is also an essential management tool. By rigorously following your accounts, you know the performance of your business in detail and in real time. It is thus possible to compare them with the results of past periods, to make forecasts and to make informed decisions.

Discover our bookkeeping service in Australia and contact here our accounting firm now.