24/11/2014

Christmas Bookkeeping Tips

christmas bookkeeping tips

The Christmas season often passes by in a blur, but bookkeeping doesn’t stop! For some industries, the holiday season is a time to slow down and catch up before the New Year rolls around; however, some bookkeepers experience long hours and an extensive workload. Don’t let the extra work increase stress – these Christmas bookkeeping tips will keep you sane and on top of things.

Work in advance – Now is the time to create a to-do list and start working on it. The more you get done before the holiday rush, the more time you have to spend on the in-depth projects. Set up staff pays before leaving the office so you don’t have to worry about it during the rush of the holiday season. Scheduling payments in advance is convenient and the staff will be happy to receive payments on time – though it’s important to make sure none of the scheduled payments fall on a public holiday.

Stay focused – One of the best Christmas bookkeeping tips is to reconcile all of the accounts before you leave the office for the holiday. No one likes to come back to work and wade through a pile of invoices or payments on the first day back – additionally, reconciling accounts as you get them prior to Christmas means the transactions are fresh in your mind and create less room for error.

Set up invoicing – Just because you’re out of the office doesn’t mean invoices should remain unpaid by clients or customers. Send out invoices prior to Christmas so you continue to get paid even when you’ve closed up for the holiday. It’s never good when you forget to invoice a client, and since the Christmas season is busy, there’s always the chance that it could happen. Setting invoices up before the holiday rush keeps things running smoothly.

These Christmas bookkeeping tips are important, but there’s still one more thing to do – relax. Enjoy the holiday season with friends and family, a most joyous time of year!

Contact Galaxi Bookkeeping for a consultation and be sure to visit us on Facebook!

17/11/2014

Tips for Choosing an Accountant for Your Business

Choosing an accountant

Just like finding the right employees for your business makes a difference in how you operate, choosing an accountant has an effect on the financial aspect of your business from the beginning. When you’re ready to start hiring employees, you typically go through a selective process – checking recommendations, browsing past experiences and going through an interview process. So why wouldn’t you put the same effort into choosing an accountant? Here are three tips that will help you find the best fit for your financial needs:

  • Look at past clients – Don’t just go with the first accountant you see – you wouldn’t hire an employee on the spot because they just happened to be standing around, would you? Do your research and meet with a few accounting firms to get a feel for how they operate and how they could help your business. Ask local businesses who they use for accounting and whether they would give you a referral. Checking the portfolio of an accountant is important, as it can highlight what type of success the accountant has had with various industries or businesses.
  • They go beyond the typical job description – Sure, you can go with an accountant who just tracks your records, but don’t you want – and expect – more from your accountant? By choosing an accountant who actually cares about your business, you’ll have more confidence to grow and strengthen performance and finances over time.
  • They’re using up-to-date software – Choosing an accountant who uses the latest software and technology often means they can provide you with timely and relevant tips and information to help your business succeed. You need an accountant who is current with any changing tax laws or regulations, too. An accountant who is actively staying ahead of the curve is something any small business owner should want.

Choosing an accountant takes some time and research, but it’s well worth it in the end. Running a successful business means getting the best you can afford on your team – your accountant is no exception! If you are after a referral to great accountant, don’t hesitate to ask.

Contact us for a consultation and be sure to visit us on Facebook!

03/11/2014

Tips for Maintaining a Positive Cash Flow

Tips for Maintaining a Positive Cash Flow

Bringing money into a business and having a cash flow are two different things – do you have a positive cash flow or is your money tied up in the business?

It doesn’t matter how much money you bring in each year if you can’t take out what you need to pay for the essentials. A positive cash flow is one sign of a healthy business, but it’s also important to be consistently smart with the cash you do get to – whether it’s because you sold off some personal property at a profit or you obtained a business loan. Here are some important tips for maintaining a positive cash flow:

  • Be frugal with your initial investment. When starting out with a business, it’s tempting to want to go full-steam ahead. Making purchases right away might seem like a good way to get the business moving forward, but spending too much too soon can leave you strapped in an emergency. Hold on to some of your cash and only purchase what you need – a good tip is to set aside 20 to 50 percent of that initial investment and leave it in the bank. Out of sight, out of mind – and you’ll be ready for any unplanned costs as the business gets started.
  • Get paid. This seems obvious, but collecting payments from clients at a point of sale from the beginning is a smart option for maintaining a positive cash flow. Don’t hand products out without being paid up front, or if you need to offer a service over time, collect a deposit and the final payment when the service is completed. Waiting for payments from countless open invoices at the start of a business is detrimental to that positive cash flow.
  • Don’t give your products away at a steep discount. While you want to entice customers to try your business early on, offering steep discounts in the hopes of selling a vast quantity is a risky move. Set your prices realistically so that all the costs are covered – do the research first! You need to know how much each service or item is worth from the start so you make a reasonable profit to accommodate costs and cash flow.

Starting a business is exciting, but simple mistakes early on could end up costing you financially. Selective spending and ensuring you get the right value for your products or services are essential in maintaining a positive cash flow for the long-term.

Contact us for a consultation and be sure to visit us on Facebook!

28/10/2014

3 Reasons You Need to Hire a Bookkeeper

Reasons You Need to Hire a Bookkeeper

As a small business start-up or entrepreneur, it might be first nature to want to have a hand in every aspect of the business and whatever you don’t know will be learned along the way. While that may be true of some areas in a business, accounting is something that even the most ambitious business owners have a hard time managing. As a manager, spending time running a business is essential, but frankly, overseeing operations of the company and figuring out everything you need to know about how your financial standing is often overwhelming. There are plenty of reasons to illustrate why you need to hire a bookkeeper, but here are the three most common:

  • It’s too time consuming! As you know, creating a small business and getting it running takes a lot of time. Trying to manage inventory, personnel, marketing and sales is more than enough for any one person – or even a team – so why add in the ever-time-consuming bookkeeping? When you want your business to run more efficiently, you need to hire a bookkeeper.
  • Leave it to the experts. Would you rebuild your car engine to save a few dollars? Chances are you wouldn’t – you’d take it to someone who specializes in automobile care. The same is true for accounting! If you try to take it on yourself to save money, but aren’t too sure what you’re doing, you could be putting yourself – and your business – at risk for fines and penalties with the Australian Taxation Office should you make a mistake. The potential fines and charges will far outweigh any attempt to save money!
  • Do you really want to do bookkeeping? For the most part, accounting and bookkeeping is not on the list of things many small business owners want to do – in fact, just dealing with numbers and figures is enough to stress out the average person! Hire a bookkeeper and let them do that work for you so there is more time to devote to things you actually want to do, such as market your business or interact with customers.

These are just some reasons you need to hire a bookkeeper – and while it’s understandable that you want to have a hand in every aspect of your business, some things are best delegated to the experts. The time and money you save will be even more valuable than you imagine!

Contact us for a bookkeeping consultation and be sure to visit us on Facebook!

20/10/2014

Get on Top of Your Books!

get on top of books

I’ll do it later — is this your feeling when it comes to bookkeeping? While you might have good intentions on catching up with records and reconciling accounts, the truth is bookkeeping often gets pushed further and further down the to-do list, and before you know it, you have weeks of receipts and invoices to wade through and get organised. Don’t add to your stress by getting behind with your bookkeeping – get on top of your books with these simple steps:

  • Create a starting point. One of the easiest ways to get on top of your books is to designate a starting point – often, a bank statement is the best place to begin organisation. Once you export a bank statement into Excel, you can then put the data into your accounting software – such as Xero – which makes it even easier to reconcile bank transactions and invoices. This also helps you check that your statement amounts are equal to the amount in your accounting software. Are you self-employed or running a startup business? If you notice that many of your transactions are of a personal nature, be sure to open a business bank account and business credit card – separate your purchases as soon as possible to make http://buysoma.net/treatment-back-pain-soma-proven-medicine/ bookkeeping more manageable.
  • Check invoice standings. Do you have outstanding invoices that you know have been paid, or do you show bills due despite paying them? Get statements from debtors or creditors and reconcile them against the accounting software. Since those owing you money aren’t likely going to volunteer the fact that their invoice is late, it’s your job to locate paid or unpaid statements and organise them in your software – then start making some phone calls to receive your money!
  • Avoid BAS penalties. Check the status of your BAS returns. If you have missed payments, quickly set up a weekly payment plan with the Australian Taxation Office to bring your accounts current and avoid hefty penalties and fines. Get on top of your books by setting money aside each week to cover the quarterly BAS payments.

It will take some time and effort, but it’s important to get on top of your books to save yourself plenty of time and money later. With a few simple tips and through the help of your software accounting program, getting organised is easier than you think.

Contact us for a bookkeeping consultation and be sure to visit us on Facebook!

13/10/2014

What’s Your Superannuation Obligation?

superannuation obligation galaxi bookkeeping

There are plenty of things a small business in Australia needs to consider, but do you know what your superannuation obligation is? Navigating around the various financial requirements of a business can be difficult, so we’re here to break it down a little and make it more understandable.

Paying Superannuation

In order to understand if you need to pay superannuation, it’s important to know how your small business is qualified. Businesses must pay superannuation if they have employees entitled to a super guarantee or if the business is considered for super guarantee purposes.

Whether you have employees on a causal, part-time or full-time basis by way of a verbal or written contract, you are considered as a business with super guarantee purposes. There are other conditions in which an employee is eligible for the super guarantee, including:

  • They’re over 18 years of age and earn $450 or more before taxes in a given month.
  • Employees meet the terms previously mentioned, in addition to working at least 30 hours weekly.
  • Contractors who are hired to perform a labour and contract are for hours worked, rather than completing a task.

Help with your Superannuation Obligation

Tax codes and requirements are often difficult to understand, but there are plenty of tools out there that will help you determine whether your small business has a superannuation obligation or not. One of the best sources – and most accurate, of course – is the Australian Taxation Office. Those who are self-employed aren’t obligated to contribute to a super fund, and if you do, you could be eligible for a deduction of your contributions.

Paying the superannuation obligation must be done to a compliant Super Fund – which you can find with Super Fund Lookup. Using Xero with your bookkeeping makes it easier on you too, as it provides an auto super function, which is available with the premium version of the program.

Contact us for a bookkeeping consultation and be sure to visit us on Facebook!

15/09/2014

Choosing a Bookkeeper for your Business

tips for choosing a bookkeeper for your business

There are two important things every small business owner wants – and needs – to keep things running successfully: time and money. Choosing a bookkeeper for your business is one way to give you everything you want, and need.

Countless factors should be taken into consideration for getting a small business off the ground or even keeping a mid-level business moving forward, and that’s hiring a bookkeeper to keep your finances in order and help you organize your books. Hiring a bookkeeper does a few things for you, such as:

  • Gives you back your precious time. Do you really want to be going over the books when there are plenty of other things you need to devote your attention to within the business? Chances are you can’t divide your attention thoroughly enough, so you’re not able to devote sufficient energy and time into all aspects of the business.
  • Keeps financial stress to a minimum. Are you aware of tax codes, government regulations or advanced bookkeeping techniques? When it comes to the finances of any business, it’s best to leave it to a professional. Choosing a bookkeeper for your business puts your accounts in good hands!

Finding the right bookkeeper for your small business makes all the difference in the world, and it’s definitely worth outsourcing to a reputable accounting business. Here are some tips to keep in mind when choosing a bookkeeper for your business:

  • Make sure they are a registered BAS agent and listed on the tax practitioner’s board register.
  • Ask for referrals from other business owners, or check out client testimonials. You can also request a list of recommendations from an accountant, which allows you to do a little checking on your own.
  • Compare and contrast skills between accountants – they should be willing to provide a personal touch, while offering exceptional professional accounting assistance. Choose a bookkeeper who’s available to answer your questions or concerns without making you feel like a burden.
  • Check out account experience, education and qualifications.

With these tips, choosing a bookkeeper for your business is a bit easier – take your time and select a quality accounting firm that offers a high range of service and communication, in addition to managing the books.

Contact us for a no obligation bookkeeping consultation and be sure to visit us on Facebook!

08/09/2014

New Features Released through Xero

Xero Bookkeeping

Xero Bookkeeping software has always been a benefit for small business, but today there’s even more reason to celebrate: new features released through Xero are now available! This cloud-based software system has some exciting updates that will make life – and your business finances – even easier to manage. Let’s check them out:

  • Batch Deposits – This new feature through Xero is sure to save small business owners a lot of time and stress. Do you have customers who pay by cheque, or are you responsible for paying multiple invoices at any given time? The batch deposits feature is similar to batch payments – it allows you to deposit funds or pay invoices with the press of a button. No more spending time with each invoice!
  • Receipts – This newly released Xero feature has been highly requested and now it’s here. Once a customer submits an invoice payment, you can thank them for payment by sending a receipt. How does this work? Xero is now including the option to attach a receipt copy to each receipt email – which you can also http://modafinil200mg.net customise to reflect your business or brand. This service adds even more professionalism to your small business!
  • Additional reports – Reports are always a great tool when analysing your business trends and keeping thorough track of records. The new Xero update includes reports such as Profit and Loss, Disposal Schedule, and Account Transactions.

New details have also been added to Xero software to enhance user experience. Create and receive transactions on the go with the ‘New Transaction’ button on the Account Transactions screen – this is very helpful when you want to keep track of the cash position or the status of cheque transactions. Another feature to look for is the updated inventory field – there are now even more details to make use of when adding data to your accounting records.

These are just some of the exciting and new features released through Xero – be sure to take a look at additional updates in full on their blog.

Contact us for a complimentary bookkeeping consultation and be sure to visit us on Facebook!

02/09/2014

Save Time and Money with Cloud Job Management

cloud job management

You’ve heard about ‘the cloud,’ but did you know it could boost the efficiency of your business – saving you both time and money? Whether you’re a small business working from an office or self-employed and on the go, cloud job management ensures that you’re never far away from the important day-to-day running of the business.

What are some advantages of cloud job management?

  • There’s no need for expensive software
  • Crucial time isn’t wasted with program updates
  • Collaborating and communicating with the entire team is possible
  • Share information over multiple devices without needing to share files
  • Job details are instantly added and available to the entire team

Most small business owners are on the go – thanks to the implementation of smartphones, tablets and desktops. Stay connected to your business on any device, whether that means going over job details, bank reconciliations, credit card charges or managing invoices on a daily basis. Having your data and finances at your fingertips allows you to take care of business https://celebrexhome.com quick and efficiently, so you have more time to spend on the things that matter most – growing your business!

Other advantages to using cloud job management tools is you can easily integrate the program with your accounting software. Cloud-based bookkeeping plans allow you to connect with your accounting software so your banking transactions are automatically updated – this allows you to pay invoices with a single click of a button or keep track of spending at all times.

Track time and costs from a job site or with clients directly onto your device. This also reduces the risk of errors, making tax time a bit easier to manage. Once you enter the information into the cloud-based program, it becomes available for the entire team to access – the ideal way to enhance efficiency and communication between you and the rest of your employees.

Want to get started? Contact us for a consultation and be sure to visit us on Facebook!

02/08/2014

End Of Year Payroll Guide For Xero

Completing your end of year payroll obligations has never been easier in Xero. You just need to follow these four simple steps

Step 1: Complete all pay runs up to 30 June and ensure they reconcile with the general ledger. Post or cancel any uncompleted pay runs (as shown in the picture below).End of Year Payroll with Xero

  • Once you have completed the final pay run for June, check that your total earnings, superannuation and PAYG reconcile to your accounts. To do this go to ‘Reports’ and select the ‘Payroll Activity Summary’ report. Change the date range to ‘This Financial Year’.
  • Take note of your end of year payroll accounts (earnings, tax & super). Compare these figures with the ‘General Ledger’ report for the same date range.
  • If you have been using more than one wage account you will need to add these up to see if they match the ‘Payroll Activity Summary’ report.
  • When comparing the tax we want to only look at the credit column as this represents the total liability for the year excluding the payments we have already made.
  • If you have discrepancies with any of your end of year payroll amounts, you will need review your payroll and correct these differences before you proceed to step 2.

Step 2: Check that each employee’s specific pay components have been recorded correctly in payroll.

  • To do this go to ‘Reports’ and select the ‘Payroll Activities Details’ report. Change the date range to ‘This Financial Year’.
  • Review the information for each employee. If any of their end of year payroll amounts are incorrect or are in this wrong area, you will need to correct them. Go to the Xero Help Centre to learn how to correct these errors.

Step 3: Run the end of year payroll payment summaries.

  • To do this go to ‘Payroll’, ‘Employees’ and select ‘Payment Summaries’.
  • Check that your organisation name, ABN and postal address are correct. If they are wrong, go to ‘Organisation Settings’ to update them.
  • Enter the Signatory (Usually the business owner or payroll administrator). This name will be printed out on the payment summaries as the authoriser.
  • Provide a phone number that the ATO can contact you on if they need to get any more information from you.
  • When finished, select ‘Confirm and Continue’.
  • Check the financial year is correct and record any reportable fringe benefit or lump sum amounts.
  • Reportable fringe benefit amounts can be found on your reportable fringe benefits tax return.
  • If you paid employees lump sum amounts during the year, you should have created a pay item for these. You can find these in the ‘Transaction Listing Details’ report under ‘Reports’.
  • Once finished, select all the employees and ‘Publish’. Publishing locks the end of year payroll accounts down and publishes payments summaries to the employee portal so that your employees will have access to them.
  • If you prefer to print or email the payment summaries to your employees, select ‘Send to Employee’

Step 4: Send end of year payroll information to the ATO.

  •  On the same screen, select ‘Create EMPDUPE’
  • If you are preparing the end of year payroll information on behalf of another business, select ‘Yes’ to supply contact details to the ATO. If you don’t need to supply contact details, then select ‘No’.
  • Once the EMPDUPE file is created, you need send it to the ATO.
  • You can either, upload it to the ATO online portal, submit it via ATO ECL software or submit it on a storage device (e.g. USB stick or CD).

Your finished until next year! Should you have any questions about our bookkeeping services or end of year payroll in Xero please do not hesitate to contact us.