02/12/2015

Seasonal Cash Flow Tips for Business

 

 

 

Cash flow roller coaster, saving for a rainy day – chances are you’ve heard of these phrases in relation to business at one point or another. Throughout the year, your business could go through really good times where the cash is flowing in more than you ever thought possible, but then out of nowhere that flow could dry up, leaving you feeling anxious about where the cash is going to come from next.

seasonal cash flow

As stressful as it is to ride the seasonal cash flow roller coaster, it is a part of business – the way to manage it is to be smart when thing are running perfectly so that you’re ready and prepared in leaner times. Seasonal cash flow is a real thing in pretty much every business! Whether you’re a retail shop doing the best business around the holidays or you’re a financial analyst working with businesses around the fiscal calendar, seasonal cash flow affects nearly everyone. Here are some cash flow tips to implement into your business so you can weather any type of storm that comes your way throughout slower periods:

  • Look forward – Tracking your business is vital for growth and it could also help you start to determine when the slow periods are – for example, maybe you have a high volume of sales during the holidays, but experience a drop in business throughout January and February. Planning for those slow periods will help you navigate them more successfully.
  • Save – When the cash flow is coming in, stash some of it away for later. Don’t get caught in a slow period and find you have expenses to pay, such as GST or other business-related expenses. When cash flow is good, spending should still be lean.
  • Take advantage – During the peak seasons, take the cash flow to your advantage and boost customer service or staff levels to accommodate the additional volume. Spending a little more on hiring staff could potentially bring you more profit to save for a rainy day.

Every business goes through cycles – always prepare for them by staying focused and conservative with spending, even if the cash flow is high.

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

 

25/02/2015

Increase Your Business with Sales Quotes

Increase Your Business with Sales Quotes

Did you know that one of the best (and most efficient) ways to increase the amount of business you do is to provide sales quotes? Sales quotes – also referred to as price quotes – often mean the difference between landing a contract and not. Many small businesses make the mistake of not preparing or sending sales quotes quick enough, and in the world of business, timing is everything!

Increasing cash flow and getting invoices paid are two of the most common areas of difficulty for small businesses. Staying on track with clients from the start – such as with the sales quote – is a good way to increase your business and get paid when the job is done. Here are a few ways to increase your business with sales quotes:

  • Send out a detailed sales quote – In many instances, a sales quote is the first impression potential clients have of your business. Clients want to do business with companies who provide clear and concise quotes, as well as detailed terms and conditions, prices and services they will be receiving.
  • Don’t wait too long to respond – Sure, while you don’t want to be hasty and send out a poorly thought out quote, you also don’t want to make the potential client wait too long – they’ll probably move on to the next business. Use a cloud software that provides sales quotes capabilities to easily manage and create sales quotes no matter where you are.
  • Follow up – After two or three days, follow up with the client if you have not heard a response. Communicating with a prospect increases the chance of a sales quote being accepted before things cool off after the initial meeting.

Use cloud-based software to your advantage! Software programs, such as Xero, are designed to make a positive impact on your business by organising your data and providing you access to your spreadsheets and sales quotes from start to finish. Increase your business with sales quotes and see what a difference it makes!

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

04/02/2015

Bookkeeping Tips for Non-Profits

Bookkeeping Tips for Non-Profits

Whether you’re a small business owner or the leader of a non-profit, your bookkeeping goals are important no matter where you work. Non-profits have a unique challenge of needing to be diligent with spending and need to keep focus on providing an adequate amount of funding to a cause! In many respects, non-profits run just like businesses, so it makes perfect sense that non-profits would use the same effective record-keeping software and tools. Since you want to ensure you make the best financial decisions, here are some bookkeeping tips for non-profits you can easily implement into any process:

Start with Bookkeeping – This first step is also one of the most important. In order to understand how to track your business expenses and monitor money or donations, you need to create a system for bookkeeping. Unlike a traditional business, non-profits are generally run on donations or private funding, in addition to using volunteers to run a good portion of the non-profit. Cloud-based bookkeeping software makes tracking cash donations, invoices and cheques easy to monitor no matter where you are.

Prepare for the Annual Audit – Every year, it’s the same stressful story, looking for last minute documents, receipts and financial statements. Using cloud-based bookkeeping software means you can quickly and simply upload images of any documents into the software for future reference. This makes it easy for you to go back and look at invoices or receipts throughout the year and makes the annual audit relatively stress-free. All you need to do is provide an auditor log-in access on read-only files and it’s more efficient for everyone.

Streamline the Process – Through non-profits, volunteers come and go on a frequent basis. Creating a streamlined bookkeeping process makes it easy for people to learn as soon as they come in and keeps the machine well-oiled and running smoothly. Create a guide for new volunteers to follow and be sure to review documents twice a year to ensure the bookkeeping is clear and concise.

These bookkeeping tips for non-profits are crucial in making sure the finances are in order at all times. Staying organised and simplifying the process are just two important components in the success of any non-profit.

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

15/12/2014

Budgeting with Xero

Budgeting with Xero

In any situation dealing with finances, budgeting is very important. It keeps spending in control and helps business owners allot a certain amount of money for necessities and expanding the business through hiring, services or supplies. Budgeting with Xero – or any number of accounting software programs – will help you stay on track and organized when it comes to your sales, spending and profits.

Budgets don’t have to be overly complicated, either. They can be as simple as you need them to be – such as managing income, cost of sales or goods and gross profit. Xero is a powerful tool when it comes to budgeting and can provide business owners with various tools and reports that keep the entire team aware of financial standing. Xero, for example, makes budgeting even easier. Business owners can choose to input financial information into Xero directly or choose to export Xero reports onto an alternative template, such as through Google Docs or Excel. This versatility allows business owners to create and manage budgets on any platform that makes them feel most comfortable.

There are also advanced settings to utilize when budgeting with Xero. Options allow you to create a range of budget scenarios so you can see how your budget is affected should you decide to be a bit tighter with spending or want to see where your budget will be in an optimistic setting. Creating different style budgets will help you see business performances easier and allow you to make adjustments accordingly.

A business can’t survive without some type of budget in place – whether you do it the old fashioned way on a piece of paper or look toward a quality accounting software program like Xero. Budgeting with Xero brings all the information to your fingertips so you can see exactly where your money is going!

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

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!

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 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!

 

06/10/2014

Bookkeeping for Cafes

bookkeeping for cafes

Keeping track of finances is a struggle for many small businesses, but the hustle and bustle of a busy café can be even more overwhelming for managers and owners. Accounts are often created and taken care of on a quicker schedule – not to mention the constant transactions from customers, purchasing fresh food and supplies, and tracking employee hours over countless shifts are important factors of running the café smoothly. While bookkeeping for cafes may take a bit more attention, that doesn’t mean it has to be harder!

Choosing the right software is a crucial first step to making bookkeeping for cafes easier to handle and helps you stay on track each day. Xero is an ideal software programme for a variety of reasons, one of the most important being ease of use when you’re on the go. You can scan and send invoices, manage receipts, reconcile the payroll and run any necessary reports in a matter of minutes. Time is precious when running a busy café – don’t waste time by tracking all of these features manually! Any type of point of sale software you choose should integrate with the accounting software.

Another important tip in bookkeeping for cafes is to separate all the cash purchases from other purchases made at the establishment. At the end of the month, you can enter these cash purchases into the accounting system – doing it this way will eliminate confusion and reduce the chance of double entry. Using a software programme also ensures that you don’t overstate your GST on fresh food – keeping clear records throughout the month will make filing taxes that much easier!

Finally, running successful bookkeeping for cafes also means finding an easy, simple system for tracking employee hours. It’s important to stay organized for the sake of the business and your employees – you don’t want to spend unnecessary money overbooking your staff or being short on hands during peak hours.

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