Managing both the job site and bookkeeping for tradesmen can be a real challenge. Tradies have spent a lot of time skilling up in their profession with many being masters of their trade. However, one of the items which is never taught is how to manage your own bookkeeping and how to keep on top of paperwork.
When we speak to our tradie clients, they always say there is never a simple job and managing these jobs can become a nightmare without the right tools. There are labour components, materials purchased, and tasks contracted out, all of which get invoiced at different time frames. Add to the mix: job setbacks, contract retainers, design changes and bad weather and you have a perfect storm.
It is guaranteed that the tradie will complete the job, however knowing whether you made money and more importantly getting paid is not that definite. We believe, as you get busier with work you need to work smarter and not harder. Too often we have heard instances where invoices have not been raised and business owners fall behind in their paperwork as it is not a priority.
Here are some quick tips we have found work well in helping tradies;
Get yourself some help
Although you are a master at your trade, paperwork and finances may not be it. Tradies are excellent at what they do and should be spending most of their time excelling at that, as a result get some help with your back end work. Whether its through engaging a Virtual Assistant (VA) or Bookkeeper it will free up time to book in more paying clients.
Your need to remember that the time you spend doing your bookkeeping is either time you could be charging out or in some cases time you should be recharging your batteries ready for the next day.
Manage your jobs
Assign each unique job with a job number. Train your employees and contractors to use the appropriate job number when they purchase materials or invoice out their time. This information should then be brought across to your accounting application allowing to understand how each job has performed.
With latest job management applications this is all automated for you. Setting up these applications allows you to have common pricing for tasks and build work orders. More importantly you can then assign these to your employee or contractors including location and job priorities based on GPS routing.
Contactors can then complete jobs as they are done via taking photos and / or client signatures and most importantly take payment directly on their smart device from the client, removing the need to chase unpaid invoices.
The better applications then automatically integrate all the information into your accounting software allowing for revenue and costings to be itemised, and you knowing immediately the performance of your business.
Managing of Supplier Invoices & Paperwork
When paperwork gets out-of-control it is difficult to recover and makes it seem like you are drowning in paper. Create simple paperwork habits to stay on top of your bookwork. Keep a folder in the car to put all purchase dockets, invoices and receipts into. Train staff to collect and pass on paperwork when purchasing materials. Keep all fuel receipts in the car glove box. Enter all purchases into your accounting software on a regular basis. A positive routine will help you stay in control of your paperwork.
Want to work smarter and not harder; with latest third-party integrated applications, you can send or take photos of invoices and receipts which integrate directly into your accounting application. This information is digitised allowing for owners to quickly understand what they owe and when it is due. Can you imagine picking up some product from your local hardware store, taking a photo and bang it’s in your accounting software ready to be paid.
These applications not only integrate the data but a copy of the image, so if you ever want to know what each product cost you for a particular job six months down the track, a copy of the receipt is there for your viewing.
Got an account with a supplier? Not an issue, integrate your online login you have with the supplier with the third-party software and the invoices will be fetched automatically. No need to even take a photo.
How easy is that!
This will then streamline the business’s statutory reporting requirements especially where supplier invoices are GST taxable, free or a combination. Introduction of key third party applications which read and interpret invoices, ensures you don’t overstate your GST obligations and remove potential duplicates. Too often we have seen owners overstate their GST due to manual capturing of information.
Paper was so 2019!
Time is precious when running a busy business – don’t waste time by tracking all these features manually!
Want to know more about how to work Smarter and not Harder! Give us a call, we offer free initial consultation and specialise in helping business owners spend more time in their business making money, feel free to contact us.
Keeping track of finances is a struggle for many small businesses, but the hustle and bustle of a busy café or restaurant can be even more overwhelming for managers and owners. Constant challenges of juggling staff and their shifts and rosters, suppliers, cashflow and produce requires great time and task management not to mention the fine art of multi-tasking. Often items are taken care of in the spur of the moment, based on what is critical at that moment; a supplier who won’t supply any more products, an employee who needs to change availability and so it goes on….. While bookkeeping for cafes may take a bit more attention, that doesn’t mean it has to be harder!
Let’s not forget, unfortunately businesses in hospitality have the highest percentage of failure, due to poor record keeping. Without timely information, this does not give owners valuable insights to make the right decisions. As a result, with little to no data, decisions are made on emotions.
Choosing the right software is a crucial first step to making bookkeeping for cafes and restaurants easier to handle and helps you stay on track each day. Xero ticks many of the boxes we see that owners of cafés and restaurants require. Everything from managing their daily cashflow, supplier payments to integration of key third party applications to manage shifts and rosters.
Managing of Supplier Invoices
With latest third-party integrated applications you can send or take photos of invoices and receipts which integrate directly into your accounting application. This information is digitised allowing for owners to quickly understand what they owe and when it is due. This removes the embarrassing situation when suppliers won’t supply more stock due to unpaid invoices. We all know, no stock means no sales.
Statutory reporting for cafés and restaurants can also become an issue with many supplier invoices being GST taxable, free or a combination. Introduction of key third party applications which read and interpret invoices, ensures you don’t overstate your GST obligations and remove potential duplicates. Too often we have seen owners overstate their GST due to manual capturing of information.
Paper was so 2019!
Managing staff in any business can be challenging, however add the issues of shifts, rosters and awards and this adds a whole lot of complexity. Most accounting applications such as Xero provide payroll components which are suitable to manage staff, however where this does not suffice, third party applications exist which allow owners to manage rosters, capture hours worked (including time of the day) which is then subsequently compared to awards, making the paying of employees a whole lot easier.
It’s important to stay organised for the sake of your business and your employees – you don’t want to spend unnecessary money overbooking your staff or being short on hands during peak hours.
Selling to Customers
Once you have managed your supplier invoices and rostering of employees you need to remember the main objective as to why you got into business; selling to customers. Having the right tools to capture customer orders and sales is pivotal in understanding the success of a menu and customer satisfaction.
Add to this the different ways of selling a meal from client facing to delivery via Uber or Deliveroo, it is important to segment how sales are made. Point-Of-Sale (POS) applications take the hassle out of managing menus and pricing, orders and segmentation. With easy setup and user interaction it allows for business owners to understand what works, what makes money, and more importantly, what makes the customer happy.
Time is precious when running a busy business – don’t waste time by tracking all of these features manually!
New technology is around us all the time – from doing banking on a smartphone to checking email on a watch, but have you ever thought to integrate new technology into your business? Taking that leap from the traditional way of doing things can be a little scary at first, but in the long run it’s often easier and more helpful for managing a business efficiently. There are plenty of benefits of using online accounting, let’s take a look at some of them now:
Cloud-based accounting software offers so many benefits and really makes owning a business a little less stressful. Software options such as Xero imports bank information directly, making it even more accurate and easy to use!
Any business that deals with inventory is going to love the new update in Xero – inventory management! No more trying to track what you have in stock manually or waiting until the end of the month to see where you stand in terms of goods, the new update in Xero gives you a real-time look at what products are selling…and which ones aren’t. The easy to use program also provides business owners with a variety of customising options to suit the needs of any industry.
What else can you look forward to with the new inventory management update in Xero? Let’s take a look:
Any business working with an ever-changing inventory will thoroughly appreciate the newest update in Xero. The inventory management feature in Xero provides essential tools to any business owner – tracking profitability and quantity is sure to speed up how you do business! Take a look at this video to find out more about this innovative programme:
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:
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!
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 http://findviagra.com/generic-viagra-advantages/ 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!
Small and medium-sized businesses always need to keep track of invoicing and expenses, but doing it the old fashioned way is often time consuming and leaves room for error. Xero’s cloud-based accounting software makes bookkeeping and bank reconciliation easy to manage; however, there are a few tips for using Xero that are always recommended to create an ideal experience.
Xero offers such features as:
Here are some crucial tips for using Xero that you will want to do before getting started, such as:
Xero is designed to make life a bit easier when it comes to managing the finances and books for a small or medium-sized business. Implement these tips for using Xero into your routine so you have a great initial experience with the program. Need additional help setting up? Galaxi Bookkeeping can ensure a stress-free transition into the new program.
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:
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.
Yesterday, Xero made some fundamental changes to the was we reconcile payroll. Users have been asking for a change for over 12 months. There is a sense of relief among the Xero community that this update has been made.
The main change is that you no longer need to create the draft bill to reconcile payroll. The draft bill was the annoying step that need to be completed so that wage https://onhealthy.net/product-category/alcoholism/ payments could be reconciled. The reason for the draft bill was to create the vital journal entries for your Profit & Loss and Balance Sheet. With this new payroll update Xero now automatically integrates these journal entries into the Post Pay Run step.
When you need to reconcile your wage payments you just post it to the new Wages Payable – Payroll account. You can even create a bank rule to say time.
Xero have created this fantastic video on the changes to payroll that you can watch below.
The other part of the payroll update is ‘Notes’. This provide users with the ability to store comments & information for employees. Notes could be used to store important conversations or emergency details. All notes are time and date stamped and have restricted viewing by payroll administrators. An update down the track will be the ability to upload important documents as well.
Cloud based programs allow users access to the program on any device, any where. It’s no different with Xero.
You can access your financial data where ever you go. Using the iPhone or Android app you can create invoices and email them to clients. Using your laptop or tablet you can check your cash-flow or complete a pay-run. Your bookkeeper or accountant can also login and complete you financial reports and lodge your BAS. All without installing any software or sharing files.
No longer do your accounts need to be living in the past. With live Bank-feeds, Xero allows you to have up-to-date data at your finger tips. Allowing you to make smarter, more informed decisions.
Xero is priced using a monthly fee according to your business size and needs. You never get charged for new updates or functions. There are no long term contracts and no contract cancelation fees.
Fixed priced means you have peace of mind of knowing your monthly bookkeeping bill including your Xero subscription in advance. No bill shocks guaranteed. If you would like to get a quote to meet your ongoing bookkeeping needs please do not hesitate to contact us.