Managing both the job site and bookkeeping for tradesmen can be a real challenge. This is mainly because most jobs aren’t straight forward. 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. Not only can the job site be difficult, the bookkeeping for tradesmen can also be complex and seem out-of-control. Here are three ways that can help tradesman stay on top of their bookkeeping and simplify their paperwork.
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. Assign the correct job number to purchases and contractors when you enter them into your accounting software. Always enter your employees time sheets into your accounting software with their hours assigned to the job numbers they have worked on during the pay week. When it is time to bill your clients, simply pull a report on each job number. This will give you the costs for that job. All you need to do is calculate your mark up rate and invoice your client.
When paperwork gets out-of-control it can be a pain in the neck. 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. Encourage staff to enter time sheets before pay-day. 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.
Job costing software simplifies bookkeeping for tradesmen by speeding up job invoicing. A great example of job costing software is WorkflowMax. WorkflowMax tracks purchases and time on each job completed. Staff can enter their time they have spent on each job via their smart phone. When you are ready to invoice your clients, WorflowMax will calculate your set mark-up rates for purchases and time spent on the job. It has an extensive lead and quote management system and is cloud-based meaning no software or backups required. WorkflowMax also link perfectly into Xero Accounting Software. All purchases, time sheets and invoices entered into WorkflowMax will be automatically pushed over to Xero, ready to be reconciled.
By implementing these ideas, bookkeeping for tradesmen will be simplified and manageable. If you would like to simplify your bookkeeping, feel free to contact us today for a complementary assessment of your bookkeeping needs.
Clear your desk and simplify your life with paperless bookkeeping. Imagine not having the stress of paperwork in your small business. Wouldn’t it just make your life easier? It may sound far-fetched but paperless bookkeeping can actually be a way of life.
The introduction to cloud-based accounting software was the starting point to this life. Cloud-based accounting software uses automatic bank feeds. Bank feeds automatically import all of your bank account transactions. No need to print off statements or have them mailed to you. No need to manually enter bank data. Xero is one of more popular cloud-based accounting software products available. It has access to hundreds of banks, credit card facilities, PayPal and over 160 foreign currencies. Not only do bank-feed reduce the time you spend on your books. They eliminate your need of paper bank statements and start you on the journey to complete paperless bookkeeping.
Shoeboxed is a Sydney-based company that scans and organises your receipts, invoices and other documents securely online. Simply send (post or email) all your paperwork into Shoeboxed. Shoeboxed will then https://xanaxcost.com/anxiety-medication-xanax/ extract the data (date, vendor, amount, GST, payment type) from the documents. They then upload and store them in your secure online account. You simply check that they have been allocated to the right account type with the correct GST codes and import them into your accounting software. They can either send all your documents back to you or you can request that they shred them. They will store all your electronic copies online where you will always access them. Shoeboxed will even help you if you ever get audited by providing the Australian Taxation Office with access to your documents.
Cloud-based accounting and Shoxboxed will give you a strong start on your journey to paperless bookkeeping. They will help you simplify your bookkeeping and reduce your stress levels. If you would like to find out even more ways your small business can do paperless bookkeeping, please contact us. At Prestige Bookkeeping Solutions, we pride ourselves on providing bookkeeping innovation and efficiency for all our clients. Check out our bookkeeping services for more detail on how we can solve your bookkeeping needs.
Dealing with petty cash in Xero is simple. There are plenty of different ways to deal with petty cash in your small business. Firstly, it must be clear when it comes to petty cash there are general rules and outcomes that never change:
There are two main ways to manage petty cash in xero, depending on whether you have employees or are an owner operator.
It’s that simple, no more annoying receipts and headaches.
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).
Step 2: Check that each employee’s specific pay components have been recorded correctly in payroll.
Step 3: Run the end of year payroll payment summaries.
Step 4: Send end of year payroll information to the ATO.