19/02/2020

6 Reasons Why Your Business Needs a Bookkeeper!

When speaking to new clients we always get a consistent question; I am unsure if I need a bookkeeper for my business? In many cases we have found if a client is questioning whether there is a need, more than likely they should investigate getting one.

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).

There is sometimes false economies that a bookkeeper will cost your business money but what many business owners forget to do is cost themselves doing the work themselves. How many of us are guilty of spending countless weeknights and weekends catching up on paperwork or even doing the work during the day when we could be using this critical time to build our business, make sales and actually do what we’re trained to do (and outsource the rest).

There are numerous reasons your business could benefit from a bookkeeper but I’ve narrowed it down to the top six for you:

  1. Keeping a good and up to date set of accounts is essential for business understanding. On many occasions we have found business owners do not know how much they are owed, how much they owe or upcoming statutory obligations. Avoiding the “surprise” factor goes a long way towards reducing financial stress. Not having up -to-date accounts does not allow them to report on cashflow and profitability correctly and this could have more serious ramifications.
  2. Focus on running your core business and not accounting for it. We have lost count of how many business owners spend their nights and weekends catching up on paperwork. Do you what you do best and run your business. The right bookkeeper will give you your time back.
  3. Save money by ensuring it is done right the first time. This is critical when considering the number of statutory obligations small businesses are asked to track monthly, quarterly and annually. Many business owners are not familiar with all the different tax codes, government regulations and payroll set ups like STP. In some instances we have known of businesses being penalised for lodging incorrect information
  4. Get unbiased, professional advice. We all know we love what we do, and believe our business is the best, but sometimes it is great to have another pair of ears which can provide an unbiased view of the world. It never hurts to ask the question don’t you think…?
  5. Keep up to date with the latest trends, accounting requirements and applications. It would seem there is a change at every corner, whether it is introduction of new legislative processes or changes to the way we lodge, we are never at a standstill. Partnering with a bookkeeper who is across these things will give you peace of mind and allow you to get on with your business.
  6. Get advice on how to streamline your business. With the ever-changing digital landscape, there are new applications being released daily to streamline and automate your business world. Bookkeepers like ourselves are across all of these latest trends.

If you have come to the realisation that your business may benefit from having someone help with your bookkeeping, make sure you partner with the right firm.

There are many providers of bookkeeping services out there but it essential to ask the right questions before selecting one for your 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
  • Ask for referrals from other business owners or check out client testimonials. Do not hesitate to ask them if they have experience in your industry
  • Be direct, ask them how they can add value to your business
  • Are they local and available or is the processing being completed overseas?

Like many industries, you need to remember you get what you pay for and your bookkeeping partner should be aligned to your business.

At Galaxi Bookkeeping we pride ourselves in the level of service we provide to all our clients and are always available to answer and add value. We have a resident CPA member who oversees all the work and ensures books are kept up to date. Furthermore, our experience across many industries allows us ensure that you, as the client, gets the right information the first time around.

If you believe you would benefit from partnering with us, contact us  or visit us on Facebook and lets see how we can add value to your business.

25/01/2020

Proactive Debt Management & Reducing Overdue Debt Hangover

overdue-bill

As a small business owner, there’s nothing worse than having overdue accounts – funds you could be using to enhance sales, replenish inventory or simply make necessary payments to your own suppliers.

Overdue debt is that fragile relationship between wanting to get paid and not wanting to upset the customer that may put a strain on future work. Having the right process and understanding is key to ensuring that overdue debt does not get out of hand.

While there are always going to be those select invoices that take a bit longer than usual to complete, it should be the goal of any small business to reduce overdue accounts. Overdue debt cannot be avoided sometimes however there are ways of achieving success without being overbearing or rude, in fact, there are quite a few proactive solutions that will help reduce the chance of debt becoming overdue.

Understand your Prospects

Guess what!! There is such a thing as a bad customer. When quoting a prospective client do your due diligence on who they are and the reputation they have in the marketplace. This will give you a first glance of any potential issues you may have in the future, if red flags pop up don’t be surprised if you take on the risk and the debt become overdue.

If red flags do appear, we suggest to;

  1. Walk away – sometimes the risk is to high for the reward
  2. If you proceed, ensure you price your services accordingly and take into consideration the potential cashflow impact the overdue debt will have on your business
  3. Ask for deposits – there is nothing wrong in asking for a deposit until you have created a positive payment repour with your client

Letter Of Engagement

Having a clear understanding between you and your client is nothing new, create a Letter of Engagement for your business which outlines clearly what each parties’ expectations is. This is critical if you operate a business which is based on retention of continuous work.

This will become quite useful if you ever run into a client who won’t or is slow in paying their bills. Furthermore, this becomes a golden document in the unfortunate event of having to escalate and go to court. Where you sell products or one-off engagements, Letter of Engagements are still considered useful but ensure that payment terms and method of payment are clear on the invoice.

The Letter of Engagement should contain key information such as;

  • The services you will provide
  • Any commencement and end dates to the agreement
  • How much will be charged, frequency and payment terms (i.e. 14 days from invoice)
  • How each party can terminate the agreement
  • What the steps would be if invoices remain unpaid past their due date

Policies

Another way to reduce overdue accounts is to understand what risks you are happy to take and more importantly ensure everyone in your business is on the same page. This can be done by writing a clear and concise credit policy that highlights your terms and conditions. The policy should contain information such as general payment terms offered, process of escalation and reminders and timeline of steps taken before it’s turned over to a collection agency.

Don’t forget to review these policies periodically to ensure they remain current and cover trends in the economy and payments from clients.

Automate

Most accounting software now come with functionality which allows you to setup reminder letters and monthly statements. This allows your clients to keep track of what is due and give them a friendly reminder when something may have been missed.

We operate in a world where many businesses get hundred of emails and notifications each day, and sometimes even with best intentions your invoice may go missing or fall part of the dreaded spam. Sending a friendly reminder allows the client to be aware that payment of an invoice was missed. What is even better, is that clients can also be excluded from the process in most cases so you can manage who gets what and when.

If your business is unique there are always third-party providers which integrate to you accounting software which allows you not only to manage your debt but also integrate with payment platforms.

Contact us if you need assistance in setting this up in your business.

Review

As a business owner, you also need to stay on top of outstanding debts to reduce overdue accounts. Nothing is still better than this, run your reports or setup your accounting software with the right information on the dashboard.

Do not be afraid to pick up the phone and have that friendly discussion with your client as to why an invoice may be outstanding. This will allow you to quickly identify what steps you need to take to get the invoice paid.

While it’s frustrating to deal with slow-paying clients, reduce overdue accounts by implementing your own unique solutions and create clear guidelines as to what you expect from those working with you!

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

20/07/2015

Benefits of Using Online Accounting

using online accounting

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:

  • Increased security – Think about all that paper floating around the office – private information and data that someone can access if it falls into the wrong hands. Suppose there’s a natural disaster or a break-in at the business? That information isn’t safe and there’s no way to get it back once the files are damaged. Using online accounting means you can access those important files anytime, anywhere.
  • Savings is increased – Imagine if you didn’t https://zolpidemsleep.com/ambien-faq/ have to buy massive amounts of paper, printer ink or deal with storage costs when it comes to holding onto files. Saves a tidy bundle, right? Online accounting software if very affordable and streamlines the entire process for you. What could you possibly do with that savings and extra office space?
  • Very convenient – When you’re running a business, the last thing you want to do is spend time looking for invoices or receipts when the accountant needs them. Using a cloud-based online accounting program like Xero means your accountant can access the files he or she needs at any time – allowing both of you to do your job efficiently.

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!

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