Call us today on 0412 112 716

The city of Perth is rapidly expanding, and is now home to two million people. Business is booming for Perth enterprises both large and small. For the average business in Perth there is so much to do to keep up with the needs of clients that anyone could be forgiven for putting their receipts aside to deal with later – otherwise known as the ‘shoebox technique’. However, the time comes when the inevitable paperwork needs to be dealt with, and then the services of a certified bookkeeper specialising in catch-up are invaluable.

Even if you have kept all records up to date, employing a bookkeeper will free up your time for running the business itself. Outsourcing administrative activities such as payroll processing, BAS statements, reconciliations, budgets and accounts can be a great relief.

When hiring a bookkeeper in Perth, the following questions can help you ensure you find a bookkeeper who provides the quality of service that you expect and deserve.

1.What is their professional background and their level of experience? Find out whether they have been bookkeeping in the Perth economy for a long time. Ask whether they have references and what kinds of jobs they have taken in the past.

2.Do they have adequate insurance? Personal indemnity insurance is essential.

3.Are they registered and do they hold the relevant qualifications? Bookkeepers in Perth and elsewhere in Australia are now required to be registered with the Tax Practitioner’s Board (TPB). Registered bookkeepers are required to keep their professional education up to date. Any bookkeeper should have a Certificate IV in Financial services or a higher qualification.

4.Which member of the team will be performing the work? Will it always be the same staff member taking care of your needs, or will different tasks such as BAS and GST be taken care of by different team members?

5.Are they members of any Professional Associations? The associations relevant to bookkeepers in Perth are the Institute of Certified Bookkeepers (ICB) and the Australian Bookkeepers Network. Belonging to such organisations allows bookkeepers to access current information in their field.

6.What software packages do they use? Do they offer a choice in the software program used (eg. Both XERO and MYOB?).

7.Do they employ a registered BAS agent? If a bookkeeper is offering BAS assistance for a fee, they need to employ a BAS agent who has been professionally trained and registered.

Once you have covered these basics, have a detailed conversation about what you need them to do for you, and what it will be your responsibility to provide to them. Never be afraid to ask questions to confirm that you will get what you are paying for.

Any owner of a business that pays GST will be familiar with the BAS (Business Activity Statement). It is a form reporting all relevant business activity that will be due on a monthly, quarterly or annual basis. For the average person, it is a complex document that significantly adds to their workload for the year. In other words, a headache!

It can be an intimidating task to sort through the thousands of transactions and receipts accrued by your business each year, making sure that each one is accounted for correctly in the BAS statement. Furthermore there are financial penalties imposed by the government when a BAS form is submitted late or if the information supplied is incorrect or misleading.

Fortunately, BAS agents are available to help business owners who find this process daunting. A registration system for BAS agents has existed in Australia since 2009, ensuring the experience and skill of those offering BAS completion services. To register as a BAS agent, someone must:

  • Be established by the TPB (Tax Practitioners Board) as a ‘fit and proper person’, of good character and integrity.

  • Have been awarded a Certificate IV (or higher) in Financial Services (Accountancy) or (Bookkeeping) AND completed an approved course in GST or BAS taxation principles.

  • Have more than 1000 hours of relevant experience.

  • Be able to maintain Personal Indemnity insurance.

To remain registered, BAS Agents must also continue to build on their professional education with extra study adding up to at least 45 hours over a three year period.

As a business owner, employing a registered BAS agent is the smart thing to do for several reasons.

  • A BAS Agent can help you to get the best results — with their thorough knowledge of taxation law relating to GST and BAS statements, a BAS agent can make sure you get all the tax benefits that you are legally entitled to.

  • Employing a BAS Agent will help you avoid penalties — As long as the information in your books is complete and correct, a qualified BAS Agent will be able to complete the forms as required by the ATO. That means you won’t have any nagging worries about whether you will be fined for ticking Box 1 when you should have ticked Box 2.

  • Extended time periods for BAS lodgement through an agent — For those who have too many things to do and too little time, it is reassuring to know that if you employ the services of a registered BAS agent you may qualify for a time extension to lodge and pay.

By employing a registered BAS agent you can be confident that your business finances are in good hands, leaving you free to focus on the things that are really important to you.

It’s always risky with finances. There are constant up and downs, some goals missed and

other’s achieved, cash flows and profits, to be dealt with etc. Keeping all that information in your head is risky. You forget things!

You can manage long term goals, seasonal ups and downs, cash flows, and track your profit with good bookkeeping. A business owner needs accurate bookkeeping systems, these provide the necessary information to government by providing agencies with accurately recorded financial transactions.

Here are 5 tips for bookkeeping:

Plan your big Expenses: Expenses are uninvited guests. It is possible to miss business opportunities because of unplanned for big expenses. A loan is the option left with you. Why go for a loan when you can plan your expenses?

  • For instance if you are planning a major software upgrade, put it on calendar list in advance. Plan any major expenditure in advance.

  • Seasonal ups and downs do occur, and it is important to be aware of the income changes

  • during your financial year. Always be mindful of these income changes. 75% of entrepreneurs are reluctant to address and plan for them.

  • Avoid spending money during the prime periods. You will need in slower periods.

Expense Tracking:

  • Always track and record expenses. It is better than missing out on write-offs (Tax).

  • Track credit card spending it is useful as part of an accounting system.

  • Credit card statements lists expenses according to the categories.

  • Use a business credit card for expenses. This avoids use of cash and the chance of losing receipts.

  • List events like lunches, business trips, coffee dates etc. in your planner. This habit helps you save on tax during audits.

Keep a Record of Deposits:

Why pay taxes on money, if it isn’t your income?

  • Keep your financial transactions straight. Adopt a system by maintaining a bookkeeping software system or an expenditure and income ledger.

  • Keep a record of deposits into your bank account throughout the year. This way you are likely to record some deposits as income.

  • Set aside and save a portion of income to pay your tax: Pay tax returns on time. Get off the ATO radar.

  • Save and deposit a portion of finances for taxes.

  • Take note of the tax deadlines, to ensure you make timely payments.

  • Take care of unpaid payroll taxes.

Watch your Invoices:

  • Why hurt your cash flow with unpaid and late bills, when you can plan and pay them on time.

  • Hire a bookkeeper to keep track of your billing.

  • Issue second invoices, call and if the invoice is not cleared on time, impose penalties.

  • Always plan for the possibility of financial uncertainties.

 

Conclusion:

Follow and develop these habits for smooth finances and a successful business.

Bookkeeping is viewed by many as the fundamental task of any business, whether small, start up or large corporation.

Bookkeeping and its importance

  • bookkeeping-is the heart of the financial well-being of any business

  • bookkeeping-entails keeping the day to day financial records of the business up to date, accurate and accessible.

  • bookkeeping–follows precise rules and demands high levels of accuracy carried out on a daily basis. This involves keeping a ‘day book’ which records financial transactions, also balancing account books.

  • bookkeeping involves the various ledgers pertaining to the business such as the suppliers’, customers’ and general ledger. These ledgers are used to prepare a trial balance which in turn would be presented to the account.

  • bookkeeping–involves keeping up with all regulatory changes that will in any way affect the business.

A good bookkeeper is a valued asset to any company, for this reason most companies large or small Endeavour to employ a bookkeeper who is experienced. Unfortunately most small companies or businesses in a start up phase usually do not have the financial liquidity to employ bookkeepers or accountants at this level. Therefore, it makes good financial sense to contract a bookkeeper and or accountant from a professional accounting company.

Benefits of outsourcing Bookkeeping and Accounting

  • the startup or small company will have access to a wide pool of knowledge if using outsourcing for accounting or bookkeeping

  • overall employing a bookkeeper or accountant through outsourcing will be financially more beneficial as the outsourcing company will have to all the latest technology used in the analysis of financial information

  • the bookkeeper or accountant will be able to provide experienced advice which is valuable whether you have a small company, are an entrepreneur or a large company with a vision to grow.

  • outsourcing your bookkeeping to a professional accounting company provides a greater level of transparency which is vital when your company’s accounts are audited.

  • Accurate and precise bookkeeping and accounting can make or break a business therefore it is important to seek out the most effective and efficient method of ‘keeping your books’ and when weighed against all the current options outsourcing rates highly when compared against other methods.

Bookkeeping is a highly complex and significant task, especially as far as the proper and effective functioning of a business is concerned.

It is only when the financial requirements of a business are carried out with the utmost care and responsibility that the company concerned will be able to achieve its set goals.

What to look for in outsourcing your needs:

 

  • in outsourcing your bookkeeping needs it is important to be well aware of what your needs are and can the company you select fulfill those needs

  • the outsourcing company needs to understand your business and its sectors

  • there is little point in outsourcing your bookkeeping needs to a company which generally works with Formula One racing cars, if your business is gift baskets.

However there are significant advantages to have your bookkeeping needs outsourced.

Why should your company outsource its’ bookkeeping requirements?

5 advantages

  1. If you have a small company it is possible by using small business accounting programs such as Quicken or MYOB to keep your cash flow under control. This allows the basic financial requirements of the business to be taken care of, which is imperative if the business is going to grow. However, it may also mean that an employee might have to be designated specifically to finance. If the company is small it will be operating on a tight budget which may not have much leeway for growth.
  2. However, if the bookkeeping is outsourced and that employee replaced by another who can concentrate on the growth of the business, it makes good financial sense.
  3. The bookkeeping business to whom your financials are outsourced will have the necessary expertise to efficiently report back to your company, thus allowing your business to concentrate on growth. These expert bookkeepers will have all the necessary up to date technological aids to assist in their prompt financial advice to you. As well they will have knowledge of any legislative changes that may affect your business from state and central government. As a result of employing a professional bookkeeping business, your company books will be under the purview of qualified accountants as well as bookkeepers as this is the business expertise they are selling to you.
  4. By outsourcing your business financials to a competent bookkeeping company your business is creating a stable niche for growth. It gives your business the opportunity to use the market expertise of the bookkeeping company you are using. Such outsourcing will also assist in the future growth of your company as it will be in the best interests for the bookkeeping company to assist in your profitable growth.
  5. By outsourcing your business financials you are will be able to tap into the higher level accounting reports and analysis which will be significant when your business is preparing its annual budget and considering how to grow the business in its business plan.
  6. It is important to have independent financial reporting as this individual can analyze your financial results from a more objective view than someone who is in house, especially if it is a small family business

We generally classify all types of commercial activities under the broad band of ‘businesses’. However, there is a wide difference between small to medium businesses and large to giant businesses; all of these categories need bookkeeping services to assist in the financial wellbeing of the company they work for. It is known that competent professional bookkeeping services will underpin the success of a business especially a business in start up mode. .An established business requires competent bookkeeping services to assist in future targeted growth. As all small businesses will be working with tightly controlled budgets, efficient bookkeeping services are essential to monitor that the budget is being closely followed by business operations. As well it is essential that the bookkeeping services constantly review and forecast the financial health of the company either large or small.

Functions of bookkeeping services

  • Pay roll processing

  • Accounts processing

  • PAYG and superannuation compliance

  • Payroll tax calculations and reconciliation

  • Month end reconciliations

  • Monthly Installment Activity Statements

  • PAYG Installment Activity Statements

  • Month end reporting

  • BAS preparation

  • Budgets and budget reporting

Each sector identified in the list above is extremely significant and important to the good financial management of a business. If each sector is well managed and applied to the company by the contracted bookkeeping services, there will be a positive outcome for the company and its clients. It is therefore important to be very aware of the bookkeeping services a company requires before contracting outside of bookkeeping services......

Some points to consider:

  • The professional bookkeeping company must be able to demonstrate their ability to establish an appropriate accounting system to meet and serve the needs of the contracting organization. Also, that they have the capacity to maintain and grow the accounting system in tandem with the contracting business.

  • The professional bookkeeping company must be able to prove their reliability and have a good reputation supported by current and previous clients.

  • The professional bookkeeping company must ensure they are able to keep their client company within the agreed parameters of the budget. The relationship must be one of trust, openness and transparency.

  • The client company must be able to have full confidence that the professional bookkeeping company is fully competent in the protection of company confidential information which if made public would be extremely damaging to the client company. This is an important factor regardless of whether the company is small or multinational.

Bookkeeping services include vendor payables, customer billings, collections, payroll processing and bank account reconciliations. It actually helps in maintaining accurate financial statements. There are many business organisations who fail to understand its importance and later, face issues maintaining their financial records.

So do you want to keep a track of business transactions? If yes, find a reputable provider of bookkeeping services. They can help you in keeping records for all your financial transactions, including purchases, sales, receipts and payments in a systematic way.

Some company owners consider bookkeeping and accounting as the same thing. This thinking is prevalent as bookkeeping is a part of accounting process, but it’s not the same. And at the end of a financial year, an accountant creates the final reports after considering the bookkeeping records.

At Numerus Business Services, we ensure accurate, up-to-date and comprehensive bookkeeping services. We provide the following bookkeeping alternatives:

  • Onsite/offsite bookkeeping - MYOB and XERO

  • Online bookkeeping - MYOB LiveAccounts and XERO

XERO bookkeeping uses powerful tools for CRM, timesheets, inventory and job management, which helps manage all the aspects of your business. It makes possible data entry on time and finds any errors according to the financial standards by connecting accounting and banking in the cloud.

Accounts processing, payroll processing, PAYG and superannuation compliance, BAS preparation, end of year journals and rollovers, monthly and PAYG instalment activity statements, etc are some of the online or onsite bookkeeping services provided by us. With these services, you can even connect your bank accounts and share your business numbers with the accountant at anytime. With XERO bookkeeping, handling payroll details becomes easy. You can focus on your business while your bookkeeper manages the financial issues.

A bookkeeping service also helps in your annual tax returns. It combines all the financial services for creating a neat document for annual tax filing procedures. You can even resolve financial conflicts that can occur among business partners. Bookkeeping helps in allocating the money in a more concrete way and avoids such adverse situations.

Blog Categories

Follow us on facebook Follow us on twitter Follow us on linkedin