Monthly Archives: February 2019

How Outsourcing Payroll Saves Money

For businesses with more than a 150 employees’ payroll can take up a lot of internal time and resources for the accounts department. Making the decision to outsourcing payroll saves your business time, it’s most valuable asset. This extra time translates into more capacity to devote resources to high value business activities.

Save Time

Most businesses with an internal accounting team allocate some of their time to staff payroll. Estimating the amount of time it takes to process payroll for 150 staff members, it can take up to one full day of work minimum per week.

This is on top of the other duties of the accounts team focus on such as managing budgets, reporting and accounts payable/receivable. Outsourcing payroll makes sense as it is very competitively priced and can be less than a full day’s wage for a staff member. The decision to outsource clears potentially 52 days a year to create reports and other financial management tasks.

Security Controls

One of the concerns with outsourcing is ensuring tight data security with payroll records. All payroll services ensure industry standard are met with data security. Outsourcing of payroll also allows for separation of duty for the internal accounting staff, and for the confidentiality of employees’ salaries and employment benefits.

Grows With Your Business

Outsourced payroll services are very streamlined and flexible. This means if you hire lots of temporary staff or are in a high growth period you can rest easy while your records and compliance is maintained by a payroll service provider. It grows with your business. This flexibility allows for expansion or if needed contraction of your business.

Regulatory Compliance

There are hundreds of laws regulating payroll. Just keeping up with payroll compliance is time-consuming and requires regular education to ensure your business payroll is legally compliant. Payroll providers have access to the ATO and Fair Work systems, to keep on top of new amendments and changes to ensure your business is complaint.

Need Help?

We handle payroll accounts for businesses of many sizes. If you are wondering if this is a good option for you please get in touch by booking your free consultation here.

Why We Love Accounting (And You Should Too)

We know what you are thinking. The last thing most of us want to do is spend hours pouring over our finances. We are busy people, running our businesses and our lives. Can’t our finances just take care of themselves? The answer is no! Small business owners often dread the tedium of bookkeeping and accounting. But the reality is your bookkeeping and accounting is one of the most valuable management tools you have available to you.

Business Management thinker Peter Drucker is often quoted as saying that “you can’t manage what you can’t measure.” What he means is that is impossible to know whether you are successful unless your business goals and finances are well defined and tracked.

And that in a nutshell is what bookkeeping and accounting is all about. It is managing and measuring, so you can run a better business.

It helps you build and grow your business

If you don’t know what money is coming into and out of your business, it is very difficult to grow your business. Tracking and managing reports such as profit and loss statements can help you see exactly how much money you are making and spending every month. Without a firm understanding of where your money is going it is impossible to plan your budgets or control your spending when you need to. The key to growth and profit is spending less than you earn, and if you don’t know what you earn, budgeting is very difficult.

You learn to plan for the future 

Good financial planning equates to a solid business plan and if you have a concrete business plan, you have financial planning in place. These two processes go together, you can’t have one without the other.

Feeling confused? Think it about it this way.  If you have a goal to double your revenue this financial year you must understand where you are getting the most value with your clients. Understanding which clients generate the most revenue and then acquiring more like them is key to your growth. You must focus on the highest value clients to bring in more money. Your business plan should reflect goals such as were to find them, what to charge and providing high value services to these clients. Plans like this ensure you are working with the right types of clients to grow your business.

Know your value

When you aren’t charging enough for your services it becomes obvious right away if you are paying attention to your books. Keeping track of things like wages, taxes, expenditures or overhead ensures you are aware at all times what you need to charge to cover your basic operating costs. If there are any changes in your outgoings you will know when it is time to increase your prices or look for places to reduce costs. This will never come as a surprise if you are keeping track of your in’s and out’s every month.

Pay for help

Always be sure to get the right advice at the right time. A good accountant is worth their weight in gold! Many people think of accounting as an expense, but a good accountant doesn’t save you money, they make you money. If you don’t have the time or interest to examine your books on a regular basis, now is the time to take that leap and start working with someone who will make that commitment for you.

While loving bookkeeping isn’t for everyone, there are many accountants who do love it and will happily help you. No great business is built in insolation. The appropriate help at the right time will take you from goal to goal!

Get in touch

If you have any questions about how we work with clients please get in touch. We offer free consultations to help you and your business grow! Book in today!