Author Archives: Megan Davis

Accountant looking at reports on computer

How To Donate Stock or Cash For Bush Fire Fundraisers

Many businesses have been doing what they can to help those in need during this terrible bush fire season. Retail and hospitality businesses are raising money from the sale of stock to the bush fire appeals. Others are donating stock directly to areas in need. This is a wonderful idea and if you are thinking of running your own fundraiser, we encourage you to do so.

First, make sure your donations are going to make an impact and be compliant with the ATO and your accounting system.

Fundraising For Organisations

The Rural Fire Services and other organisations have stated what they need most is money. Create an easy way for your customers to purchase goods as a fundraiser through your business.

Be sure to check out the websites of the RFS, CFA or any other organisation you want to raise money for to ensure you meet their requirements for fundraisers. If you have any questions it is best to contact them directly or download a fundraising kit from their site.

When you decide which organisation you would like to support state that clearly where your customers are making their purchases during the fundraising. For example, if you are a café and you are donating all coffee sales on a particular day to the Red Cross make sure it is well posted near the register so people know where their money is going.

Donating Stock

If you are going to donate stock directly to the people in need or who are fighting the fires be sure it is eligible as a donation first.

You can do this by checking with an accountant or by looking at the information provided on the ATO website.

It is important to note that donations for fundraisers need to be recorded and reported differently in Xero or any other accounting system you use.

Check With Your Accountant

We highly recommend your check with an accountant to ensure you set up your accounting system correctly to track your goods sold for fundraisers. It is important that this is accounted for in your stock tracking system, so you know the true cost of your donation.

If you use Xero our principle Accountant Parikshit Kikla has recorded the step by step process for reporting the donated stock, watch the short video here.

Happy Giving

We would like to encourage everyone to do what they can during this very sad time. If you have any questions about the information in this article please schedule a chat, we are always happy to help.


Why Manual Staff Rostering Is Costing You Time and Money

The hospitality industry has been reeling from issues such as underpaying staff and complying with industry regulations for employment contracts.

While many of the businesses that have been featured in the news are larger businesses and chains, this is an issue that affects all levels of the industry. At 360 Accounting we advise our clients on how to use cloud-based wages and staffing software to reduce time and stress in these important areas. Busy managers need to ensure that they are paying the correct wages as well as scheduling enough staff to make sure the business can be run properly. Many businesses use Excel spreadsheets to create a well-staffed roster and calculate that the correct wages are being paid. This leaves many businesses open to errors with not enough staff for a shift if the spreadsheet hasn’t been updated properly. It is also a problem when the wrong award wage has been applied to an employee on certain dates or times. This is a problem for many reasons, not to mention the time it takes a manager to fill out a spreadsheet.

With cloud-based systems that integrate with accounting software, it is a huge game-changer. This gives a business access to real-time data that doesn’t rely on manual input such as an excel spreadsheet, it creates greater efficacy and less room for error because the system updates all information automatically. 

Jarrod Briffa from Kinfolk Café worked with 360 Accounting to integrate Xero with his staffing and payroll management on Deputy. The changes to the business have provided a big impact in a very short amount of time.

“A lot of the previous rostering system was done through Excel spreadsheets, it was very manual and it required people to be constantly updating the spreadsheets. From time to time you would get mistakes, which would result in staff not turning up. The benefit of the Deputy integration is we have all of the information in real-time. We have about 40 staff across the organisation including our casuals, and now we can all have real-time access to the rosters. It means that we can reduce the number of errors, but also make sure our managers and staff have access to real-time information,” Jarrod explains.

This system simplifies the rostering and eliminates human error as well as ensuring that all staff is properly compensated with the award requirements.

“The reasons why we wanted to move towards Deputy was that the award rate can be built into the software”, said Jarrod. “This is something that a lot of hospitality businesses are challenged with, ensuring staff working varied hours across different times of the day and different days of the week are paid properly. With our previous manual system, it took a lot of time to manually record that information. The big benefit with Deputy is that the award is inbuilt into the system.”

In our work with clients, we have assisted many businesses to navigate the complex awards system. Many of the issues we see are mainly due to mistakes because the manual recording system takes a lot of time to update, and there is too much room for errors. We know that integrating with systems like Xero and Deputy gives back valuable time to the businesses to focus on important things like keeping their customers happy and spending time with staff to create an effective work culture.

“You can be confident that the award is applied to each staff member on a weekly basis regardless of the hours they work. It takes away a lot of the issues created by manual implementation and gives a lot of confidence to us that we were complying with the award,” Jarrod says.

The goal for hospitality businesses this time of year is to stay focused, productive and profitable the busy lead up to Christmas. We understand that most of the errors we see in underpayments are due to mistakes in manual systems. If you would like to learn more about how Deputy can work for you please get in touch. We are always happy to help and discuss options that would work for you.


stocktake, reduce food wastage

Increase Profits With Reduced Food Waste

For a food production business wastage can be a huge make or break factor for your business.

You must be sure to have enough stock to produce the expected demand that your customers require. And if you run out due to not making enough or having to throw out food because it has expired, the cost to the business can really add up.

So how do you manage to avoid this situation? By having a well-designed food inventory management system. Food inventory management is your system for tracking stock coming into your business, what leaves and what’s leftover. A good food inventory management system is also the most useful tool for gaining insight into the ways you may be losing money.

Reducing wastage is key to growing profits. The following are a few tips to get started on the right foot.

Perform Regular Stocktakes

Having a consistent stocktake system in place is one of the most important parts of a food inventory management system. Create a stocktaking schedule and stick with it. How often is up to you, but keep in mind the more often you take inventory, the better. The important thing is to have a system that takes into account the different types of stock you have and the different ways you use or sell it. 

Set A Reorder Point

Knowing the minimum limit you have on stock before you reorder will help you determine exactly when you need to place an order. A “par level” is the minimum amount of any item you can afford to have on hand to satisfy customer demand before ordering more. Once you hit that level, it’s time to place a purchase order. Knowing your reorder point or par level is essential for avoiding stockouts.

Efficient Product and Menu Design

It’s more economical to use one ingredient for multiple products or menu items than using one product for one item. For example, ordering strawberries for only one dish can become expensive if that dish isn’t a top seller. Instead, you could use strawberries to make a sauce, to garnish a dessert, and to flavor a cocktail.

Menu design goes hand in hand with effective food inventory management. The more you can reuse your products the lower your cost of operation.

Use Food Inventory Management Software

Instead of calculating everything by hand or complex excel based spreadsheets, you can invest in a food inventory management software that tracks it for you automatically.

A good software can automate purchase orders when you reach your reorder point, can report on stock expiry dates,  can implement batch to reduce spoilage, and can optimise your stock for long-term business growth.

Watch this recording from our founder PK as he introduces the use of Dear Systems for food-based businesses. 


If you have any questions about this video and would like to know more about this system for your business book a chat with PK here.


How To Grow A Small Business With Management Accounting

When most people think of management accounting they think of a ‘big’ or corporate business. However, management consulting is not just for the big end of town, it is important for all businesses.

At its core management accounting is a way to look strategically at all of a business’s financial decisions. Applying planning and analysis to your incomings and outgoings will transform your business from one operating in a reactive space, to a proactive one by setting up goals for the future.

Cost And Profit Analysis

One of the most valuable things that a management accountant does for their clients is understanding the relationship between your costs and how much profit you take away from them. While we all know you need to spend money to make money, if you are spending too much, your profit margins are only going to decrease over time.

Our founder PK shares some insights into this process in this short video. He looks at a fictional café to understand their profit for the month and where the money has come from.

Budgeting Analysis

A budget is key to understanding how much to spend and where. A management consultant helps you understand not only where to spend your money, but where it can work best for you. For example, if a café has a budget for cakes supplied externally and at the end of the week there is too much unsold cake, then a management account would look at decreasing the spend on the cake. They would look at moving that budget spend to other areas such as staffing or more profitable menu items to grow the business.

Inventory and Pricing Decisions

Your overheads and stock must be a sustainable level for growth. A management accountant understands the importance of inventory control and will help you apply inventory management techniques. It is important to establish and apply the appropriate approach for long-term pricing decisions. Your prices must be in line with what the market can sustain and also create enough profit to allow your business to grow.

Short-term and Long-term Decision Making

The decisions we make today help build our tomorrow. If we don’t know the future goals we are working towards, it is very difficult to make the decisions today that lead to that future.

This is where the management accountant truly provides value. They can help you set your business goals and vision for the future. And then outline the financial decisions that need to be made today to make that future come true.

Get In Touch

If you have any questions on how a management accountant can help your business, please do not hesitate to get in touch. We are always happy to help.

Book in a time here for a free chat!


20 And Under Employees? New Payroll Laws Apply To You!

“It has made everything smoother and easier and more transparent. And let’s face it, if you’re doing the right thing as most of us are, it is not an issue at all.”
Stuart Armstrong
, Velo Cycles, Carlton North

On July 1 2019, payroll reporting to the ATO became completely digital, for every business that employs at least one worker. The change has caused confusion for some, but more troubling many employers who must comply with the new law don’t even know about it.

According to News.com.au research by Intuit Australia found that half of businesses with 4 or fewer employees had not heard of STP.

Xero conducted its own survey and found that one in five small business owners don’t think STP applies to them.

Xero Australia national partner director Rob Stone said ATO figures suggested about 90,000 microbusinesses used no software at all when paying their staff.

STP affects around 700,000 small businesses, and they have until September 30 to start reporting using STP. With all of the new changes, small business owners should not worry. The one-touch payroll makes things simpler for employers to pay the proper amount of wages and super to their staff through digital systems.

Stuart Armstrong shared his thoughts, “It was all set up for me, it all just goes through Xero. With my daily job, it hasn’t affected me at all because of the support I received from 360 Accounting. What I would say to other business owners, it’s really not a big deal. Don’t worry.”

The ATO has published a list of no-cost and low-cost STP options for micro employers and would provide exemptions for some business owners.

Or it can be set up through an existing system like Xero or MYOB. If you haven’t been using a digital reporting system previously now would be the perfect time to set one up.

While it may seem like more government regulations hoops to jump through it will ultimately make sure that businesses are on top of their payroll, super and other tax obligations. This makes accessing the financial health of a business easier for the business owner, the ATO, and accountants.

If you have any questions on how these changes may affect you and your business, please do not hesitate to get in touch. We are always happy to help.

Book in a time here for a free chat!


Secrets Revealed: How Your Accountant Prepares Their Own Business For EOFY

Your accountant is there to support your business and help it grow. But how does your accountant prepare their own business for the end of financial year?

We will take you behind the curtain and reveal the tips and tricks that accountants use to get their business EOFY ready!

Plan For The Future

Accountants are not just interested in the bottom line; they strive to make business owners goals and dreams come true. They believe that with the right planning anything is possible.  They plan for the future and then set plans in motion to make them happen. And this means setting clear goals and plans to make those dreams come true.

Here are a few things to consider when setting your goals:

  • Specific – be clear about what you want to achieve, and go into detail about what that is
  • Measurable – make sure the goal can be measured, so you know if you’ve achieved your goal
  • Achievable – be realistic, is the goal something you have the time, money and resources to meet
  • Relevant – ensure your goal is relevant to the direction you want your business to head in, for example, increasing profit, employing more staff, increasing brand awareness
  • Timely – set a realistic deadline for completing the goal.

Make Sure Their Clients are Better off

An accountant will review not only their P & L’s (Profit and Loss Statements) but their clients as well to ensure that their businesses are growing and going in the right direction. When a business is growing it is more important than ever to understand where and how to invest their profits. Growth is expensive and it can make or break a business.

Some things to consider when planning for growth:

  • Primary objectives (PO) – What are your 2-3 highest priority objectives for growth? One of the things that derails growth is too many goals and objectives. Most business can only focus on a couple of initiatives at any give time. As we mentioned previously you need to set goals for the future, and then prioritise and only focus on your top 2 or 3 objectives.
  • Revenue streams (RS) – How can we create more streams of revenue? There are only three ways to grow: add more customers, increase the average transaction size, increase the number of purchases per customer. It is easier to sell more to existing customer than find new customers. How can you package or promote products or services together? What new markets or segments could you enter?
  • Strategic relationships (SR) – What relationships do we need to develop? This is often over looked by business owners who want growth. What marketing partners could be motivated to promote and co-market your business? What joint ventures would allow you to discover new work? What vendors or suppliers could help you grow?
  • Key indicators (KI) – What metrics impact our growth most? Most businesses know how much revenue they did last month and how much money they have in the bank. But by focusing on things like number of leads converted, business acquired via referral and the cost to acquire a new customer it helps you to know where to focus your energy. Knowing the path of least effort when acquiring new business allows you to take control of the things that actually impact your growth.

Ensure They Are Compliant

All accountants ensure that they are compliant at the end of the year. This means that all tax obligations have been met and they know what the owe to the ATO. This is something that is imperative when creating financial plans for the next year. This allows you to start off the new year knowing your true financial position.

If you owe money you can make a plan to clear the debt. Or if you have money coming back make new investments to continue to grow.

If you have any questions on your end of year planning, please get in touch. We offer free consultations, book in here.


Be Prepared EOFY Is Almost Here


The end of financial year is June 30th, less than two months away. In the dynamic small business and hospitality space your end of year position can change right up until the last minute.

That doesn’t mean that there is no way to prepare in the coming weeks. With planning you know where you stand, what you owe and more importantly how to invest in new services or equipment.

Profit And Loss

Prepare a summary of income and expenses in a profit and loss statement. The profit and loss (P&L) statement is a financial statement that summarises revenue, costs and expenses incurred during a fiscal quarter or year. These records provide information about a company’s ability or inability to generate profit by increasing revenue, reducing costs or both. It is important to know how much you are spending and generating in terms of income prior to the end of the year.

Stocktake

If your business buys or sells stock, a stocktake will establish the value of your stock at the end of the financial year. You will need to do one if:

  • your business turnover is $10 million or more
  • your business turnover is less than $10 million and the difference between your stock level at the beginning and end of year is more than $5,000 (you can make a reasonable estimate to determine this).

If a stocktake is required, do it as close to June 30th as you can and keep the following records:

  • a list describing each article of stock on hand and its value
  • who did the stocktake
  • how and when it was done
  • who valued the stock and the basis of the valuation.

Based on this information you may decide to do a stocktake sale to boost sales or to create an offer to boost sales the final week of trading.

Record Of Debtors And Creditors

To ensure your records are correct at the end of financial year is it important to reconcile your accounts. Be sure that your debtor accounts are reconciled to your general ledger account. Ideally the total of your outstanding invoices equals the balance of your trade debtors account.

Like your debtors, your creditors also need to be reviewed and balanced to your general ledger account. Confirm that purchase orders are fulfilled. If the goods have been supplied, the order should be closed or turned into a bill for payment before the end of year.

Expense Claims

Now is the time to find your records for purchases of new assets. Remember there is a $30,000 to $20,000, depending on the date of purchase, instant write off for small businesses.  Also bear in mind expenditure on improvements to a business location can also be claimed so be sure to find those receipts as well.

Compliance For Tax and Reporting Requirements

Be sure to complete your personal income tax returns. Ensure that all lodgings for

PAYG withholding, fringe benefits tax (FBT), Goods and Services Tax (GST), and the taxable payments reporting is up to date. Of course, there are also superannuation considerations. Be sure that all of the year’s tax obligations are lodged and complete. This will make the end of year reporting much easier on you and your accountant.

2019 Here We Come!

It can be a bit stressful for business owners at this time of year. However, with online systems and cloud-based accounting it does make things easier. And if you are feeling really overwhelmed please get in touch with us for a quick end of financial year health check. There is no need to go it alone!


How To Set Up STP For Your Hospitality Business

Category : Accounting , Bookkeeping , Payoll , Services , STP , Xero

Have you heard about STP and wondered what it is? Or maybe this is the first time you have heard of it. What you need to know is as of July 1, all businesses will need to comply with new legislation for Single Touch Payroll.

The intention is to make reporting easier by sending tax and super information from your payroll or accounting software to the ATO as you run your payroll.

How To Ensure Your Small Cafes And Hospitality Businesses Is Ready

When you run your payroll and pay your employees your pay cycle does not need to change. You can continue to pay your employees weekly, fortnightly or monthly as per normal. What will change is that your STP-enabled payroll software will send a report to the ATO which includes the information, such as salaries and wages, pay as you go (PAYG) withholding and super information. If you have questions you can check out the employer reporting guidelines for a full list of payments that must be reported through STP.

How To Ensure Your Bookkeeper Or Accountant Is Ready

For many small businesses in the hospitality industry you will already by using an accountant or bookkeeper. If you are not currently, this may be the right time to start thinking about the benefits of outsourcing your payroll and BAS reporting. If you are here are a few things to think about to ask prospective tax agents.

STP has been in effect for businesses with 20 more staff since July 2018, be sure to ask a prospective bookkeeper if they have set up a system for a client previously. There is also specialized training for accountants offered by many of the larger accounting systems such as MYOB or Xero. Ensure you ask if they have been accredited as STP ready.

We know that you are busy, and you don’t need another thing to worry about. Working with an accountant or bookkeeper does not have to time consuming or expensive. In fact, in the long run it can save you money by ensuring you are compliant and on top of your tax obligations.

How to Maximise Your Payroll For Greater Savings

It is important to start thinking now about your ongoing bookkeeping needs. Now might be the time to think about outsourcing your payroll.

Contact a registered tax or BAS agent to talk to them about your options. They will be able to report through STP for you, or outsource your payroll to a payroll service provider. It is your obligation as an employer to make sure that all reporting is through STP.

Payroll service providers must be registered as a tax or BAS agent when providing a tax agent service or BAS service for a fee. This would include Single Touch Payroll.

For a list of accounting systems that are STP compliant visits the ATO website here.

360 Is STP Ready

At 360 Accounting we are a STP ready supplier, and with over 10 years in managing payroll for clients. We know the best options for any business. We are a registered BAS agent, able to assist with accounting, payroll and BAS needs. With our full-service knowledge, we are always ready to assist. Book in now for a free consultation to explore your needs. We are always happy to help.


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!