Author Archives: Megan Davis

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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.


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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!


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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.


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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.


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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!


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4 Tips for Business Owners To Plan Your Down Time

Summer is here! It is a time to slow down after the busy holiday season. Take valuable time off for yourself and plan for the year ahead. While revenue can be affected by these slower months it is important to not get scared by the slow down. Use your time effectively and be sensible with your planning and budgeting. We recommend the following four tips to get you through the slow season:

Give Your Staff The Option to Take Unpaid Leave During Slow Times

Don’t assume that your staff have all of the time off they desire. Many full and part-time staff members would treasure a few extra days with family and friends this time of year. Be sure to ask in the slower summer months if they have plans and not enough leave. Let them know you are happy to provide additional unpaid days.

Send Invoices Promptly To Avoid Getting Paid Late

No matter how busy you get during the lead up to summer, be sure to keep on top of your invoicing. Many businesses and their bookkeepers are on skeleton staff and this may result in late payments over the summer months. To ensure late payments don’t negatively affect your cash flow be sure send invoices on time or even a bit early if you know your clients will be on leave.

Plan Your Outgoings

If you need to delay ordering new stock to ensure your cash flow is strong it is better to wait than to push through an order you can’t pay. If your invoices or cash flow is tight it is better to wait until you can confirm you have the cash coming in before you spend it. It is always better to stagger your outgoings rather than committee to a large spend all at once.

Review Your Data

Have a look at your profit and loss statements over the years to understand your business’s patterns. This will help you to budget in the coming months, so you can plan accordingly. If you don’t have an online accounting system that does this, we recommend taking advantage of these quiet times to put a new system in place. We recommend cloud-based software such as Xero or MYOB for most small businesses.

Questions?

We are always happy to provide a free consultation if you would like more information on how to use the summer months to plan and get your finances on track. You can book a time with us by emailing enquires@360accountingservices.com.au or call us on 1300 360 749.


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Do You Owe Fringe Benefit Tax For Your Staff Christmas Party and Gifts?

Perhaps one of the most famous accountants in literature is Bob Crachitt of Charles Dicken’s ‘A Christmas Carol’. Ebenezer Scrooge is his boss, a miserly moneylender. He underpays Bob who can’t afford proper health care for the lovable little scamp Tiny Tim, let alone a wonderful Christmas feast.

No one wants to follow in the footsteps of Scrooge at this giving time of year. Because A) getting visited by three Christmas ghosts is scary and B) poor Tiny Tim! As a business owner now is the time to say thank you to your staff for all of the hard work they do throughout the year.

Before you start planning your Christmas party and/or gifts there are a few things you need to consider, such as Fringe Benefits Tax.

What Is Fringe Benefits Tax?

Fringe Benefits Tax (FBT) is tax employers pay on certain benefits they provide to their employees – including their employees’ family or other associates. The benefit may be in addition to, or part of, your employee’s salary or wages package.

Only certain businesses are required to pay FBT, so it is best to speak to a trusted accountant or financial advisor to check if it applies to you.

Planning Your Party

If the amount you spend per employee for your party is less than $300 per head it does not attract FBT. So without being an Ebenezer it is important to consider the total cost per person. FBT is an extra tax and most small businesses will avoid paying it.

Planning Your Christmas Gifts

When you provide Christmas gifts, you’ll need to consider a few different components. One is the amount you spend, the type of gift and who the gift is for. Then consider the type of gift. Items such as wine or hampers are treated differently to gifts like tickets to a movie or sporting event. It is also important to consider who your gift is for, there are different rules for employees and clients/suppliers.

The Things Money Can’t Buy

There is an extra benefit of not being a Scrooge. It is important to have a fun time during the holiday season. A kind gesture of a party of gift helps to keep employee morale and loyalty high, resulting in low turnover of staff.

If you have questions about your choice of gift or party for the holiday season, you can have a look at the ATO site or book a free consultation to learn the best option for your business.


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4 Gifts Every Business Owner Wants For Christmas

The days until Christmas are rapidly counting down. Have you thought about what to get for the busy entrepreneur or business owner in your life?

So what does a time poor, driven person need? They need something that will make their life easier. Or, maybe it’s you! Are you are dreaming of presents from Santa that will take all of your cares away? Feel free to share a link to this post with your friends and family. (Hint, hint) Go on, treat yourself!

  1. Peace of Mind with Payroll and Staffing –

This may seem like an impossible fantasy, but with modern cloud-based accounting tools, this is more achievable than ever. Every business owner knows that the ‘silly season’ can quickly become the ‘stressful season’ without careful planning with their staffing. It is important that extra work equates to making more money. One way to achieve this is by keeping on top of accurate accounting for payroll.

We recommend going paperless with employee onboarding for new and casual staff during the holiday period. Ento is a cloudless employee fostering and onboarding system.

Each new hire has the ability to join the team with a digital onboarding experience. It is optimised for mobile so employees can get themselves sorted on a smartphone or tablet. This allows each staff member to become part of your workforce in a way that suits them. This is a gift that any business owner would love to see under their tree at Christmas.

Another way to put a smile on a business owner’s face is getting rid of clunky spreadsheets when scheduling staff. This means less employee phone calls to check the roster or miscommunications in between updates on the document.

Tanda is a rostering and time management app that allows for all of this and more! Tanda is cloud-based, real-time and connects to your point of sale system to capture all your staff’s logged hours. Any registered staff member can clock on and off from any POS terminal. This creates consistency in reporting and all staff are accountable for their hours.

During the holiday rush predicting how many staff to roster per shift can be difficult. In this respect, Tanda is the gift that keeps on giving. Much like Santa, Tanda is always watching! It uses algorithms to predict schedules. This software also has seamless payroll integration, so when it comes time to pay staff, this is one more step a business owner doesn’t have to worry about.

  1. An Online Accounting Subscription

If the business owner you are buying for has been extra good, a subscription to an online accounting system such as Xero, Myob or Quickbooks is the icing on the Christmas cake. Using a cloud-based accounting system that allows for quick reporting, seamless payroll, and budgeting information.

The accounting solutions mentioned above are all great options. If you have questions, it is best to speak with one of Santa’s little helpers, a trusted accountant. If you have any questions we are always happy to help.

  1. A Great Point Of Sale System

A point of sale system is a seamless combination of software and hardware that gives businesses the ability to make transactions and simplify key day-to-day business operations. ‘Simplify’ is the key word in that statement. All business owners smile when they know exactly how much they are selling of particular products or service when they are being sold and what their margins are.

A good point of sale system can help them do that and more! Square is a popular solution on many Christmas lists this year. The free Square Point of Sale app has tools to help good little boys and girls manage sales reports, send receipts via email or text message, integrate with Quickbooks or Xero and manage inventory in real time.

Vend is a homegrown POS solution that is also popular under the tree this year. This app works on iPad, Mac or PC, works offline, can easily add a discount or notes for staff use and provide history on laybys and account sales. Stay off Santa’s naughty list and this could be under your tree this year.

  1. Coffee

Every business owner knows that passion is what drives them and gets them through the ups and downs of business. And the, when passion wears thin, next in line, is coffee. Because Santa loves people who love the environment we recommend getting your favourite business owner a KeepCup or Frank Green reusable cup to keep them fuelled and the environment clean.

And if you or your business owner has been exceptionally good this year you might consider signing them up for a coffee delivery service to ensure they never run out of that dark brown elixir of life.

Start Next Year In The Black

We wish you a Christmas that puts your business in the black. If you or your favourite entrepreneur want to make the most of the holiday season it might be best to invest now. Christmas can come early.

 


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3 Ways For Hospitality and Retail Businesses To Maximise Profits During The Holiday Season

The holiday season is a fantastic time of the year. For most of us, this means food, family and holidays. For those of us in the retail and hospitality sector, it means all this and more. It is a busy time and staffing, wages and stocking can put extra stress on business owners and managers.

We know that problems with increased competition, food waste and changes in food trends are things to be aware of when maximising profits. This makes the busy holiday season critical to ensure that your business stays in the black. We know that your industry is competitive and profit margins can be tight.

We recommend three ways to maximise your profits and keep your sanity.

1. Use A Staff Rostering System

Do not rely on a spreadsheet that relies on people putting in information. Tanda is an integrated rostering and time management app with a few twists to keep things fresh. Tanda is cloud-based, real-time and connects to your point of sale system to capture all your staff’s logged hours.

Tanda’s can sync to your POS to capture all your staff’s logged hours. Staff can clock on and off from any POS terminal, ensuring your staff is accountable and you can track who’s working when.

If you need help with predicting how much staff you will need per shift, Tanda can help there too. The software uses algorithms to predict schedules. This software also has seamless payroll integration, easy employee onboarding and automated award calculators for hospitality Award rates set by Fair Work Australia.

2. Paperless Employee Onboarding

You might need to hire extra temporary staff to cover the workload. Another great option is Ento, a paperless employee rostering and onboarding system. This system has easy ways to onboard casual hires for the busy holiday season.

Your new hires have the ability to join your team with a digital onboarding experience. It is optimised for mobile devices allowing staff to manage every step of their onboarding from a smartphone or tablet. Another bonus is Ento’s digital contracts. Going paperless saves time, reduces errors and eliminates lost documents. Digital signatures allow your new hires to quickly sign all contracts and policies.

3. Start Your Financial Planning Now

October is the time to start planning your December. Speak to a trusted accountant to plan the financial targets you need to hit to maximise your profits during the busy season. Looking at your sales from last year can help project what your upcoming holiday period may look like. Problem areas such as extra staff costs or food waste can be reduced if you start early.

Interested in maximising your profits this December? Now is the time to book in for a free consultation with us.

We look forward to making this season your best quarter yet!


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Stay On Top Of Your Books In The Hospitality And Retail Sectors

Anybody who owns or manages a hospitality or retail business knows how hard it is to stay on top of things like staffing, stock and payment systems — you’re always so busy just keeping the business ticking over. In the following, we highlight the accounting software tools that are available to lighten your load, keeping your books up-to-date and transparent with very little effort on your part.

Accounting Software

The most common issue we encounter with hospitality and retail clients is that there is very little reporting on stock, staff, and profit and loss statements. Rather, business owners and managers in these sectors tend to look at their bank account, and that’s it. This means there is a lack of management of cash flow, which can lead to big issues at tax time, not to mention running out of stock or being under-staffed.

The solution to the above is as easy as investing in an accounting software system, such as Xero, MYOB or Quickbooks. Each system can generate reports on staffing, stock, and payments, and reconcile your books automatically. These systems allow small businesses to keep up-to-date with what’s coming in and going out in real time, giving owners and managers the ability to make informed decisions about staff, stock, and expenditure.

Payment Systems

On top of the above accounting software, there is a range of plugins available that provide specialised oversight and automation of separate aspects of the retail and hospitality sector.

One such plugin is Tyro, which we highly recommend for payments, due to its simplicity and competitive pricing and its ability to integrate with your payment system.

Tyro provides both hospitality and retail businesses with tailored and flexible solutions that recognise the specific needs and variations of each sector. For example, Tyro caters for everything from cafes to bars, to accommodation and retail liquor outlets within the hospitality industry. In terms of retail, Tyro is flexible enough to provide payment solutions to any kind of business, whether it’s a service such as hairdressing, a food store, or a fashion outlet.

Point of Sale

There are a number of other point of sale (POS) systems on the market, many of which target specific industries. Of these, there are three that we would recommend in particular, given their state-of-the-art features, flexibility and integration capabilities.

For retail businesses, we’d encourage you to take a look at Vend. This solution prides itself on being a comprehensive POS system that combines highly advanced technology with ease-of-use. To give you an idea of Vend’s capabilities, here are just two its standout features:

  • Sign in from anywhere at any time: Vend is based in the cloud, so you can sign in and work from anywhere on the globe, easily accessing your sales data, products and reports, even when you’re on your well-earned holiday!
  • Keep selling when the internet goes down: Vend continues to work even when it’s offline and re-syncs your data as soon as the internet comes back on, so you’re never faced with losing a sale or the uncomfortable situation of having to turn customers away.

For hospitality businesses, there are two POS systems that we think offer excellent features and flexibility for cafes, bars, restaurants, accommodation and all things in between. These are:

  • Kounta: A one-stop shop for everything POS for hospitality businesses, featuring the ability for you to customise the system to your exact needs, down to the most minute detail.
  • Square: Not only was Square one of the first POS systems to accept chip and cardless payments, it comes with the free Square POS App that gives you the tools to run every aspect of your hospitality business through your payment software.

If you have any questions about the software solutions mentioned above please get in touch with us at 360 Accounting. We have worked with small businesses in the hospitality and retail space for years and understand your unique challenges.

Book in for your free consultation today!