Author Archives: pkikla

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Management Accountant: Who They Are and 3 Reasons to Hire Them

Category : Uncategorized

 

Do you own a small business?

Are you struggling to keep track of where you are and where you want to go both financially and strategically?

If so, then a Management Accountant might make a great addition to your team. Here’s a bit more about who they are and how they can benefit your business.

What is a Management Accountant & What Do They Do?

A management accountant is a highly skilled and educated accounting professional. While bookkeepers and accountants typically keep track of your financial affairs, management accountants prepare management reports and accounts for your business. Their timely financial and statistical information aids managers in creating short-term and long-term decisions.

These reports are designed to measure, interpret, and analyse where your business stands. They also clearly communicate information to your managers to guarantee you move closer to your organizational goals. Their ultimate responsibility is to help your managers make better decisions.z

But why should you hire them for your business?

1. Improve Cash Flow

Budgeting is a huge part of running a small business or organisation. Business owners use budgets to create financial roadmaps to determine business expenditures and more. But when you use a management accountant, they can provide these roadmaps right down to the smallest figure. They go through detailed information to provide an overall budget that can save your company money and improve cash flow.
2. Budgets & Forecasting

Additionally, a management accountant also creates forecasts that enable your business to set long and short-term goals. Each month, management accountants provide reports that work with your budget.

3. Greater Efficiency

Management Accountants are experts in financial reporting and control, which means their more efficient in running these reports. They use managerial reports to offer a clear picture of the many factors that drive daily business operations. To make sense of your financial information, you need a management accountant to help you out. This all leads to greater efficiency.

Summary

To increase the efficiency of your business you need a professional in your corner, one with experience with budgets and analytical data. Save yourself time and money by hiring a management accountant for your business. Call us on 1300 360 749 or visit our website for more information.


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Single Touch Payroll (STP) – An ATO initiative to simplify your payroll system

What is Single Touch Payroll?

Single Touch Payroll is a Pivotal moment for both ATO and Employers. It is the biggest payroll reporting change in Australian history for all Employers. STP is a method of reporting Payroll data electronically to the ATO. It will enable employers to report payments such as wages and salaries, PAYG Withholding and Super Information directly to the ATO at the same time when employees are being paid.

Who is affected?

  • STP reporting framework will be mandatory from 1st July 2018 for Business with 20 or more employees. It is important to note that Employer needs to do a headcount by April 1st 2018 to determine if they have 20 or more employees.
  • STP is optional for employers with 19 or less employees as it is not required at this stage, but they can report voluntarily by using updated payroll software.
  • Employers with 19 or less employees have another year to prepare, however from 1st July 2019 employers will need to Start Reporting through STP. This will be subject to Legislation being passed in Parliament.

STP TIMELINE:

To know more about STP and how it may impact your business contact us on 1300 360 749 or click here for contacting a consultant.

 


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Get Organised This Spring

 

 

Spring is here; time to get everything in order, including your books. Spring cleaning is not just about the garage, basement, or bedroom, but also about your business especially the record-keeping process. It does not matter what kind of business you run, bookkeeping can be a tedious messy task. It takes time and effort to make sure records are always up to date. Bookkeeping is not a one-time job – you must put yourself into it every single day to avoid discrepancies, variance, and other potential mistakes. Take this year’s spring cleaning occasion to also address possible issues with your bookkeeping process. Here are some things you can do as a start.

 

  1. Review the recent tax year: it is never too late to tie up some loose ends. Make time to record income and expenditure for the previous tax year; you can do this by finding all business receipts and invoices. If you have not done so, make this a priority. Look for the records everywhere around your desk: drawers, purses, bags, and even your pockets. Record everything you can find on an accounting software or spreadsheet. 
  1. Review your expenses: spring cleaning your books also involves the elimination process of ineffective expenditures. Take a second look at your bank statements as well as all services, subscriptions, or memberships that cost you money. In the event you find one or two services which give no benefits whatsoever, cancel them at once. 
  1. Set up separate bank accounts: using a single bank account for personal and business can make things go wayward pretty easily. It may not be a problem if your personal transactions are limited, but that would not be the case in most situations. Separate business bank account, allows you to keep a check on business-related transactions.

We at 360 Accounting Services are here to help you get organised; get in touch with us by phone 1300 360 749 or by completing the enquiry form here 


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4 Important Tips to Improve Restaurant Business

Category : Accounting , Bookkeeping , Xero

A busy restaurant is hard to manage financially. A restaurant can face a lot of problems in sales, employees and customers. It is important to have bookkeeping of the financial records and manage all the things. With bad financial management your restaurant can go in a loss, even if you are getting a lot of customers in your restaurant or a café.
Here are Important 4 tips that can be useful to manage your restaurant.

1: Manage Cash flow

Cash flow has been always a big problem for restaurants and café businesses.  Poor cash flow can result in the failing of a business. Around 80% of the new restaurants and cafés loses their business because of poor cash flow. The key rule is to have money readily available to cover the urgent expenses. It is important to keep track of the cash flow throughout the year. After keeping track of the cash flow then you need to forecast the budget for your next month expenses and revenues. The previous records can also help in forecasting the cash flow. This forecast will give you an estimate on how to manage the expenses.

2: Organize Payroll

Payroll fluctuations is one of the biggest problems for restaurant business. Employees can join and leave a restaurant which can cause fluctuation in the payroll. Other things such as increase or decrease in food items can also affect the payroll. Just like how you manage a cash flow, you can organize a payroll by using a budget system. Always set a budget before the start of a month or a year for your restaurants. Then record the financial data and analyze it. This will give you an idea on how a system is working and what items are more or less expensive. This will also give you an idea on how many people you can hire next year. You can also analyze the turnover in food costs and wages of the employees. It is important to keep an eye on the essential things in the restaurant, such as maintenance.

3: Have Cloud Accounting

It is a hectic job for small business owner to manage bookkeeping and accounting. Nobody wants to spend hours on bookkeeping. With technology improving day by day, moving your business to cloud is the best solution to manage the financial records. Cloud accounting offers services that can reduce the time of managing bills, invoices, salaries etc. This can be a good way to have a paperless office as everything works online. Cloud accounting offers an efficient and accurate business analysis.

4: Use Accounting Software

Accounting software’s can be one of the best solution for your business. Manual system is inefficient for a growing business. Accounting software can provide many services. It can manage financial records by automating repetitive tasks, which can help in payroll and reporting of the records. The software can efficiently perform tasks to of computing sales, salaries, profits and expenses. It can also perform other services depending on your requirements.

Call us on 1300 360 749 for all your bookkeeping needs


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EOFY Checklist for Small Businesses

Category : Accounting , Bookkeeping

 

With the financial year end approaching, your focus as business owner will have to be divided into two things: to keep the business running as usual, and preparing all documentations for tax time. EOFY accounting requires a lot of paperwork, below is overall checklist for EOFY accounting;

  • Payroll: in simple words, having your payroll documentation ready means you have it checked, reviewed, and updated. By the end of June, all payments for staff and employees should be recorded. As a business owner, you must understand that all employees’ PAYG summaries have to be lodged by July 14; the summary lists all the payments you have made and the amounts you withheld, so the employees can file their own tax returns accordingly.

  • Income: knowing your income for the current financial year allows you to see whether your sales have (or have not) met the targets/budget. Balance sheet must be reconciled so you understand your current position in the business. Comparing sales from previous years will help you understand the trends in your business.

  • COGS: Cost of Goods Sold, or more commonly referred to as COGS, is the cost attributable to production of goods sold by your business. If you are a manufacturer, this is basically the production cost which may include the cost of materials, labour, and even distribution. In general, COGS is the amount of money you spend to get the product in the first place until you sell it; therefore, it also covers indirect expenses for sales force as well. COGS data appears on income statement for you to calculate gross margin.

  • GST (Goods and Services Tax): for most goods and services, GST is at 10%. This regulation applies to most (not all) Australian businesses. If you are small business owner, chances are your company is subject to GST. The rule of thumb is that you need to collect GST from your customers (normally calculated as one-eleventh of actual sale price) and give it to ATO (Australian Taxation Office) every time you lodge BAS. Every business that has GST turnover of at least $75,000 or non-profit organization with at least $150,000 turn over must register for GST.

  • Stock or Inventory: assets and investments are considered inventory. Proper inventory check involves physical verification of quantities and conditions of all the assets and investments you have. The main purpose is to have accurate valuation and audit. It allows you to see what you need for the coming year and establish the stock turnover.

While EOFY can be daunting, it is an essential process that every business needs to undergo. It is all necessary to understand your current position in the market, financial strength you have, and make sure that you comply with the law. To better understand the EOFY accounting, contact 360 Accounting services on 1300 360 749 or fill in our Enquiry form.

 


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The Importance of Inventory Management for Small Retailers

Category : Uncategorized

Retail industry is one of the fastest growing segments of the economy, not only in developed countries but all over the world. The emergence of online stores has made it easier for anyone to get into the venture as well. Thanks to the Internet, it no longer takes as much money as it used to do for marketing and initial introductions of your brands. Despite all those seemingly easy starting steps, retail business remains a complex process that involves a whole bunch of meticulous management systems including inventory control. Here are 3 (among many) of the most important things to consider when starting a retailer business.

 

  • Social Media Campaign: the only way that you can do business is when people know about your company as well as the goods you sell. In the old days, it would take considerable amount of money to build a strong consumer base, but now it gets easier with social media. Almost all channels are available free of charge for examples Facebook, Twitter, YouTube, Instagram, and what have you. Every time you post information about your products, chances are your followers/subscribers/friends will get notified; it opens the doors for free marketing at a large scope especially if you’ve been active in social channels for a while. You can even attach a link that directs people to an official company page.

 

  • Proper Website Design: it does not matter if you run the retail business on your own, with a small team, or with hundreds of employees, keeping an active reputable online presence is crucial. A small retailer business may not have a lot of full-time employees to handle every aspect of the company, but at least a properly-designed website filled with quality product images and relevant contents demonstrate your professionalism in taking care of company and consumers. Well-designed website that allows visitors to browse or navigate easily through product categories also improves consumers’ satisfaction.

 

  • Inventory Management: one of the biggest challenges in retail business is keeping good inventory control. Stock management system helps you maintain steady flow of supply to fulfill market demands. Lack of items means your potential customers are forced to look for the products elsewhere, hence bolstering the competitors. Inventory managements basically tells you the exact number of items currently in stock, have been sold, and in delivery. In rare cases, it also allows you to track mysteriously missing items due to misplacement or even theft.

 

Inventory management is only one part of the entire accounting system in a retail business; it is as important as bookkeeping. Assuming you plan to start a retail business soon or have already been in the business for a while but need an improvement, please feel free to contact 360 Accounting Services on 1300 360 749 or fill the enquiry form on the website for free consultation.


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Your Accounting New Year’s Resolution

Category : Accounting , Bookkeeping , Services , Xero

Let us start by saying that everybody can be an entrepreneur. Starting a small business or even an online business is now getting easier thanks to the seemingly endless information and marketplace updates on the Internet. A lot of websites also offer free advises on how to get everything started regardless of your niche. The problem is that not everybody can be an accountant; some people are very good at building network, designing products, and marketing brands, but accounting is a whole different world. There is no flexibility in numbers, and every digit is fixed. Accounting has zero margin of error, and this is where online accounting comes to the rescue. The beginning of the year is always the perfect time to start implementing efficient accurate reliable online accounting service to your business, so Happy New Year and here are some resolution ideas.

1. Get organized: organizational system is one of very few things that always have room for improvement. No matter how organized your business is at current date, chances are you will still find a thing or two to tidy up. In terms of accounting, getting organized includes a lot of things including but not limited to bookkeeping and other financial records. Make sure they are up to date and properly categorized.

2. Embrace cloud-accounting: accounting software is like a saviour for businesses of all scales. However, software always has rooms for improvement regardless of how sophisticated they are. Frequent regular updates are necessary to keep up with new tax regulations and payroll. Late updates will make the financial records into a mess, and this is where cloud-accounting comes to the rescue. Cloud accounting reduces the hassles to a great extent. Certain application, such as Xero, offers cloud accounting with cross-platform integrations that allow you to access financial records in real-time on the go. You can even use smartphones to create invoice or integrate accounting package with POS/Rostering. All are digitized, continuously updated, processed, and stored in the cloud. You don’t even need to worry about accidental deletion as well since cloud backup always has you covered.

3. Proper financial report: business accounting helps you make better/more informed financial decisions regarding your company. It makes no sense to compile reports that are difficult to understand. The purpose of financial report is to give you a health check of the business and help you recognise the strength and weaknesses of the business. If it does need improvement, you also have to understand the right methods to achieve it.

Reliable Online Accounting Service

There are hundreds (if not thousands) of companies offering online accounting services in Australia.It can be headache to choose the right one to do the job. One thing to consider is their reputations and how long they’ve been in the business; that’s how you can see track records and whether the people working in the company are knowledgeable. To better understand of how proper online accounting services are done for business, contact us on 1300 360 749 or fill in our enquiry form


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Do You Know How to Use Online Accounting Software?

Category : Accounting , Bookkeeping , Services , Xero

Mann sucht Fehler am Computer

 

The accounting part of a small business may not be too overwhelming at first. As the business grows, however, it is unfortunately too easy to lose control of how much money your customers owe you and when to collect. Other business metrics such as payments, revenues, and salaries also play their roles to determine whether or not your business is scalable for future development. When everything is too complex to handle on your own, you may want to consider hiring an accountant. If you understand how to operate online accounting software, such as Xero and the alternatives, you will want to utilise those tools as well.

 

Accountants have always done the same things, but they do things quite differently these days. Instead of relying on pile after pile of receipts and other paperwork, modern accountants use online software to do their analysis on stock management, cash flow, prices, taxation, bank reconciliation, invoicing, and more. Good accounting software can also generate charts and tables, allowing you to understand your company’s financial situation more easily. The software basically compiles and generates detailed comprehensive reports concerning your company. Based on the reports, an accountant will be able to give their professional advices on how to develop your company in a financially-healthy way. One of the most recommended online accounting software for all those purposes is Xero. Similar to most software, Xero is only good when you know how to use it.

 

Let us put it this way: Photoshop is excellent software to manipulate images and photos with tons of options to alter almost every data contained in a file. It can also open and modify RAW files for more flexible editing. Photoshop is at its full potential when used by someone who understands how it works. The same thing applies to Xero.

 

You get deep accounting management tools from Xero. It can handle basic tasks flawlessly including but not limited to inventory management, payroll, purchase orders, bills payment, online quotes, financial reports, fixed assets, and even workplace pensions. For the vast majority of users, an exceptionally deep management tools also mean time consuming set-ups. You can always find every data eventually, but it can be time consuming if you are not familiar with how to navigate inside the software. Added with more than 160 currency options and different tax rates, Xero’s interface can be overwhelming for general users, but you can always ask for help from professionals.

 

If there is anyone you want to help utilise Xero for your business, it is going to be a Xero Certified Advisor. While Xero is designed to provide complete assistants for all your accounting needs, you do not want to mess around with your financial reports including tax and assets. At 360 Accounting Services, founded by a Xero Certified Advisor and Partner, you can focus on developing your business, knowing that your accounting department is in good hands. Call us on 1300 360 749 or contact us to book an appointment.


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Bookkeeper or An Accountant

Comparison.

 

Bookkeeping and accounting are inevitable practices in all business, even in small startups where the amount of financial transaction is still quite low. In fact, accountants and bookkeepers are the backbones of business development, ensuring that all incomes and expenses are manageable enough to allow for profitable ventures. With today’s modern technologies, particularly cloud computing and internet banking, small businesses have easy access to on-demand online bookkeeping and accounting services. For startups, such technologies eliminate the needs for hiring full-time accounting staffs without losing the benefits from professional financial supervisions. Bookkeeper and accountant handle different tasks; although their jobs can overlap each other’s, it is important for small business owners to understand what they need for efficient hiring.

 

Bookkeeping vs. Accounting

 

Although an accountant is actually qualified to do a bookkeeper’s jobs, both are stand-alone professions because they handle different tasks. A proper bookkeeping is essential for accountants to do their jobs; an accurate accounting is necessary so business owners can make informed business decisions.

 

As the name suggests, bookkeeping focuses mainly on keeping good records of all transactional activities by writing them down in a book/journal/ledger. A bookkeeper has the obligation to generate understandable financial data from all business transactions for examples purchases, incomes, debts, profits, and loss. Bookkeeper also handles invoices (submitting them and following up on them), making sure all employees file the right paperwork for payroll, and paying company’s bills.

 

Accounting covers much broader view. An accountant can analyze financial report to look for discrepancies and predict sales trends. An accountant can also handle tax-filing and end-of-year financial statement. Based on bookkeeping data, an accountant can act as Chief Financial Officer (CFO) and give invaluable advices that will impact long-term business strategies. For example, an accountant can offer professional analysis for potential business growth based on market trends and current financial conditions. In case your business needs to apply for a loan, an accountant is able to assist with documentations.

 

Good combination between accounting and bookkeeping opens the door for long-term financial success. They work together to make your business more accountable and scalable to achieve steady growth. At 360 Accounting Services, we offer not only professional bookkeeping services but also qualified accountants and Virtual CFO to help you oversee your current business and financial situations. Trends in the market and financial conditions are dynamic factors that affect your chance of success; 360 Accounting Services are dedicated to provide thorough review of your company so you can make well-informed educated business decisions.

 

To get the right help for your Bookkeeping/Accounting needs contact 360 Accounting services on 1300 360 749 or click here to book an appointment.


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No More Shoebox Accounting

Category : Services , Xero

Heap of paper sales receipts in a mound isolated on white background.

As the name suggests, shoebox accounting means the practice of keeping all receipts, both incomes and expenses, in a shoebox; in relation to bookkeeping, business owners or individuals expect to address everything at later date when the needs come. They think that by keeping all records in a shoebox, bookkeeping process will be much easier and quicker to complete. Such mentality is what keeps the business from growing at optimum rate; proper bookkeeping makes sure that every record of purchase is well accounted. In case something goes wrong, business owners will be able to address all issues accordingly in time.

 

It is understandable that not all business owners are good at bookkeeping. However, it does not mean that they should neglect the importance of financial accountability, regardless of how small or young their companies are. If you are a business owner and you don’t currently have the financial power to hire full-time bookkeeper, there is an online solution for that. Some providers offer affordable bookkeeping/accounting services so you can keep the cost low without reducing efficiency. Benefits of hiring online bookkeeper are as follows.

 

  • Efficient Accounting Cost: unlike full-time bookkeepers which come with monthly payroll, online bookkeeping is basically an on-demand service. You can ask for help anytime necessary depending on your needs. Some business owners hire such service when approaching the end of financial year for tax reporting purpose, but you are allowed to ask for assistance at any other time.

 

  • An expert behind your financial power: even if the bookkeeper is not always present at your office, you know that there is an expert to help you manage cash flow. For constant monitoring, of course you need to hire the service regularly; handling and reviewing fewer transactions will be easier and quicker.

 

  • Keep control of financial data: another advantage of online bookkeeping is that your data is saved on the cloud for future references. You can consider this a data backup. In case your computer is damaged beyond repair, your financial data remains intact.

 

  • Do what you do best: as the bookkeeping is handled by professional bookkeeper, you can focus on developing your companies and improving brand awareness. You have one less thing to worry about and more time to do what you do best.

 

Not all online bookkeeping services are created equal. With 360 Accounting Services, you have a complete set of bookkeeping and accounting supports in 5 major areas including General Bookkeeping & Financial Accounting, Payroll Management, Regulatory Lodgement & Compliance, Virtual CFO, and Training & Technical Support. Call us on 1300 360 749 or click here to send us a quick message.