This week we want to bring a very serious issue to your attention. There are scammers out there calling people under the guise of being employees from the Australian Tax Office (ATO) and demanding money from innocent tax payers in an intimidating & threatening manner.
…
Have you been scammed by the ATO? Read More »
The Goods and Services Tax which we now call “GST” for short, is a complicated and convoluted tax, I’m sure you’ll all agree. The system is fraught with rules with which even the most experienced BAS or Tax Agents struggle to understand. At its core, one of the most difficult aspects of the GST is its own language (yes it has its own language!). The terms used by the ATO to describe even the simplest concept can be confusing and this is why we have supplied a graphic below which explains what some of these terms mean. We hope you find it helpful.
…
What’s in a GST name? Read More »
This week’s blog is another in our IMHO series and is about an issue I believe has the potential to become a big problem in the bookkeeping world.
YOU: So what is this issue?
Well, lately I’ve started to think that perhaps all of this automation currently occurring within our client’s online bookkeeping files is not such a great thing.
YOU: What? Are you kidding?
Yeah, I hear you – I kind of can’t believe I’m writing this myself!
For the uninitiated, by “automation” I’m talking about cloud-based bookkeeping software that is enhanced by “addons”. So basically, you have the original accounting program and a bunch of other programs integrated with that accounting file. The idea is that these “addons” will make the accounting file perform better but more than that, remove the need for users to have to do many tasks manually, thereby saving them time (and sanity).
YOU: Well, that’s a good thing right?
Yep, bloody fantastic…………. WHEN THE WHOLE SYSTEM IS WORKING CORRECTLY! (yes, I’m shouting ?)
YOU: Doesn’t it save users time?
Absolutely.
YOU: Doesn’t it help us to remember to do tasks and thereby stop things from falling through the cracks?
Oh yeah, you bet it does!
YOU: So what’s the problem?
Glad you asked. ? ?
This is going in caps because yes, I am shouting…….again!
YOU: But isn’t automation set and forget?
No, I hope not! (The work still needs to be checked on a regular basis)
YOU: So, are you saying that automation can cause errors to occur?
Exactly. Why? Because users think automation = perfection i.e. what could possibly go wrong?
THIS IS NOT THE CASE!
The work still needs to be checked and reviewed regularly by a human being, preferably by your bookkeeper (or other accounting professional).
I’m not against automation, far from it! It does reduce the workload and makes the accounting process a real pleasure……..if it is set up correctly and is monitored regularly.
For medium to large operators, it’s a god-send – 100’s of transactions being created daily without having to touch a computer. Imagine what they can do with the time instead? Go on a holiday, go to the movies, go out for tea or even just get on with running the business itself! Heaven!
However, what I don’t like is a fully automated accounting file that:
All of these things = one thing ⇒ an accounting file that is progressively being destroyed by backend software on an hourly or daily basis.
YOU: What does this mean for users of the file?
For bookkeepers , it means hours of repair work. For business owners it means a nervous breakdown followed by a very large bookkeeping bill!
Honestly, as a bookkeeper of nearly 17 years, I would rather do the hard yards and do the manual data entry than have to spend hours fixing accounts that have been mutilated by addons which haven’t been regularly monitored.
YOU: What a waste of time! Manual data entry? Are you crazy? She’s obviously one of those old fashioned bookkeepers!
You called it – it’s true, I am! But at least the accounts would be done correctly, first time, every time.
Do you think things will come full circle and we will return to the “good old days” of manual data entry?
Well that last comment was tongue-in-cheek of course………….
I don’t think anyone wants to return to those days……EVER!
But you know what? Given the choice between doing manual data entry or repairing an accounting file that is full of erroneous data due to over-automation, I know which one I’d choose any day!
YOU: So has bookkeeping become over-automated?
Perhaps.
YOU: Do you dislike automation?
Yes, if it causes more problems than it solves! But no, if it’s set up correctly and is regularly transacted on by experienced and trained users.
So it’s your turn now. What do you reckon?
Off you go, leave your comments below.
Has bookkeeping become over-automated? Read More »
A feature I’ve been waiting for in Saasu (and other online accounting software products) has finally arrived! Saasu has introduced header accounts. Header accounts are used to group like-accounts together so that they are grouped on the profit and loss report with a total amount showing for each group. This is very useful and makes reading (and understanding) the profit and loss report much easier!
…
New! Header accounts added to Saasu Read More »
Towards the end of each financial year, many business owners review their expenses and pinpoint which ones can be prepaid before June 30 in order to obtain a substantial tax deduction. Typically, expenses such as office rent and insurance are paid 12 months in advance and are then classified as prepayments. This is particularly useful if the profit margin is high and the business owner wishes to reduce tax payable (and who doesn’t!). But how do you enter these transactions into your accounts and how is GST affected? Let’s review this now.
…
How to account for prepayments and GST Read More »
After the coldest winter in 26 years in Australia, I for one am very happy that today is the first day of Spring! Spring time, along with its welcome warmer temperatures and longer days, is renowned as being the time for cleaning, hence the phrase “spring cleaning”. As I no longer need to worry about house cleaning since employing a cleaner earlier this year, the only “cleaning” I need to concern myself with these days is within my business itself. So how on earth is a bookkeeping business cleaned? What does this actually mean and how is it done? Read on to find out more!
…
Spring-cleaning for bookkeepers Read More »
In last week’s blog, I looked at a different kind of business goal business owners could (and should) adopt this new financial year: putting themselves first and their business second i.e. looking after number one. By making this your main goal, I believe you will find personal “happyness” (spelling intended) and your business will be all the better for it. It’s a win-win! This week I’ll explore some of the things business owners can do to get them started in their quest to put themselves first.
…New financial year goal: put YOU first and your business second Part 2Read More »
New financial year goal: put YOU first and your business second Part 2 Read More »
As luck would have it, my weekly blog due date falls on the first day of the new financial year! I sat and wondered what I should write about being such a momentous day for tax professionals and business owners alike. I thought I should write about tax tips or business goal setting etc. for the new financial year but then thought, “Nah, that’s been done to death!” Thinking a little harder, I decided to write about something a little left of centre. My topic for this blog is about business owners setting a different type of goal for the 2016 financial year:
New financial year goal: put YOU first and your business second!Read More »
New financial year goal: put YOU first and your business second! Read More »
So you have an awesome bookkeeper who keeps your business accounts super organised. S/he keeps on top of slow paying customers, reminds you to pay your bills, provides some pretty slick-looking reports and has those boring conversations with your accountant that you always avoid. Sounds like you’re onto a winner – good for you! Now you’ve decided to go one step further and you’re going to ask your bookkeeper to prepare and lodge your BAS on your behalf. Okay, well before you do, you’d better ask him/her these 3 key questions:
…
Want your bookkeeper to prepare & lodge your BAS? Better ask these 3 questions first!Read More »
Want your bookkeeper to prepare & lodge your BAS? Better ask these 3 questions first! Read More »
I did something different this week – I employed a house cleaner. Do I really need a house cleaner? Probably not. Can’t I clean my own house? Yes, you bet I can – after 30 years of marriage I’ve had loads of practice! So why a cleaner now? Basically, I’ve decided that my time, especially in terms of my business, is precious and I need to spend it wisely. I’ve finally realised spending 3-4 hours per week cleaning, washing etc, is NOT a wise use of my time. I should be using that time to work in/on my business or just simply relaxing. It’s time to stop trying to do everything myself and give myself a break.
So this move to outsource my cleaning got me thinking…….
There are probably hundreds of business owners out there like me trying to do it all – the actual work, the marketing, customer relations, administration AND…… the bookkeeping. While outsourcing is nothing new, it is certainly hard for some to do and when it comes to bookkeeping, some find it very difficult to let go! But I promise you, by outsourcing your bookkeeping, your business will improve and you will certainly be happier! In my honest opinion, you should engage a bookkeeper for the same reasons I got a cleaner. Here are those reasons:
Like me and my house cleaning, you’ve looked after the bookkeeping for your business for ages and are doing a pretty good job, so why outsource it? Simple! You’ll get more time to get your work done or to work ON your business. You’ll also get more time for YOU. Instead of working after hours and on weekends on your bookkeeping, you can do something else, something you like doing. It’ll be good for the soul, your sanity and your business!
I’m pretty good at cleaning. I’m careful and do a thorough job. I’m good at it but are my cleaning skills better than those of a professional cleaner? Probably not. My cleaner uses better cleaning agents, better tools and seems to get tasks done much faster (and better) than I can – obviously she knows a few tricks that I don’t know! If you engage a bookkeeper, you’ll find that story will be exactly the same. Even though you’re pretty good at your own bookkeeping, your bookkeeper will always do a better job because s/he has been trained and educated in the field. Like my cleaner, your bookkeeper will do the work faster and better than you’ll ever be able to do it.
By outsourcing your bookkeeping (or in my case, the cleaning), you’ll be giving someone a job or helping someone else’s business grow. This can only be good for your local economy. It’s a win-win. You get back some much-needed time and your bookkeeper gets a job or a new client – yay!
Getting a bookkeeper could be a great networking opportunity – no, really! A contract bookkeeper has many clients and some of those clients might just need the type of service you are providing. Your bookkeeper might even need your services – who knows! The point is, we are more likely to buy from those we know and trust. Your bookkeeper could be your greatest advocate (I’m hoping my cleaner will be one of mine!).
There’s an old saying, “just because you can, doesn’t mean you should”. Sure, I could have battled on, working full time and then spending the weekend cleaning, washing, ironing etc – I’m certainly more than capable! The problem with that scenario is that there is a distinct lack of FUN involved! I’m sure if I continued in this vein, I would have ended up burning out, not enjoying my work, my family or my life! Here’s my tip for all you hard-working solopreneurs – in the words of Molly Meldrum, “do yourself a favour” and stop trying to do everything yourself! Outsource what you don’t need to do (even if you can do it) and focus on doing what you’re best at – the actual work! This could be the bookkeeping or perhaps another aspect of your business; whatever it is, delegate it and get your life back!
I’m getting a cleaner for the same reasons you should get a bookkeeper Read More »