Six tips to great bookkeeping

If you run a local company, you know how important accurate bookkeeping may be.

The end of the fiscal year (EOFY) is a time when many business owners, both new and established, have a tendency to put off dealing with this element of their company until it is almost upon them.

The end of the fiscal year is a time when many business owners tend to put off dealing with this element of their company. Every company is obligated to comply with the law and keep documents that are correct and up to date. Here are six easy ways to make record-keeping simpler.

The Australian Taxation Office demands that you preserve records for a period of at least five years. If you have employees, you are required to sign up for the PAYG withholding tax as well.

It is possible that as your company grows, you will want the aid of an excellent bookkeeper. The career of bookkeeping can be an isolating one at times. Here are four different strategies to maintain your connection with colleagues. Around 2,000 bookkeepers in Australia have access to a secure and welcoming space thanks to the Bookkeepers Support Group Australia. NZ Bookkeepers Association Inc (NZBAI) is going to be the most exciting event we host all year - Partner Connect conference in September.

Bookkeepers are the individuals responsible for maintaining an organization's financial records. They are responsible for gathering receipts and invoices, recording cash flow, making payroll payments, and preparing tax paperwork. Typical tasks for bookkeepers include keeping track of income and expenditures, calculating wages, and maintaining accounting systems. A bookkeeper will be responsible for the day-to-day operations of your company. Like accountants, bookkeepers frequently work as freelancers.

You can reduce the costs of running your company by hiring one of the bookkeepers who now operate either from home or online. Bookkeeping has come a long way since its sole function consisted of entering data from a shoebox full of receipts into a ledger. Instead of acting solely as data processors, bookkeepers are increasingly taking on roles more akin to those of business advisers and virtual chief financial officers. The traditional workday of 7.5 hours might not be necessary anymore. There is a growing level of awareness about gender equality in the workplace.

Flexibility will remain the most prominent HR trend in 2020 since it is currently the industry's rising star. The impact that unyielding standards have on the mental health of workers may also change. We anticipate that there will be a greater push towards encouraging fathers to take parental leave and alter their schedules to reflect them being 'working dads' (as opposed to the moniker exclusively referring to 'working mums'. Flexibility is at the top of the priority list for many people when looking for a new job.

Cloud accounting software can enable you to view your company's financials from any location at any time. An ABN is required to be registered by every business, and if your annual revenue is more than $75,000, you are also obliged to register for the Goods and Services Tax (GST). It is possible that as your company grows, you will want the aid of an excellent bookkeeper. The career of bookkeeping can be an isolating one at times.

Employing a bookkeeper allows you to concentrate on expanding your company while simultaneously ensuring that your record-keeping is accurate. Many bookkeepers are experiencing a sense of disassociation from their peers. Being a part of a trade organisation can be beneficial for a variety of different reasons. Bookkeepers are essential to the smooth operation of a company's finances on a day-to-day basis. Learn basic bookkeeping in the same amount of time it takes to place a takeout order.

Your company's success can be greatly aided by hiring a qualified bookkeeper. Hiring a bookkeeper should be one of your first priorities as a new business owner. Bookkeepers are responsible for maintaining an organization's financial records. They are also responsible for gathering receipts and invoices, recording cash flow, making payroll payments, and preparing tax paperwork. You can reduce the costs of running your company by hiring a bookkeeper who operates from home or online.

If you hire a freelance bookkeeper, you will be able to collaborate with them remotely - one of the perks of doing so is the possibility of regular catch-ups. Technology and artificial intelligence (AI) will continue to dominate the bookkeeping industry.

Every company is obligated to comply with the law and keep documents that are correct and up to date.

It is of the utmost importance to have your financial records in order as soon as possible when you start your business by installing user-friendly accounting software and learning how to use it effectively.

Here are six easy ways to make record keeping simpler and reduce the amount of stress you feel around the end of the fiscal year:

1. Allocate time each week and devote it to bookkeeping

It is of the utmost significance to stay on top of this. You should do regular reviews so that you can keep track of how well your firm is doing and maintain control over its cash flow.

2. Open a new business bank account for business earnings and expenses.

It is essential to maintain your personal life and your professional life completely distinct in all of your dealings.

After some time has passed, you will be able to submit an application for a company credit card and use the same terms.

3. Get accounting software that suits your business needs.

Before making a purchase, it is a good idea to consult with a business consultant or an accountant if you are unsure which piece of software will be most beneficial to your company.

One of the primary advantages of using cloud software is that it enables you to view your company's financials from any location and at any time. Additionally, you may delegate this task to your book-keeper or accountant.

Your data will be backed up on a consistent basis in the cloud at all times.

However, as an additional layer of protection, you should always make sure that you preserve backups of your financial data. You will need to train yourself to back up your files on a regular basis if you choose to use desktop applications.

4. Get all your tax and compliance obligations right

An ABN is required to be registered for by every business, and if your annual revenue is more than $75,000, you are also obliged to register for the Goods and Services Tax (GST).

In order to be able to recover your expenses, you are need to preserve the receipts for everything you buy. If you have employees, you are required to sign up for the PAYG withholding tax as well. At this point in the process, you will pay your employees and deduct some tax on their behalf.

You are also required to provide the ATO with a Business Activity Statement (BAS) that you have completed on a monthly or quarterly basis. You should be able to easily access this information if you use a suitable accounting programme and have it set up properly.

In this way, you may establish systems that will assist you in streamlining and automating the procedures of your organisation, which will allow you to maintain compliance.

5. Keep your receipts

The Australian Taxation Office demands that you preserve records for a period of at least five years.

The following is a list of the records that you are expected to retain and make available upon request:

• Invoices and receipts that your company issues in exchange for money paid for products sold or services performed.
• Invoices for the purchase of products, services, and other assets for your company that were made by third parties.
• Records of payments that have been paid to employees as well as other organisations on their behalf, such as PAYG tax and superannuation funds.
• Every single financial statement, such as an income statement, balance sheet, and cash flow statement.
• Details regarding the Tax Return
• Statements from financial institutions and credit card companies
• At the end of the fiscal year, stocktakes and asset registers, among other records, are taken.
• Everything else that the company possesses has a monetary value.

For the purpose of storing this information, you might either maintain a well-organized filing cabinet or create digital files on your computer.

6. Or, get a great bookkeeper

It is possible that as your company grows, you will want the aid of an excellent bookkeeper. If this becomes the case, keep in mind that the cost of this service is deductible from your taxes.

Employing a bookkeeper allows you to concentrate on expanding your company while simultaneously ensuring that your record-keeping is accurate.

It is essential to fulfilling all of your tax and compliance duties by the end of the financial year in order to provide yourself with the peace of mind you deserve during this fiscal year.

The information provided here is of a general nature for Australia and should not be your only source of information. Please consult an experienced tax agent as each small business's circumstance will vary for the end of the financial year.

Three strategies to improve your network as a bookkeeper

The profession of accountancy is not always the most socially engaging one.

People who work in bookkeeping frequently report that the feeling of isolation they encounter makes it challenging for them to cope with their job. Particularly those who are self-employed and who have the sensation of being isolated from a support network due to their employment situation. Isolated.

When I initially began working in this industry a few years ago, I never in a million years imagined that I would hear stories like this one. Bookkeepers that I was familiar with in the past would visit businesses once a week or twice a month, address any problems that they found, and then leave at the end of the day to prepare themselves for the next business that requires their services. In the past, these visits took place once a week.

But in recent times, I have heard from many bookkeepers that they do not know whom to consult for guidance or for a casual conversation, or that they are experiencing a sense of disassociation from their peers and a lack of a network. In addition, I have heard that they do not know whom to consult for guidance or for a casual conversation.

Because of the development of the internet, it is now possible for individuals who have been geographically isolated their entire lives to communicate with one another. Because we've built up a certain level of trust in social networks, we're able to be more candid about our past experiences and, as a consequence, solicit assistance from others.

Not simply websites for social media, but also places where people may have conversations.

Let's take a look at some of the choices open to the connected book-keeper who wants to keep their relationships with their coworkers alive and well. When I look at this, I see it through the lens of MYOB, but I'm sure that MYOB isn't the only company that's established amazing support platforms for their customers.

It is impossible to emphasise the significance of having connections. When you are part of a vast network, you have access to a multitude of opportunities, some of which include opportunities for additional employment, support, and companionship, amongst other things.

Here are some alternative approaches you may take to keep your connection going strong.

1. Business entities

Being a part of a trade organisation is beneficial for a variety of different reasons. You will receive plenty of benefits if you become a member of one (or more) of these groups, including support, services, training, templates, thought leadership, forums, and events.

Institute of Certified Bookkeepers (ICB)

Australian Bookkeepers Network (ABN)

Association of Accounting Technicians (AAT)

NZ Bookkeepers Association Inc (NZBAI)

2. Facebook

Whether you like it or not, Facebook has developed into a supportive environment that is remarkably transparent and forthright. (Well, maybe not all of the time.)

Around 2,000 bookkeepers in Australia have access to a secure and welcoming space thanks to the Bookkeepers Support Group Australia, which is not open to the general public.

According to the description, it is possible to see that:

You say, "I wanted to create a space where we can support each other, ask questions when we are confronted with a complicated transaction, and help each other grow within our respective businesses." "I wanted to create a space where we can ask questions when we are confronted with a complicated transaction and ask for help from each other." "When we are faced with a complicated deal, I wanted to make sure that we have a place where we can ask questions," you say.

And even if you're not in the best of spirits, you can be sure that a #hugabookkeeper will respond with a soothing comment to whatever it is that you post.

(It is essential to bear in mind that the aforementioned professional organisations all have active Facebook accounts, where you are able to communicate with subject matter experts in a direct manner.)

3. Events

The dissemination of information and the facilitation of social interaction are two of the functions that are served by events hosted by various industries. I've heard of bookkeeping companies employing these get-togethers as a means of business bonding, with two-day conferences ballooning into five days and include shopping trips, drink fests, and bonding trips! Those are just examples of the tales that I've been told.

The Partner Connect conference, which will take place in September, is going to be the most exciting event that we hold throughout the entirety of the year; the primary events will take place on the Gold Coast and in Auckland. One has the opportunity to make some very spectacular connections during these events. It is imperative that you focus on improving your ability to network in advance of the event in order to get the most out of it.

Bookkeeping basics

Learning basic bookkeeping in the same amount of time it takes to place a takeout order.

We will instruct you on bookkeeping before you have time to locate the phone number of the neighbourhood pizza joint and have a heated discussion with your children over what to purchase.

Your questions on the duties of a bookkeeper, the ways in which they differ from those of an accountant, and the best ways to collaborate with a book-keeper will be answered here.

In addition, we won't spend more than three minutes of your time reading it.

Top three conclusions

1. Bookkeepers are essential to the smooth operation of a company's finances on a day-to-day basis. Typical tasks for them include keeping track of income and expenditures, calculating wages, and maintaining accounting systems.
2. The fact that bookkeepers are responsible for recording business data while accountants are responsible for analysing that data might serve as a helpful memory jogger between the two professions.
3. To ensure that your financial records are accurate from the very beginning of your company's existence, you should seriously consider employing a bookkeeper.

Your company won't be successful if it doesn't generate profits regularly.

It is essential to make certain that someone within your company is aware of the precise financial state the company is in at any given time. This is one reason why bookkeepers can be such a significant asset.

Bookkeepers are the individuals that deal with the day-to-day operations of your company's cash flow on a regular basis. Your company's success can be greatly aided by the hiring of a qualified bookkeeper and the implementation of sound bookkeeping procedures.

What distinguishes a bookkeeper from an accountant?

It is not always easy to differentiate between a bookkeeper and an accountant, particularly considering that many accountants are also responsible for bookkeeping in addition to their accounting responsibilities.

The distinction between the two can be conceptualised as follows: the bookkeeper is responsible for maintaining financial records about the activities of your firm, whilst the accountant will analyse these records and provide you with advice on how to act in accordance with their findings.

Who are the bookkeepers?

Bookkeepers are the individuals responsible for maintaining an organization's financial records. They are the ones who are responsible for gathering receipts and invoices, recording cash flow, making payroll payments, and preparing tax paperwork.

Bookkeepers are responsible for a variety of tasks, including the following:

• Managing accounting systems
• Processing financial transactions including invoices, receipts, payments, and other payments
• Managing payroll
• Putting together the financial statements
• Accounts need to be reconciled, and reconciliation reports need to be prepared.
• Taking care of any outstanding loans or debt payments
• Calculating GST
• Putting together and submitting your Business Activity Statement (BAS) if you are in Australia or your GST return if you are in New Zealand
• Getting ready to make projections for your company

When ought I to employ a bookkeeper?

One of the best things you can do for your company as a new business owner is to start immediately putting in place the processes and procedures that are necessary to manage its finances. This is one of the best things you can do for your company. Because of this, you need to make finding and employing a book-keeper one of your top priority as soon as you possibly can.

Because bookkeepers and accountants often operate as freelancers, you can engage bookkeepers on an hourly basis just like you can hire accountants. This is because bookkeepers and accountants typically work independently. When you're first getting your business off the ground, it's feasible that you won't require their services for more than a handful of hours per week.

In addition to an initial consultation with an accountant to set up the legal and tax structures of your business, a bookkeeper will be responsible for the day-to-day operations of your company. This includes keeping track of revenue and expenses.

This website contains a list of qualities that a book-keeper should possess; it was developed by our staff and is available to you. If you would like a copy of the list, please click here. In the same post, you'll also find a list of qualities that, in our opinion, are essential for you to search for when selecting a book-keeper. These are things that you should prioritise.

How to cooperate with your bookkeeper

If you hire a freelance bookkeeper, you will be able to collaborate with them remotely, which is one of the perks of doing so. You can reduce the costs of running your company by hiring one of the bookkeepers who now operate either from home or online.

In order to cultivate a fruitful working relationship with your bookkeeper, consider the following advice:

1. Establish the conditions of your agreement

Before beginning to collaborate with another person, it is important to have a conversation about who is responsible for what and what each person may anticipate from the other.

Discuss the tasks that need to be completed, and after that, enquire about obtaining an estimate of how much it would set you back financially. They will probably wish to place limitations on the working circumstances they are subjected to, as well as the amount of time they are able to dedicate to your organisation on a weekly basis.

2. Determine your prefered methods of communication with one another

Effective communication is an absolute requirement for the fruitful development of any and all professional relationships.

You and your book-keeper need to have a discussion regarding the prefered method of communication between the two of you, namely whether you like to communicate via phone call, text message, or email.

As your company grows and their role within it evolves, it will be beneficial to maintain developing a positive working connection by keeping communication lines open and being honest with one another.

3. Hold sporadic catch-ups

Face-to-face meetings, whether they take place in person or via video call, are the most effective approach for ensuring that you and your coworker are both aware of the same information. This remains the case even if one of your coworkers does their duties at home.

Four bookkeeping trends to watch out for in 2021

1. AI and technology will continue to rule

The arrival of cloud-based and online accounting caused a significant upheaval in the bookkeeping and accounting industry; however, the technological revolution is not yet complete with us.

As bookkeepers, we are constantly informed about new software programmes, application updates, and add-ons that make our work significantly easier and more effective.

Bookkeepers can construct value-driven add-on services for their customers by optimising and automating their operations in order to deliver value-driven services to their clientele. This allows bookkeepers to spend more time on client services. Customers are guaranteed to receive the highest quality of service as a result of this.

Bookkeeping has come a long way since the days when its sole function consisted of entering data from a shoebox full of receipts into a ledger. And the implementation of STP in Australia in 2017 and Payday Filing in New Zealand in 2018 shown to us that those in authority are just as invested in technology and simplifying procedures as we are.

We believe that it is essential for bookkeepers to be current with the most recent breakthroughs in technology and to educate themselves on the most recent innovations.

2. The focus of bookkeeping will continue to move towards planning and advising

Because of all the new technologies and automated processes, the function of the bookkeeper is evolving.

Instead of acting solely as data processors, bookkeepers are increasingly taking on roles more akin to those of business advisers and virtual chief financial officers.

The majority of our bookkeepers' time these days is spent engaging in activities that require them to perform data analysis and provide suggestions regarding how our customers should conduct their business.

Bookkeepers are required to comprehend what the statistics represent for the functioning of a firm in addition to managing financial software and completing BAS (only applicable in Australia), and they must communicate this understanding to their customers.

Bookkeepers who have not embraced technology or who are unwilling to assist their customers with anything beyond simple data entry will surely require additional training if they want to be successful in the year 2020 and beyond.

3. Achieving balance in the workplace

Bookkeepers, who themselves run small businesses with the mission of assisting other small business owners, have a dual responsibility: first, they must prioritise maintaining a healthy work-life balance for themselves, and second, they must assist their customers in doing the same.

We have noticed a strong trend towards identifying the clients that fit your business, rather than just saying yes to everyone, and not being afraid to let clients go if the working relationship is not producing a pleasant experience for either party. This is in contrast to the traditional practise of simply saying yes to everyone, which has been the standard practise for a long time. This is in contrast to the common practise, which consists of merely agreeing to provide one's services to anyone who approaches one with a request for them.

Finding a way to maintain a healthy work life and a successful practise both require that you find a way to strike a balance between the demands of your work and the time you spend planning (the age-old concept of working on your business rather than in it).

One of the things that our most successful bookkeepers do is look for purpose in their job by focusing on the effect that their company has on the community in which they reside. This is one of the ways in which our bookkeepers have achieved such high levels of success.

In addition, the concept of "sustainable" comes up regularly in discussion throughout our training sessions, and this applies to both the environment and the economy. In the year 2020, we anticipate that one of the primary focuses will be the modification of business practises in order to meet the problems raised above.

4. Changes in our work processes

We anticipate that flexibility will remain the most prominent HR trend in 2020, since it is currently the industry's rising star. This has an effect not only on bookkeepers from the perspective of business owners, but also on their ability to comprehend how to advise their customers about the hiring of staff.

It's possible that the typical workday of 7.5 hours won't be required in the future if more people have a better grasp of the impact that inflexible expectations of accomplishment have on the mental health of workers.

There is a real trend towards focusing on task-based successes rather than monitoring – and being paid by – the clock in the workplace as employees attempt to carve out more discretion within their workspaces. This is in contrast to the traditional practise of being paid by the hour. This is as a result of the fact that accomplishments based on tasks are more simpler to quantify.

In addition, there is a growing awareness about gender equality in the workplace, which is having an effect on policies on parental leave. This is an encouraging new turn of events.

This is something that we are expecting, and it is something that we believe there will be a bigger push towards encouraging males to take parental leave and adjust their schedules to reflect them being 'working dads,' as opposed to the term primarily referring to 'working mothers.' It is possible that this will make it possible for women to take on leadership duties at higher levels, while at the same time encouraging a greater number of males to work part-time jobs.

Employers are compelled to come up with new benefits and perks for their workers if they concentrate on the myriad of ways in which workers can carry out their assigned tasks and the myriad of ways in which they might be compensated. This is because the myriad of ways in which workers can carry out their assigned tasks is directly proportional to the myriad of ways in which workers can be compensated. When looking for a new job, the ability to adapt to changing circumstances is without a doubt at the top of the list of priorities for the majority of people. The compensation that an employer is willing to pay is no longer the only factor that should be considered when searching for a suitable job in today's labour market.

Once every one and a half weeks or once a month, depending on which comes first.