XERO INVOICE REMINDERS

Last year Xero introduced Xero Invoice Reminders, this will definitely be a winner for Small Businesses as it will surely improve the Cash Flow of many Small/Medium Businesses that struggle with clients/Customer paying them on time. As we all know most of the time people pay their invoices once they receive a Reminder for their Invoice Due. Now you can set it up for any client in Xero. So as soon as an Invoice gets due Xero Automatically sends reminder to the Client advising them that an Invoice is Overdue if a payment is not applied in xero.
The Benefits of using this are,
1) Good Cash Flow: It does improves the cash flow of the Business as now Invoice Reminders are sent as soon as an Invoice is overdue Client Receives an email advising them about the Invoice Overdue status.
2) Time Saver: Since Clients receive an email as soon as an invoice is due, no more wasting time resending the Due Invoices to Clients which saves time,
3) Proper Debtor Management: Your Debts are managed properly as it automates some part of Debt Management,
4) Upto Date Debtors: To make this work you need to make sure as soon as a payment is received in Xero it is applied to the correct Invoice. So if done correctly it keeps your Debts upto date.

There are few things required for this to work and if done correctly can lead to some great benefits to the Small Business Owner. A Professional Bookkeeper should be able to help with this. We Specialise in Cloud Bookkeeping and happy to work with you on this, Contact Us Now.

IS XERO BETTER THAN MYOB?

If you would have asked this question 5 years ago the answer would have been MYOB but the way Xero has Changed the Bookkeeping in the last 5 years it is mind blowing, Xero has totally changed the way the Bookkeeping is done and it’s not about the Xero alone but also the Eco System that has been created by Xero is great if there is something that is not available in Xero it can be easily purchased with a click of button. Now MYOB is also following Xero’s Path and now they have a similar product called MYOB Essentials but there is a big difference in the Quality of the Online Software itself (though MYOB Essentials is cheaper than Xero).

When comparing MYOB and Xero we also need to keep in mind the Bookkeeping requirements of the Business Owner as well, as Xero in some instances is not suitable, let say if you need proper Inventory maintained in the Accounting software (though Xero has improved a lot in Inventory lately) I would recommend MYOB Account Right, though it is not a full online Version but it is a mixture of Online and Desktop Accounting,

Whether one is better or the other, a lot is dependent on one’s requirements and it should be thought seriously before choosing the software as it can not only save you $000’ in the long run but also can change the way your Business Bookkeeping is performed.

The final winner in this war between Xero and MYOB is the Small Business Owner, as what was only affordable for Medium/Big Businesses 5 years ago is now affordable for small Businesses provided a proper set up is done.

The following are the key Differences between MYOB Essentials and Xero,

Particulars MYOB Xero
Access 100 % Cloud 100 % Cloud
Quotations Different Options Available Yes and you are updated when it is accepted
Employee Expense Claims Not Available Yes Available
Employee Login Add on Available Inbuilt into Xero
International Currency No Yes
Reconciliation Complexity OK Very Easy
Reporting OK Much Better
Backup Regular Backup Regular Backup
Price From $29 From $25
Support OK Great (Only by Email)
Debtor Management No Yes (Can schedule reminders)

 

Conclusion:

There are many other benefit of Xero & MYOB over one another, as mentioned earlier it is very important to know the Bookkeeping Requirements, to know which one will work best for the Business. We Provide Xero Bookkeeping Services in Perth and can setup as well as can do the regular Bookkeeping

So Get in touch Now to get these Xero Benefits in your Bookkeeping

Xero Bookkeeping: Giving New Dimensions to the Bookkeeping Methods

When we talk about bookkeeping an image of various bookkeeping files appears in front of our eyes with a bookkeeper making entries of the transactions and making calculations to access the profitability of the Business. This, however was the scene of almost two decades back, because in the last decade or so computers took over this job.

Interestingly, in today’s scenario, both these methods of bookkeeping is used by people of orthodox school. Today with the intensive entrance of internet in our day-to-day activities, bookkeeping has undergone wide changes and we have a lot more online options available today. Today’s online bookkeeping software’s are much more user friendly as well as more easily accessible as they can be accessed from any computer as long you have internet connection.

Xero Bookkeeping Software is one of those online accounting software’s available these days that has changed the way bookkeeping is done in today’s Businesses.

What is “Xero Bookkeeping”?

In simple words Xero Bookkeeping may be defined as an online accounting process which allows the storing of the bookkeeping data on the web server rather than on the computer itself, which can be accessed by the authorised persons from any computer in the world as long as they have access to the internet.

Benefits of Using Xero Bookkeeping Software.

  • As the data is web-based it can be accessed by the business owner at any time. It is also very user friendly,
  • Being web-based it can be accessed by everyone without any back up of the accounting software. So there is only one Bookkeeping Platform,
  • With the connectivity Xero Software offers, it can be linked with many other software’s and some of the Bookkeeping jobs can be Automated which keeps Business Bookkeeping up to date,
  • The Financial Statements in Xero can be customised according to the business’s needs, this feature makes it easier for everyone to understand the financial reports even without the accounting knowledge,
  • Your Bank can be linked with the Xero Software thru Bank Feeds, so that your transactions are imported into the software automatically which makes Bookkeeping much easier and less time consuming,
  • The accounting software used in the past were not secure and therefore it was the targeted by the hackers. But Xero protects the accounts of business group from intruders.
  • Your Bookkeeping data is secure as the data is in the cloud with the Servers in multiple locations, so the data is highly secure.

The above mentioned benefits are only some of the many-many benefits of the Xero Bookkeeping, So get in touch with us today to get these benefits in your business.

SB Bookkeeping Services Pty Ltd

Cloud Bookkeeping Specialists

Good Bookkeeping Software

As we all know that the success of any Business is based a lot on how good the Bookkeeping System is and no Business in the world can perform without a proper system of Bookkeeping in place. Though the requirements of the Bookkeeping system is based on the Size of the Business,

Now, what is a good Bookkeeping Software? To answer this question we need to consider the requirements of the Business. i.e. a one man Band Business will have much different requirements than a 20 Employee company and so a different Accounting Software is required.

So the size and needs of the Business plays a vital role in selecting the right Accounting Softare,

The following are must to consider while choosing a Good Bookkeeping Software,

  • 1. Do you need Payroll in the Software,
  • 2. Do you need access to the Accounting Software on the go,
  • 3. Do you need Job Costing,
  • 4. How many Transactions do you do monthly,
  • 5. Do you want more than one Access to the Accounting Software,
  • 6. Do you want to track Stock in the Software,
  • 7. How much of In-depth information on the Customer Sales do you need,

If you are a small Business then a lot of Options are available when it comes to choosing the right Accounting Software but still it must be thought well before committing to it, one must also consult with a Professional Bookkeeper before choosing the right Bookkeeping Software.

For a Small Business Owner the following are the most Commonly used Bookkeeping Softwares in Australia,

  • 1. XERO,
  • 2. MYOB,
  • 3. QuickBooks,

At SB Bookkeeping Services we specialise in Online Bookkeeping in PERTH and can help you choosing the right Accounting Software that you need. So please get in touch.

The Real Cost of DIY or Cheap Bookkeeping

Being a bookkeeper in Perth for nearly 7 Years I have come across many clients who has tried DIY Bookkeeping but most of the time it hasn’t worked out and there is obvious science behind it, It is Vital for the health of any Business to have a professional Bookkeeper doing the Bookkeeping that you can trust.

There is nothing stopping anyone to do the Bookkeeping themselves or Hiring a Cheap Bookkeeper but the cost of doing it incorrectly is enormous. It is surprising that how many Businesses chooses to hire an unprofessional Bookkeeper to perform one of the most important Task which is Bookkeeping. Having a great Bookkeeper adds a lot of Value to the Business and the same is true for the Opposite of it.

The Following are the most Common mistakes done in DIY or Unqualified Bookkeeping,

  • 1. Incorrect Reconciliations: When we get a Rescue Client (whose Bookkeeping is in bad state) this is the first place we go to check as to how the Reconciliations are done and most of the time we find the Bank Reconciliations are not either done for a long period of time or they are done incorrectly,
  • 2. PAYG/Super Not Upto Date: It is Vital for the Business to keep up with all the Legislations of managing the Payroll properly as if not done correctly then it can lead to serious Bookkeeping mess with hefty fines from ATO. If the Payments are not Kept Upto date it can create a significant amount to be paid.
  • 3. Data Double up: It is another most common type of Bookkeeping mistakes that we find done by unqualified bookkeepers where though the Bank Reconciliation has been done correctly but while doing the Recs the data has been entered twice leading to wrong Calculation of everything.
  • 4. Wrong GST Reporting: The most common mistake while calculation is GST is on Bank Charges, Insurances, Rates, Car Registrations. Though GST is a part of Insurance and Car Registration but it is much less because of other things involved which is usually missed by unprofessional Bookkeepers.
  • 5. Timely Reporting: When we sign up a client we guarantee our Clients that their Business Activity Statements are always lodged on time provided we get all the information on time. Over the years I have seen many clients getting 000’s fines because their Bookkeeper didn’t lodge their BASs on time.
  • 6. Personal Expenses: Another common mistake is to enter the Personal Expenses into Business while performing the Bookkeeping. Which can lead to Serious Fines from ATO if Audited.
  • 7. Not Reviewing Balance Sheets: Balance Sheet should be reviewed on a regular Basis to check for the Data integrity and to check for any mistake happened during Data Entry. Most of the times an Un qualified Bookkeeper will not know how to read the Balance Sheet leading to mistakes getting accumulated,
  • 8. Not Recording Journal Entry: Another Common Mistake in unqualified Bookkeeping is not doing all the Required Journal Entries though it is out of the knowledge of a Business Owners you will be surprised most of the unqualified Bookkeepers do not know how and when to do those Journals to have everything Cleared properly.

The above mentioned points are only few of the many mistakes done in DIY Bookkeeping or Unqualified Bookkeeping. There are ways in Accounting Software to know if any of the above mentioned mistake has been done but to know about those things one Needs to have Bookkeeping Experience.

At SB Bookkeeping when we get a new Client we create a System Specifically for the Client so that Client knows how and when and what information is required by us to keep the Books upto date and helps us to maintain a Five Star Bookkeeping.

Contact Us Today

Difference Between Average and Good Bookkeeper

I am often asked what is the difference between a Good Bookkeeper and an Average Bookkeeper, the following are only few of the many Things that differentiate a Great Bookkeeper from an Average Bookkeeper,

1) Reconciliations: In the Reconciliations of a Great Bookkeeper you will never find a transaction in the Reconciliation to the point where it was last Reconciled other than Outstanding Cheques and some other transactions,

2) Balance Sheet Reviewal: A Good Bookkeeper will always review the Balance Sheet for any mistakes and incorrect Recording and the Balance Sheet will show the Correct Picture of the Business Assets and Liabilities,

3) Audit of the Data: A Good Bookkeeper will always perform the Audit of the Transactions entered to make sure that there were no mistakes that will affect the Accounts materially,

4) BAS Clearing: While lodging the BAS it is very Important that a proper Clearing of the GST and PAYG account is performed to make sure that the Balance Sheet is a Good Representation of the Business,

5) Filing: A proper Filing is maintained by a Good Bookkeeper where your Invoices are attached with the transactions for a proper Audit Trail.

These above mentioned points are only few of the Many things done by Good Bookkeepers that differentiates them from the Average Bookkeepers. We Specialise in Online/Cloud Bookkeeping in Perth. Get in touch to know how we can turn your Average Bookkeeping into a Super Bookkeeping.

How Much Value is Added by a Good Bookkeeper

Having a great Bookkeeper adds a lot of Value to your Business and is an asset to your Business. As until you have a Bookkeeper who can do you Books perfectly how would you know about the results of your Business, how would you know the 000’s you have spent on Advertising worked or not? So a Good Bookkeeper in Perth is a real asset to your Business.

When it comes to management of your Accounting/Bookkeeping it’s not all about just keeping ATO away though it is a part of it. It’s about making sure you understand the numbers in your Business, you understand which Customer/Client is worth how much to you, you need to understand which months of the year you have Cash Flow Problems, you need to budget for your Numbers well so you know well in advance about the numbers in your Business.

By having a great Bookkeeper, he/she will make sure that you understand the numbers in your Business that you can take decisions about your Business which will help you grow your Business. The following are few of the many ways in which a Good Bookkeeper can add Value to your Business,

1) Keeping everything Upto Date: I can’t emphasise enough that how important it is to make sure that your Books are up to date as nothing can efficiently runs in a business until you have a proper Books as it is like sitting in a boat and you want to go to USA but not checking that whether you are on track or not. As there should be a tracking measure in every Business otherwise it is hard to grow the Business and that’s where a Good Bookkeeper will help by having your Accounts up to date,

2) Understanding the Numbers: A Good Bookkeeper will make sure that you understand the numbers in your Business, so a Good Bookkeeper should be able to prepare set of Reports for you to look at, at the end of any period (weekly/fortnightly/monthly/quarterly). As until you have a look at the reports it’s hard to know about the profitability of the Business as the money in the Bank Account does not give true picture of the Business. i.e. even if you are making profits the money may not be in Companies Bank Account, with small Business the main reason behind this is because of the personal Use.

3) Understading your CashFlow: It is the job of the Bookkeeper to make sure that you understand the Cash Flow needs of your Business. As most of the businesses at some point have problem with their cash flows and it is very important to understand the trend of it so that you are prepare for it and can take the required steps to correct it.

4) Budgeting: This is another part of the Service of a Good Bookkeeper which is Vital to your Business and thus adds Value to your Business. A good bookkeeper understand that it is very important for any Business to have the proper Budgeting done for any Business as having a good Budget will help you understand your Requirements of the funds and thus helps you to understand how much you should spend on which section of the Business, i.e. on Advertising.

So the above mentioned are the only few of the many Services of a Good Bookkeeper that adds a lot of value to your Business and make a Good Bookkeeper an asset to your Business,

We offer Bookkeeping Services in Perth Metropolitan area and have been helping small/medium Business’s Bookkeeping in Perth. Contact us if you are looking for Five Star Bookkeeping Service at affordable prices.

SB Bookkeeping Services Pty Ltd,

How to Find a Good Bookkeeper

To start with it is difficult to find a Good Bookkeeper or a Good Bookkeeping Company in Perth. But on a positive note since 2012 it has become illegal for anyone to do a course on Xero or MYOB and start providing Bookkeeping Services which is a relief for Small Businesses as there are not a lot of unqualified Bookkeepers around as they used to be. As from 2012 a bookkeeper is required to have at least 2 years of Experience in the Industry and must be registered with Tax Practitioner Board and must carry minimum required Insurances.

If I am a business owner then I would want to have the Bookkeeper Experienced as they play a vital role in the Business and a Good Bookkeeper can add a lot of Value in the business.

The Following are the Must Have requirements to become a Good Bookkeeper,

1) Education and Training: A Good Bookkeeper must have all the Education and Training required for the Bookkeeping as it is a complex field a small course in Bookkeeping is often not enough to provide a quality Bookkeeping Service. When we hire someone in our Bookkeeping Practise then the minimum we look for is Cert 4 to make sure that the person understand Debits and Credits of Accounting as it is Vital in the Process of Bookkeeping.

2) Experience: The next must have requirement of a Good Bookkeeper is to have enough experience in the Bookkeeping. Over the years we have helped a good number of Businesses from Bookkeeping Disasters as their previous Bookkeeper didn’t have enough Experience in doing Bookkeeping, One of the most common mistake done by Business Owners while hiring a Bookkeeper is by their Prices i.e. looking for a cheaper Price while looking for a Bookkeeper. Which costs a lot in the Longer Run as the work of the Cheaper Bookkeeper needs to be fixed by someone.

3) Care for Business: Great Bookkeepers care for their Clients, they care for the numbers of their clients like they do for their own Books. They know how important it is for you to understand the numbers in your Business as no important decision about the business can be taken without knowing the numbers in the Business. So a Good Bookkeeper will sit with you explain the numbers in details so you understand your Business,

4) They Ask Questions: Good Bookkeepers ask questions to their Clients, they just don’t enter the numbers in the Accounting Softwares by assuming the things, whenever they are in doubt they should ask you questions. We have been helping Small Businesses since 2008 and it has never happen where didn’t ask questions to clients as it is Vital for the quality of the Bookkeeping,

5) System: Good Bookkeepers are System people, as we all will agree that nothing can be achieved in life if we do not have proper systems in place. Good Bookkeepers will first of all set up all the good system in their Client’s bookkeeping so that time can be saved and work can be done efficiently, I don’t remember when we picked up a client and there was nothing that had to be done to bring efficiency in the Bookkeeping.

6) Confidential and Reliable: Good Bookkeepers are Confidential and reliable, they are the people you can trust and it is very important to have someone taking care of your numbers who you can trust. When we get a client on board we sign a Confidential Undertaking that shows that we are fully confidential and do care for the Information gained during the course of Bookkeeping.

The above mentioned are only few of the many requirements a Good Bookkeeper must have. We have been helping Small Businesses in Perth for their Bookkeeping. If you are looking for a Great Bookkeeper then get in touch with us.

The Invention of Cloud Bookkeeping and its Benefits

As we all know the role of a Bookkeeper in an organisation has totally changed in the last 10 years and it is an eye opener that what has been the job of a Bookkeeper from 1000s of years has been transformed in a decade or so. Having said that today’s Bookkeeper are more professional than ever before. As in today’s environment a Good Bookkeeper will add value to the Client’s Business by making sure that his Clients understand their Business Bookkeeping and the Details of the numbers of the organisation.

These days it’s not about just the Data Entry in the Business and Bookkeeping is much more than that. Bookkeeping is not only about making sure that the Client is fully Compliant but also that the client understand their Business Bookkeeping and that client is fully aware of the Business’s performance.

Today more of the time should be spent in setting up the things correctly for the client and making sure that monthly preparation of the Accounts is done and is well communicated to the Client. So the role of the Bookkeeper has changed from someone Doing data Entry to the Someone who adds Value to the Business by making sure the Business has got the best Systems in place for the Automation.

At SB Bookkeeping we make sure the use of the best Accounting Software based on the Client’s needs and we embrace technology as it can transform the Business. Some of the benefits of Cloud Bookkeeping,

  • 1. Up to Date Records,
  • 2. Accessibly from anywhere,
  • 3. No Backups required,
  • 4. Automatic Updates,
  • 5. Easy to Use,

Contact us today to see how we can help.

Why Bookkeeping is Necessary?

Dealing with small businesses for their Bookkeeping for the past 7 years what I have experienced is that most of the Small Businesses looks at their Bookkeeping like a liability to satisfy the Legislative requirements by ATO but it should be the other way round, this has led me to write this blog, you wouldn’t sit in your car without knowing where you are heading, so you make Plans for this, but you can make all the possible plans in the world but if you don’t have a measure of analysing how you are travelling then the chances are you are not going to reach your goals and Bookkeeping is a big part of making you understand how you are travelling in your Business. The following are the only few of the many reasons why you need a Good Bookkeeper.

Financial Health’s Snapshot:

Yes having a Good Bookkeeper makes sure that your Accounts are upto date and having your Accounts upto date you are always aware about the Health of the Finances of your Business and that leads you to take the right decisions about the Business. Lets consider this situation you have just started a new Business and you are planning to do $120,000 of sales in the first year. Now after two months of operation if you don’t have a proper Bookkeeping System in place how would you know that weather you have achieved your first two months of Goal i.e. achieved $20,000 of sales, now if you have a good Bookkeeper and a proper Bookkeeping System then if you have only achieved $10,000 then you will know in a minute that you need to do something about this otherwise you may not achieve your first year’s Goal of sales,

Saves you Time and Money:

After doing 10s of Bookkeeping Rescue Jobs left by Bad Bookkeepers, I know that having a Good Bookkeeper and a proper Bookkeeping System definitely saves money and time. Having your Accounts done let say monthly saves you and your Bookkeeper heaps of time thus reduces Cost of Bookkeeping. Just Consider you left the Bookkeeping of your Business till the last minute and it is June (last month of Financial Year) now it is very hard to find the Right Bookkeeper for your Business as all the Great Bookkeepers would be flat out at that time of the year and you will have to settle for not so good Bookkeeper that can cost you fair bit in the long run,

Avoid Audits from ATO:

Having a good Bookkeeper who makes sure that you are fully Compliant with your Bookkeeping legal Requirements will reduce the risk of Getting Audited by ATO significantly. I have seen 10’s of Businesses Getting Audited and in Most of the cases these Clients are left by a Bad Bookkeeper with not so good Books or there is no Bookkeeping System in place. When planning for Audits ATO usually looks for most common mistakes done by unqualified Bookkeepers.

Proper Claim of all the Deductions:

A good Bookkeeper would surely know about all the Deductions available to your Business and thus all the available Deductions are claimed that Saves you 000’s in your Tax Returns,

When we start Bookkeeping in Perth for a Client, the first step that we will take is to set up a proper Bookkeeping System for the Client as when you have a good Bookkeeping system in place it leads to time savings. We offer Bookkeeping to small Businesses in Perth and you can get in touch with us if you have any Bookkeeping Requirement,

Happy Bookkeeping

SB Bookkeeping Services Pty Ltd