Jim's Bookkeeping Blog

Posts Tagged ‘bookkeeping systems’

Crackdown on Sham Contracting

Thursday, March 31st, 2011

Group of workersThe Fair Work Ombudsman says it is taking aim at ’sham contracting’ in the health and beauty, cleaning and call centre industries, in a special auditing campaign to be completed over April and May.
Ombudsman Nicholas Wilson says the watchdog is in the process of auditing a “number of industries to see what the threshold level of sham contracting might be”. The FWO will release further details on the campaign in the coming weeks but said the workplace regulator will “distribute tens of thousands of educational brochures on contracting arrangements nationally to workers who may be vulnerable to sham contracting arrangements and to the members of key industry groups.”

The Ombudsman will focus on employers who incorrectly label employees as ‘contractors’ to cut costs – this follows a $214,500 fine this month for a Brisbane call centre company and its director for sham contracting and underpayments.

News of the crackdown comes as the Construction, Forestry, Mining and Energy Union released a report  claiming there could be more than 168,000 people employed on sham contracts in the construction industry. The union claims that ABS data and independent tax consultant analysis suggests these sham arrangements are costing the government $2.45 billion in lost tax revenue and wants to see the problem fixed. “Workers forced onto sham contracts lose their rights and entitlements, and the Government loses tax dollars,” CFMEU national secretary Dave Noonan said in a statement. “The only winners are those employers who flout the law knowing they won’t be punished under the current system.”

Article from Gold Coast Chamber of Commerce -Northern Gold Coast

If you are unsure if your staff are an employee or contractor visit: http://www.ato.gov.au/businesses/content.asp?doc=/content/00095062.htm

Click on Employee/Contractor decision Tool and follow the process to help you understand whether your individual workers are employees or contractors

Shared with you by – Maureen Millar

Jim’s Bookkeeping Northern Gold Coast (Helensvale QLD 4121)

Maureen Millar is the owner of Jim’s Bookkeeping Northern Gold Coast and she supports small business’ in Helensvale and across the Northside of the Gold Coast. To find out more about Maureen, visit her profile page at http://www.jimsbookkeepingbrisbane.com/maureen-millar.html or request her free report to discover “How to Stabilise & Grow Your Business in 7 Easy Steps“

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Posted in Bookkeeping, Business Planning, Gold Coast, small business | Comments Off

“Have One Week Off”, 7 days to de – stress…

Monday, March 28th, 2011

Man stretchingThey say there’s more than one way to skin a cat. The same goes when you start tearing your hair out with all the frustration, grief, anxiety, and yes, stress. It’s a state of mental conditioning that is like taking that bitter pill down your throat, causing you to lose your sense of self, and worse your sanity. Just thinking about it can drive anyone off the edge.

And they say that the proactive ones are already living off the edge…

As one stressed-out person to another, I know how it feels, and believe me there are many variants when it comes to stress. Coping with life, and carrying the problems that may or may not belong to you can scratch away the little joy and happiness that you can carry once you head out that door. You can’t blame them for being like that; they have their own reasons, so much like we have our reasons to allow stress to weigh us down. They say that stress is all in the mind, well, what’s bugging you anyway?

There are several ways to manage stress, and eventually remove it out of your life one of these days. So I’ll try to divide it into a seven-day course for you and I promise it’s not going to be too taxing on the body, or on the mind.

1. Acknowledge stress is good

Make stress your friend! Based on the body’s natural “fight or flight” response, that burst of energy will enhance your performance at the right moment. I’ve yet to see a top sportsman totally relaxed before a big competition. Use stress wisely to push yourself that little bit harder when it counts most.

2. Avoid stress sneezers

Stressed people sneeze stress germs indiscriminately and before you know it, you are infected too!

Protect yourself by recognizing stress in others and limiting your contact with them. Or if you’ve got the inclination, play stress doctor and teach them how to better manage themselves.

3. Learn from the best

When people around are losing their head, who keeps calm? What are they doing differently? What is their attitude? What language do they use? Are they trained and experienced?
Figure it out from afar or sit them down for a chat. Learn from the best stress managers and copy what they do.

4. Practice socially acceptable heavy breathing

This is something I’ve learned from a gym instructor: You can trick your body into relaxing by using heavy breathing. Breathe in slowly for a count of 7 then breathe out for a count of 11. Repeat the 7-11 breathing until your heart rate slows down, your sweaty palms dry off and things start to feel more normal.

5. Give stressy thoughts the red light

It is possible to tangle yourself up in a stress knot all by yourself. “If this happens, then that might happen and then we’re all up the creek!” Most of these things never happen, so why waste all that energy worrying needlessly?

Give stress thought-trains the red light and stop them in their tracks. Okay so it might go wrong – how likely is that, and what can you do to prevent it?

6. Know your trigger points and hot spots

Presentations, interviews, meetings, giving difficult feedback, tight deadlines…. My heart rate is cranking up just writing these down!

Make your own list of stress trigger points or hot spots. Be specific. Is it only presentations to a certain audience that get you worked up? Does one project cause more stress than another? Did you drink too much coffee?

Knowing what causes you stress is powerful information, as you can take action to make it less stressful. Do you need to learn some new skills?

Do you need extra resources?

Do you need to switch to decaf?

7. Burn the candle at one end

Lack of sleep, poor diet and no exercise wreaks havoc on our body and mind. Kind of obvious, but worth mentioning as it’s often ignored as a stress management technique. Listen to your mother and don’t burn the candle at both ends!

So having stress can be a total drag, but that should not hinder us to find the inner peace of mind that we have wanted for a long time. In any case, one could always go to the Whitsundays and bask under the summer sun for 7 days

Remember ”Don’t Sweat the Small Stuff”

Shared with you by – Maureen Millar

Jim’s Bookkeeping Northern Gold Coast (Helensvale QLD 4121)

Maureen Millar is the owner of Jim’s Bookkeeping Northern Gold Coast and she supports small business’ in Helensvale and across the Northside of the Gold Coast. To find out more about Maureen, visit her profile page at http://www.jimsbookkeepingbrisbane.com/maureen-millar.html or request her free report to discover “How to Stabilise & Grow Your Business in 7 Easy Steps“

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Posted in Brisbane, Gold Coast, Home Based Business, small business | Comments Off

What to do BEFORE you small business paperwork gets washed away in flood water…

Saturday, January 22nd, 2011

View Details Unfortunately, with the recent disasters that have hit our state there will be a number of small business owners with lost or destroyed critical data and our heart goes out to them.

As small business owners it’s heartbreaking to even begin to imagine the time and money that would be needed to rebuild your business from scratch.  How would you remember what you have done for each and every customer or for yourself?

This is why I strongly recommend to all my clients and colleagues (and friends and family) that they have in place a well thought out Business Continuity Plan (also called a disaster recovery plan). The main purpose of any business continuity plan is to protect business critical data from being destroyed.

Successful plans focus on keeping this business critical data backed up and accessible at all time.  When a disaster occurs, the last thing you want to find out is that all of your files and documents are lost forever

Business critical data includes information your business could not recover if it were lost.  Any small business disaster recovery plan should focus on keeping this irreplaceable data safe.  That data might include:

  • Customer information
  • Email correspondence
  • Financial records and information
  • Sales and shipping records
  • Insurance, vendor and employee contact information
  • LAN and WAN Network diagrams and IT vendor service level agreements
  • Telephone service level agreements
  • Drawings or Specification documents
  • HR records
  • Video or audio records
  • Procedures and Policies
  • Quality and product tracking records
  • Inventory records
  • Certificate and Licenses
  • Payroll data
  • Asset register
  • Debtors & Creditor register
  • Security information
  • Manuals, books and other products created for and by your business
  • Off site storage indexes which include what is stored off site, where it’s stored, and when it was updated

An essential action plan for a small business is to have an online cloud accounting software system similar to Xero or Saasu, a good scanner and a cloud based file storage and synchronisation facility like ‘DropBox’.  This, together with the help of your professional Bookkeeper is one of the best methods to avoid critical data disaster.

For help with developing and implementing  your disaster recovery action plan before it’s too late or your business recovery options if it is already too late – please contact me today.

Maureen Millar

Jim’s Bookkeeping Northern Gold Coast (Helensvale QLD 4121)

Author Maureen Millar is the owner of Jim’s Bookkeeping Northern Gold Coast and she supports small business’ in Helensvale and across the Northside of the Gold Coast. To find out more about Maureen, visit her profile page at http://www.jimsbookkeepingbrisbane.com/maureen-miller.html or request her free report to discover “How to Stabilise & Grow Your Business in 7 Easy Steps“

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Posted in Accounting, Bookkeeping, Brisbane, Franchising, Gold Coast, Home Based Business, MYOB, News, SAASU, Software, Sunshine Coast, Xero, small business | Comments Off

The Bookkeeper and the Accountant – who does what and when?

Monday, June 28th, 2010

Bookkeeping services are sooo different from accounting services. Trying to compare the two is like comparing apples to oranges. Bookkeeping is about the day-to-day management of your finances. A good bookkeeper will actually become involved in your business and is all about working closely with you to help you achieve your goals. An accountant is valuable for preparation of tax returns, conducting an overview of the business and providing financial planning.

Did you know that your best $$ value is achieved if you spend

80% of you account management time with your Bookkeeper

and 20% with your Accountant…

The Bookkeeper:

Bookkeeping is seen by many small business owners as a chore that they have to submit to on a regular basis and this leaves them quite vulnerable to half hearted efforts or only doing the bare essentials. They are then missing out on some really useful and profitable information about their business. The smart small business owner will see this weakness in their business and realise the true value in outsourcing their bookkeeping to a professional.

A professional bookkeeper can offer you more then just data entry to satisfy ATO requirements. They can keep you informed about what is happening in the wider business community. One of the most common mistakes when hiring a professional bookkeeper is not taking full advantage of their experience and knowledge. A bookkeeper talks to many business owners and accountants. Ask them for tips on how other clients do their advertising, source referrals or reduce their costs. You will be surprised by the answer.

It’s also important to be aware that not all bookkeepers offer the same services.

Good bookkeepers should be skilled in:

  • Computerised system such as MYOB, QuickBooks, Xero or Saasu. (A good bookkeeper will be familiar with several systems). They should be able to offer you basic data entry as well as managing your reporting and your chart of accounts.
  • Keeping track of your sales invoices and customer payments. They should tell you when your customers are not paying on time and offer suggestions for encourging prompt payment and debt collection.
  • Keeping track of your purchase invoices and telling you when to pay your bills or making sure you get that prompt payment discount. They should be able to develop forcast budgets to help you make sure the funds are always available for paying your bills.
  • Managing your payroll system. They should keep track of sick and annual leave accruals as well as superannuation and payroll tax.
  • They should help you to set up a budget and every month run a report comparing your actual figures to budget and identify areas for improvement and act on them.
How do I know if my bookkeeper is going to do the job correctly?

If you don’t have some set standards for your bookkeeper, you have nothing to measure them by. Remember, you can only manage what you can measure. For example, some business owners require their bookkeeper to do bank reconciliations within 7 days of receiving the bank statements. They also want to see management reports soon after, to make crucial business decisions. Take time talking with your bookkeeper to define what duties your bookkeeper must perform. A professional bookkeeper should provide you with a clearly defined scope. Ask them to give you an engagement letter outlining all their services. It will help you in deciding if your future bookkeeper really understands your business and your requirements.

Gain more out of your bookkeeper.

A good bookkeeper will help you in implementing business systems and procedures.  For example, if you have a problem with late payments they will help you get a formal system in place. The real key to getting more out of your bookkeeper is to work with them and not around them.   If they make a recommendation for a system that involves you having to develop a new habit of placing receipts in a nomited pile or file or making sure personal expenses are indicated on bank statemnets before sending them in  it will ultimately help you get quality information from your bookkeeper to help you grow your business rather than paying them to spend hours chasing you up with emails and phone calls to clarify the little details.

A bookkeeper can be the independent unbiased person taking care of your financial day to day record keeping. They have no other agenda except to see you grow and succeed in your business. With a consistent person performing all the financial recording, you will get reliable and accurate financial reports. You will be free to run your business, focus on delivering a high quality product or service, knowing that your financial health is taken care of.

N.B. Your Professional Bookkeeper should have current membership with a Recognised Association and attend regular seminars and training to update skills, knowledge and professional development.

The Accountant:

Don’t think of your accountant like the dentist. This isn’t someone who inflicts pain with a calculator instead of a drill who should be avoided until a visit is absolutely necessary. Accountants are an important part of a small business owners operations but like the dentist, if business owners leave their visit until it’s too late, the pain can be excruciating.

The Purpose of Your Accountant

Once an accountant has all the clues, (from the efforts of your Professional Bookkeeper) he or she can do their job effectively and painessly. They will give you specific direction on the steps to be taken to save money on your tax bill this year. Equally important, they will give you advice on how you are going to save taxes in future years. Depending on your situation, they may even recommend a long-term tax strategy for putting away money to pay for your children’s education or your retirement.

The purpose of using an accountant is not just to put tax returns together. They put together tax strategies to save you money this year, the next and throughout your life.

The more work your Professional Bookkeeper does to provide complete and correct records minimises the cost factor of an accountant and minimises costs both in downtime and disruption on your daily operation in answering the accountant’s queries. It will also allow your accountant to be able to add value to your business beyond the compliance work.

Where business owners hurt themselves most is by not consulting their accountant prior to major, usually infrequent transactions:-

  • Is it best to lease a new vehicle or buy on HP?
  • What is the best way to finance new equipment?
  • Help in preparing to discuss financing with the bank

Accountants are there to help, not hinder, so business owners should work to build rapport and a working relationship between themselves, their Professional Bookkeeper and their Accountant

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Posted in Accounting, Bookkeeping, MYOB, SAASU, Software, Xero | 2 Comments »