Fremantle Bookkeeping Services

You’ve bought MYOB because your mate in Cockburn said that was the accounting software he was using. Now what?

It’s like buying a car, but not being able to drive. When you learn to drive, do you really need to know how the car works, or how many revs, or where to put the oil in the car?

Most people just want to get in the car and drive – with a goal of getting from Fremantle to Melville (or wherever).

Most business owners do not have the time or the inclination to attend a MYOB course

Accounting software is much the same: you don’t need to know how it all works, you simply want to be able to enter invoices, receipts and spit out a few reports whenever required. That’s why many people contact us, and we teach them how to do the basics to learn MYOB for their business

Yes, you can go to TAFE and attend a MYOB training course if you so desire. Most business owners do not have the time or the inclination to attend a MYOB course. All they want is to know how to do the basics of bookkeeping to ensure they have a handle on their finances.

Smart business operators appreciate the benefits of outsourcing their bookkeeping requirements, so they’ll just do the minimum to keep on top of the bookwork, and have the bookkeeper can come in and do the rest. Contact us for details.

A good bookkeeping system is recording Expenses and Income in appropriate accounts

The basic building block to a good bookkeeping system is recording expenses and income in appropriate accounts. The tricky part is to make certain that whoever enters the data understands the true nature of each and every expense, and is able to put it in its right place. Contact us NOW for a free appraisal of your book-keeping system

Data Entry
Businesses need to have up to date and accurate account of their business income and expenses. While concentrating on their core business, financial record keeping can easily become overwhelming for many business owners. Out of date or poorly prepared records can actually hinder their business.

Professionally prepared financial records provide powerful information tools that enable better management of the business.

These records and reports enhance any interactions with accountants and financial institutions, so the business owner has an accurate picture of the financial status to make better business decisions.

In any business, money comes in, and money goes out. Generally money that comes in (Income) is through sales of goods, products, or through providing a service (i.e being paid to do a job such as bookkeeping, for a client).

Need help with your bookkeeping?
Contact us NOW for a free appraisal of your bookkeeping system

Other money that may come in to a business could be through loans from the business owner (private funds), the Bank or financial institution, Grants or capital injection from other sources.

Money that comes out of the business can fall into a number of different categories also. This money may be classed as expenses, including purchasing raw materials / components/ products all involved in making up the goods being sold. Other reasons that money comes out of the business maybe for personal use (Drawings), wages or to pay back loans.

This is where a basic understanding of accounting is very important, and it is the where the skills of bookkeeping are truly recognised.

Not all businesses are the same, and where an item may be seen as an expense in one business (i.e cutlery for a catering business) would more likely be a personal expense in another business (i.e an electrician buying cutlery would most unlikely be using that cutlery to further his business).

When the tax office (ATO) comes to audit a business, claims for items that are not business related can result in heavy fines. A recent example has been with the Australian Taxation Office scrutinising owners of investment properties that have been making purchases for materials used in their family home and claiming them as a deduction for their investment properties.

Clients will often fill their work vehicle with fuel at a service station, and then buy confectionary, bread, milk and other grocery items at the same time, all in a single transaction. When that transaction is recorded, the bookkeeper must ensure that only the fuel component of the transaction is recorded as a business expense, and the other items would be reflected as a personal expense, (i.e Drawings).

Incorrect data entry would not only misrepresent the total spent on fuel at the end of the reporting period (which would affect calculations in costings and future budgeting) but it would also affect the total “Cost of Goods Sold” and “Profit and Loss” figures.

Contact us NOW for a free appraisal of your bookkeeping system

Gone are the days when a “cash business” could hide earnings – thanks to Bill Gates and others in Silicon Valley, the ATO now has sophisticated data matching software.

They can compare similar businesses and create reports showing “average” turnover for a particluar business, and then cross-check against the tax return / BAS lodgment of that business.

It would be a huge job to be a bookkeeper for the Australian Taxation Office. During 2006/07 the Australian Government collected $135billion from individuals, and paid out $17billion in tax refunds

It’s no surprise that the ATO has so many more resources now than in days gone by for extracting every tax dollar from individuals and small businesses.

As bookkeepers, it seems most days we are working for the Australian Taxation Office, yet being contracted to small businesses in and around Cockburn, Melville, Fremantle, Canning Vale, and South Perth area.

During the period 2006/07 the ATO collected $40billion in GST, so of course the ATO is going to be doing everything within its means to ensure that every tax dollar is accurately reported.

You may have a Car Wash business in Fremantle, or you may be an electrician in Cockburn, doing cash jobs. The ATO can make a reasonable estimate of your tax liabilities and then come along and audit your books.

If the records appear to be disorganised, it will take the ATO longer to look through them. The longer they take, the more they will see, and the more questions they will ask.

If you can present them with an organised and tidy bookkeeping system, they are less likely to ask too many questions.

Whether you use MYOB or Quickbooks, or maybe you do not have any accounting software or even any bookkeeping system in place, then contact us NOW for an initial FREE consultation

There’s value in having a handle on your bookwork – if you cannot do it yourself, then you should be outsourcing a bookkeeper to do it for you – read more HERE

At a small suburban DVD rental stores (not around Cockburn or Fremantle), the new owner (we’ll call him Dave) is trying to build up his customer base.

One of their customers ( we’ll call him Bob) has been a member of that store for some time, and welcomed the change of ownership.

Dave achieved a three dollar sale, and NO MORE ever, from one customer.

The store promotes hiring 7 x “weekly” DVDs for $10. Simple enough, you would think. You select seven DVDs that you can hire for a week, for $10. So Bob selects some “weekly” DVDs, only to be told that they are “New Release Weekly” DVDs and Bob has to pay more.

“But how many days are in a week?” Bob asks. “Seven”, was the reply. So why aren’t you charging us the $10 ?

“Well, they aren’t weekly DVDs, they are New Release Weekly DVDs”

“Oh, so weekly DVDs are not the same as New Release Weekly DVDs?”

Okay, so Bob may have had a misunderstanding based on poor advertising by Dave. It’s only a difference of three dollars (for that one sale).

Dave’s view was that Bob (the customer) was stupid

However, the attitude of Dave was one of indignance, that Bob was stupid, and because it was Bob’s mistake Bob would certainly be paying for it.

Dave didn’t consider that Bob can choose which store he can rent DVDs from, and why does he need to be insulted at this store, when Bob can go to another store and be treated with respect.

The obvious jesture would have been for Dave not to worry about the three dollars, and retain a happy customer.

Dave didn’t consider that Bob was $500 customer

What Dave achieved was the three dollar sale, and NO MORE ever, from one customer. Dave’s not a bookkeeper, and maybe he doesn’t rely on bookkeeping when running his business week to week.

Because as bookkeepers, we would tell Dave that what he didn’t consider, was the fact that Bob was not a three dollar customer, Bob is a $500 customer (annually) . If you’re not sure about this concept contact us for more information.

If the DVD store owner did that with 10 customers, he’s lost $5000 annual turnover – But Dave’s made the extra $30, and been able to make his point.

Well done Dave! Will you still be in business in twelve months time? Or will you realise how much a three dollar customer is worth?

If you’re a small business owner / operator in / around Cockburn, Melville, Fremantle, Canning Vale, and South Perth, then contact us for a free initial consultation, and we’ll have a chat about your bookkeeping needs

When hiring a good bookkeeper, many small business owners will ask around for a referral. Others will surf the internet looking for a mobile bookkeeping service in the local area. Where do you find a local bookkeeper, and how do you know that you are hiring the best bookkeeper for your business? Contact Us for more information

With increasing data cross checking by the ATO, and the financial obligations of business owners, its vital to keep track of your bookwork. You need to have someone in charge of your bookkeeping who not only has the training, but also the experience to get the work done efficiently and accurately. It can be a challenge to find the right bookkeeper, so here’s a few tips to look for:

Why Hire a Bookkeeper?
Bookkeepers are not the same as accountants, though you may find your accountant will offer to do your bookkeeping. When they do that, you’ll find that your accountant is hiring and / or outsourcing a bookkeeper, and making a nice profit for this additional service.

The accountant is there to provide financial advice and recommendations, to help you with any issues relating to taxation. The accountant will be working from the bookkeeper’s figures. The bookkeeper records income and expenses, reconciles the bank accounts, and administers payroll.

Your bookkeeper can be hired in a full-time, part-time or contract position depending on your needs. Prior to hiring your bookkeeper, you need to ascertain the level of qualification and experience that your bookkeeper has. Contact Us for more information

Bookkeeping – Training and Education
In Australia, there is no formal qualification for bookkeeping. Educational Institutions and Bookkeeping Organizations offer training and certificates, but as at July 2008, there is no legislated formal qualification required for a bookkeeper to operate. They may have a Certificate IV in Finance – which is a stepping stone towards an accountancy qualification, they may have a degree in accounting.

Many experienced bookkeepers have no formal qualifications and can be far more valuable than a freshly qualified bookkeeper straight out of TAFE or university

Bookkeeping – Experience
Nothing beats the School of Hard Knocks qualifications. Hiring a bookkeeper that has a couple of certificates and no experience can lead to disaster. Many bookkeepers start out by working in the accounts department of a large company, and move on to work in a more senior role in smaller companies, before embarking as a freelance, or contract bookkeeper.

Ask your potential bookkeeper for references from any accountants that they have worked for / with. You’ll find that bookkeepers will deal with a number of accountants, as each client tends to have their own accountant. Contact Us for more information

Bookkeepers are a rare Breed
To be able to deal with number crunching all day, and find it interesting, takes a certain kind of personality. Attention to detail is a key factor with good bookkeepers. If they are disorganised or vague at the interview, then they may not be the person you are looking for.

Computer Literacy
With the advent of computerised accounting software packages, it is essential for a bookkeeper to be computer literate. The days of writing in ledgers and double entry bookkeeping are long gone. Having said that, you should ask your bookkeeper if they could perform the task without computer software. If they cannot, then you need to find another bookkeeper.

The old adage “Garbage In – Garbage Out” is certainly applicable to bookkeeping. If your bookkeeper does not have an understanding of basic bookkeeping principals and has to rely on the computer software, it’s a recipe for disaster

How Much Do You Pay A Bookkeeper?
How much you pay your bookkeeper is upto you. How much do you value your business? Do you see Bookkeeping as an expense or an investment in your business? The importance of keeping accurate financial records can not be stressed enough, and is often the reason that many businesses fail.

If you want to make a short-term saving by employing a cheap bookkeeper, then, chances are that your bookkeeper is not the best. Many times a cheap bookkeeper has cost a small business financially through lack of experience or poor record keeping. The fees that the bookkeeper charges will be an indication of their level of confidence and experience. You can expect to pay a bookkeeper anywhere between $20 – $70 per hour. Contact Us for more information

Are You Self Employed ?
(have ABN):

• Carpenter
• Electrician
• Plumber
• Tiler
• Painter
• Roofer
• Decorator
• Sander
• Or the like?

We’ve got bookkeeping packages tailored to suit You

Subbies and tradesmen ( and tradeswomen ) are having to get on top of their paperwork with much more detail as the ATO steps up its enforcement of collecting taxes. [More HERE]

Speak to most subbies, and you’ll realise that you’re not on your own in HATING PAPERWORK
There are many issues involved in the necessity of checking source documents.

How do you confirm if the supplier is registered for GST? How do you check if they have supplied a valid ABN no? How do you check for split transactions – eg: insurances? The list could go on.

Subbies engage a bookkeeper to take care of these things. If it was as simple as the client coding the transactions they might as well do the job themselves.

Most people hire a bookkeeper because the don’t know how to code things and don’t know what is claimable and what is not.

A good example of the problem is petrol station receipts. Without the receipt how do you know if the client has not purchased drinks, lollies, cigarettes, etc as well as fuel. Not all these things are claimable!!

You may be a concreter who uses a lot of subcontractors and many times they supply invoices charging GST. Do you check their ABN number only to find that they’ve charged GST when they are not registered to charge for GST?

For a free initial assesment, CONTACT US HERE

In the last two days we’ve had calls from small business owners who understand that they cannot do everything that needs to be done to keep their business going.

The cost of hiring a bookkeeper may seem expensive until you consider the cost of trying to do the bookkeeping yourself. Contact us now for a free quote

One client had their brother-in-law set up the chart of accounts and show our client how to do the bookwork. That can work well sometimes, and can be a total disaster for others. Costly mistakes can occur by not setting up your bookkeeping system correctly, through giving an incorrect reflection of your business profit and loss, or incorrect calculations of the GST that is owed

As we fast approach the deadline for the September 2008 Quarter BAS returns due October 28 2008, business owners begin to panic and search for quick solutions to their bookkeeping, and getting upto date with their Business Activity Statements

If you’ve been doing your own books and are not sure about how to complete the BAS, you can Contact us now.

We have clients that email us their MYOB / Quickbooks files and we can sort them out and submit the BAS electronically. If you are not sure whether you’ve done the data entry correctly, Contact us now and we’ll have a look over your data files.

Not only can we save you in accounting fees, we may also save you in your GST liabilities – after all, you can probably put the money to better use than the Australian Taxation Office, can’t you?

He regarded the bookkeeping to be an unnecessary expense

Many small business owners struggle with keeping their bookwork up to date. Yet good record keeping is an essential part of any successful small business.

How can you make an informed decision about your business if you don’t know where you are at financially with your business?

You may have an excellent understanding of your business, and can say that you have all the information in your head.

We recently had a client who knew his business so well, that he boasted one client accounted for more than two – thirds of his business turnover.

When we presented the figures, he was shocked to learn that the client actually accounted for less than a third in terms of income, and was actually taking up about 80% of his time.

The business owner had no idea of where his business was, he hadn’t looked at sales figures, had a vague idea about his pending orders, and was heading for collapse.

Yet he took no notice of our warnings, because he regarded the bookkeeping to be an unnecessary expense, and only wanted the minimum of bookkeeping services.

Six months later he closed the doors on his business, before the creditors declared him a bankrupt. So he lost his whole business for the sake of a few hundred dollars in bookkeeping fees that he regarded as an expense.

Good record keeping should be the life-blood of your business, so ensure that you have a good bookkeeping system in place. Contact us for details