calculator financials pen

Numbers should tell a story

Money is a tricky topic for a lot of business owners

There’s the matter of how to account for it, how to present it and, of course, how to raise it. 

In this day and age where accounting has been made a lot easier and financial information more transparent, how should business owners approach their numbers? 

Here are some things we figured out:

Numbers should tell a story 

Proper accounting is more than just compliance. It’s an opportunity to paint a picture of your business – where its strength and opportunities lie, as well as its risks and challenges which, in turn, can help business owners make better decisions. 

But accounting is a technical skill and not all business owners are necessarily savvy in this field. This is where a good bookkeeper can come in. 

More small and medium-sized businesses are leveraging accounting solutions like Xero to get yesterday’s data. Back in the day, this was an accountant’s job. It would take days to collect information from a client and the bank before they could present the numbers. But because cloud accounting solutions do all this already, we bookkeepers get to take more of a role as advisors, reading and interpreting the numbers into actionable advice

This is important because business owners don’t always think about this. They see positive numbers and think they’re doing well, so no need to bother checking what’s under the hood, right? 

We knew one business in particular that didn’t realise 82-83% of their revenue was coming from one customer. They knew it in their heads, but didn’t have a concrete number for it. When their relationship with that customer soured, they had to scramble to get back on their feet. 

Had a bookkeeper stepped in to provide advice beforehand, whether that was to take care of that customer or to focus their efforts into acquiring other big customers, the business wouldn’t have had to rely on a single major source of revenue. 

Back then, many business owners saw bookkeepers and accountants solely as the people who could help them pay less tax and comply with the law. But now, thanks to new solutions and emerging technologies, we get to be so much more than that.

Having worked with plenty of businesses over the years, we’ve noticed how the approach to their numbers varies. Some don’t prioritise accounting and financial transparency, while others inflate the importance of fundraising to a disproportionate degree. 

Learning to use and understand the powerful reports inside Xero are critical to the overall success of your small business. The management team at Notch Above are able to work with you to customise advanced Xero financial reports, while identify strategies to increase your cash flow or setup your annual budget. Read more here or call us on 1300 015 130.

Source Xero

Can we help you streamline your accounts process?

If you need the team at Notch Above Bookkeeping to help you, we will.

We love this stuff! Here’s how we can help:

Book your Next Action Discussion with us so we can go through:

  • Where the money has gone in your business and how to stop this happening again.
     
  • Why there is never any money left to pay the BAS and what processes to put in place to ensure there is next time.
     
  • How you and your staff can save time with admin processes in your business right now.
     
  • How you can reduce the time it takes your customers to pay you so the money is in your bank sooner.
     
  • Which KPI’s would be useful to track in your business so that you can really push your business forward.
     
  • Anything else you wanted to have a chat on … well, nearly anything.

We have a great team who just want to know if you need our help.

And so, in 15 minutes, you can tell us what the biggest financial issue in your business is right now. Your business is worth that time. Here is that link again for booking a slot with us soon. We look forward to talking with you!

small business bookkeeping notch above bookkeeping brisbane

How precious is your time?

Time-saving tips for savvy business owners

According to the World Bank, the average Australian lives for 82 years, the equivalent of 718,000 hours. That is a long time.

Or is it?

On average, a person sleeps for 7.5 hours a night. That means we spend a third of our lives asleep! We fill up the remaining waking hours (some 493,000 hours) getting an education, having a career, exploring the world, maintaining friendships and relationships, and raising children.

Some aspects of our waking lives consume more of our time than others.

A person’s education can take up to anywhere from ten years to 24 years, or a quarter of a lifetime. Australian employees spend on average 32 hours a week working, which equates to 27 per cent of a salaried worker’s waking hours or 66,560 hours over the course of 40 working years.

On average, Australian small business owners work considerably longer hours than employees. According to a study published by the Department of Innovation, Industry, Science and Research, 50 per cent of Australian small business owners work longer than 40 hours a week, with a quarter of small business owners averaging 50 hours or six-day workweeks.

For 18 per cent of small business owners, a 60-hour workweek is not uncommon. A 60-hour work week leaves just 55 hours a week, or a meagre seven hours a day to live and love.

While reducing a life to hours might seem like a depressing exercise, it just goes to show how precious time is. The good news is that if we can identify the time-wasters in our lives, we can either eliminate these tasks, automate them, or get someone else to do them, freeing us up to grow successful businesses, all while living enriching lives.

Notch Above Bookkeeping has your business up and running with Xero quickly and accurately. We can help you install the software, configure your security settings, import your business data (chart of accounts/suppliers/debtors/employees) as well as set up your invoicing, payroll and taxation requirements.

Contact Notch Above Bookkeeping today to get Xero, the world’s easiest accounting system setup and working for your business and saving you time so you can concentrate on making the most of work and personal life.

SG amnesty

Proposed SG amnesty legislation not enacted

If you’ve missed a payment or haven’t paid an employee’s super on time, you are required to lodge a Super guarantee charge statement and pay the super guarantee (SG) charge.

This includes the application of the mandatory administration component of $20 per employee per period to SG charge statements lodged.

The legislation to give effect to the proposed amnesty was introduced into Parliament on 24 May 2018. However, the legislation was not enacted and did not become law when Parliament concluded on 3 April 2019.

What this means for employers

If you took action to get your SG obligations back on track in anticipation of the proposed amnesty, the ATO will write to you to provide further detail.

If you have any concerns in the meantime, please call the team at Notch Above Bookkeeping in Brisbane on 1300 015 130.

Source ATO

woman cheering at desk

Small Business Superannuation Clearing House errors

3 tips to avoid common Small Business Superannuation Clearing House errors

When you use the Small Business Superannuation Clearing House (SBSCH), it is important to enter valid and accurate employee details.

This ensures super funds accept the payment for the benefit of your employees.

Tips to ensure payments are accepted

  1. Check the following are correct:
    • Unique Superannuation Identifier (USI), commonly known as a super fund product for APRA regulated funds
    • Australian business number (ABN), bank account and electronic service address for self-managed super funds (SMSFs)
    • Super fund member account number
  2. Make sure the super fund name only includes alphanumeric characters and no symbols (such as ‘&’)
  3. Check the payment matches the payment instructions and use the correct Payment reference number (PRN) when making the payment.

If an employee’s details change after submission of a payment instruction, but before it has been processed, you will need to delete and re-lodge the payment instruction.

Once a payment has been received by the SBSCH and successfully sent on to the nominated super fund, you can see it in the clearing house under the Historical tab.

Addressing errors

If there are errors with an employee’s details, super funds may send the payment back to the ATO who will then contact you and ask for the information to be updated within seven business days.

If the information is updated, the ATO will resend the payment to the super fund with the new details. If not, the payment will be refunded back to the employer.

Notch Above Bookkeeping are certified Xero bookkeepers offering agreed-price monthly fees so you know exactly where you stand. No hidden extras and no ticking clock. Browse our range of Xero bookkeeping services and get in touch with us on 1300 015 130 to discuss the Xero File and plan which best suits the needs of your business.

Source ATO