This involves assessment and documentation of multiple processes, along with full reporting on all business operations - from the inside out.

Genuine quality control means there are no nasty surprises when the external auditor comes to call.

In an ideal world, every NDIS provider would use a failsafe system of internal audits to mitigate persistent risks in an increasingly complex industry. But the world of NDIS compliance is not ideal, and can be relied upon to change constantly.

Here are five ways internal audits can streamline organisational processes and empower NDIS service providers.

1. Go digital

Many providers in the disability arena are wary of doing away with paper-based audits.

Yet this stops them achieving optimal performance. After all, paper gets lost - thrown away or stored in the wrong filing cabinet. Store your data in the cloud and it provides you with a virtual office that is scalable and secure.

Manual, paper-based audits also tend to get done erratically, if at all – either forgotten or pushed back to another date. Time-poor staff spend valuable hours transposing data manually to collate results. It’s a laborious process.

Cloud-based audits allow employers to more effectively track, measure and assess performance.

2. Simplify risk assessment

The NDIS Quality and Safeguards Commission lays down strict guidelines concerning risk management in NDIS organisations.

Disability service providers now face a dizzying array of statutory reporting obligations relating to:

• Management of incidents, complaints, information and human resources.
• Work health and safety.
• Governance issues.

Smart assessment tools allow you to simplify and streamline your entire risk assessment process - identifying, documenting, evaluating, assessing and treating key risks proactively versus reactively in your organisation.

3. Pursue continuous improvement

NDIS disability service providers are now expected to demonstrate continuous improvement in every aspect of operation.

If your own self-auditing process is ad hoc, incomplete or messy, you won’t be able to document or prove your progress in any consistent way.

Beat your own benchmarks by using a digital internal auditing system which supports a Continuous Improvement plan.

4. Turn up the transparency

Disability service providers are in constant communication with clients, employees, contractors, auditors and the NDIS Commission – or they should be.

NDIS Practice Standards are cracking down on poor reporting practices, along with failure to document, communicate and act on a range of incidents and complaints.

A fit-for-purpose system with audit scheduling and tracking capability could effectively support one or many auditors in your organisation.

5. Provide the evidence

Disability service providers can no longer survive with sloppy work practices and gaps in documentation.

The Commission requires them to collect evidence, share results, show improvement and demonstrate compliance to external auditors – in a systematic way.

An evidence-based audit system ensures you can record critical data, rate performance, measure and review progress.

Blog provided by Centro Assist 12.2020

If you would like some assistance, get in touch. Click here!

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The post 5 Ways Internal Audits Empower Disability Service Providers appeared first on Higher Purpose Accounting.

Provide your feedback in this survey and be part of the movement in helping business thrive in the NDIS.

The survey will take about 4 minutes of your time to complete depending on your responses. Your time to complete this is greatly appreciated with a chance to receive a $100 gift card.

Privacy
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And this is the right time to master your bookkeeping skills so that you can optimise your finances earlier on.

Bookkeeping may seem difficult initially, but remember that it contributes to your business health. So devote specific time every week for the task. Here are some of the most common issues that you may face when managing bookkeeping.

Accounts Receivable and Collections

What process do you follow from generating invoices through to collecting the payments?  This process can be quite complex, and so often leads to further problems. Having invoices created and sent regularly, and preferably when the goods or services are provided will ensure that everything is recorded and will enable cash flow comes in regularly.

As well, you need a process to follow up outstanding invoices on a regular basis.  Too many businesses do not do this and find them self in financial difficulty as a result.  Better still, implement an automated process that will send out email reminders automatically and you will find most customers will pay fairly quickly, leaving you to call only those who still don’t respond.  It will save you hours each month.

By doing this, funds will be there for you to pay your expenses, meet your business financial obligations and to help grow your business.

Cash Flow

Cash flow problems can start when you combine business and personal finances. Many small business owners use the same account for both, resulting in a tangled mess that is too hard to clean up.  Drawings are made as needed for personal expenses and are then not available when required for expense payments and for meeting government obligations like tax.

By separating your business and personal accounts from the very first day, you’ll be saving yourself from plenty of trouble down the road.

Paperwork

Tracking receipts and storing them properly is one of the biggest problems that you may face as a business owner.  Make sure you compile them in an organised way and store them somewhere safe as many accounting aspects rely on tracking expenses accurately.

A good accounting software can help you with this task. As far as storage is concerned, you can do it offline but doing it over the cloud is more preferable because of easy access and greater security.  Take a photo or scan any paper invoices or receipts received and upload them to the transaction in your accounting ledger or save on a cloud storage facility like Google Drive or Dropbox.

Payroll

Managing payroll is a complex process, and if you make mistakes, you can be penalised by government.  Payroll management isn’t only about salaries, but also includes taxes, superannuation, bonuses, benefits, and other areas.  Find yourself a specialist in payroll to assist you in meeting your obligations.

Closing your Accounts

Ideally, you should close your accounts every month so that important figures and financial metrics can be obtained.  By delaying this you won’t be able to report timely information, gain useful insights and make effective decisions.  You also run the risk of recording transactions in a prior period where you have already reported externally, particularly to government agencies.  Closing your accounts every single month will avert this. Sounds complex? Then seek the advice of a professional accountant.

Visit our website www.higherpurposeaccounting.com.au for more information.

The post The Most Common Bookkeeping Challenges Faced by Small Businesses appeared first on Higher Purpose Accounting.

History shows many business owners delay working with professional accountants as much as they can.  They don’t see the value of investing in an accountant, only thinking of it as an expense.  But the monetary saving costs them many hours of their time and eventually thousands and thousands.

So, are you now convinced that you should work with an accountant? If your answer is still no, let us walk you through some situations in which professional accounting advice can be valuable.

Writing your business plan

Are you in the process of developing your business plan?  Bring in an accountant on board and they’ll help you improve the plan. Accountants can use advanced software to predict the financial position of your business a couple of years down the road and also prepare various reports that give you valuable insights, allowing you to make key decisions.

Hiring accountants earlier on lets you utilise their financial knowledge and experience right from the start, helping you save time and money. You will also learn some critical things as well!

When determining the legal structure of your business

Every business has a different legal structure depending on various factors. The most common types include limited liability partnerships, limited liability corporations, sole proprietor and so on.  An accountant can explain each type in detail, along with associated legal implications so that you can select the one that best fits your needs.

Helping with finances

Business management appears too complex during the start-up phase. If you feel that you, spending too much or losing control over your finances, then reach out to an accountant and they’ll help you optimise them. They’ll evaluate your current situation, identifying areas where you’re overspending or can generate revenue and put a system in place for you to achieve it.

Accountants keep tabs on key metrics like debtor days, cash flow timings, inventory turnover, gross profit margin and return on assets, and identify revenue and expense drivers, providing you a good picture of your business performance. Moreover, they use advanced accounting software and add-ons that automate many tasks at your end and help you improve collaboration within your team.  If the software is in the cloud, you enjoy greater accessibility and security.

Focusing on your business

Running your own businesses means handling many different operations that fall under different areas. When you start spending too much time on these critical issues, you lose track or your basic purpose while also wasting your resources, as you cannot be expected to be an expert in all these areas.

But when you outsource operations like financial accounting and financial management, you get peace of mind and more time on your hands to deal with the bigger and more important issues in your business.

So, hand over your accounting tasks to an award-winning business like Higher Purpose Accounting. We’ll quickly set up a proper system for your business and take of other steps crucial to business stability and growth.

The post When Should Small Businesses Turn to Accountants for Help? appeared first on Higher Purpose Accounting.

If you are just starting out, you may be able to manage, but do consult a qualified accountant about the best structure to have, the internal financial and operational procedures for your business and how to comply with government obligations. You should also think about automating accounting with widely available software like Xero, QuickBooks, Reckon One or MYOB. Go through the features and the subscription pricing, and then decide the best software which serves your business needs and is within your budget.

So, let’s take a look at some of the most effective ways to sort out your small business finances.

Separate personal and business expenses right from the start
One of the biggest mistakes that new entrepreneurs make is mingling their personal and business finances. Never do this, even if it’s just the first day or your business. Keep your business and personal finances separate. Open a separate back account for your company and have a separate credit or debit card for your business.
Later on, when you sit down and reconcile your expenses, you’ll be extremely glad that you kept the two areas separate.

Track your expenses thoroughly
Label, and then categorise your expenses, keeping a critical check on your cash flows. Also try to use your business credit or debit cards for most of the purchases. Managing paper receipts is difficult but when you use payment cards, all transactions records are electronically. If you use accounting software, you can have a direct bank feed to the software or import all these records into the software, saving you and your accountant/bookkeeper time.

Plus, the more you use your credit cards, the greater rewards you earn. Many loyalty programs offer cash back, which can benefit savings.

Still there can be cases when cash would be your only option. Make sure that you take pictures of all paper receipts them and attach them to the transaction in your accounting software.

Take out time to update your books
As much as you feel like delaying bookkeeping, don’t do it. Take out time, every single, week and get all your records in order. Set aside a time for this, and then be sure to follow it. You may even get some help from a bookkeeper.

Look out for labour costs
Employee salaries are often the biggest expense of small businesses. So, ensure you record superannuation, PAYG Withholding, overtime and other details carefully. Using accounting software with a dedicated payroll module can help you here.

Look for help from the pros
The best piece of advice that we have to offer. Hiring a qualified accountant and/or bookkeeper may seem like and added expense, but it is actually worthwhile having them when they sort out and put your finances in order.

Get in touch with Higher Purpose Accounting to see how we can help you with these areas.

The post Accounting Tips for SMEs appeared first on Higher Purpose Accounting.

Apps

So many helpful accounting apps are already available on the Android and iOS play store and there are many in the pipeline.  These apps will instantly notify you and give you valuable insights and alerts and are often being bundled with intuitive dashboards giving you a complete picture in just one glance.  You have instant access to your key financial indicators and other important data right there on your mobile smartphones.

Conversational Platforms

Accounting firms are expected to make use of conversational platforms and chat bots to answer their client queries, offering them valuable advice and provide them all the support that they need.  Developers are finding new ways to make these platforms more effective for businesses and their clients.

Automation

Accounting will soon be driven by Artificial Intelligence AI, which may well, completely transform the daily routine of an accountant in the future.  Repetitive tasks are already being automated, with more fully integrated accounting systems being launched, and new solutions developed that take into account the effect of regulations and compliance on business.   Consequently, a shift will be made from transaction processing by accountant and book keepers to more advisory roles like financial analysis and forward planning.

Cryptocurrencies and Blockchains

Cryptocurrency and the underlying technologies are expected to have significant effects on the accounting industry.  Currently, challenges do exist so it is predicted cryptocurrencies will not become mainstream any time soon.   But things are a little different for distributed ledgers and block chains. A distributed ledger is like a cooperative database, storing data for multiple computers together and in turn, promoting sharing and trust.  Block chains are a continuously growing list of records, called blocks, linked and secured using cryptography and is inherently resistant to modification of the data.  Many financial institutions in Australia are already developing solutions that will utilise these technologies, looking to launch them as commercial products over the next few years.

Data Security

Outsourced accounting has benefits for business, small and big. But when outsourcing, it is vital to understand the effects outsourcing may have on data.  Access, storage, data security should be considered, and questions around these each of these aspects, are expected to become need to be addressed.  When choosing an accounting firm, checking their privacy policies is essential.

E-Invoicing

As the name implies, e-invoicing delivers invoices electronically from the cloud-based accounting system. This is rapidly becoming a standard around the globe, with invoices being automatically generated for recurring items and when milestones are reached, greatly improving efficiency within a business.

Higher Purpose Accounting can help you in setting up your accounting system and related processes and with managing your finances.  Visit our website or give us a call on 0434 349 704 for more information.

The post Accounting Trends for Current Times appeared first on Higher Purpose Accounting.

A major factor to consider is the structure of your accounting system and how transaction information is captured.

Remember garbage in, results in garbage out. Know what it is you want to track and what are the drivers of revenue and costs.  Then set up your accounting ledger and client management system to capture this information on entry and in a categorised way.

This means the information will come out in a meaningful way when you run your reports and enable you to make useful decisions in a timely manner.

If you would like assistance with any or all of these areas, arrange a consultation with me now using the details below:
www.higherpurposeaccounting.com.au

The post Have good accounting information appeared first on Higher Purpose Accounting.

You need product and service goals, sales and marketing goals, financial and operational goals as well as self-development goals.

It may seem like there are a lot of things to do, but if you focus on one area at a time, after having taken a few steps, you will start to see positive results, that will in turn spur you on to achieving even more.

Remember though, if you neglect any of these areas, you run the risk of setting yourself up for failure.

If you would like assistance with any or all of these areas, arrange a consultation now using the details below:
www.higherpurposeaccounting.com.au

The post Link your vision to achievable goals appeared first on Higher Purpose Accounting.