We all think to some degree we can do it all and better than anyone else, but it will lead to burn out. But having all your processes systemised will make things more efficient, reduce stress and help you get back your weekends.

You want a well-oiled machine. A practice that can runwithout you needing to answer every question or solve every problem. It is possible!

So, what can you do?

1. Map out your processes
2. Create documented procedures
3. Train your staff to complete the tasks

Now, you can get out there yourself and with your team documenting everything and automating where possible. But where do you start?

If you are unsure or feel you don’t have the time to do it all yourselves, you could ask for help and use a proven system.

Practice Flow is a Done-With-You Practice Efficiency Overhaul for Allied Health Owners Who Are Drowning in Staff Questions, Constant Fires, and Sluggish Cashflow. It helps you reclaim time; boost cash flow & stop the chaos—with support that grows with you.

Your team will be able to do what needs to be done and feel more confident and capable in doing it.

Find out more today!Click link for more details from our friends at Beyond the Maze
https://go.beyondthemaze.com.au/home-7104

The post Feeling like the bottleneck in your Allied Health practice? 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
Please be assured your response is secure and the information provided will only be used to develop services critical to helping NDIS Providers improve their service delivery and administration.

https://www.surveymonkey.com/r/CMW3XMX

The post Key Challenges for NDIS Providers appeared first on Higher Purpose Accounting.

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.

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.

Keep personal and business finances completely separate

That dinner you had wasn’t part of a meeting with client, yet you used your business card. Those computers that you bought were meant for work, but you ended up using your personal payment card. Yeah, you can pay yourself back from your business or pay back to your business from your personal account. But DON’T!

It’s that simple.

Personal and business finances should never ever be mixed together whatever the circumstances may be. Generally, when you spend on your business, you should record a transaction. If you don’t or if you combine personal and business finances, then things can become a pain pretty soon and it will be hell for you to track down all the expenses.

So, separate the two accounts right from the start and you’ll be saving yourself a good amount of time and pain in the future. And let’s not forget that this will be a huge help when you lodge your tax return.

Set aside some time

For organising your finances that is. Spend around 15 to 30 minutes every week and the only thing that you should be doing during this time is to sort out your finances and make sure that they are in proper order.

And by the way, this little activity can even help you gain insights especially if you make good use of your accounting system.

Track salaries

Yes, there is a need to mention this separately. Whether you are the only one working or have a team of staff, track costs associated with salaries, benefits, leaves, overtime and other relevant expenses separately.  This will let you know if your labour costs are within the budget or outside it. Accordingly, you can decide if you should spend more on incentivising your team or if you need to cut down on some benefits.

Call the professionals

We mentioned this at the start of our discussion, but let’s talk about it again for emphasis. Accountants are a vital part of any team.  They are an expert in maintaining accounting and finance systems and have done it for so many businesses just like yours. They know exactly what works, what doesn’t and which deductions you should utilise.

Agreed, you may want to refrain from hiring an accountant for anything other than tax and other compliance areas, but trust us, bring a professional accountant and trusted advisor on board and the improvements made will more than compensate for their hiring costs.

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

The post Organise Your Small Business Finances appeared first on Higher Purpose Accounting.

Open a separate bank account

Once your business is registered, earning income and paying expenses, you need a place where you can record and manage these. Open a separate bank account for the purpose so that distinct records are maintained. Don’t forget that this will make your life so much easier when it’s tax time, for GST accounting and for tracking and setting aside monies for staff related expenses.

You can initially start with a basic account, and then later on, move to an interest earning savings account.  Needless to say, do some shopping around here and compare offers from various banks. Go with the one that is more affordable whilst meeting your needs.

Keep a track of your expenses

From day one you need to keep good records of your expenses and spend wisely in the areas which will set the foundation for the future. You may be generating income but if you are spending money fasting than you are earning, you will come into trouble in the future with cash flow.

Establish a proper system to organise your receipts and maintain your records making sure that you are safely storing expense records for your tax deductions and for for later referral.  These days you can scan and store documents within your accounting software.

Set up a bookkeeping system

Bookkeeping is the process of recording daily transactions, categorising them and then reconciling the records with bank statements.  Choose appropriate accounting software, and decide if you want to recruit someone for the job or outsource the task.

Generally, it is best to hand over all your bookkeeping to a third party so that you can focus on your core business.  It is a false economy to try to do it yourself!

Establish a payroll system

You hire one person at the start, then two, and eventually a team. And some of them may be part time employees as well.  Consider whether your staff should be independent contractors or employees. The amount of work to be carried out and the type will help you decide here - remember if you only need one or two people part-time, it will be less compliance to have them as contractors who can invoice you as each project is completed.  That said, check with your tax account that you are meeting the compliance requirements for a contractor or an employee and organise someone to process payroll if this is the road you take.

Decide how you want to be paid

Are your sales rolling in? Great! Decide acceptable payment options. If you’d be willing to accept credit and debit cards, you’ll have to set up a merchant account or sign up with a payment processor. Also, consider automated debtor collection if you raise invoices and accept payment by EFT.

Determine tax obligations

Tax obligations widely vary depending upon your type of business structure.  Income tax, GST, FBT, PAYG may apply - talk to an accountant or a tax expert, and they’ll guide you through what is required for each type.

Re-evaluate your methods

Re-evaluate your accounting procedures and systems every now and then. If you are using the right methods and appropriate solutions, you are saving time and increasing efficiency.  Also ask for some advice from an accountant bookkeeper or business owners in your industry to determine how you are going and what you could improve.

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

The post Small Business Accounting: Starting Up appeared first on Higher Purpose Accounting.

Understand working capital

Do you truly understand your working capital? Working capital is your current assets minus your current liabilities and includes cash, inventory, accounts receivable and payable, payroll, loans/credit and unpaid taxes.

Now, have you decided the amount that you consider to be required? Before you do anything else, make sure that you have the answers to following questions:

• What should be your minimum inventory level?
• When do you invoice customers, how regularly and how long does it take for them to pay you?
• How much do your customers owe you? Or do you owe them any products or services for advanced payments made?
• How long does order preparation or service delivery take place, right from when you pay your suppliers to getting payments from your clients?

Have enough cash on hand

The next step is to ascertain that you have cash on hand to meet your basic expenses.  Do you have some kind of buffer in the form of a term deposit, an overdraft, revolving credit facility or even personal funds?  Having enough cash to cover 6 months operating expenses is a good buffer to call upon when unexpected times come and you need access to additional cash.  Remember, when you do this you’ll need to identify where you could generate extra sales easily and look to delay non-discretionary expenditure.

 Plan for the future

At least for this year anyway.  Predict your incoming and outgoing cash flows for the next few months. Ascertain that you have or would have enough funds through this time to keep your business running. If you can’t forecast sales, then plan your outgoing cash flows first. Now figure out the amount of income that you need for your outgoings.  That’s the target that you should have in mind.   Next year you will have more data and experience so you should be able to plan for a longer time frame.

And then plan for the month

Great, you have a yearly plan. Now let’s work on a month by month plan.  Do you have enough cash to meet all your expenses by the 20^th of this month?  Create a plan for every month from now onward, and if you’ll ever have to face a shortage, you’ll know sooner rather than later and make the necessary adjustments before issues arise that negatively affect your business.  Excel is great for this or you could use the function available in many of the cloud based accounting systems.

Review your existing systems

Analyse your existing finance and other administrative systems which are not great for many of the small businesses that we have come across. When do you invoice and do you do this regularly? How soon do you get your receivables? How do you collect – direct debit or monthly account and is follow-up automated?  What reports do you use to know what you owe to suppliers and what your customers owe to you?

Ensure your customers can pay you easily

How many payment options do you accept? Allow customers to pay you through any means that they find convenient. Accept credit cards, PayPal, EFTPOS and see if payments can be automated. Fees you incur having these are small compared to time spent chasing up outstanding amounts.

Bring in an expert from outside

The best tip that we can give you is to use professional accounting, advisory and bookkeeping services, experts who will reduce unnecessary expenses, save you time, automate your systems and optimise your finances.

If you would like to know more about any of the items mentioned in this article, please use the Higher Purpose Accounting Contact Form at:

http://www.higherpurposeaccounting.com.au/

The post Small Business: Are You Managing Your Cash Flows Effectively? appeared first on Higher Purpose Accounting.

Firstly, identify what activities you will undertake and break these down into revenue earning or cost incurring ( or investment) and determine the time frames for each type.

Next, review each of these and make adjustments on a periodic basis  to measure the impact on the business.  Having a yearly budget together with a cash flow forecast, regular reviews and re-forecasts will give you a solid foundation towards financial success.

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 Get the planning and monitoring right appeared first on Higher Purpose Accounting.