Here are my top tips on how to save time on your bookkeeping:

Provide ALL receipts and invoices to your bookkeeper. This will not only save the bookkeeper time as they will not have to chase you for missing paperwork, but will also save your accountant time both when preparing your tax return - or in the event of an ATO audit - as all of your paperwork will be available.

TIP For each receipt or paper invoice, take a quick photo and email it directly to your accounting software or add-on solution. For emailed receipts and invoices, set up a rule to have them automatically forwarded. Your bookkeeper can then attach each receipt or invoice to the relevant transaction ready for your accountant or the ATO.

Provide paper receipts and invoices ready sorted. The more ordered these can be the less time it will take the bookkeeper. For example, if you deliver a box with all the paperwork dumped into it, it’s going to take time for your bookkeeper to sort the documents in order to check them. If you deliver the paperwork already sorted, split by bank account / credit card and in date order (or close enough), there is going to be a lot less time that your bookkeeper spends sorting these.

TIP Keep one filing wallet in your vehicle or office for each of your bank accounts or credit cards that you use for your business. Each time you get a receipt or invoice place it into the file for the correct bank account or credit card from which the expense was made. If you do this each time they will be more or less in date order.

Keep your personal expenses personal - ensure only business expenses go through your business bank account and credit card. It takes more time for your bookkeeper to sort through those personal expenses and determine whether they really were business or personal.

TIP If you need to take a funds from your business account, try to make it a regular amount so that your bookkeeper can easily identify those transactions as drawings - and if possible make a note on the bank transfer.

Respond quickly to your bookkeepers queries. The longer it takes to get a response, the more time it will take your bookkeeper to pick up the thread again and carry on where they left off. It will also mean that it takes longer for your work to be finalised for the period being processed, and therefore longer to get those all important performance reports.

TIP Don’t delay - try to respond within 24 hours to your bookkeeper.

Consider changing software provider. There may be some initial outlay in transferring your data over and getting up to speed on the new software, but if you move to the right software it is quite possible that the processing time will be greatly reduced.

TIP Do not be afraid of change! Just because you have been using the same software for years, doesn’t mean it is the right one for your business.

Automate your business processes - and that includes bookkeeping. There are hundreds of add-on providers of software available to automate processes, that connect to your accounting package. This will leave your bookkeeper more time to spend on those value-added reports that will show you how your business is performing, where it could do better and where changes can be made.

TIP Check out the add-ons available to your accounting software and others, to see where your business could benefit. Seek advice from your bookkeeping business consultant on the how to make the processes

more efficient.

If changing your ways all in one go seems like too much, try to implement one change per processing period. Before long your processes will be streamlined and your business and your bookkeeping running smoother than it ever has before.

If you have put off hiring a bookkeeper because you see it as a wasted expense, think again.

Hiring Love Bookkeeping should be seen as an investment. Why so? I hear you ask….

We Love What We Do

Can you say the same about bookkeeping? Did you get into business so that you could be a bookkeeper on the side? Probably not. So calculate how much time you spend doing something you do not enjoy and consider the value of spending that time working on your business, not in it.

We Help Businesses To Grow

By producing a set of accurate and up to date reports we can help you to grow your business. With the aid of forward cash flow projections and budget vs actual reports, as well as the standard profit and loss and balance sheet reports, we can provide you with a set of valuable data. With our analytical expertise this data will be the basis on which you make the most important business decisions.

We Take The Pain Out Of Compliance

ATO, ASIC, Superannuation….we will ensure that your compliance obligations and lodgement deadlines are met. As a Registered BAS Agent and Registered ASIC Agent we cover all the bases. At the end of the financial year, with our systems and processes your books will be in great order for your accountant.

Call now to discuss how you can invest in us.

As with the start of a new calendar year, the new financial year is a great time for making resolutions and setting goals for your business. These resolutions and goals can be a useful tool in creating focus and assisting in moving your business forward. In order to achieve your business goals, you will need to have a clear vision of where you would like your business to be, and in what time frame. Additional financial reporting will assist your business in achieving the goals you have set. Any business that is not creating and utilising regular financial reports will be unable to asses how well the business is performing and the areas where improvement can be made.

Cash Flow

Cash flow reporting is important for ensuring that your business can meet its financial obligations. An up-to-date, regular cash flow report gives the business owner valuable information regarding how much money is owed and at what date versus how much money is expected in and on what date. This will enable the business owner to be proactive in managing the finances of the business and assist in preventing a 'cash flow crisis' from occurring. When attention is not paid to cash flow it can affect the relationship between your business and your suppliers. Monthly accounts paid late may result in your lines of credit being suspended or cancelled. In the worst case, it can mean that, ultimately, your business will fail.

Profit & Loss

The Profit & Loss report is the statement of financial performance of your business. This reports shows how much money has been made, ie profit, once the expenses have been deducted. Expenses are broken down into two sub-sections, cost of sales - being those expenses that are related to the provision of goods or services, and expenses - being the business overheads which are not directly related to the provision of goods and services. Profit & Loss reports can be created to show the overall financial performance of your business between specified dates, or the performance of a certain part of your business, for example and individual job.

Balance Sheet

The Balance Sheet shows a statement of the financial position of your business at a given date, and therefore what the business is worth. The Balance Sheet states the assets owned by the business, the liabilities owed by the business and the equity in the business. The equity is the amount of money remaining in the business after the liabilities have been deducted from the assets. Within the Assets and Liabilities are sub-sections, current assets and non-current assets, current liabilities and non-current liabilities. Understanding the Balance Sheet of your business will help you to understand your business.

Budgets

Budgets can be created within your accounting software to enable you to track the expenditure of your business, or of a part of your business, for example a specific job. By using budget reports for jobs, you can gain a better understanding of how accurately a job has been quoted. In order to maintain profit on a specified job it is important to closely monitor the budget and work within the figures provided in the budget report. Areas that are identified as going over-budget can be improved upon in subsequent quotes.

Profit Margins

Profit margins reports can be created to assist the business in selling jobs at a higher margin and therefore, increase the profit. These reports can also be used to assist in pin-pointing other areas of the business where savings can be made, which again will increase the profits.

How Love Bookkeeping Can Help

Love Bookkeeping can assist you in realising your business goals by ensuring that your accounting software is set up in the most efficient and effective way for your business and by creating valuable reporting packages. Any or all of the above reports can be incorporated into the service provided to your business by Love Bookkeeping.

What is outsourcing? The dictionary definition is:

outsource

1. verb (used with object), outsourced, outsourcing.

(of a company or organization) to purchase (goods) or subcontract (services) from an outside supplier or source.

2. to contract out (jobs, service

s, etc.): EG a small business that outsources bookkeeping to an accounting firm.

verb (used without object), outsourced, outsourcing.

3. to obtain goods or services from an outside source. EG U.S. companies who outsource from China.

Why is this a good idea? Outsourcing allows an ‘expert’ to undertake specific tasks which they are more qualified in than yourself. And, although you might pay a premium rate for their knowledge, they are more likely to do a better job in a shorter period of time than you yourself could do. It also frees up your time, allowing you a better work-life balance or more time to spend working on the parts of the business that you are more knowledgeable about and enjoy.

What tasks might be outsourced? Typical tasks that are often outsourced are:

Legal adviceAccountancy and bookkeepingMarketing and advertisingDesign, including web design, logos, stationary, business cards, etcHealth and safetyBusiness coachingAdministration, including personal assistant, telephone answering service, live chat service

Should I use offshore outsourcing services? Tasks outsourced to offshore services can be cost effective, but need to be selected very carefully. All compliance and legal obligations still need to be met and work thoroughly checked. For some tasks local knowledge may be deemed more valuable and therefore more suited to onshore services, such as some marketing media. Businesses also cannot claim for GST on any services purchased offshore, which could be a consideration depending on the total value of services provided.

Where is the best place to find services? Referrals from other businesses is by far the best way to find reliable contractors to provide the services required. If possible request data to back up claims that the services are worth what you would be paying. For example, check website designed by web designers, advertising campaign statistics on lead generation and sales conversion figures, testimonials and reviews, etc.

When is the best time to start outsourcing? Straight away. The sooner the experts can do their job, the sooner your business will reap the rewards!