Attention Small Business Owners in Cleaning and Courier Industries

 

Attention
Small Businesses operating in the Cleaning and Courier Industries

The taxable payments reporting system is applicable to you as from 1 July 2018.
Previously only businesses operating in the construction industries were affected.

What does this mean?

You need to keep a record of the subcontractors you pay during the year and submit their details to the ATO by August 2019 for the 2018 year. Your accounting software package should be able to do this.

Should you need assistance in setting this up, please contact Neil from Accolade Accounting on 0421 824 137.

Reduce your Cash Flow pain by getting Invoices paid quickly

Think of the amount of time you spend on collecting your invoices. What a waste of productive time!

You have provided your client with work  timeously  so why should you wait for payment beyond your agreed terms?

Below are some tips that will help you collect your invoices quickly.

  1. Agree on the value of the invoice and the payment terms with your customer before you commence the work. This will prevent your customer from making excuses for not paying  the correct amount or not paying on time.
  2. Email your invoices to the customer. Gone are the days when you need to put invoices in an envelope and use snail mail. With Xero you can create the invoice and simply email it directly to your client. You will also know when they have opened it, as a mark appears in Xero  against this invoice when they do.
  3. Record the Invoice due date correctly according to the industry that you are in. If  the standard terms in your industry are 14 days, then do not allow longer terms.  Your due date can be set within Xero when creating the invoice  automatically as  a default which you can adjust per invoice should you need to.
  4. Invoice immediately after finishing the work at the latest or whenever monies are due during a project, for example a deposit at the start of a project. Create draft invoices at the commencement of a job and adjust this as need be during the life of the project as soon as portions of work are completed.  Once the work is completed this draft invoice can be converted into an actual invoice with a simple push of a button.

Should you wish to improve your cash flow, please give Neil a call for a free consultation.

Which way does your Cash Flow?

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Cash flow is the movement of money IN and OUT of your business just like the oxygen you breath.

It is critical to the health and survival of your business that your Cash  IN exceeds your Cash OUT. Unfortunately for most businesses this is not the case as evidenced by the report issued by the Australian Securities Commission in 2015. It reported that the most common cause of business failure was cash flow problems which made up 44 percent of the reasons for all small business closures.

This is good for the business owner to know however, it is like a doctor saying that “The patent died because they stopped breathing”.

What exactly  were the causes of the cash flow problem in the first place? This is the key question that the business owner needs to be able to answer. Unfortunately many business owners do not know what these reasons are. All they do know is the pain they feel when suppliers request payment.

This is where  specialist help is needed. Accolade Accounting provides just that, with many years  experience in dealing with these cash flow issues within small businesses.

Relieve the cash flow pain today, by giving us a call on 0421 824 1375 and setting up a free meeting to get your cash flowing in the right direction.

Why do You need a Business Accountant

Accountants are useful for different things at different levels of business growth. They are capable of handling a lot more than critical tax returns and payroll computation. If you want to build a perfect business, you will require the assistance of a skilled accountant. It is quite interesting to note that finances can become complicated in no time. As your business grows from a few clients to hundreds of clients, handling the money aspect of your business will become  complicated. If you want to stay on track, you will require the assistance of a professional accountant.
How will an Accountant assist You?
A skilled small business accountant will help you manage your business. They will assist you in visualizing how time changes your income. They produce charts and tables to analyze the company’s overall financial position. These analyses happen in a few minutes if you work with the correct accounting package. Above all, the accountant will support you in monitoring the actual pulse and welfare of your trade. Accountants have the prime responsibility of handling important routines like cash flow of a business.
What is Xero?
An intuitive tool used by smart business accounting professionals would be “Xero”. This is a reliable and a secure tool to support you around the clock. Over the years, accounting software requires efficient time saving strategies and tools to trigger the growth of a business. Xero is capable of managing inventory, quotes, invoices and purchase orders. These are four key areas of managing your business. Moreover, Xero works in line with 450+ third party applications seamlessly. This way, accountants can go mobile from anywhere and at anytime. Additionally, you can use Xero to pay employees and email out payslips very painlessly. Xero is able to assist all types of business owners in any type of business.
The Ultimate Bottom Line
On the whole, small business accountants are smart people who can keep your business right and financially perfect. From advising on how to improve your business, to customising the financial tools for your business so that you earn more and work less.

Should you be keen to learn more then please phone Neil from Accolade Accounting on (08) 6263 4466 who will give you a free one hour session in how he can improve your business.