S & H Tax Accountants

Category: Bookkeeping services

Bookkeeping Basics for Small Business Owners
On average, small business owners spend 10 hours each week recording, organizing, and processing financial transactions – everything from accounts receivable and payable to employee payments, expense receipts, and supplier invoices.

While the process may be time-consuming (and tedious!), effective bookkeeping is the foundation of sound financial management – which in turn, is the lifeblood of your business.

Feeling overwhelmed by mountains of paperwork and complex calculations? Here are three bookkeeping basics to help ensure a healthy financial future for your small business.

Faithfully track expenses

Accurate and consistent expense tracking is crucial for claiming tax deductions and lowering your overall tax bill. Plus, analyzing expenses can offer crucial insights into spending patterns and the overall profitability of your small business.

Small business owners should consider using a mobile app for simple, consistent expense tracking. Options like Expensify and Receipt Bank help do away with manual data entry with automated functions, including:
- Receipt data capture via your smartphone’s camera (no need to hold onto paper receipts, which can get lost or misfiled);
- Synchronization with your phone’s GPS to track mileage of business travel; and
- Importing bank and credit card data, plus integration with accounting software.
Systematic invoicing and filing

Efficient invoicing is about more than ensuring you get paid in a timely fashion. An invoice is an official record of the terms of each transaction and must be completed accurately to avoid errors in your bookkeeping process.

Here are a few tips for professional invoicing:
- Ensure each invoice includes all the important details: contact information, a tracking number, a detailed list of products or services rendered, and a breakdown of the total amount due;
- Provide an electronic receipt to reduce waste and create a “paper trail” if there’s ever a dispute; and
- Maintain an invoice-filing system that records when you sent the invoice, to whom, when payment was made, and any reminders sent out.
An online invoicing tool can streamline this aspect of your bookkeeping process and provide an efficient backup filing system.

Save time with accounting software

By law, every business is required to keep organized and timely financial records. However, manually posting income and expenses to ledgers and journals is time-consuming – not to mention stressful for the math-averse.

Shave some time (and stress) off your weekly bookkeeping with an all-in-one accounting software solution like Xero, QuickBooks, ClearBooks, or KashFlow.

Online bookkeeping offers numerous advantages, such as:
- Instant reports and real-time insights on profits and loss, customer accounts, payroll – and your overall financial “big picture”;
- Simplified data entry so you can collate and print invoices, purchase orders, and payroll much faster than with manual methods; and
- Improved accuracy through automation (once data is entered, the software handles all subsequent calculations and processes – including invoicing).
When it comes to accounting, vigilance is the key to mitigating risk and ensuring the long-term profitability of your small business. Be sure to set aside time each day, week, and month to update and review your books to catch any red flags and ensure your finances are on track.

At S & H Tax Accountants, we understand that keeping a record of your transactions, organizing your documents and keeping your receipts can be very tiring. That is why we are here to provide you with the highest level of service possible. We have well-qualified staff members who are able to help you. Book an appointment today, call us at 03 8759 5532 or email us at info@sahtax.com.au.

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19/04/2023
How to use your website to attract quality staff

Most companies need a website to conduct their business, but it’s also a critical piece of the puzzle in attracting amazing team members. Here are a few things you can do to make sure your website is always making a great impression, so you can attract great people to join your team.

1. Think of your website as your storefront

These days, your website is the online face of your business. It can be even more important than your physical office. Potential employees are going to check it out first to decide if you’re a good fit for them. They will decide whether a job is worth applying for solely based on the website of the company who posted it.

Consider your social media presence as well, which is important to younger workers. Folks want to get an idea of the general feeling that your company evokes — and to see if your values align with theirs. It’s critical to make this first impression count.

Check that everything links up, works well, and looks good. If you impress them with your online presence, especially your website, they’ll take the next step.

2. Define who you’re trying to attract

It’s difficult to show off what you have to offer if you’re not clear on exactly who you’re trying to impress. Take some time to think about what skill set, attitude, and qualifications you desire. Once you know who you’re looking for, it will be easier to figure out what sort of perks or features they would find appealing. Make sure to display these on your website.

3. Showcase what makes you different from the rest

Put yourself in the shoes of a career-hunter. When you’re looking around online for a prolonged amount of time, companies often start to blur together. This is why it’s so important to make yourself stand out.

When you’re sifting through a big stack of resumes, you need something to catch your eye to call that person for an interview. By the same token, job-seekers are also looking for something that makes them stop and take a longer look.

If you offer great benefits, say so. If you have a great volunteer program, show it off. If your office celebrates the end of every work week with drinks, mention it. Things that make you unique will help you to stand out in the mind of someone great.

4. Show your personality

It’s critical that you display your true personality on your website. If you’re giving off the impression of a stuffy, old-fashioned office… chances are you will attract candidates that feel stuffy or old-fashioned. Likewise, if your presence is too casual, you might attract staff that are also just a little bit too casual.

Your About page is the best place to do this. If you “hire and fire” based on your company values, it’s a good idea to showcase what they are. This way you can find great people who share them.

5. Show off your team

People want to get an idea of what their day-to-day life would feel like if they worked for you. If you have a team, showcase them. Be sure to include a bio with more information and insight into each person and their role.

If you’re performing regular employee feedback surveys, see if you have any shining testimonials to showcase on your careers page. Talented people are smart. They’re going to find out what your team (past and present) has to say about you one way or another. Why not show them the great things they have to say right up front?

6. Use video

Great photos are non-negotiable on any website, but another way to stand out is by using video. It’s a memorable way to give more insight into what your company is like. You can use it to showcase your office space or locations, or you can use it to drive home your values by including testimonials from clients or staff. Feel free to get creative, but make sure to hire a professional to help you make the best impression.

Final thoughts

Gone are the days of setting up a static website with your phone number and address. Today’s websites have to be beautiful, impressive, and dynamic. Fresh content is key. If you want to attract top talent, make sure your website is always ready to give a stellar first impression.

17/07/2022
E-invoicing: A Huge Cashflow Win for Australian Businesses

The Australian government has made some important announcements over the past few months with regard to e-invoicing. In the 2021-22 Budget, the government committed $15.3 million to increase the adoption of e-invoicing, which guarantees accelerated payment terms.

In this article, we will look deeper into what e-invoicing is and how any type of business can benefit from it.

What is e-invoicing?

Over 1.2 billion Business to Business (B2B) and Business to Government (B2G) invoices are exchanged every year– most of which are sent as paper invoices or PDF invoices attached to emails. According to the ATO, the average invoice processing cost for a paper invoice is $30.87, while the processing cost for a PDF invoice is $27.67 on average. These methods are costly because they require manual data entry and validation.

Through e-invoicing, processes can be automated, and invoice data can be quickly exchanged between the systems of the buyers and suppliers. E-invoicing can reduce the cost of processing to $9.18– 66% cheaper than the cost of processing a PDF invoice.

Australia has adopted the Peppol framework (Pan-European Public Procurement Online), which is a globally recognized standard and process for exchanging e-invoices and e-orders that is currently being used in 39 countries across the world. Suppliers and buyers must send their invoices through their systems to a certified Peppol Access Point, which will verify the data and then send it on to the receivers’ certified Access Point and into their system.

In other words, data will be shared almost instantly, eliminating the need for manual data entry or manipulation.

How businesses can benefit from e-invoicing

The Australian government believes that e-invoicing can help the economy save $28 billion over 10 years. Sounds awesome, but what does this mean for businesses? The following are some of the key benefits of e-invoices.

Automatically connects you to other buyers and suppliers

Using e-invoicing allows you to become automatically connected with every other buyer and supplier in the network. This allows you to automate invoice processing.

Highly secure and prevents the risk of invoice fraud

PDF invoices can be easily intercepted and manipulated. With e-invoicing, the sender and bank account details are validated before transmitting the data. The network is highly secure and only accredited Peppol Access Points providers can exchange documents. They follow strict security protocols to prevent intrusion and implement multi-factor authentication and data encryption.

Improves cash flow management

Late payments can negatively affect businesses. Meanwhile, buyers can miss out on early payment discounts due to lost or slow processing of invoices. Through e-invoicing, the whole process will be accelerated, bringing significant benefits for both parties. In Australia, the federal government and other government agencies guarantee 5-day payment terms for e-invoices.

Are you ready to transition to e-invoicing? Get in touch with us today for professional guidance.

23/12/2021
How Accounting Software Can Increase Profits

Most small business owners who use accounting software quickly master the basics. They automate processes like invoicing and payroll, track expenses, and view real-time financial reports to manage cash flow and make better business decisions.

But what many business owners don’t take advantage of are key insights that can improve customer care and increase sales. Here are some smart ways you can use your accounting software to help boost your bottom line.

Gain insights that increase sales

If you’re not tapping into your accounting software analytics to better understand your customers, you’re missing a major opportunity to close more sales.

Most accounting software can highlight your biggest spenders and buying trends. How would knowing who your best customers are, your biggest selling products, and how much each customer spends impact your marketing decisions – not to mention help you fine-tune your sales strategies?

By the same token, when you know which products and services aren’t selling, you’ll be able to make more profitable purchasing decisions. Most accounting software offers inventory tracking to help you decide what to keep on the shelves, which products to sell off at a discount, and which items to phase out altogether.

Improve customer care and boost profits

Accounting software can offer peace of mind when you know your financials are accurate and up to date. But another major advantage of an online accounting solution is how much time you’ll save by automating processes like invoicing and payroll – giving you more time to follow up with clients and seek out new prospects.

We all know how important the personal touch is when it comes to sales. So why not use your accounting software customer data to help remember your customers’ birthdays or thank them when they’ve hit a milestone – spending more than $5,000 on your products, for example?

With enhanced customer data at your fingertips, your business will earn a reputation for personalized service. You’ll be able to respond quickly when a customer calls with a question about a product or an order. And you’ll be able to suggest substitutions and offer valuable add-ons based on their buying preferences, so upselling becomes a snap.

How will you use accounting software to grow your small business?

Savvy business owners take the first step toward better profitability when they stop thinking of accounting software as simply a financial management solution and start thinking of it as a comprehensive tool for business growth.

You may be surprised at the many ways accounting software can help you better serve your customers or improve your sales strategies when you look at its true potential.

Now that you have a handful of ideas for making better use of your accounting software, what will you do differently to enhance customer care, improve your profits and continue to grow your business?

If you need assistance with managing your accounts, such as recording your information in an accounting software, please feel free to contact S & H Tax Accountants. We have wonderful staff members who are qualified and always ready to help. Book an appointment today at S & H Tax Accountants, call us at 03 87590 5532 or email us at info@sahtax.com.au

17/12/2021
3 Consequences of Avoiding Your Bookkeeping

If you ask 100 business owners what they like least about running a business, chances are good that bookkeeping will rank high on the list. It’s an annoying and frustrating chore that takes up a lot of time and is easy to put off until tomorrow.

Avoiding your bookkeeping is dangerous, however. Not knowing your company’s financial situation can result in a series of missteps that could ultimately cost you your business.

Here are three consequences of not keeping up with your bookkeeping.

1. You’ll make poor decisions

You can only make informed decisions about your business when you have a full picture of your current financial situation, including how much money is in your accounts, what your cash flow forecast predicts, and how much money you owe. Without that information, it’s much more difficult to know when you can afford to spend money or when you need to hold back.

Without proper booking, your decisions will be based on how you think things are going, and that isn’t always accurate. You may have just finished a good month and decide it’s time to hire new employees only to find out you don’t have enough money in the bank to pay them. Waiting three months to hire employees might be more profitable for you in the long run, but you won’t know that because your books aren’t up-to-date.

Maintaining your books ensures you have your company’s full financial picture available to you so you can make smart decisions.

2. You’ll make financial mistakes

Your employees, contractors, and lenders all rely on you to make your payments on time, every time. Payroll itself requires considerable attention to ensure your employees receive their benefits properly.

Not keeping track of your financial books can result in expensive errors being made, including benefits being missed, bills not being paid on time, or over- or under-payments. This could cost you extra in fees for late payments or rushed payments, which also affects your books.

On top of all this, financial mistakes can lead to a lack of trust. You need a trusting relationship with your employees, contractors and lenders. Payment errors can erode that relationship quickly.

3. You’ll lose money

In addition to losing money in unnecessary late fees and payment charges, not keeping track of your books can result in lost money that your business desperately needs.

You won’t know which of your clients or customers aren’t paying you on time, which means you can’t follow up with them or add interest charges for their late payments.

You could be paying too much in expenses and if you don’t reconcile your books you’ll have no idea that money is being wasted. Perhaps you purchased a software program to enhance productivity in the early days of your business. Maybe you stopped using it but forgot to cancel it, so each month for the past few years, you’ve been paying for a service you don’t use.

Those payments add up and affect your overall financial position.

Final thoughts

Bookkeeping might be many entrepreneurs’ least enjoyable task, but it’s an important one. If you find yourself putting off bookkeeping or dreading doing it, it’s a good idea to look into hiring someone to do it for you. Bookkeepers are trained and knowledgeable in the process, and they can save you valuable time and money in the long run.

Otherwise, be prepared to set aside time regularly to do your books yourself and don’t let yourself put the task off. It’s too important to the future of your business.

Want to get your books in order without adding more work to your plate? Get in touch with us today.

09/06/2021
How to create an advisory board for your business

Many remarkable entrepreneurs, including Warren Buffet, Sheryl Sandberg, and Richard Branson, have credited their success, in part, to the advice of their mentors.

An advisory board is an informal group of mentors whose collective business expertise—and objectivity—can help you make better, more informed decisions, thereby accelerating growth.

Unlike business consultants (whose fees may well exceed your budget), advisory board members may agree to provide advice pro bono, for a small stipend, meal, or reimbursement of travel expenses.

These tips will help you create a first-rate advisory board that can immediately help improve your bottom line.

Selecting board members

When deciding who you’d like to join your advisory board, think first of your purpose—the goals you most need to accomplish—as well as your own strengths and weaknesses as an entrepreneur.

If you want your board to serve in a general business development capacity you’ll want a legal advisor, accountant, marketing expert, and business owner from outside your industry who can meet on an ongoing basis.

You may also want to bring together an advisory board for a very specific purpose—to solve a problem or achieve a short-term goal. In that case, you’ll be looking for advisors with expertise in a particular area who will meet on the understanding that once your goal is achieved the group will dissemble.

Tips for finding advisors

It’s ideal to have between three to five advisors serving on your board who can fill any critical knowledge gaps and offer key business insights.

When looking for advisors, start with your own business network including any organizations or associations you belong to, your local business community, previous employers and colleagues.

LinkedIn can help you discover new connections in your area through your business groups as well as the network of people you already know.

Another option is to ask the business professionals you work with—your accountant, lawyer, or financial advisor—if they can suggest any good candidates for your advisory group.

Get the most out of each meeting

Plan to meet with your advisory board regularly—at least every quarter. If you meet any infrequently than every few months you’ll risk losing focus and momentum.

Between meetings, it’s wise to send along relevant interim reports to keep your group informed and engaged. Likewise, you’ll want to distribute any relevant documentation—business plans, financial statements, and other reports—in advance of each meeting to generate more productive discussions.

Although advisory meetings can be quite informal, drafting an agenda can save time and help maintain focus when your advisory board gets together.

Final thoughts

Working with an advisory board can yield some appealing side benefits. You may find the preparation required before a meeting helps keep you thinking analytically about your business and encourages you to keep striving toward your goals.

Your board’s network of connections can also be an advantage when you’re looking for capital, partners, vendors, experts—or even new customers.

A small business with an advisory board may also be less risky for potential lenders, who may be reassured that a business owner isn’t making all the key decisions on her own.

21/05/2020