3 simple steps to getting your bookkeeping sorted

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If you have just started a business you may be stressing about whether you are on the right track with your accounts.  If you have been in business a little while you may be wondering if there is an easier way to keep on top of your accounts.

Once you start looking into the various accounting software options out there, unless you are in the business of bookkeeping or accounting, it’s not uncommon to become overwhelmed or confused.

I like to keep things simple, so I’ve come up with 3 simple steps to help you out and get you started.  These are 3 steps I’ve used to get clients up and running with accounting software.

3 simple steps to getting your bookkeeping sorted (Video)

Importantly, don’t forget to try your software out for free first.  Get a feel for it and make sure you can easily get answers to any questions you may have via their help centres, forums, videos, email support etc.

Happy bookkeeping…

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5 reasons using Excel may be holding your business back

Laptop Xero

Excel is a great tool for business.  I like to use it to manually check payroll calculations, particularly when setting up new accounting software for a client.  However, it’s not always the best choice for business bookkeeping.

Here are 5 reasons that it might be time to move on from Excel:

1.  Doubling-up of transactions

In Excel you don’t get a warning if you try to enter the same bill number or invoice number twice, whereas you would if you used accounting software. Doubling up on accounting transactions can get you into a real mess.

2.  Time consuming

It is time consuming to set up a detailed, useful spreadsheet.  You need to have the end result in mind before you even start and then work out a design that will get you that end result.  A lot of time is wasted if you are part way through setting up a spreadsheet only to realise that it can only do half the job you need it to do.  For example, you might be able to set up a spreadsheet that tracks all of your income and expenses, but it is tricky and time consuming to set it up to track tax codes for your Business Activity Statement as well.

3.  No audit trail

If more than one person is entering information into a spreadsheet it is difficult to tell who has entered or changed information.  This leaves the door wide open for fraud to occur.

4.  Costly errors

Excel spreadsheets can be linked to other Excel spreadsheets, which can save you time.  However it is easy to link a cell incorrectly which results in errors that can be hard to detect.  You could be using the same spreadsheet for months without realising it is picking up incorrect figures from another spreadsheet.  Just like in Reason # 1, Excel doesn’t warn you of potential errors.  A quick internet search for “spreadsheet mistakes” shows just how costly some of these errors can be.

5.  You still need to invest time into learning how to use Excel properly

You can teach yourself how to use Excel and set up spreadsheets, however with such easy to use accounting software on the market now, isn’t your time better spent learning software that will do most of the hard work for you?  For example, using software with automatic bank feeds, such as Xero, can reduce time spent on manual data entry once set up correctly.

3 Simple Tips to Improve Cashflow

3 tips for improving cashflow

I think I’ve read almost every small business finance book in the Tea Tree Gully library here in Adelaide – some of them twice.

I’ve found 3 great tips that I’ll be incorporating into my business.  They are not only an easy way to help increase cashflow but will also help tweak your mindset if you find your confidence flagging.

This is from Accounting for the Numberphobic by Dawn Fotopulos.

Dawn writes:

“Invoices become a running record of the value the business delivered for every client – a testimony of what’s been accomplished.  Listing the benefits the client received is the key to differentiating your product or service from others.  It will remind the client of what makes the business you manage different and more professional than that of your peers”.

She goes on to write “Invoices help to build the reputation of the business”.

Have you ever considered the effect your invoice has on your client when they receive it? Is it possible they look at your invoice and think “How did he get to that price? What exactly did they do in that 8 hours they have charged me for?”

If you’ve poured your heart and soul into providing a great product or service for a client – don’t risk your invoice getting put on the backburner whilst your client pays everyone else before you.  Remind your client of the value you have provided so that paying you is that much easier and they have a great reason to use your business again in the future.

So these are my 3 tips for improving cashflow & boosting business confidence:

  1. Include a detailed description on your Invoice of the service or product you’ve provided and remind them of the value you’ve added for them. Be confident in your invoicing!
  2. If some of the work was complimentary and isn’t being on-charged to the client – include that on the invoice so the client is aware.
  3. If 2 or 3 people have performed the work for the client – include their names to give more meaning to the work.

I’ll definitely be incorporating this into my own Xero invoicing for Festival Bookkeeping – it will only take an extra 5 minutes.  Such simple concepts and easily implemented. Love it.

 Looking for more small business tips? Here are some others that readers have liked:

 

Happy bookkeeping…

Move forward

Take charge tip

I’ve been thinking about how we sometimes put things in the too-hard-basket, where they stay for much too long. Cluttering up our lives not only in the physical sense (ie a desk covered in paperwork), but emotionally too. Sometimes you just have to take charge, dig in and deal with it.  A weight will be lifted off your shoulders and by de-cluttering physically and mentally you leave space open for good things to come into your life.

This has recently worked for me.

Has this ever happened to you? 

 

New Employee Checklist

Secretary black and white
A good checklist from the ATO website if you are small business owner thinking of hiring a new worker.

Takes you through all the things you need to establish upfront, for example “Is your new worker an employee or a contractor” (a hot topic with the ATO at the moment) and “What are your record-keeping requirements”.

 

Link to ATO website:  Hiring new staff

 

Other suggested blog posts:
Find me on Instagram:  Festival Bookkeeping

Find me on Facebook: Festival Bookkeeping

 

Happy bookkeeping…

 

The Festival Bookkeeping story

 

festivalbookkeepingstory

I grew up in small mining towns, attended high school in Whyalla, South Australia, and got my first job as a legal secretary for a law firm there. This was also my first foray into studying at TAFE, where I was introduced to the mysteries of double entry bookkeeping.  (Little did I know this would make an appearance further down the track and become a big part of my life).

Fast forward 22 years and I’m now married with 2 children and living in Adelaide. I’ve studied and gained an Advanced Diploma in Accounting and gained the experience and extra studies required to become a Registered BAS Agent.  In between I’ve worked in accounting and administration for large corporations, for several small businesses, government organisations and a non-profit.  On the side I’ve sold Body Shop products in people’s homes where I first learned to become comfortable standing up and speaking in front of groups of people.  Without knowing it at the time, this equipped me with the confidence and skills needed to teach accounting to students at TAFE in the following years.

So this has all culminated in where I am today – having a small business based in the North Eastern suburbs of Adelaide that enables me to help other local business owners with their finances and also teaching students at TAFE.  Two things I love doing.

And that is basically the Festival Bookkeeping story. I hope that by reading this you have been able to gain an insight into both my personal and business background and why I love to do what I do.

Oh, and the short version of the story:

Country girl turned City Girl. Accounting Nerd. Small business owner helping other small business owners.

Happy bookkeeping…

You can find me on Facebook here: Festival Bookkeeping

And find me on Instagram here: Festival Bookkeeping

3 basic admin tips that will save you an hour a day

I love a good time-saving tip!  I’ve found these 3 great ideas that anyone can easily implement in their business or at work, from Debbie Eglin over at the Flying Solo website.

Tip 1 especially fits in with my favourite subject at the moment – going paperless.  I hope going paperless is something you are working towards in your business or workplace.  It really is the way forward and makes a lot of sense.

Tip 3 is another great tip because we often find ourselves typing the same words over and over, which is a time-waster.

3 basic admin tips that will save you an hour a day

Happy bookkeeping…