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FAQ
What is
bookkeeping?
To put it simply, bookkeeping is taking care
and keeping track of money that flows in and out of your business.
To be most effective, the money should be tracked, preferably in an
electronic format, such as MYOB. This will give you the ability to
know at any given moment and time whether you are making a profit or
experiencing a loss. To take it a step farther, dividing up your
money into its respective type of income or expense can give you
invaluable information. With this information at your disposal, you
now have the ability to set up & maintain a budget, make tax time
easier and basically know where your money is coming from and where
it’s going to.
How does
bookkeeping differ from accounting?
We like to compare bookkeeping and accounting
to the micro- and the macro-approach. Bookkeeping is the
micro-approach where all of the little details are tracked
throughout the year, which will eventually come to year-end totals.
Accounting is the macro-approach where the totals from all of those
details are taken and used for tasks such as completing your taxes.
As bookkeepers, many times we serve as a medium
between accountants and our clients. Our goal is to set up your
account in such a way that’s easy for you to understand. However, on
the flip side, we want to make sure that it’s set up to accommodate
the needs of your accountant as well. A common complaint we hear is
that the accountant does not always speak in layman’s terms when
people work directly with them. While this is not the case with all
accountants, why not work with someone who can bridge the gap and
understand your needs, as well as the needs of your accountant?
Why do I need
bookkeeping?
Bookkeeping has many purposes and it should
be no puzzle why you need to track your income and expenses. A
successful business will know if they are making money and where
that money is going. As a business owner, you should be informed and
stay up-to-date on your finances and how your business is
performing. You can't know where you're going if you don't know
where you've been.
In addition, good records are needed by the
ATO for taxes; your local bank, should you wish to get a loan; your
suppliers to establish credit and by any potential partners or
buyers of your business when you want to expand or retire. Clearly,
bookkeeping is a major piece of the puzzle that can establish or
destroy any business, as well as add clarity to your financial
picture.
Why should I
outsource my bookkeeping?
Thankfully, most people understand the general
fundamentals of bookkeeping. Unfortunately, many people who think
that they can do the bookkeeping don’t understand the fundamentals
well enough.
Bookkeeping principles are the same whether
your company is large or small. Unfortunately, small businesses
usually have limited funds to devote toward bookkeeping services.
Many times, small businesses try to perform their own bookkeeping,
thinking this will save them money. However, quite often the
accountant has so many questions that the work has to be done over.
Regrettably, the intended savings can end up costing the business
owner not only much more money, but lost time.
The other option is for you to have a
professional who understands your needs, as well as the needs of
your accountant, take care of your bookkeeping. Focus your time and
energy on building your business and your profits; let us focus on
your bookkeeping.
Wouldn’t it
be cheaper to just hire an employee to do my bookkeeping?
While it may initially sound less expensive to
hire an employee, don’t forget about some other key factors. First
of all, you, as the employer, have to pay Superannuation, Sick
Leave, Annual Leave etc. That’s just payroll…don’t forget about
worker’s compensation insurance, benefits, as well as purchasing the
tools they’ll need, such as a computer, printer, software and
supplies. As you can see, it adds up quickly. Now, let’s talk about
the cost of advertising the position, then the time spent
interviewing people and training them in. With today’s employee
turn-around time, as soon as they’re trained in, they quit and you
have to advertise and start the interview and training process all
over again.
For many companies it’s just more
cost-effective to outsource the bookkeeping and tap into the
resources and expertise of a professional. This will free up
valuable time for you to focus on business strategy, goals, reduce
operating costs, spend time with your current clients, obtain new
ones or give you some much needed personal time. We’re always happy
to help out with your bookkeeping needs.
Why should I
choose you?
We have been in the bookkeeping and
accounting field for many years. We customize our services to your
needs. Our services will adjust as needed to accommodate your needs
if they change. We’ve done our research to ensure our rates are
competitive and you’re not overcharged. We’re friendly and easy to
work with and our goal is to exceed your expectations while
maintaining complete confidentiality. Best of all, we leave you more
time to concentrate on what you do best—running and managing your
own business.
Do you do
taxes?
No, we do not do income taxes. Instead, we
work with our client’s tax accountant to get them the information
they need. If you do not have an accountant or are looking for a
change, we can refer you to an excellent and highly regarded CPA
that has very reasonable fees. We prefer to do what we like to do
best—organizing and entering all the details of your bookkeeping.
Are you
accepting new clients?
Yes, we are accepting new clients.
What type of
accounts do you work with?
We work with anyone who needs bookkeeping. Of
course every business has it's differences, but the need to record
income and expenses is one of things all businesses have in common.
We specialise in small business.
How involved
do I need to be?
That completely depends on you. Because it is
your finances, there will always need to be a level of involvement
on your part. However, we try to make bookkeeping as stress-free as
possible, so you can focus your energy on running your business and
let a professional handle the bookkeeping.
How much does
it cost?
We charge by the hour and our rates are
competitive with most other Bookkeeping Services. This may not be as
costly as you may think, as we’re very efficient. Generally, the
cost for our bookkeeping services is offset by less demands on your
time, which typically leads to increased sales and generally less
frustration overall. In addition, if we have done the bookkeeping
for the year, all of your financial information can be given to your
accountant with the touch of a button. Because our rates are
normally much less than what your accountant may charge, you’ll
realize the additional savings of having us complete the bookkeeping
for the year vs. your accountant.
How much time
does it take?
Obviously, it’s somewhat difficult to pinpoint
the exact amount of time it will take for your bookkeeping needs.
There are many X factors to take into consideration, such as the
size of your business and the amount of paper work involved.
Are the funds co-mingled (business & personal)? Are there multiple
accounts with funds being transferred all over the place? In other
words, the more we have to play Sherlock Holmes, the more time it
will take.
The one thing you can count on is that the
amount of time you’re charged is completely accurate. If we stop
working on your account for any reason, the time is recorded and
started again once the work resumes.
Can the work
be done out of my office?
No, we work strictly off-site. This is because
we have other accounts that we work on as well and travelling to and
fro between other offices wastes precious time. We also charge for
travel time so most clients prefer to bring the work to us.
What areas do
you serve?
We are based in Armadale and while the
majority of our clients are south of the river, we do have some from
as far north as Quinns Rock and south to Rockingham.
How do I get
my information to you?
Most of our clients drop them off at my
office. Some that are more distant, mail them to us with a prepaid
return envelope. In some instances, some forms of documents can be
emailed to us.
What we recommend is that you devote a file or
drawer to collect the information in (i.e. receipts, timesheets,
deposits, bills, bank and/or credit card statements, etc.). Then,
when you're ready to bring the information over to us, it will all
be in one handy, convenient location. This system has proven to be
very successful for many of our clients and we're sure you'll find
it to work out well too.
How often
should I send you my information?
That all depends on the size of your business
and the amount of paperwork involved. Obviously, the more often you
get information to us, the easier and more manageable it is to keep
up with. In addition, it keeps you up-to-date as to the state of
your finances, plus it’s easier to remember what that mysterious
expense was for. Also this will ensure people are paid and bill
payments can reach their destination on time.
What happens
to my information after you’ve done your work?
It really depends upon your preferences. Some
of our clients who send original documents want us to keep them
organized and they then take them back at the end of their financial
year. Others want their original documents back as soon as the
information has been entered or decide to pick them up at various
times throughout the year.
We welcome all small businesses
and individuals who are in need of our services. Start-up businesses
are welcome! Once we have entered your data into MYOB, its
easy-to-understand format will help put your bookkeeping puzzle
together.
Contact us today to find out how
we can help you reclaim your life.
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