Conversations amongst business colleagues and business owners appear to suggest that many people are in a rush to spend before June 30. I spoke with someone who feverishly exclaimed that everyone should get private medical insurance! It’s all good and well to get in a panic before the end of the financial year but if you didn’t have the correct information before now and the decisions you make are not based on known facts then why make them?
It’s the time of year where all the data entry from Day-to-Day Transactions should be up to date, you should know the value of depreciation for your fixed assets and have a good idea of the value of your tax and GST liabilities. A profit and loss report and balance sheet will provide you with the information you need and if these figures are ready then spending decisions can be made. This is the time for reporting and reconciliation.
If you simply find yourself with money in the bank but don’t want it to go to the tax man think again, you might need it to pay your liabilities next month. For now, enjoy the bulging bank balance.
Remember. Compliance is the measure of success of your business plans so be compliant as soon as possible every month.
I was reading an article about difficult payers and the steps that some companies need to take to chase money that is owing to them and thought that this is something that every MYOB Bookkeeper needs to be aware of.
There seems to be perception (and most of the bad news seems to come from the building and construction industry) that payment of debts is something that should be stretched out as far as possible. I was discussing this concept with a colleague and was interested to find that this person believes that payments should be stretched out as long as practical. The interesting part of this conversation is that this person is a very reasonable man. He believes in long term investments and dealing with every person in a fair and reasonable manner, so it was strange for me to hear this mentality.
If you commission someone to do some work for you, shouldn’t they be entitled to be paid on the same terms that an employee is entitled to? I think so and you’ll find some skills to find out who owes you money in our MYOB Day-to-Day training course.
Here are the steps that are recommended:
Charge in Advance if you can
Chase money owing early
Provide multiple payment options
Be as up-to-date as possible
Enforce your trading terms
Be honest about non-paying clients
Give customers an opportunity to complain
Get heavy on time
A leading author of MYOB and Small Business “How to” books, Veechi Curtis says that the squeaky wheel gets the grease. So, chase money as soon as an account falls behind. Perhaps a more relevant saying is “work with the willing”. There are many people who value the work you do enough to pay you before the due date. There are customers who can afford what you do and want you to think positively of them so they pay as early as practical.
Are you still receiving your Business Activity Statements via mail? We receive our notification that the BAS is ready at the ATO’s Business Portal but the Business Portal is much more useful than just a way to deliver your BAS.
There are some great features of online tax lodgement:
You can lodge your BAS immediately online
You can see historical lodgements
You can change your contact details
The most complicated part of dealing direct with the ATO is the setting up of a digital certificate, but once that is sorted out you have all the convenience that you have come to expect from your internet banking and any other online service. All the information is there, you don’t have to rely on the mail to send or receive your BAS and you know exactly where you stand. If you have missed a lodgement you’ll also find that information at the portal.
The website address for the portal is https://bp.ato.gov.au/ so check it out and get through your compliance issues faster.
Our MYOB Reporting, GST and BAS course (which includes bank reconciliation) shows you how to get to the BASlink to produce a BAS using the data that you have already entered into MYOB. If you have entered everything correctly you will just need to complete your contact name and number and how long it took to complete. Then you can print that form out and keep it in your records. The information you see in the totals can then simply be entered in the Business Portal and submitted to lodge your BAS and get your compliance tasks out of the way so you can focus on running your business.
We recently wrote about why more and more mums are looking to work from home as a virtual assistant and perform bookkeeping tasks using MYOB. Mums are also becoming website designers using the free website building software called WordPress.
We just wanted to remind you that if you are a mother or a stay at home dad and you want to learn these programs so you can work from home while bringing up your children, we want to offer you a discount.
Just tell us what you are looking for in an online training course and instantly receive your discount to one of our online training courses.
Employment is one of those huge questions in the mind of many mums and dads. How to ensure that the family can maintain an income from both parents while still giving your new infant the time they need.
When we operated our MYOB training courses in Parramatta, Chatswood, Burwood, Gordon and Dee Why we noticed that a lot of mums were looking for a way to work during school hours while still being able to earn good money. They were coming to our MYOB courses because they knew that they could earn good money performing bookkeeping for local customers. The same still applies today.
There are some excellent phrases and some simple, but important lessons in the Richest man in Babylon book which dates back to 1926! The one which we found interesting (and it stood out to us because we are an education and training provider) was the heading “Increase thy ability to earn“.
This concept applies to many industries and we’ve found there are two types of workers (whether you are a business owner or employee), those that seek new information and education so that they can be innovative and productive or those who do it because of necessity. When we say necessity there are two types:
If I don’t learn I will be out of work, OR
I need to learn to keep my job, licence etc
The Bookkeeping industry has been undergoing massive changes since 2010 and will continue to do so because bookkeepers responsible for lodging BAS’s on behalf of their clients will need to be registered BAS agents and as a result will need to always be abreast of changes in legislation. This webcast transcript from the tax practitioners board will give you some insight into how much the bookkeeping industry is changing.
You can be assured that our online MYOB training courses will be regularly updated to ensure that your knowledge on MYOB is up-to-date.
It prompted a question in our think tank about the purpose of superannuation and whether it should be used as a tool for investing in equity?
The problem with equity is that there is no guarantee of return and its value is completely dependent on the performance of the company. Even things like dividends are only paid at managements discretion. Interest on the other hand must be paid and the capital returned to the investor at the end of the term. In the event of a liquidation, debt is repaid first and it is usually secured by something.
It all really depends upon your personal circumstances but we found a product on the market that seemed to fit very well with the thinking of the concept of super. It is the Commonwealth Banks Superannuation Savings Account. It earns interest which might not be as impressive as equity, but this is only 10% of your income and it goes along with the adage from the Richest Man in Babylon… Make thy gold multiply.
In the end, as Financial Planners will attest, the decision you make depends upon your risk appetite and your investment time horizon, but one thing is certain – you must have super as an employee and pay it as an employer. Stay tuned for the news about our MYOB Payroll Level 2 course where we go into more detail about how to manage the paying of staff. All new content generated for our online MYOB training courses is available to existing students as part of their lifetime access.
As part of our continuous improvement for our online MYOB training courses and the development of our Payroll Level 2 course we explored the superannuation market. Superannuation was established as a way for ordinary working families (sorry to steal this catch phrase from Julia’s government) to contribute to their own retirement income and as a result gain tax benefits.
There was horrendous news and publicity about bad returns for many superannuation funds in the global financial crisis and we thought we’d explore these results a little closer. If you are reading this as an MYOB student, a bookkeeper, small business owner or employee you would be aware that superannuation is compulsory for most employees and you now have the choice of where you want this money to go. APRA is the government organisation which overseas the banks and banking regulation in Australia and they announce the rate of return for the top 200 superannuation companies each year.
This brings up some interesting questions. Can a superannuation funds manager outperform the Index and how do you guarantee a positive return for your super every year? We’ll explore these questions soon…
We wrote earlier in the week about Google Drive and asked the question about how it compares with Dropbox to store and share files in the cloud. Today we provide you with a free training tutorial video to show you exactly how Dropbox works. It’s simple.
Many people talk about dropbox as a means for storing files and sharing them with other people but it’s also important to realise that you can use dropbox as a backup solution to store important files like your MYOB datafile. It can also be a place where you store common documents that a group of people are working on. Remember that when you backup to a place like Dropbox you are effectively keeping a copy of your file “off site”. If your building goes up in flames or your computers are stolen you still have access to those files!
A great feature about Dropbox is that many people can share a folder and as soon as a file is uploaded into a shared folder, or as soon as a shared file is modified you receive an instant notification in your system tray area (at the bottom right, near the time, of your Windows desktop).
Watch the video below and start enjoying the benefits of cloud based computer storage. Remember to click on the heading of this blog to see the video at our blog site and subscribe if you want to receive these free tips automatically in your email.
As part of our Continuing Professional Development (CPD) program for our Bookkeeping Academy we write and inform about products and services that will help bookkeepers build their business and job seekers learn new skills to become more employable.
We recently wrote about companies that offer MYOB hosting. This enables companies to access their MYOB datafile from no matter where they are and it also enables remote contractors to manage a companies bookkeeping from their own homes. In this blog post we include a video demonstration about how easy it is to use MYOB in the cloud.
We spoke to John from Bluewave who use to promote his MYOB hosting services under the domain MYOBinthecloud.com (we think it’s a great name because it describes the service that he offered very accurately) and he was kind enough to give us a demonstration account so that we could give a hosted version of MYOB a spin. He said that they provide hosted solutions for more than just MYOB and we were able to create an invoice and email it using Microsoft Outlook.
The MYOB version we used in this demonstration is the stable version 19 (as opposed to MYOB AccountRight version 2011 that had a lot of bad publicity). The great news about MYOB is that it’s navigation hasn’t changed significantly for at least 10 years from our experience.
If you area reading this blog post via email, click on the heading to be able to see the video). If you want to ensure that you get each update as it is published via your email feel free to subscribe. If you want to create your own blog using WordPress and Google Feedburner learn how to create it in our WordPress course.
Twenty years ago you could safely complete a degree knowing that your qualifications will fuel your wages (that in turn fuel your lifestyle and desires) for the rest of your life. This is no longer the case. Changes in technology are partly to blame but so too are changes in legislation and workplace practices.
If you are an accountant, working in the finance or medical professions you would know about CPD (also called Continuing Professional Education – CPE). It’s a system of providing education for professionals to keep them up to date with what is going on in their professional and this is particularly important if your profession involves advising your clients.
CPD usually involves training seminars, short courses, watching online webinars and completing assessment tasks and each one of the tasks you complete give you a certain number of points towards your total yearly point requirement. Keeping track of your attendance or the results of an exam you did at the end of completing a short course are some ways of keeping track of these points.
Why do we mention it? Because it going to become VERY important if you want to be a professional bookkeeper.
If you have completed (or plan to complete) an EzyLearn online MYOB Bookkeeping training course you will be reassured by the fact that we are currently working on tools and assessment tasks to providing you with a solution for affordable Continuing Professional Development.