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Is a Certified Advisor or Certified Consultant Better Than a BAS Agent?

Finding the best bookkeeper for your business

find a good bookkeeper xero myob quickbooks learn online training course videos
A bookkeeper who’s certified in a particular accounting software may not mean that much for your business. Better to have someone who is simply a good bookkeeper. Period.

IT’S NOT ALWAYS EASY to find a bookkeeper who suits your business’s needs. This can be further complicated by the fact that a lot of business owners don’t know too much about bookkeeping.

Now that virtual bookkeepers have become more common, lots of business owners have started selecting bookkeepers based on their affiliation with an accounting application. Such bookkeepers are often called a Certified Advisor (Xero), Pro Advisor (QuickBooks) or Certified Consultant (MYOB). But are they really the best bookkeeper for your business?

What are Certified Advisors, Consultants and Pro Advisors?

In a nutshell, a certified advisor, consultant or pro advisor is just an individual who has been endorsed by a software company because they’ve demonstrated a high level of knowledge and skill with a particular accounting product.

Hiring a bookkeeper who’s been endorsed by MYOB, say, means you shouldn’t have to worry about whether your bookkeeper has set up your accounting package correctly, or whether they’re using the correct codes. What it doesn’t guarantee, however, is that each consultant or advisor is a highly experienced BAS or tax agent, as the certification relates to their software knowledge only.

Find a highly qualified BAS or tax agent instead

Sure, a bookkeeper who’s experienced in your accounting package is important. It’ll help keep your bookkeeping bill down because they’re able to perform certain functions quickly, while your accountant shouldn’t need to fix any errors, either. But that’s only providing that they’re as knowledgeable in Australian tax as they are MYOB or Xero or QuickBooks.

Unfortunately, however, the two aren’t mutually exclusive. So instead of focussing on a bookkeeper’s software experience, it’s more beneficial to ensure they’re qualified BAS and tax agents, with either a Certificate IV in Bookkeeping or higher.

If you don’t get a bad reference from their current and former clients, then there’s a pretty good chance they’re proficient in the major accounting packages, and if they’re not, most bookkeepers will tell you upfront.

Get the accounting package that’s best for your business, not your bookkeeper

There are lots of reasons a bookkeeper would choose to become certified with a software company, the biggest being that they get their accounting software for free and receive a commission for each new client they sign up to use the accounting package they’ve been certified with.

However, when you hire an independent bookkeeper who’s well-versed in a few different accounting packages, you’re more likely to get better advice about which accounting package is best suited to you and your business’s needs, rather than the accounting package that will generate income for your bookkeeper.

***

Are you looking to brush up your skills in cloud-accounting packages like XERO, MYOB or Quickbooks? We provide a range of online training courses in all of these packages at ONE LOW COST for ALL SKILLS LEVELS. Find out more.


find a local bookkeeper

We feature our own online directory of local bookkeepers looking to add to their customers. Visit National Bookkeeping to find a suitable and experienced person available to work in your area, or able to work anywhere in the cloud. Alternatively, if you are a bookkeeper looking to expand your client list or find contract work, you can register and become part of our network for free


 

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3 Things You MUST Do in Excel!

Business owners and job seekers take note!

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Excel isn’t just for budding bookkeepers; it’s a great tool for all business owners to know.

MICROSOFT EXCEL IS THE most widely used spreadsheet application in modern computing. That said, it’s also one of the more difficult programs of the Microsoft Office Suite to learn, which is why we recently updated the content of our Excel training courses.

A lot of people do our Excel training courses to help them “skill up” to find a job, find a position better suited to them, or develop their career path. However, Excel is a fantastic tool for small business owners as well.

But whether you use Excel to create a pivot table or a database, there are a few things you should do each time you open an Excel document. Here we present you with three:

1. Vertical align: always centre

Always align the text in the cells of your Excel spreadsheet to the centre, or the top in certain circumstances. But never, ever align it to the bottom. It’s hard on the eyes and, when you’re looking at lots and lots of data in lots and lots of cells, it becomes difficult to know which row, column, etc, you’re looking in. Centre alignment, always.

2. Build error-checking into formulas

There should never be an instance where one of your workbooks is showing a #DIV/0, #N/A, #REF, #NAME?, #NUM!, or #NULL! error. This is especially true if you’re sharing these workbooks with your business partners or accountant or whomever.

Seeing an error in a financial report may cause the reader to doubt the accuracy of the entire workbook, so ensure your workbooks remain error free by using the simple IFERROR() error-checking function in Excel.

3. Print preview your work

Again, if you intend to share workbooks with other people, you should always ensure that your Excel workbooks can be printed nicely and easily, even if you don’t intend to ever print the document yourself. This is easy enough to do via File > Print Preview and adjusting the print margins before sharing (or printing) the document.

However, judging by the number of times I’ve printed an Excel document only to collect 87 sheets of paper off my printer to read the contents one 4×4 table, the function is seldom used by anyone else but me!

***

For more Excel formatting tips and tricks, download our FREE Beginners’ Guide to Excel, or enrol in our intermediate or advanced online Excel training courses to learn how to create databases, pivot tables, charts, graphs, and much more…

Read more about our beginners, intermediate and advanced Excel training courses on our website, or enrol to start learning by 5pm tomorrow!


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At EzyLearn, we’re committed to helping students of our MYOB, Xero and Quickbooks courses gain employment as a bookkeeper or even start their own bookkeeping business; it’s why we provide you with lifetime access to our online cloud-accounting training courses as part of our commitment to continuing professional development


 

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New Financial Year, New Financial Habits

Help us help you get your business financials set up right

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Taking time to set up your accounts correctly at the outset and recording your reconciliations regularly will save you time, money and a nasty, aching headache!

SO WE’RE INTO THE new Australian financial year. With the start of each financial year comes the chance to right last year’s financial habits and avoid repeating them again. You know what they say about people who repeat the same actions over and over again expecting different results …

If you had a crazy end of financial year, try starting off the next 12 months (well, 11 now, can you believe it!) on a positive footing, with these good financial habits.

Check your accounting software is set up correctly

Something that causes businesses and their owners countless headaches at tax time is accounting software that’s been setup incorrectly or not set up completely. Transactions that are coded wrong or bank feeds that are connected to the wrong account — or too few accounts — can leave you in the middle of a bookkeeping nightmare come June 30.

Spend some time sorting this out, or employ a bookkeeper to get you set up correctly. It’s worth that little bit of extra time now to get it right, truly!

Aim for daily reconciliations

Reconciling your business accounts regularly is important for a number of reasons, fostering good habits being chief among them. You may not need to reconcile your accounts each day, but it’s certainly a lot easier to find 10 or 15 minutes two or three times a week, rather than two or three hours once a month. The most often you do your bookkeeper the more unlikely it is that you’ll leave it pile up, eventually requiring costly rescue bookkeeping. You’ll also have a much better picture of your business’s performance with current accounting data.

Monitor cash flow

Positive cash flow is the marker of a healthy business. Negative cash flow is not. There are plenty of seemingly profitable businesses suffering negative cash flow that threatens to put them out of business. Don’t let yours be one of them. Create your own cash flow forecast reports in Excel or use a cash flow forecasting or expense app to determine if you’ll have enough money in the bank to meet your ongoing commitments (which includes paying yourself a living wage to meet your personal commitments).

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Our cloud accounting training courses will show you how to set up your accounting software correctly. Learn how to use Xero, Quickbooks or MYOB with our online training courses and be able to invoice customers on time, reconcile your account and run financial reports, including cash flow statements. Visit our website for more information.


cashflow reports in xero and excel

Xero for less…

Our Xero online training courses include EVERYTHING for ONE LOW PRICE. Furthermore, if you select our Lifetime Membership option, you’ll have LIFETIME access to our ongoing course updates. All EzyLearn courses are accredited by the Institute of Certified Bookkeepers (ICB) and can be counted towards Continuing Professional Development (CPD) points. Find out more about our Xero online training courses. 


 

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Top 3 Expense Applications for Xero, QuickBooks and MYOB

Get your financial software working harder

best-apps-for-myob-xero-quickbooks
There are a number of apps which link with Xero, MYOB and Quickbooks to help you closely and seamlessly track ALL your business expenses.

WE PREVIOUSLY WROTE ABOUT using Expensify and Xero to do the grunt work of your account reconciliations. We’ve also touched on how Expensify works for retail shops, online shops and hospitality businesses.

This time we’re looking at other expense applications that not only integrate with Xero, but other platforms like MYOB and QuickBooks, too. (For the record, every transaction Expensify does with Xero, it also does with QuickBooks; and also for the record, we not only provide online training in Xero [all levels for one low cost] but MYOB and Quickbooks too.)

Xpenditure (QuickBooks, Xero, Fresh Books)

It’s a little more expensive than Expensify, but you also get a little more bang for your buck. From around $4 a month, you can scan 200 receipts per month, plus all of Xpenditure’s core features, such as expense rules, real time reporting, accounting integration, and mileage tracking. Speaking of which, Xpenditure tracks your mileage using Google Maps, which as discussed previously, isn’t the the most accurate way to do it.

However, it does calculate the estimated cost of each trip using the current “mileage rate” — or kilometre rate for Australians — set by the Tax Office. It’s mobile app, however, only has an average 1 star rating in the Australian Apple App Store, while it’s currently rates at 3.5 stars in the Google Play store, so it appears it’s best served on an Android platform.

Abacus (Xero, QuickBooks)

At $9 a month for up to 50 users, it’s on the pricier side for small businesses. And although Abacus lets you give your accountant or tax agent free access to your Expensify account, it doesn’t really make up for the higher price tag (we happen to think the point of an expense app is that you only need to give your accountant or tax agent access to your accounting software).

Yes, it includes all the standard features, such as receipt scanning, real time reporting, multi-level approval workflows, and automatic approvals — plus, an EzyLearn favourite: automatic direct deposits for reimbursing employees once an expense is approved — but features like mileage tracking are absent. It’s rated 4 stars on the Google Play app store, but unrated in the Apple App Store.

Squirrel Street (Xero, QuickBooks, MYOB)

Formerly known as Shoeboxed (they explain name change on their website), Squirrel Street is a rather expensive way to track your expenses and store your receipts. Plans start at $26.95 a month for 50 receipt uploads and 2-5 day turnaround, which explains the steep price: This is a software application that relies on manual labour, rather than machine learning, to import expense data. As a consequence, there’s no other features of note — no real time reporting, no expense reports, no automatic approvals.

There is also a “forever free” five document per month DIY plan available. Of course, they are an Australian owned and operated business, but it’s still not the best service for your dollar. It’s rated 4 stars on the Apple App Store and 4.5 stars on Google Play.

By keeping an eagle eye on your expenses using an expense app that integrates with your cloud accounting software, you’ll be able to see precisely where your business is most profitable and where it’s not so you can modify it accordingly.

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Our online courses in Xero, MYOB and Quickbooks will show you how to track expenses and connect third party apps to your account. Read more about cloud accounting.


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Creating and managing databases is included as part of our Advanced Microsoft Excel training courses — and you receive access to ALL OF OUR COURSES, including ALL SKILLS LEVELS for ONE LOW PRICE. You can even start your Excel journey with our FREE Beginners’ Excel Course Workbook. Read more about our beginners’, intermediate and advanced Excel training courses on our website, or enrol to start learning by 5pm tomorrow!


 

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Are You Making these GST Mistakes in Your Bookkeeping?

Being Jack of All Trades can land you in hot water with BAS

find a bas agent in your local area
Don’t submit inaccurate financial documents by trying to do everything yourself by way of bookkeeping.

IT’S PERHAPS EASIER TO do your own bookkeeping these days than it used to be; particularly if you’re using a cloud accounting program like MYOBXero or QuickBooks, which are among the easiest, yet robust, accounting applications currently on the market.

But even so, there are many aspects of Australian tax that, while accounting software makes it possible to carry them out yourself (like business activity statements, for example), it’s not a good idea unless you really know what you’re doing. Here are the three GST mistakes nearly every business owner makes in their bookkeeping. Continue reading Are You Making these GST Mistakes in Your Bookkeeping?

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Using Excel for Client Databases

Excel does great CRM

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Managing large amounts of client and business data is not only possible, but also something you can learn fast and with ease with the help of our comprehensive range of online Excel training courses – covering all skills levels.

MICROSOFT EXCEL IS THE most widely-used spreadsheet application in modern computing. It’s ubiquity means most people use Excel on a regular basis, despite never having had any formal training in its many, many, MANY functions.

While updating the content for our Excel training courses recently, we were reminded of just how powerful Excel remains, and in particular, how useful it is for small businesses.

With its 2013 release, Excel got a serious update, which made it the perfect application to create and manage client and customer databases. Although there are many CRMs available on a subscription that provide the same functions of a database created in Excel, just in a more visually appealing format, they often lack reporting and analysis functions, requiring you to export your data in a Excel sheet anyway.

Flat file databases

Excel’s original ‘flat file’ database still remains the easiest and most basic database to set up and manage, and depending on your business and how you’ll use your database, a flat file database may be all you’ll ever need. If set up correctly, a flat file database will allow you to easily import your customer data into Word, your accounting software, an email marketing service, and so forth.

Relational databases

A relational database is a database that’s structured to recognise relations among the information stored in them. Microsoft offers a relational database program, called Access, which is available with Microsoft Office Professional or higher, or can be purchased separately.

Alternatively, you can create your own relational database in Microsoft Excel, providing you have the 2013 version or newer. When Excel got its update in 2013, it became easier to link charts and cells and to perform searches — all essential features if you’re working with large amounts of business data.

Correct Excel set up is crucial

Once Excel has been set up, it’s as easy as it is powerful to use. Of course, the key is to set it up correctly, so you can avoid errors or having to re-enter large amounts of data to make the format suit another third party software application.

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Creating and managing databases is included as part of our Advanced Microsoft Excel training courses — and you receive access to ALL OF OUR COURSES, including ALL SKILLS LEVELS for ONE LOW PRICE. You can even start your Excel journey with our FREE Beginners’ Excel Course Workbook. Read more about our beginners’, intermediate and advanced Excel training courses on our website, or enrol to start learning by 5pm tomorrow!


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Learn Microsoft Excel from scratch or brush up your Excel skills, at your own pace, with our affordable Excel online training courses — where you get THE LOT (that’s 9 courses in total) for ONE LOW PRICE — everything included! Volume corporate discounts are available and our courses count towards CPD Points.


 

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What to Do When You Have More than One Income Stream

Why it’s important to track your income streams

keep-track-of-more-than-one-income-stream-using-excel-myob-xero-learn-online-training-course-videos
It can be easy to lose track of separate income streams; Excel is a great tool for monitoring which work your income is coming from.

IF YOU’RE AN INDEPENDENT contractor, or you’re a full-time employee about to start up a side business, then you need to be able to keep a good track of all your income streams. There are a couple of reasons for this and both of them relate to tax.  Continue reading What to Do When You Have More than One Income Stream

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A Close-Up Look at a Listed Company and How it’s Performing

We show you what financial data really reveals

how to read financial reports
There’s more to profit and loss than meets the eye: Sometimes a company’s losses outweigh its revenue, but it doesn’t mean that company is in a bad position.

AS A BUSINESS OWNER you’ll need to run regular financial reports (never more so than at the end of financial year) to ensure your business is in good shape. Understanding what each element of a financial report means is critical to your business’s financial health.

You’ll learn to run and interpret financial reports in our Xero, MYOB and Quickbooks training courses, but we’re just going to look at a couple of areas of most importance.

Close up: BuyMyPlace’s financial results

BuyMyPlace is an ASX-listed service that allows property owners to sell their properties without a real estate agent. Because it’s a publicly-listed company, they have to make all of their financials public too.

As such, we got hold of their most recent financial results for the first half of financial year 16/17.

It’s not the most detailed financial report, probably because the company itself is still in its early stages — there’s actually a good argument against early stage ventures listing on the stock exchange, but that’s fodder for another post.

Revenue vs. losses for the period

The good news for BuyMyPlace is that its revenue increased 129 percent on the prior comparative period (PCP) to $1 million for H1 FY16/17, up from $133,518 in H1 FY15/16.

That’s an impressive leap in revenues in just 12 months, however, the BuyMyPlace financial results also reveal that the business made an even greater loss of $1.7 million, an increase of 1205 percent on the PCP.

A closer look at the report shows that, while the losses increased more than a thousand percent, it was due to an increased investment in marketing and advertising — principally on TV spots which totalled $517,723 compared with $98,578 the year prior.

This resulted in an 80 percent increase in the number of listings on the site (that is, the number of people using BuyMyPlace to sell their home), while order value increased 27 percent (people who were choosing more expensive packages).

BuyMyPlace is in good health

Although this business recorded losses that outweighed its revenue, BuyMyPlace is still in good financial health.

The report also shows that it has over $4 million in cash and cash equivalents, and only a little over $600,000 in liabilities. Although the liabilities have increased, it’s not due to taking on any additional debt — indeed, BuyMyPlace has paid down all of its loans — but was instead due to a 786 percent increase in staff salaries and, as a consequence, an increase in staff provisions and benefits — i.e., sick and annual leave.

Strategy for future growth

Not many homeowners actually want to sell their properties themselves — one estimate puts it at around 7 percent of the total number of homeowners. However, most people do want greater clarity around how the process works (including fees and commissions) — even if they still want assistance selling their homes.

Perhaps realising this, or perhaps in response to increased competition in the fixed-fee real estate services (see: Purplebricks, Settl, etc), BuyMyPlace also launched its own full service package, giving homeowners access to a real estate agent to sell their home for a fixed fee.

This will enable BuyMyPlace to capture a greater volume of homeowners, who are looking for a low cost alternative to sell their homes, but who don’t want to do it entirely themselves.

The other strategy for growth: increasing listing depth revenues.

At some point, BuyMyPlace will stop growing its market share. Or, in other words, the market of people looking for a low-cost option to sell their home will be tapped out.

But as a business, and as a publicly listed one, BuyMyPlace will need to keep growing its revenue, not merely keep it steady. It’ll need to do as other real estate services, such as REA Group and Domain have done, and increase listing revenue depths, by selling more expensive packages to customers.  

BuyMyPlace will need to find additional value it can sell to customers, without necessarily increasing its own expenses to do so — or putting up its prices, which a business can usually only do once it’s cornered about 65 percent of the market, and BuyMyPlace is a long way off that yet.

***

That’s a lesson for every business owner out there. And it’s something we cover in our online Business StartUp Course.

You’ll learn how to run and understand the financial reports for your business in our Xero and MYOB training courses. You can also learn about strategies for business growth in our Business StartUp Course. Or for more information, visit our website.


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Learn Microsoft Excel from scratch or brush up your Excel skills, at your own pace, with our affordable Excel online training courses — where you get THE LOT (that’s 9 courses in total) for ONE LOW PRICE — everything included! Volume corporate discounts are available.


 

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Keeping Tabs on those ‘Little’ Monthly Expenses

Why Excel is Great for Keeping Track of Your Spending if You’re Self Employed

excel online training course using excel for monthly expenses sheet
That take away coffee that you buy each morning should be added to your business expenses sheet; even if not claimable it shows where your money is going.

WHETHER YOU’RE ABOUT TO start your own bookkeeping business, or whether you work as an independent contractor (even if you’ve been doing this for a while), it’s really important to know how much you’re spending each month.

Your Xero, MYOB or QuickBooks accounting software will help you with some of this, but the very best way is to create an expense or spending sheet in Excel — which we teach you how to do in our Excel training courses — as this gives you a far more detailed look at your expenses and spending.

Not all your expenses are 100% business ones

Sometimes you can’t claim 100 percent of your expenses as business ones — the costs of running your car, home internet, rent, utilities, etc — but you should nevertheless keep track of your spending on these items because it will affect your cash flow.

That’s why keeping an Excel spending or expense sheet is a good idea for contractors and home-based business owners. You don’t want to enter your home internet into your accounting software as a business expense, if only 30 percent of it is used for business purposes, but you still need to keep track of it, so you can manage your cashflow.

Monitor frivolous spending

One of the things we love about using Excel to track your expenses and spending is that every little expenditure is right there, in plain view.

This isn’t the case with Xero or MYOB or other accounting software. Your expenses are hidden away, and you have to run a report to get a good breakdown on where your money is going.

Not so with Excel,. If you buy a coffee every morning, it’s right there, in a category you can label as “coffee”.

Now, we’re not saying that coffee is frivolous. Far from it. Many of us need coffee just to function (!) but there are lots of small things we spend money on every day, week, month that add up. When you’re self-employed you need to keep an eye on these “little” things.

Sometimes, you’ll find that you’re spending lots of money each month on subscription services that you’re not even using. Eliminating $15 a month here and there makes a big difference.

Create as many categories as you need

That’s the other great thing about using Excel to track your spending: You can create all the expense categories you like.

Of course, not everyone wants to track each and every expense right down to their last bag of jelly beans — that actually would be a little ridiculous — and for most the most part, you can lump your groceries into a category for discretionary spending, but there are some things you might want to separate out — movie tickets, money spent on lunches and dinners, and so forth.

These things tend to add up, and if you want to keep an eye on them, separating them out is the easiest way to do that.

Back to those business expenses

Each fortnight or month or however regularly you complete your bookkeeping, you can easily add in those business expenses into your accounting software — or your bookkeeper can.

Remember, if you spend $60 a month on internet, but only 30 percent of its use is for business purposes, you should only add $18 a month as a business expense in your accounting software. In your Excel expense or spending sheet, however, you’ll put the full $60 in, as you need to have the money in the bank to cover this expense each month.

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You can learn how to create and manage your expenses or spending in our Excel training courses, where you’ll be able to create your own spending or expense sheet. Visit our website for more information.


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Our Xero online training courses include EVERYTHING for ONE LOW PRICE. Furthermore, if you select our Lifetime Membership option, you’ll have LIFETIME access to our ongoing course updates. All EzyLearn courses are accredited by the Institute of Certified Bookkeepers (ICB) and can be counted towards Continuing Professional Development (CPD) points. Find out more about our Xero online training courses. 


 

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Online Training: A Cost Effective Way to Train and Motivate Your Staff

Take an online course to build will AND skill

online training for staff morale
It’s a real buzz when you learn something new: a great way to up-skill your staff members and keep people interested at work is to provide them with online training course material.

OUR MYOB TRAINING COURSE is basically an induction into the role of a bookkeeper, in that it provides students with an overview of the duties typically carried out by a bookkeeper. Most of our students take our MYOB training course because they both want, and need, to know how to use the software in order to find work as a bookkeeper.

In the world of business training and coaching, this is called the Will versus Skill Matrix. Employees who have both the will to succeed and the skill to succeed are highly desirable in the workplace.

Transparency, will and skill

Employees who have only one of those attributes, however, are less desirable. Helping staff maintain both the will and the skill to succeed in their jobs has a lot to do with how transparent you are as an organisation.

We’ve mentioned transparency in business before, notably in relation to induction training programs. Induction training programs are a highly efficient way to communicate easily and efficiently with your staff, while also testing their will and skill to succeed at their jobs.

While most induction training programs are used to merely address the requirements of the Work Health and Safety Act, or to induct contractors and consultants to a business’ premises, induction training programs can also be used to further your employees’ professional development.

Help your staff upskill with a Word or Excel course

Furthering your employees’ professional development can be done by providing your staff with online training courses that are relevant and useful to their jobs, such as a Word or Excel training course. You’ll be surprised how many tasks can be done with these software applications — and therefore how empowering this knowledge becomes!

boosting staff morale with online training courseOnline delivery of this content allows your staff to complete the course at their own pace, in an informal environment — at home or at their desk at work, rather than in a dedicated training centre on a dedicated day — and it also allows you to monitor their progress.

Being able to see how your employees are getting on with the training courses can illuminate areas where your staff could benefit from further training; it can also highlight those staff member who possess the will and the skill to succeed.

Those staff members who are have both the will and the skill to succeed in their jobs also happen to be highly engaged, and as we mentioned in a previous post, more productive.

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If you’re looking for ways to keep your staff highly engaged with your business, we can help you tailor and deliver highly engaging induction training courses to your staff. Visit our website for more information, or contact us today for a quote.


learn xero online training course videosAt EzyLearn you can choose from a range of XERO online courses, depending on your skill level — or you can access ALL courses for ONE LOW PRICE. All our courses are accredited by the Institute of Certified Bookkeepers (ICB) and can be counted towards Continuing Professional Development (CPD) points. Find out more about our Xero online training courses. 


 

 

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How to Create a Cash Flow Forecast in Xero (and Excel)

Why cash flow is a better indicator than profit

cashflow and profit reports in xero and excel
Don’t overestimate how much money you’ll have to spend on a new business venture; better to forecast using cash flow as an indicator.

WE RECENTLY PROVIDED DETAILS of a case study highlighting the experiences of a business owner named Jerry. Jerry decides to start a real estate business on the side, after operating a business already that has synergies, for instance, in terms of clientele. 

We mentioned that Jerry should use his accounting software to determine whether his he’ll have the start-up capital required to fund his new venture for the next 12 months. The best way to do this is to create a cash flow forecast, and we’re going to show you how.

Cash flow is a better indicator of available funds

If you’re wondering why you wouldn’t create a profit forecast, it’s pretty simple. Cash flow represents money in the bank, after you’ve paid all your suppliers and staff and loan repayments and so forth, while profit just shows how much the business earned but doesn’t take into account any cash outlays. 

Profit just shows how much the business earned but doesn’t take into account any cash outlays.

It’s important to understand that it’s not uncommon for businesses to be profitable; however due to cash outlays, these same businesses may not actually have enough money in the bank to fund investment, or in this case, a new venture.

Generating a cash flow report in Xero

Follow these steps in Xero to generate a cash flow report for your business:

  1. Go to Reports, then click All Reports.
  2. Under Financial, select Cash Summary.
  3. Enter the following report settings:
    • Date — The latest finalised month
    • Period — 1 month
    • Compare With —  Previous 11 Periods
    • Select the Include GST and Show YTD filters
  4. Click Update to generate the report in Xero
  5. At the bottom of the report, click Export and select Excel to download the report in Microsoft Excel format.

Set up formulas to forecast 12 months ahead

In Excel, you’ll need to create formulas that will show you the average cashflow of your business across the previous 12 month period, so you can then forecast ahead for the next 12 months.

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Creating and working with formulas is something we teach you in our Microsoft Excel training courses. We also feature a suite of highly popular Xero online training courses, or if you want more information on creating profit and loss statements in Xero, read here.

If you don’t use Xero and you’re using MYOB or QuickBooks, our MYOB and QuickBooks training courses will also show you how to run cashflow reports, among many others.


Online bookkeeping accounting training courses for CPD points

EzyLearn Excel, MYOB and Xero online training courses count towards Continuing Professional Development (CPD) for bookkeepers and accountants. We’ve been an accredited training provider of the Institute of Certified Bookkeepers ever since the organisation started in Australia. Find out how CPD points can be of benefit to you.


 

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Thinking of Starting a Second Business? Introducing Jerry

Case Study: Costs for starting up a second, related business

microsoft excel starting a second business
Contemplating starting a second business, related in some way to your first? Excel can help you forecast start up costs.

A LOT OF BUSINESS OWNERS branch out into related fields when their flagship business becomes successful enough (just look at Jim’s Mowing). However, this can be a bit dicey if the business owner doesn’t properly forecast all the start up costs. Not doing so can not only have an adverse impact on the new venture, but also on the existing business.

In this case study, we’re going to look at the start up costs associated with starting a real estate sales business. With real estate licencing laws changing and digital marketing available to everyone the ability to start your own business and work at home is now very realistic. Continue reading Thinking of Starting a Second Business? Introducing Jerry

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Paying Several Employees With One Payroll Payment

MYOB and Xero now make payroll easier to manage

myob and xero online payroll management
Struggling to manage your online payroll management? Our Xero and MYOB courses will help you get the most out of this software so you can manage payroll in house.

MANY COMPANIES OUTSOURCE PAYROLL because it contains many moving parts. For instance, there’s the payment of wages each week or fortnight or month, sure. But there’s also superannuation contributions, PAYG obligations, annual and sick leave accrual. 

Fortunately, most accounting apps like Xero and MYOB have made payroll easier to manage, particularly if you only have a handful of employees.

Superannuation clearing houses

Nearly every major cloud accounting package has a connected superannuation clearing house within its payroll package. Xero and MYOB are both SuperStream compliant, a government initiative to help business owners tell which accounting software apps will let them make electronic superannuation payments. And QuickBooks uses a partner payroll system which is also SuperStream compliant.

Batch wage payments

Electronic superannuation payments are one way that paying staff is made easier, but paying a dozen or so employees individually each week or fortnight can be tedious. Fortunately, both Xero and MYOB have a ‘pay run’ function that lets you make batch wage payments. This eliminates the tedium of paying employees individually, as well as the potential for error.

Accounting software calculates entitlements

MYOB, Xero and QuickBooks, if you’ve set up your employees correctly and have the appropriate payroll subscription, will also calculate your employees’ sick and annual leave entitlements, also reducing the time it takes to process payroll and the potential for error.

Our MYOB training courses and our Xero training courses both cover payroll, where you’ll learn how to set up employees correctly, process wage payments and more. Using a cloud accounting program for payroll, saves time and reduces errors. Visit our website for more information.

EzyLearn courses now include real life case studies

managing ad hoc payrollAt EzyLearn we are constantly refreshing the content of our online training courses. Relevant to those of you doing Payroll, might be our Excel Ad Hoc Payroll case study which is part of our Intermediate Excel Online Training Courses. Where possible, we draw on real-life case studies as examples, to help you learn, and apply your skills, in a relevant way that makes sense. Visit our Micro Courses page to learn more.


 

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EOFY: Remember to Deduct Your Prepaid Expenses

The Cut-Off for Claiming Deductions is Looming

reduce-your-taxable-income-with-expenses-Xero-and-MYOB
Dive deep into your claimable expenses and don’t forget all those smaller prepaid expenses like magazine subscriptions or domain name registrations – you can only claim all of these during the period in which they occurred.

WE’RE IN THE LAST QUARTER of the 2016/17 financial year, so now is the time to dive in deep and check you’ve included every single business expense — prepaid or otherwise — to ensure all your expenses are in order.

We’ve previously posted about writing off stock and inventory and the reports you’ll need to file your activity statements and tax returns: all of these you’ll learn how to run in our MYOB BAS Reporting and GST online training course or our Xero GST, Reporting and BAS training course.

Expenses reduce your taxable income

We all know this, but remember, they can only be claimed for the period in which they occurred. If you forget to claim a major business expense in the financial year that it occurred, you can’t make it up by claiming it the next year.

It’s really important you thoroughly check your credit cards and business accounts to make sure you’ve accounted for each expense. The final quarter of the financial year is also a good time to make any purchases for your business, because you can claim them straight away.  

Prepaid expenses are often forgotten

what are some claimable expensesMagazine or journal subscriptions, domain name registrations, business name registrations, car registrations, website fees, insurances — collectively they add up, but they’re also the easiest to forget.

These deductions are often prepaid and may not come up on your radar and may certainly not show up on your final quarter bank statements.

Make a list and check it twice

Over the next month or so, make a list of all of your expenses as you think of them. This makes it easy to spot them when you’re going through your bank and credit card statements and checking them against the expenses in your accounting software.

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Learn how to run the reports you’ll need for EOFY with our MYOB BAS Reporting and GST online training course or our Xero GST, Reporting and BAS training course.


learn PowerPoint online training course

Want to make your business presentations and publications more eye catching? 

Gone are the days of excruciatingly dull PowerPoint slide presentations. Nowadays PowerPoint is the hidden gem used to generate animations, videos, movies, advertising and graphics. It’s a great ally to the marketer or social media person in your organisation.

This creative program can also be used to conjure up the most beautiful and modern pictorial slides to enhance any presentation or inductionFind out more about our 2016 version PowerPoint courses


 

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EOFY: Organise Your Reports and Records

We Show You The Reports to Generate Now for End of June

profit and loss statements P&Ls
Now’s time to take stock of the reports that need to be generated to keep you GST and tax compliant.

THE LAST QUARTER OF the 2016/17 financial year is upon us, so now is the time to organise your reports and records; including Profit and Loss Statements, Accounts Receivable and Payable, PAYG and Super payments. We’ve previously written about writing off stock and inventory and getting your business expenses in order. In this post we’ll take a look at the reports and records you’ll need for EOFY, which you’ll learn how to produce in our MYOB BAS Reporting and GST or Xero GST, Reporting and BAS training courses.

Profit and loss statement

Depending on the structure of your business, you may be legally required to include a P&L statement with your tax return or activity statements. Your tax agent will be able to advise you if your business will be required to file a P&L, which  requires all of your bookkeeping to be up-to-date before you can run it.

Even if you don’t have to file one with your activity statements or tax returns, it’s still a good idea to run a P&L for your own sake. A P&L statement identifies whether your business has made a profit or loss and which accounting period these occurred.

Accounts receivable, payable

Find out who owes money to your business and to whom your business owes money. This is obviously part of the credit management process, which any good business will have in place already, but it’s a good idea to keep a steady eye on what’s coming in and what’s going out as EOFY approaches.

PAYG, superannuation

The end of each quarter brings a lot of PAYG and superannuation reporting, but EOFY brings a double whammy of activity statements tax returns and PAYG and superannuation compliance. You’ll need to run these reports so your bookkeeper can complete the payroll component of your returns.

Inventory stocktake

If you sell goods, you’ll need to complete a stocktake of your business’s inventory so that any missing stock can be written off, and to ensure you’re starting a clean slate for the new financial year.

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Learn how to run the reports you’ll need for EOFY with our MYOB BAS Reporting and GST online training course or our Xero GST, Reporting and BAS training course.


Xero online training course

At EzyLearn we offer online training courses to help you up-skill and find employment. Choose from our range of cloud-based online accounting software courses, to business start up and management courses, to marketing and sales courses, or update and further your skills in a range of Microsoft Office programs (ExcelPowerPointWord) or social media and WordPress web design).