When the downside of cloud accounting becomes apparent
IF YOU FOLLOW XERO in the news, then you might already be aware that since the cloud accounting giant’s migrated over to Amazon Web Services (AWS), the technology arm of the e-commerce company, Xero’s servers have gone offline a number of times — twice this March alone.
On March 1, Xero’s 800,000-plus customers were unable to access their online accounts for several hours when an AWS outage left cloud computing services offline around the world.
Two weeks later, Xero had server issues again. This time an upgrade to its database server to improve performance resulted in issues that prevented some Xero users from logging into their account or to experience issues using the service once they did log in.
No options for offline access
Unlike some MYOB products, most cloud accounting programs, like Xero and QuickBooks, don’t allow for users to access their accounts in an offline mode or to download a copy of their own data to store locally on their computer or tablet.
MYOB, for example, allows users to access and work on a local desktop version of their accounts, which they can then sync with the cloud when they’re finished. This means, that even if the MYOB server is down, MYOB users can still work on and access their accounts, and sync later when the server is back online. (Or, conversely, when the user is back online, which handy in case of internet access issues.)
Xero, QuickBooks MYOB and AWS
Amazon Web Services provides either partial or complete cloud hosting to all three of the top cloud accounting programs — Xero, QuickBooks and MYOB — yet only Xero appears to have been significantly impacted by the AWS outage this past March.
While QuickBooks is mostly hosted by parent company, Intuit’s, own servers; some features and functions of the QuickBooks service have been developed on AWS as well, though it’s not totally reliant on the Amazon service and may have been spared from the Amazon outage.
But two key cloud-based MYOB products — MYOB Essentials and MYOB Advanced — have operated on AWS since 2011. Because users can access their MYOB products offline, however, any interruption to their service appears to have been minimal.
For what it’s worth, Amazon Web Services is the largest cloud hosting company in the world. It’s used by Netflix, Spotify and Apple Music, none of which went offline during the AWS outage.
Xero to learn from AWS issues
A Xero spokesman promised a “post-mortem” to learn what happened to cause their service to go offline on March 1, admitting that the company didn’t realise “it was entirely reliant on a United States storage facility operated by AWS until it crashed.”
Although AWS is the largest and, probably, most reliable cloud hosting service in the world, it’s not immune to problems. The challenge, then, for companies, such as Xero, is to learn from and about the potential issues that can arise, and implement measure to mitigate the impact to their customers.
In Xero’s case, a simple offline mode could have prevented much of the ire its outage caused bookkeepers, accountants and small business owners trying to access their service on a time limit.
Will your business be able to stand up without an earnings guarantee?
WHEN YOU START A NEW franchise business, you may be offered what’s called an “earnings guarantee” or “income guarantee” for a period of time after you first start the business. It usually lasts the first six months but it could possibly last as long as a year.
Earnings guarantees are designed to help people transition from having a salary to being self-employed, by providing them with a top-up payment each month if their sales fall short; peace of mind for those would-be business owners, concerned about all the “what if’s” that come with starting a new business.
How the cloud accounting ecosystem has paid off big time:
And how Xero has become the preferred accounting software for Aussies and New Zealanders (Part 2 of 2)
FOR YEARS, MYOB was the Australian market leader in accounting software. Small businesses and accountants spent hundreds of dollars to buy its clunky, obtuse software and load it onto their computers so they could mind their own business (hence, the MYOB) or the business of their clients.
And how bookkeepers and accountants can become a “one-stop-shop” for those needing help with their finances (Part 1 of 2)
EARLIER THIS YEAR, Intuit, the parent company of cloud accounting system QuickBooks, announced it had acquired U.S.-based time-tracker platform, TSheets, in a deal worth $340 million U.S..
This was part of Intuit’s strategy to expand its offerings to small businesses and the self-employed. (In the U.S. and Canada, Intuit also operates a cloud software package called TurboTax, which lets individuals file their own federal taxes.)
An industry association membership may be just what you need
IF YOU LIKE BOOKKEEPING, but you’d like to provide additional services to your clients, the next step is to become a BAS agent. BAS agents provide businesses with a range of services, including the lodgement of business activity statements, registering and advice on all GST matters, assistance with PAYG, and a number of other services.
Association of Accounting Technicians — affiliate members must have Certificate IV in Financial Services or at least two years experience and no formal qualifications; membership fees: $295 for three months ($1,180 per year).
Australian Bookkeepers Network — no requirements to join; membership fees: $462 annually.
Institute of Certified Bookkeepers — Affiliate members must have Certificate IV in Financial Services or complete an ICB assessment; membership fees: $264 annually. (After achieving 12 months experience Affiliates can become Associate members; membership fees for contractors $432 annually.)
Other industry associations BAS agents can join, include:
Association of Chartered Certified Accountants ANZ
Chartered Accountants ANZ
CPA Australia
Institute of Public Accountants
New Zealand Institute of Chartered Accountants (NZICA)
Many associations run their own webinars and in-person seminars (for an additional fee), which count towards your CPD hours. (BAS agents must complete 45 hours of CPD over a three year period.) Some of them will help you with the running of your own bookkeeping business, while others will take you through new trends in bookkeeping (single touch payroll) or changes to the Act and relevant legislation.
Each time you complete a webinar or some other form of approved CPD training, it’ll be counted towards your CPD hours. You can also complete CPD training through an accredited training organisation. (Check with your industry organisation to see which training institutions you can learn with.)
Choosing an industry association
Not all industry associations are the same. Some are geared more towards the accounting industry (CPA, Chartered Accountants ANZ, etcetera) and accountants; others cater specifically to bookkeepers. Even within the group of associations that cater only to bookkeepers, some provide a range of services (updates on the industry, CPD training), while others offer very little (discounts on professional indemnity, a newsletter).
As the old saying goes, you get what you pay for. If you want to pay very little, you’ll get very little in return from your industry association. But that doesn’t mean you need to spend a lot either. Have a look at a few of the associations we’ve listed above, and see which one suits you best.
The Association of Accounting Technicians offers affiliate memberships, which provides affiliates with access to a number of discounted fees on training courses to help them develop their skills and progress to a “member” level membership — and then register as a BAS agent with the TPB at the reduced 1,000 hours of experience concession.
Join the Bookkeeping Academy for CPD Points
Industry Associations can offer discounts on professional indemnity insurance and bookkeeping journals and publications. And they offer a range of online webinars to help members get their CPD hours up but you just have to demonstrate continuing education to keep you your CPD requirements.
EzyLearn’s online training courses are accredited by BAS agents, accountants and bookkeepers — those we deem to be the industry’s “high water mark” for bookkeeping work. These people are the highest qualified individuals operating in the accounting and bookkeeping space. If they believe the content of our courses is genuinely of high quality and relevant to the bookkeeping world, then this is the accreditation that should give our students peace of mind.
I found the EzyLearn Xero course great — a comprehensive step-by-step learning tool to add to my resume and a new tool to use in my Bookkeeping Practice.”
— Patricia Darby Registered BAS Agent and Bookkeeper, High Quality Bookkeeping
When a training course is not really a training course…
WE REGULARLY PARTAKE in competitive analysis so we can keep giving you top quality online training courses for the best value out there, and in doing so, I found an online offer for not just one, but THREE levels of MYOB — Intro, Intermediate and Payroll OR ALL THREE for $99.
Not mentioning any names; we’re not in the business of naming and shaming and, besides, you can search the deal easily enough online yourself, but it prompted me to put out a reminder that not all courses are created equal.
Not all training courses are the same
I guess it’s obvious to some degree, but many of us are still misled by marketing, and sometimes what’s packaged to the customer as an online training course, is simply a pile of videos (and not even featuring current and up-to-date software versions, either!) all plonked together. You know what, you can get this, and possibly more, directly off You Tube for free!
Using old versions of the accounting software
There are many online courses available for cheap prices, but many of these same courses are not providing training on the latest version of software packages. A quick scan of the fine print shows that this particular $99 MYOB deal is training you on Version 19 of MYOB. This dates back to 2010, which in any one’s language, is very old. Very, very old.
As part of our suite of online MYOB courses, we include access to our old “archived” courses where we use version 19 of MYOB; only for the benefit of those people who still use it and don’t need features like payroll, super and other added features that you’d expect to get after 8 or so years of software development.
What’s retail price anyway?
Another thing to be wary of is “retail price” comparisons. Plenty of these may be legit, but there are others out there who deliberately distort the truth or make a current cheap offer seem far more appealing by comparing their cheap price to a retail price that isn’t really indicative of what’s on offer out there online.
Make sure you’re talking “courses for courses” and that the retail price comparison isn’t looking at prices from half a decade ago or thereabouts. The price of online training courses is a forever shifting thing, so do your research!
Case studies that keep the content based in real-world scenarios and ensure you’re learning things that will be practical in real-life circumstances and situations
Responsive email and phone student support for all queries
Money-back guarantee; if you’re not happy with the course content, or it’s not what you thought it would be, you shouldn’t be stuffed around in the fine print by not getting a full refund, (no matter how small the amount you’ve originally paid).
The training course should feature the training on the software as it is in its current version and this training, or training videos, workbooks, whatever, should be provided in an order that’s been carefully considered, trialled and tested.
People say “if it sounds too good to be true, it probably is”. This isn’t always the case, and sometimes excellent opportunities in life seem, at first, too good to be true. But when it comes to online MYOB courses for $99 or $29 or $69 or whatever the probably-too-good-to-be-true price point is, just make sure you’re getting apples for apples, or courses for courses, or horses for horses, Mr Ed.
BAS AGENTS PERFORM MANY of the same tasks as a basic bookkeeper, which includes entering receipts, coding financial transactions and generating invoices, but there is just one key difference: registered BAS agents are allowed to prepare and lodge activity statements on behalf of their clients.
In order to become a registered BAS agent, you must have completed, at a minimum, a Certificate IV Financial Services in either bookkeeping or accounting through an accredited and nationally recognised training provider.
Most people don’t have much trouble completing the Certificate IV, but the requirements set out by the Tax Practitioner’s Board (TPB) that often present a barrier to becoming a registered BAS agent. See the list of blogs below for more information about becoming a registered BAS agent.
Tax Practitioner’s Board BAS agent requirements
In addition to completing a Cert IV, in order to become a registered BAS agent the TPB also requires you to have at least 1,400 hours of work experience. This work must be done under the supervision of a registered BAS agent or accountant in the past 4 years (it’s 1,000 hours if you’re a member of a professional association).
You also need to have completed a board-approved course in basic GST/BAS taxation principles (this course may be included in your primary education). There are also mandatory continuing professional development (CPD) requirements that each BAS agent must keep up with in order to remain registered.
There’s a lot to do, but becoming a registered BAS agent isn’t the only way to carve out a successful career for yourself. Depending on how you want to work, there are plenty of other options you may also consider, such as:
Work for other bookkeeping businesses
If you work as an employee of a bookkeeping business, you can perform all the same tasks and duties as a registered BAS agent can, as you’ll be covered by their BAS registration and oversight.
As long as you are on the bookkeeping business’s payroll, you can provide BAS services — that means, you can also work as a casual or temporary worker providing you don’t invoice for your work using an ABN, but instead use your tax file number. This may also have other benefits, too, as the business will be required to withhold tax and contribute to your superannuation.
Work directly for a business as a wage earner
Again, as long as you’re on the business’s payroll, you don’t have to be a registered BAS agent to provide BAS services. The only difference here is that, while you can prepare the business’s activity statements, you won’t be able to lodge them. They will need to have their accountant do that last step, instead.
You can still work under a similar arrangement as mentioned above, either as a part-time, casual or temporary staff member, and, so long as you’re drawing a wage from the business, you can perform BAS services.
Carry out basic bookkeeping from home on the side
You may even choose to provide basic bookkeeping services to small businesses remotely from your home office, and still invoice them using your ABN. Many bookkeepers work as virtual assistants and some work a combination of casual and part-time hours for bookkeeping or accountancy practices, or as an employee of a business, and supplement their income with some basic bookkeeping work on the side, which offers both flexibility and stability at the same time.
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Thinking of expanding your bookkeeping skills? Considering becoming a BAS agent? Check out just some of the blogs we’ve featured on BAS agents:
A lot of the time, however, people enrol in an Excel online training course or Xero online training course because they need to refresh a specific set of skills for their job, which means they don’t have the time to focus on other areas that don’t have an immediate relevance for their work.
Why you should employ a bookkeeper to help manage the books
PERHAPS YOU ARE a small business owner who is trying hard to keep up to speed with your regulatory bookkeeping requirements. But no sooner does one quarter end and another one seems to roll by with the commensurate paperwork due all over again. This is taking away from your regular work and you’re falling behind — and half the time you’re not even sure that it’s being done correctly. It sounds like you should be seriously considering finding a bookkeeper for your business.
Even if you have training in how to use Xero, MYOB or Quickbooks, or some other cloud accounting program, finding a great bookkeeper can make all the difference to your business. However, although there might seem to be plenty of “bookkeepers” around, finding the right one bookkeeper for your business is not an altogether easy thing to do. And if you’re financially challenged, you also need to find a bookkeeper who won’t break the bank.
Think about your business and how it operates. Do you have lots of business purchases and transactions each week? Do you employ staff? Do you work in a specialised industry? Are you registered for GST? Do you require a bookkeeper to work onsite at your premises or can they work remotely?
Visit the websites of some local bookkeepers in your area, or search the National Bookkeeping Directory to find bookkeepers matching your requirements located near you. If you don’t require a bookkeeper to visit your premises, broaden your scope and research bookkeepers who can work remotely. Make a shortlist of potential bookkeepers.
Step Three: Check the TPB Register
BAS and tax agents are required, by law, to register with the Tax Practitioner’s Board (TPB), so if your business requires either a tax or BAS agent (or both), the TPB Register should be your first port of call to ensure the person who have in mind is currently registered to provide BAS or tax services.
Step Four: Interview Your Preferred Bookkeepers
During step two, you made a shortlist of potential bookkeepers, and, assuming your TPB search didn’t turn up anything to be wary of, you should now set about contacting each one to get to know more about the services they provide.
BECOMING A REGISTERED BAS agent means you are permitted to lodge a client’s business activity statements (BAS) on their behalf, each month or quarter, or as determined by the ATO.
BAS agents are really bookkeepers; but they’re ones who have done some extra training and applied to the Tax Practitioner’s Board (TPB) for a BAS agent’s accreditation.
Since then, however, a number of cloud-based accounting applications have entered the market — QuickBooks Online (now distributed by their US-based parent company Intuit), Reckon One, Saasu, Zoho, and so on.
Even though Xero was hailed as a breath of fresh air when it first entered the market, it is still a little more complicated to use when compared with other cloud accounting apps, like QuickBooks and Reckon One. For instance, the purchase orders feature is still hidden behind bills, when it could easily be access via a dropdown menu. But it’s not a major quibble.
Xero’s contact profile misses a beat
Although Xero allows you to assign customer numbers for your suppliers or customers in the contact profile, it doesn’t have the functionality to record customer numbers assigned by supplier or customer.
In MYOB, you must upload your bills to your in-tray, and then link them to your transactions. This is annoying, because it requires you to leave the transaction window and open the in-tray one.
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Remember that when you select a cloud accounting package for your business, do not choose solely based on price. Make a list of the needs of your business and the functions you’ll require, and then select the accounting package that suits your needs the most. Ask your bookkeeper and other business friends for their recommendations as well.
Announcement: Microsoft Excel 2016 Beginners’ to Advanced courses now available!
At EzyLearn we include all versions of a software program in our training courses. That means when you enrol into Excel you get 2016 — AND — the older Excel courses which include version 2013, 2010, 2007 and even 2003 (if you really need it).
When you enrol in Lifetime Course Accessyou get access to ALL versions and ALL FUTURE VERSIONS as we continually update them — at no extra cost!
When it comes to getting a quote you can compare a bookkeeper to a builder. Just as you would get a quote from at least a couple of builders before hiring one of them to work for you, it’s a good idea to get a couple of different quotes from different bookkeepers. This helps you compare apples with apples.
But more than this: a bookkeeping quote should detail precisely what tasks the bookkeeper will carry out, the frequency at which they’ll be done, and any other hidden costs you may be up for, such as the cost to migrate your data from one accounting application to another.
Your professional services agreement
Getting a quote will also help form your professional services agreement. Simply obtain the required number of quotes and decide which bookkeeper you’ll hire for your business; then make sure that quote is turned into a professional services agreement (PSA).
A PSA is the written contract between you and your bookkeeper, outlining the tasks they’ll carry out and when, any other fees and charges, when you’ll pay them and how, plus any additional obligations on their part and yours. A professional services agreement is a safeguard for both you and the bookkeeper. It’s also another way to help ensure the bookkeeper will be the right fit for your business.
So what are some of the benefits? One; they get their accounting software for free, two; they receive a discount or commission for each new business they sign up to use that particular software.
Does this make certified consultants and advisors biased?
For a business owner, the upside to hiring a bookkeeper endorsed by a software company is that they will be able to work with that software application quickly and efficiently. The potential downside, however, is that the software application may not be especially suited to the business, but has been recommended anyway because the bookkeeper earns a commission for doing so.
Research first
A way around this is to do some research first. Compare a few different accounting applications before making contact with a certified consultant or advisor. Once you’ve decided on a particular software, you shouldn’t find yourself in any strife.
If, however, you contact a bookkeeper without doing your own research first, there are some things to be wary of, such as whose name the subscription will be in — failing to do so could prove to be a costly mistake.
Independent bookkeepers bring software skills and more
Most independent bookkeepers are usually proficient in a few of the major accounting applications, like Xero, MYOB and Quickbooks, rather than just one, so they’ll be able to recommend the software that suits you and your business needs the best.
They’re also able to set up your accounting software for you and provide training if necessary, just as a certified consultant or advisor can — only you’ll be in control of your subscription instead of your bookkeeper.
In our recent post about recommendations we suggested that you ask a friend, relative or colleague if they’ve ever had experience with a business you’re thinking of using — chances are, if your friends live locally they may well have; or if the business is a chain or franchise operating over a wide area.
Also ask other businesses
When seeking a professional recommendation you can also ask other businesses. Find out what their experiences have been, if any. Often businesses will have a relationship with each other even if it is not, at first, apparent.
For instance, a symbiotic relationship tends to exist between real estate agents and tradespeople. Agents will regularly draw up a list of preferred tradespeople that they work with and recommend to their tenants, landlords and vendors.
And there are plenty of tradespeople who do the same for real estate agents that they’ve had professional dealings with. There are plenty of other examples of these sorts of professional recommendations.
Beware professional bias
Of course, just as you should be wary of overly positive or negative ratings and reviews online, you should be likewise when soliciting professional reviews. If one business regularly referred work by another, even if they don’t think they’re a great business to deal with, neither party will necessarily say anything bad about each other.
In the end, when looking for a tradesperson, real estate agent or some other professional service, be sure to do all your research. Ask around for personal referrals, check them up online, and get in touch with each business directly to see which one is the best fit for you.
Real people, real locations
At EzyLearn we provide testimonials from our students, which include their full name and location, and why they chose EzyLearn to study in the first place. We also offer a money-back guarantee and free samples of our course content, so students know they can trust they’re making the right choice. Visit our website for more information and to see our wide range of courses.
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Xero is a great bookkeeping program for tradies who are on the go and using their phones (or a tablet) all the time. From receipts scanning to creating quotes and invoices, receiving payments and keeping track of project costs.
bookkeepercourse.com.au/produ…