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What’s an Earnings Guarantee?

baby learning to stand will your business stand up to an earnings guarantee income guarantee

Will your business be able to stand up without an earnings guarantee?

baby learning to stand will your business stand up to an earnings guarantee income guarantee
Will your business find its legs without relying on a temporary earnings or income 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.

They also help franchisors (and by this we mean the company that’s allowing the individual, or the franchisee, to run a location of their business) grow their market share, as a person is more likely to start a new franchise business if there’s a safety net to help them while they’re getting them business established. (Earnings guarantees aren’t offered to people buying an established business off another franchisee.) Speaking of opportunities to get into business for yourself, thinking of starting your own bookkeeping business?

Who offers earnings guarantees?

Most franchisors offer some kind of an income or earnings guarantee, though the amounts and thresholds for when they kick in can differ business-to-business. It’s important to note than an income guarantee is merely a promise of sales revenue for a particular period of time, based on the average amount other franchisees earned in the past. And it in no way reflects what your business will earn in the area you’re looking — you may well earn more, but you may also earn less — nor is it a customer guarantee, as some franchisees may be required to carry out promotional work or make-good work for other franchisees in the event there are no leads available.

Consider the following earnings guarantees at these businesses:

Reliance Roof Restoration: A roof restoration, replacement, painting and guttering services business based in Brisbane, and became a franchise in 2011 after nine years operating throughout Queensland. It offers new franchisees a $75,000 (net) income guarantee for the first 12 months.

In other words, if you only earn $45,000 in the first year, they’ll kick in the additional $30,000. It’s not clear how frequently payments are made to franchisees — whether they’re fortnightly, monthly, quarterly, or annually — though the director of the Franchise Advisory Centre Jason Gehrke told Franchise Business that “profit guarantees tend to be assessed at the end of 12 months or at the end of the financial year.”

Cafe2U: The mobile cafe business developed a “Cafe2U Acceleration Package”, which provides new franchisees with a two-week income guarantee of $500 a day (or $2,500 a week). It’s paid to franchisees at the end of the two week period, but the business claims hardly any of their franchisees ever end up claiming it because their daily sales always exceed the $500.

hire a hubby as an example of franchise with income guarantee earnings guaranteeHire-A-Hubby: Australia’s largest handyman business, Hire-A-Hubby implemented an earnings guarantee for certain franchise packages it offer — there’s gold, silver and bronze packages available. The business offers new franchisees a $125,000 per annum gross earnings guarantee for the first 12 months.

To receive the earnings guarantee, the franchisee must work a minimum of 45 hours per week (a minimum of 8 hours a day), and must accept whatever leads are provided via head office. If no leads are available, the franchisee must perform whatever marketing or promotional activities that are assigned to them by the Hire-A-Hubby head office; franchisees may be asked to perform “rectification work” to other franchisee clients. The income guarantee is paid each fortnight. The business also offers a “buyback” guarantee to franchisees whose businesses are never profitable, despite following the franchise agreement to the letter.

After the income guarantee ends

Jason Gehrke from the Franchise Advisory Centre cautions potential franchisees against selecting a business based on the income or earning guarantee provided, which he says can provide a false sense of security.

“If franchisees are conditioned to receive top-up payment from the franchisor when sales are low,” he told Franchise Business, “they might not understand just how financially self-reliant they need to become.”

“A person who is used to clearing $1,000 per week may not realise that the promised sales turnover of $1,000 a week will not have the same spending power … Business expenses such as taxes could leave them with less cash for their mortgage repayments and other fixed living costs than they were expecting.”

A franchisee consistently claiming their top up payments each fortnight for the duration of the income guarantee indicates a couple of things: a) they underestimated how much work is involved in generating new business and sustaining it; or b) the territory they operate in isn’t going to generate enough leads to be profitable.

If it’s the latter, that’s often the franchisee’s tough luck. Many franchisees who bought Dominoes and 7Eleven businesses found that the franchise model would never be profitable enough to pay them a living wage, never mind cover the costs of employing staff. That resulted in one of the Australia’s biggest and most systemic instances of worker exploitation, which led to a Senate inquiry that subsequently found the company was liable to pay workers a total of $4.3 million in underpaid wages.

Do your due diligence!

At the end of the day, earnings guarantee or not, you’re still buying a business. Prospective franchisees should look around at two or three franchise models and do their due diligence — research the market, test how much demand for the business there may be. Just because a business says there are franchise opportunities in a particular area doesn’t mean the business will be viable there.

And look beyond the earnings guarantee to what the rest of the franchise agreement offers. Remember that an income guarantee is usually built into the upfront franchise fee, so a business that doesn’t offer an income guarantee but has lower entry costs might be a better option.

“I call [income guarantees] a ‘capitalised form of working capital’ and you might be better off keeping the money and controlling it yourself,” Gehrke said. “My recommendation is to make an assessment of any income guarantee as part of the overall decision-making process, but not the deciding factor.”

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There’s never been a better time to start your own business!

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If you’re looking to start a business — perhaps as a bookkeeper, tradesperson, web designer, virtual assistant or in one of countless other industries — we can provide you with beginners’ to advanced-level 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). 


 

 

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How to Reduce Your Fail Rate in Business by 50%

What You Can Do this Christmas

business start up online training course christmas holidays2
There’s lots to do in preparation for starting a business and the summer holidays is a good time for the ground work.

DID YOU KNOW research shows that by taking just one short course on small business management, the chance a business will fail is reduced by as much as 50 percent.

This is because business mismanagement is the primary reason businesses fail; the other most common reason is because owner/s fail to implement appropriate credit management processes. In both cases, this failure has come about because the owners, directors, partners or managers lacked the appropriate management skills to make it a success.

Learn the basics in business

The Christmas holidays is a perfect time for taking the steps needed to start your small business. While everyone else has gone on holidays, you’ll be ready to take on your first client or customer by the time business really starts kicking off again at the end of January.

business start up online training course christmas holidaysSo let’s get to it: there’s work to be done. And this work generally requires some rudimentary knowledge of Australian tax law, copyright law, trademarks and patents.

You should also have knowledge of particular software applications, and digital marketing.

Other key areas of business you need to know

The key areas business owners should understand before starting a business include:

Ordinarily, to become skilled in each of those areas, a person would have to take, at least, five different training courses. But few people are ever likely to do this. Instead, they’d be more likely to cherry pick the areas they’re least familiar with, and fly blind with the others. Needless to say, that’s where people run into problems.

Take Advantage of our Christmas Savings!

We don’t want you to wing it or fly blind — our goal is to help small businesses succeed which is what we’ve been doing for nearly 20 years.

We cover what you need to set up a small business in our EzyStartUp Business Course, priced at just $297. This course covers each of the key areas mentioned above that a small business owner needs to be familiar with, in addition to the following:

  • Originating and developing concepts
  • Establishing legal and risk management
  • Product packaging
  • Marketing your business

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When you enrol you will also receive FREE ACCESS to a bunch of our other online training courses, including Xero Set Up and Beginners’ Excel and Word.

Our Last Dasher Sale is also on now with special Christmas discounts on our online training courses in social media, and cloud accounting software (MYOB, Xero) and Excel, Word and WordPress.


Don’t Wait — Become the Head Honcho Today

Use your time off from work this summer to begin working on your new small business. All of our training courses are delivered online, and can be completed at your own pace, so you can complete them while you’re actually on holidays, or relaxing at home or at a cafe.

And since one of the best ways to start a new business is by operating it as a side project to your other job, if you get all the start up stuff out of the way while you’re on holidays, it’ll be ready to go by the time you back to work.

Learn more about the EzyStartUp Business Course at our website or view all of our special offers to save on your next EzyLearn training course.

start your own business online training course videosAnd as a gift to you, remember our Bookkeeping Basics Guide is yours’ for free!


 

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Finding Help with Your Bookkeeping

Why you should employ a bookkeeper to help manage the books

best way to find a bookkeeper myob xero quickbooks online
If you’re a small business owner, it shouldn’t be taking you an inordinate amount of time to keep your bookkeeping orderly and up to date. If it is, perhaps now is the time to get help.

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.

Bookkeeper, accountant or tax professional?

These days, the term bookkeeper is almost an umbrella term for all the different types of accounting and tax professionals available to you, from basic data entry bookkeepers right through to specialised BAS and tax agents.

There are even some bookkeepers who are so knowledgeable in one particular accounting program that the software company has endorsed them as certified consultants or advisors, and some earn commission from accounting software companies, while there are others who aren’t beholden to any particular software company. We outline four steps you can take to narrow down the search.

Step One: What Kind of Bookkeeper Do You Need?

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?

Write down the needs of your business to help you determine the kind of financial help, and therefore, what kind of bookkeeper you need for your business.

Step Two: Research Local Bookkeepers in Your Area

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.

It’s a good idea to ask them how long they’ve been working as a bookkeeper for, the sorts of businesses they’ve worked with in the past, and any expectations they may have of you. You should also ask for a written quote for their services. This quote should form part of your professional services agreement.

***

Many bookkeepers will provide an initial consultation, and if not, ask them to. We outline a number of things you can expect and ask them at this first consultation.

If you need help making your small business dream become a reality — with business planning and templates, identifying target markets, with any form of marketing and advertising, including social media, even just setting up a great looking website — then check out our EzyStartUp Course or contact us for more information. 


 

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Don’t Wing It With Customer Service – Plan It

Great customer service doesn’t just happen.

learn online training videos about small business customer service
If you’re unsure about what makes up the kind of customer service people rave about, then perhaps you should look into our EzyStartUp Course.

HOW TO PROVIDE REALLY exceptional customer service is just one of the modules covered in our EzyStartUp Course which teaches you all about how to start up your own business.

We handpicked this inclusion as our experience is that, time and time again, good, nay excellent customer service goes a long way to ensuring a business has longevity.

We’ve mentioned in a previous post the issues inherent with Zoho’s customer service, which wasn’t bad as much as it was hampered by geographical differences and the strength of Aussie customers dealing with Aussie customer service workers and telephone operators.

Defying customer expectations

For many, good customer service is something many of us have come not to expect. Most of the time when you go into shops to buy something, you come prepared – you’ve already researched the kind of TV you want online and why, and you know the sales girl will never tell you if your butt looks big in those jeans.

Is there too much churn and burn?

Is churn and burn a problem with the quality of customer service? Certainly in many chain or department stores now, where there’s a huge turnover of staff, many employers seem to have given up on trying to teach their staff the art of customer service.

And the ambivalence toward customer service has slowly crept into other areas of business, as companies downsize, move online, or shift jobs offshore.

As a business owner, I have always prided myself on providing the very best customer service possible. When I moved EzyLearn online, one of my major concerns was how would I manage the customer service side of the business, now that my customer service resources had shrunk?

Using a ticketing support system

That’s when I decided to use the Zen Desk ticketing support system to manage all of my online customer enquiries. Zen Desk does this in a way that’s professional for my customers and also easy for me and my team to use.

Incidentally, Zoho also offers a similar support ticketing service and, like most of the Zoho products, the most basic offering is free to use forever. But even if your business decides to use a ticketing support system like Zen Desk or Zoho, remember: It’s only as good as the customer service processes you implement for your business.

Good customer service is structured

Fantastic customer service — the kind that makes people tell their friends and keep coming back to you for their purchases — doesn’t just happen. This is why we cover customer service in our EzyStartUp Course. Most people don’t realise that, like everything else in business, you have to plan to deliver good customer service. And as the business changes, your strategy can adapt and change too.

This might take the shape of a policy which outlines things such as ensuring phone calls aren’t answered before the third ring (so as to not startle or fluster callers), replying to emails within a few working hours (even if it’s just to say you’re looking into the issue), or following up on sales enquiries with a phone call (which increases conversion rates).

Definitely use tools like Zen Desk to help you fine tune your customer service policies, but remember that good customer service starts with you. Develop your customer service strategy (our EzyStartUp Course can help you) and commit to it.

***

Planning how you’ll provide great customer service — that’s what’ll give you the edge over other businesses. Good customer service is so rare these days that when people find it, they flock to it. So find your flock, and if you need help, take our EzyStartUp Course.


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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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What Do Bookkeepers and Builders Have in Common?

How to see if your bookkeeper is competitive

learn xero online training course videos shopping around for bookkeeping quote
Shopping around for bookkeeping quotes in order to ascertain exactly what tasks your bookkeeper will do is perfectly reasonable – and a great way to develop your PSA.

FINDING THE RIGHT BOOKKEEPER for your business isn’t always easy, especially when there are different types of bookkeepers who each provide different services. That’s in addition to all the different certified consultants and advisors around. We’ve found that one of the best ways to ensure you’re hiring the right bookkeeper is to simply ask them for a quote.

Getting a bookkeeping quote

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.

***

Need to brush up on MYOB or Xero?

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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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Should You Buy Commercial Property Outright or Get a Mortgage?

The power of using Excel and Xero combined

Excel and Xero combined importing_comp
Our courses cover how to import from Excel into Xero and visa versa, for purposes such as working out depreciation on a business premises.

THERE ARE MANY UPSIDES to buying a commercial property for your business and if you’re able to buy an industrial unit like a Cubbyhole, it can also be a lot cheaper than renting premises.

Buying outright

If you’re in the financial position to buy your business premises outright, it may seem like a no-brainer to do this instead of getting a mortgage. However, there are some things you need to consider:

  • You’ll lose liquidity on the assets in your property, which means you won’t be able to tap into any equity in the property, unless you take out an equity loan against the property.
  • You’re tying all your cash to one asset class, which may limit your ability to make other investments and prevent your business from expanding. This could run counter to your reasons for making the property purchase in the first place.

Getting a mortgage

When you get a mortgage, you have the benefit of being able to access equity in the property, which will enable to invest elsewhere. Of course, there are still factors to keep in mind:

  • You’re spreading the payments over many years, which ties you to paying down that asset for the foreseeable future.
  • You’re paying interest, which although it’s a tax deduction, will significantly inflate the price of the property.

Work out the best way in Excel

Using the data from your Xero accounting software package, Microsoft Excel can help you determine whether your business will be financially better off buying its premises outright or getting a mortgage.

You can also create a financial forecast in Excel. Using Excel, you can calculate the depreciation amounts, which can then be entered into Xero. We cover how to deal with aspects like depreciation in our Xero Bank Reconciliation Course, because many businesses own, or will own, a capital asset at some point.

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Check out our new Cash Flow Reporting, Budgets and ROI Course for Xero which shows you how to deal with an asset purchase like a business premises in Xero. Remember, you get access to ALL our Xero courses for ONE LOW COST. Visit our website for more information on our suite of online training courses or enrol today!


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Importing from Xero to Excel and back again is included as part of our Advanced Microsoft Excel training courses — and you receive access to ALL OF OUR COURSES, including ALL skill 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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Recording BAS Refunds is a Cinch in Xero

Understanding BAS refunds

accounting for BAS refunds with Xero_comp
No need to be puzzled: Our online Xero courses can walk you through how to account for a business loss or BAS refund from the ATO.

IF YOUR BUSINESS RECORDS a loss for a quarter, you may be entitled to a BAS refund from the ATO. In a new workbook in our Xero training courses, we look at what happens when a business changes strategy and when this change results in a loss. 

Businesses that record a loss sometimes receive a BAS refund from the ATO. You may have the full amount returned to you, or part of the amount.

Are you receiving a full BAS refund?

When you lodge your BAS paperwork, you either owe money (a tax debt) or the ATO owes you money (a refund). Sometimes you mightn’t receive a refund or the refund may be less than you thought.

This could happen if the refund is offset against a tax debt you already owe, or perhaps the refund is being retained by the ATO until you provide further information — which could be as simple as providing the correct bank account details. The ATO provides information about both of these scenarios on their website. Regardless of whether the whole amount, or part of the amount is returned, you’ll need to account for this in Xero.

Create a ‘receive money transaction’

If you do receive a BAS refund, you’ll need to record this money (that isn’t due to a sale) by creating a ‘receive money transaction’ in Xero. Our Xero training courses show you how to do this.

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Our online Xero training courses show you how changing your business strategy could result in your business making a loss — and how you can account for this. Our Xero courses also walk you through how to lodge and record BAS refunds. For more information, visit our website or go direct to the courses.


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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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Self Managing Your Superannuation in Excel

Skipping super can be a thing of the past

super payments xero online training learning course videos
We feel your pain! Often businesses lack the cash flow to make super payments, but you always have to pay them in the end…

WHEN YOU’RE SELF EMPLOYED you are responsible for managing your taxes and your superannuation — the latter of which many business owners let go by the wayside. It’s almost always because they don’t have the cash reserves to contribute to their super fund regularly enough.

Just as you would create a budget to make a business investment or asset purchase, you can use Xero and Excel to determine how much super you should contribute on your behalf, and then make the payments.

Run a cashflow report

You’ll learn how to run a cashflow report in our Xero training courses. This report will show you the periods when cashflow is liquid and when it isn’t. Run a cashflow report for a couple of different periods, and export them into Excel. This will give you a better idea of trends and cycles in your business.

You can also use a cashflow report to determine your income before taxes, expenses, and so forth. Superannuation is determined based on gross earnings — or revenue — so you should use this figure to work out your super contributions. This is especially important before end of financial year!

Determine super contributions

At time of writing, the superannuation guarantee is 9.5 percent of your gross revenue, before taxes, expenses, etc. If you set your prices correctly, you should have already factored this 9.5 percent into your prices or hourly rate. If you haven’t, you ought to consider revising what you charge customers and clients.

If you were an employee of a business, your employer would be required to make super contributions on your behalf, at least each quarter. Because you’re self-employed and self-managing your super contributions, you can make them as frequently or infrequently as you like, so long as you’re contributing the correct amounts. (Speak to your accountant or financial advisor, however, if you’re salary sacrificing above the minimum amount — this may affect your tax.)

Make super contributions

Once you’ve determined how much you should contribute to your super fund each quarter, refer back to your cashflow report and to the periods where your cashflow is especially liquid. Are you able to make your contributions each quarter easily, and without compromising your business’s liquidity? Would it be easier to make smaller, more regular contributions?

The decision is yours.

Use Xero to make your super contributions. Xero is connected to a superannuation clearing house, and if you’ve been using to Xero to pay yourself a wage, it’s the easiest way to do so. If you’re not using your accounting software to pay yourself a wage, you can make the payment directly out of your bank account, however, you’ll need to track this in Xero for taxation purposes.

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Our Xero training courses will show you how run cashflow reports and make wage and super payments, while our Excel training courses will also teach you how to create business budgets and forecasts. Visit our website for more information.


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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). 


 

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Present Your Sales Process on Your Website

Use PPT to “teach” your clients how you do business

show sales process with powerpoint
Powerpoint slides are a great way of presenting sometimes complex information very simply.

PowerPoint has many different uses, chief among them being a sales presentation for prospects. Another excellent use for PowerPoint is to illustrate your sales process, and then add it to your website.

If you’re a bookkeeper or real estate agent or someone else who sells professional services, rather than products, providing valuable information about your business or explaining the way it operates can help convert more visitors into customers.

People scan for valuable information

Most of the time, when someone comes to your website for the first time, they’re scanning it to see if you meet a certain criteria they have for a potential supplier.

This could be based on price, services, turnaround times, or something else. If they can’t find this information quickly and easily, they’ll generally move on somewhere else.

Use PowerPoint to convert visitors

Creating a PowerPoint presentation that contains this information, which you can upload slide-at-a-time, or altogether as a video, is an excellent way to present this information to visitors of your website.

How you determine what to include in your presentation depends on how well you’ve identified your ideal customer.

Explain how your business operates

This is very useful for bookkeepers and other businesses that have a particular way of working with their clients. Take prospects step-by-step through your process, so they know exactly how your operate and what to expect before they even contact you.

This helps demystify the process, which makes people feel more at ease with the practice of hiring you, and also shows you’re transparent about process, and that makes you trustworthy.

The fewer questions prospects have about you and your business, the more comfortable they will feel about contact and hiring you.

You can use PowerPoint to explain any of your business’s processes that involve the customer, whether it’s your returns or refund policy, setup procedures, or technical support.


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Our PowerPoint training courses will teach you how to create persuasive PowerPoint presentations that will convert visitors. Alternatively, our sales training courses will show you how to identify and target your business’s ideal customer. 


 

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What Does a Typical Staff Roster Look Like?

What Does a Staff Roster Need to Include?

staff roster sheets
Staff roster sheets have come a long way since the time of punch in-punch out cards; let us show you how to create intricate rosters that include RDOs, leave, breaks and so forth. 

IF YOUR BUSINESS RELIES on staff to work different shifts, then you’ll need to provide them with a staff roster. We’ve written about the three ways you can create staff rosters for free before.

One of the exercises in our Microsoft Excel Training Course shows you how to create your own staff roster, so we’re not going to do that here. Instead, we’re going point out the things you need to include in a staff roster.

Different employment types

If your business employs a combination of full time, part-time and casual staff, you’ll need to prioritise the full time first, then the part time staff, as by law, they’re guaranteed a certain number of hours each week — 38 hours for full time staff, fewer than 38 hours for part time staff.

Employee RDOs, leave

A rostered day off (RDO) is a day in a roster period that an employee doesn’t have to work and these can be paid or unpaid depending on individual agreements. Both full time and part time staff members will have annual and sick leave entitlements. Make sure you mark these up on your rosters. It’s not just easier to schedule the rest of your employees when you can see who’s working and who’s not working, but it’s also useful for the rest of your team to know this as well.

Staff breaks

Depending on the modern award and the duration of the shift, certain staff members will be entitled to different kinds of breaks — two 15 minute breaks and one 30 minute lunch break, is common in retail, for example. Mark these break times up in your staff roster, so the staff member can see when they’re due for breaks.

Employee signature

Leave a column on your roster, so each employee can sign off at the end of each week to confirm they worked their rostered shifts. This is important, particularly if any of your employees ever claim a discrepancy in their pays due to shift changes, etc.

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Our Microsoft Excel training courses will show you how to modify margins and set up templates, skills you can use to create your own free staff roster in Excel — or Google Docs, if you prefer. Visit our website for more information on our suite of Excel online training courses.  


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At EzyLearn we are constantly refreshing the content of our 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.


And of course, all of our online training courses can be counted towards your Continuing Professional Development (CPD) points!


 

 

 

 

 

 

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Why Your Business Needs a Bookkeeping Procedures Manual

Documenting procedures helps keep your bookkeeping up to speed

bookkeeping procedures manual rescue bookkeeping work
Rescue bookkeeping is not ideal – it’s often expensive and shows you’re not in control. A bookkeeping procedures manual will outline what bookkeeping needs to be done, when.

IN A PREVIOUS POST we talked about how to tell when you need rescue bookkeeping, which is basically when a business is behind on its bookkeeping by three months or more and the deadline is looming to lodge their activity statements.

Rescue bookkeeping work costs more than having your bookkeeping taken care of regularly, because it’s often messy and there are no procedures in place to manage the bookkeeping efficiently.

What’s a bookkeeping procedures manual?

bookkeeping procedures manualA bookkeeping procedures manual clearly identifies the regular tasks and activities your bookkeeper needs to take each week, fortnight, month or quarter to ensure your bookkeeping is kept up-to-date. This not only gives you the peace of mind that your bookkeeper is staying on top of your books, but it also helps you to understand what’s going on with your business.

If you require regular P&L statements or balance sheets, having a procedures manual to clearly outline how frequently they’ll be created helps you to stay on top of your business’ financials.

A typical procedures manual will include:

  • Simple steps that are easy-to-understand and succinct
  • Tasks are written up in a step-by-step style, so they can be followed logically
  • References, links or examples are included to help readers understand
  • Contain a number of formats — written steps, flow charts or checklists.

Rather than leaving your bookkeeping to the last minute, so you’re always operating your business in dark, organise to have bookkeeper create a procedures manual to regularly take care of your business’s bookkeeping.

We Can Help You Find a Good Local Bookkeeper

find a local bookkeeper

We have bookkeepers, BAS agents and accountants located across Australia, available to help businesses in need of rescue bookkeeping workVisit our online bookkeeping directory, 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

Go to National Bookkeeping for more information, to see our rates or to request a quote.


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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We Give You 3 FREE Ways to Schedule Staff Rosters

Scheduling for Rostered Staff Can Be Easy — and Free

staff roster sheets for free
If you have rostered staff members or shift workers in your business, check out our three suggestions for creating free roster sheets.

SHIFT WORK TYPICALLY EXISTS in businesses that operate outside of regular business hours — on weekends, the wee hours of the morning, late at night — and to be fair to all of the business’ employees, the shifts are rotated. Other times, as in the case of home care nurses, it’s because the employee has to visit a different patient each day of the week.

As such, it’s necessary for these businesses the provide staff members with a roster each week, fortnight or month. Although there are lots of roster programs available, we’re going to look at 3 great ways you can create staff rosters for free.

1. Use Microsoft Excel

One of the exercises in our Microsoft Excel training courses is to create your own staff roster, because once you understand how to change the margins and set up a worksheet correctly, Excel is still one of the most common programs to create a roster in. Most businesses ensure a new roster is available at the premises on the same day each week, fortnight or month, with at least a week’s notice so each employee has time to check their shifts when they’re at work. Other times, they’re printed and emailed to staff, again with at least a week’s notice.

2. Google Sheets

Once you’ve had Microsoft Excel training, you’ll find little difference between Excel and Google Sheets, as the former was so efficient that not even Google could find a way to improve its offering (ditto for Google Docs). Once your roster has been created in Google Sheets you can likewise print it out, email it or, if your staff have Google accounts, share it with them.

3. Google Calendar

This only works if your staff are all using the same domain — i.e., they have a company email address — but if you open up Google calendar, you can start scheduling events as shifts. This may be suitable for call centres or businesses whose employees work in their office, both of which only have a handful of employees and a few shifts to cover. Scheduling lots of staff members across lots of different shifts this way can be tedious.

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Our Microsoft Excel training courses will show you how to modify margins and set up templates, skills you can use to create your own free staff roster in Excel — or Google Docs, if you prefer. Visit our website for more information.


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). 


 

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Should You Take Out a Loan to Avoid Delaying Payroll Payments?

Repayments on a business loan may be less than super and PAYG combined

Small business loan to finance PAYG and super
It’s not uncommon for small businesses to take out a business loan to meet their super and PAYG obligations – but this should never be a knee-jerk reaction to lean times.

IN A PREVIOUS POST we talked about taking out a business loan to cover payroll if you anticipate that you won’t have enough funds to do so otherwise.

Naturally, it’s always better to use your business’ own funds to meet your obligations, whether it’s paying staff or suppliers. This said, getting a business loan to cover payroll can be a good idea for small and growing businesses in certain circumstances. We look at these now.

Loan repayments are usually small

Depending on how many employees work for you, the repayments on a business loan are typically smaller than all of your payroll obligations — this includes superannuation and PAYG — combined. If you get a loan to fund 12 months of your business, payable over a 24 or 26 month period, the repayments will be far easier to manage each month.

Interest is usually a tax deduction

Businesses are able to claim the interest from any business loan as a tax deduction, so even if the annual percentage rate (APR) adds a few additional thousands of dollars to your capital amount over the period it takes to pay the loan back, the interest will still go towards reducing your taxable income.

This is a more favourable option to delaying payment to your employees (illegal) and delaying payment of PAYG and superannuation withholdings, which could incur a Failure To Lodge (FTL) penalty, plus a general interest charge (GIC). Note: Fines and penalties cannot be claimed as a tax deduction and are therefore dead money.

Do your sums first

taking out a small business loanDon’t forget that, while a business loan to cover payroll for 12 months will be easy to repay initially, your business’s profits will need to improve substantially over the next year so that you can continue to meet your loan repayments AND your payroll obligations for that year.

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You can easily work this out using Microsoft Excel. Our Intermediate Microsoft Excel training courses show you how to determine if you can afford to take out a mortgage, but because all of our fields remain “unlocked”, you can easily modify them to suit a business loan scenario. Visit our website for more information on all of our Excel training courses.


 

learn excel online training course
Our online training courses feature real-life case studies to make our learning more relevant and true to life.
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We Don’t Lock Our Microsoft Excel Course Content

You Can Use the Calculation Fields in our Excel Exercises as Often as You Like!

learn Excel online training course unlocked calculations and formulas
We keep all the calculation fields in our Excel course exercises unlocked so you can play around with different figures of your own as often as you like.

DESPITE THE POPULARITY OF cloud-based accounting software applications like Xero and MYOB, Excel still remains one of the most indispensable software programs for businesses and individuals alike. That is why we always make it a priority to constantly update our Microsoft Excel Training Course.

You can apply Excel to so much

Accounting software, even robust packages like MYOB, only allow you to perform a finite number of functions that relate to business accounting. However, Excel can be used for a multitude of different purposes — both business and personal, merely one of which is to develop a financial forecast for an investment.

EzyLearn courses provide real-life case studies

learn excel online training course

Our Intermediate Excel Training Course uses the construction of a granny flat for investment purposes as a case study example. We chose a granny flat for the case study because most people construct them as an investment, whether they’re in business or not, so it’s a good real-world example.

It also deals with depreciation, which you can claim in your tax, regardless of whether you’re in business or not.

Our calculation fields remain “unlocked”

But even though, with the current property booms in our major cities, granny flat construction has become more common, it is not so common that every person taking our Excel courses is planning to build a granny flat for their next investment. That’s why we decided not to lock our course content.

What does this mean? It means that all the calculation fields in the exercise files of our Excel training courses are unlocked, so that your education remains unlocked too. You’re free to play around and replicate them as you need, so you can get a proper handle of how to use Excel in business or for work.

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Visit our website for more information on our Microsoft Excel Training Course, with its new granny flats case study. We provide a range of online Excel training courses for beginners’, intermediate and advanced students.


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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Making PowerPoint “Speak” with Audio

When Should I Use PowerPoint Audio?

using audio in powerpoint
You can get beyond the birds cheeping and insert your choice of quality audio into PowerPoint.

BEING THAT MOST PowerPoint presentations are created as a visual aid to accompany a speech — although there is just so much more you can do with PowerPoint — you may find yourself wondering when it’s ever appropriate to use audio in your PowerPoint presentation, and if it is appropriate, what kind of audio?  

First off, there are two kinds of audio you can use in a PowerPoint presentation: pre-recorded audio and audio you record yourself. You’ll learn how to record and insert your own audio files into PowerPoint in our PowerPoint Training Course.

When you might use pre-recorded audio

using audio in powerpointIf you’ve ever fiddled around with PowerPoint, you’d notice there are a few audio sounds you can use insert into your slides. They’re mostly generic sound effects, like the sound of waves or a bird chirping. To be honest with you, none of these are ever appropriate in a PowerPoint presentation, except in some really obscure instances. Or less obscure ones, like a training course teaching you how to insert pre-recorded audio into PowerPoint!

You can also add pre-recorded audio that you have on your computer, like a song from your music library. Again, there are few instances when this is necessary, but it’s another option nonetheless.

Adding audio you record yourself

And here is where the answer to using audio in PowerPoint really lies. You can record your own audio, using QuickTime if you’re an Apple user, or Sounds Recorder if you’re using an older version of Windows; otherwise you can also record it on your mobile or digital recorder and import it onto your computer.

You would use this audio if you were going to upload your presentation to your website for a webinar, or for people to watch online afterwards. EzyLearn uses it in some of of online training courses. You could use audio in your induction training courses, too.

learn PowerPoint online training course

Brush up on your PowerPoint skills, or learn how you can use PowerPoint to create your own online induction training courses with our PowerPoint training courses.


Xero online training course

At EzyLearn we offer an abundance of online training courses to help you up-skill and find employment.

Choose from our wide range of:

Enrol today!

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Which Transactions Affect Balance Sheets?

Avoid Any Nasty Surprises: Balance Sheets Matter!

EzyLearn Xero Balance SheetA business’s balance sheet is a snapshot of its financial position at a particular period of time, which is not to be confused with a profit and loss (P&L) statement. Unlike a P&L, which just shows whether the business is making a profit or loss during a given period, a balance sheet, will eventually, show nearly every activity that has occurred within a business.

However, there are some transactions that will show up immediately. You’ll learn how to run a balance sheet in our Xero Daily Reconciliations Training Course, but we wanted to show you the transactions to look out for and why.

profit and loss statement xero online training course
A balance sheet reveals the nitty gritty of your business’ transactions.

The purchase or sale of assets

When an asset, such as a car, is bought, it will reduce the cash account and increase the fixed-assets account. Both of these accounts are listed in the asset portion of the balance sheet, however, cash is part of the current assets section and fixed assets are part of the long-term assets section.

When an asset is sold, the way the cash is accounted for is a bit more difficult. Here, both the asset’s book value and any accumulated depreciation are removed from the books at the same time that the cash account is increased by the sales price. If the sales price does not equal the book value, the difference is accounted for as a gain or loss on the sale of equipment. This gain or loss is recorded on the P&L statement.

Purchases on credit

When a business purchases supplies or inventory on credit, the business will debit the asset account (supplies or inventory) and credit the accounts-payable account. Almost always, accounts payable are considered to be current liabilities and are shown at the top of the liabilities section of the balance sheet.

Debt and lease arrangements

When a business issues debt or enters into a leasing arrangement, a liability must be recorded in the long-term section of the company’s balance sheet. For example, if a company issues bonds for cash, the company would debit cash and credit bonds payable in the simplest bond-issuance scenarios.

Capital-lease transactions affect the balance sheet in a similar manner. When entering a capital-lease arrangement, the business will debit a fixed-asset account to show that the company has taken economic possession of the leased asset. At the same time, the business will credit a capital-lease obligation account to show the offsetting economic liability.

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For a balance sheet to be correct, you must code each transaction correctly in your accounting software. Our Xero Daily Reconciliations Training Course covers balance sheets, and much, much more. Why not enrol today?

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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.