Can You Trust Online Ratings and Reviews?

How to tell a review is authentic

online reviews are they real
If using online reviews to help you work out what to buy, you want to make sure you’re really hearing it from the horse’s mouth, and not just reading fake marketing guff.

IF YOU’RE ANYTHING LIKE most people, rating and reviews are how you probably make many of your purchase decisions. This can be for purchasing white goods, clothing, a holiday, or even choosing a real estate agent.

The OpenAgent example

Take OpenAgent. A core function of OpenAgent, the real estate agent comparison site and lead generator, is its customer reviews, which serve two purposes:

  • The first is to help consumers to make an informed decision when selecting a real estate agent
  • And the second is to recommend top rated real estate agents to new OpenAgent customers.

True and and real ratings and reviews for businesses, whether they’re real estate agents on the OpenAgent site or reviews for OpenAgent itself on third party review sites, are important, because they’re the basis for which many consumers make their decisions.

Check reviewers are real people

So how do you know which ratings and reviews you see online are true, and which ones aren’t? It’s something companies like Google and Amazon and TripAdvisor have had to grapple with, because there are ways that companies can game them.

Lots of review sites don’t allow anonymous reviews or reviews that are left by people who don’t verify their identity by signing in with their Gmail or Facebook account. The theory goes that people are less likely to leave false reviews if they’re using their own name, and can be easily identified.

You can test this further by checking how many reviews, and the kinds of reviews, certain individuals leave on sites such as Yelp and TripAdvisor.

If the same person shows up multiple times leaving only positive or only negative reviews for lots of different businesses, there’s a good chance this person isn’t real or they’re being paid to leave these reviews.

Likewise, a good test is to see how long the account has been active for. If it’s only recently been set up to give glowing (or negative) reviews to a new business, it’s likely there’s an ulterior motive at play.

Negative feedback is responded to

Not every business will be able to satisfy every customer or do everything right 100 percent of the time. But the businesses that make an effort to respond to negative reviews and criticisms, prove they’re committed to delivering the best possible service to all their customers, and also help show some reviewers for what they really are: baseless complaints or fakes.   

Also keep your eyes peeled for the language used in reviews on businesses websites. If all the reviews say mostly the same thing, mostly the same way, they’re more than likely not legitimate.

Reviews with full names and locations

We believe there’s many reasons you can trust the reviews provided at EzyLearn. All of our student testimonials 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 can trust they’re making the right choice. 

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Looking to brush up your skills in cloud accounting software? Looking to progress to intermediate or advanced levels in MYOB, Microsoft Excel, Xero or another accounting package? Need help with social media? Take a look at our wide range of online course options


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Are you in business as a bookkeeper, tradesperson, retailer, trainer or real estate agent and want to stand out from the crowd? We can teach you the online marketing techniques to help you do just this! Check out what’s included in our comprehensive Social Media and Digital Marketing online training courses.


 

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.

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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


 

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!

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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


 

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!


 

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. 

Basically, income is income, regardless of how you earned it, and you’ll pay tax on the total amount. As an employee of another business, you’re likely to be earning money through your tax file number. Each week, your employer will withhold tax commensurate with how much money your employer has paid you. But this doesn’t take into account any other income.

If you’re also earning money from a side business, using an ABN, there’s no one to withhold tax on your behalf, so you need to keep a close eye on your income to ensure you have enough money in the bank to pay your tax bill — which you will get, I’m afraid — after your tax return has been filed.

Two tax returns? Use Excel

Although income is income, you will still have to file two tax returns, one for each income stream. That’s why you need to keep an eye on your accumulative income, and not just the money earned through your business.

There are lots of personal finance and budget apps that help you to track and manage your income, but the easiest, most flexible and most straightforward way to do this is to create an Excel spending or expense sheet, which our Excel training courses will teach you how to do.

Reasons why people have two income streams

It’s not just full time employees who are starting their own side business that have two income streams. Plenty of freelancers and independent contractors earn money through their ABN and TFN.

There are some businesses that prefer to put contractors on the payroll, usually because they’ll be working on a regular basis, onsite, and it’s just easier for the business to employ them as casuals. Often for insurance purposes, but it’s also because the work involved doesn’t conform to the definition the ATO uses for an independent contractor.

Other times, it’s because the contractor or freelancer is working in an entirely different industry on the side — hospitality or retail, for example — to supplement their freelance income, which is how a lot of people get businesses off the ground.

Focus on how to earn money

The main take away from all of this, is that when you’re tracking your income, focus on the ways to earn more income. If you discover that each month, you have a week where your income is lower, there’s an opportunity to fill that gap with another job or other income stream.

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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, and how to perform daily bank reconciliations in MYOB or Xero in our cloud accounting training courses. 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.


 

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. 


 

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.


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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


 

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). 


 

EOFY: Get Your Business Expenses In Order

We Show You 2 Steps You Can Take — Right Away!

WE’VE ENTERED QUARTER 4 for the 2016/17 financial year, so we’ve been writing about the things your business should be doing this quarter in preparation for the end of the financial year. In our last post we wrote about writing off stock and inventory. Now we’re looking at business expenses.

Our MYOB BAS Reporting and GST online training course or our Xero GST, Reporting and BAS training course will show take you through the necessary steps in your accounting software. 

Here’s what you can do now to make sure you’re prepared come tax time? Continue reading EOFY: Get Your Business Expenses In Order

End of Financial Year: Writing Off Stock

We show you how to write off stock and inventory before the EOFY

how to write off stock before eofy in xero myob
Do you know how to make inventory adjustments? Our Xero and MYOB BAS and GST Reporting courses can show you how.

IT’S A GOOD TIME TO START  looking at any slow-moving or obsolete stock that your business (or your client’s business) may be holding, as we’ve reached the end of Quarter 3 and have now started Quarter 4 for the 2016/17 financial year — which means the end of the financial year is fast approaching.

Writing off stock in MYOB or Xero is known as making an inventory adjustment, and our MYOB BAS Reporting and GST or Xero GST, Reporting and BAS training courses take you through the steps to do this. But first, you need to identify which items aren’t selling. We’ve created this case study to help you understand how.

Understanding your inventory’s performance

Every business needs to understand how their inventory is performing, and how it impacts their business. If the business owner is too busy to stay on top of this, then they should employ a bookkeeper to help.

A good example of why understanding inventory is important to a business is to look at an air conditioning company. This business makes money two ways:

  1. Selling air conditioning units
  2. Installing / maintaining air conditioning units

The margin on the sale of an air conditioning unit is not much, a few percent on top of the wholesale price. Where the business makes its money is in the installation or maintenance of the units it sells.

The business purchases three dozen units, of varying brands, models, price points, etcetera. It now needs to know which units are most popular with customers and why; which units aren’t popular with customers and why; whether it’s profitable for the business to continue to stock the unpopular units; or, conversely, whether it’s profitable for the business to continue stocking the popular units.

Inventory reporting

The business’s bookkeeper regularly runs a number of reports in their accounting software, including profit and loss reports and stock-on-hand reports. These reports are used to identify which units sell quickly, as well as the units that take longer to sell, and the profit margins on each.

The units that sell quickly don’t require a technician to install them. Although they’re responsible for the majority of sales, they don’t generate more revenue for the business. The units that sell slowly, do generate more revenue as they require installation and maintenance, however too many units were ordered and they’ve now been discontinued by the manufacturer. Some units have hardly sold, and, although not discontinued, have been superseded by newer models.

Stock write offs and future orders

Because the bookkeeper regularly runs these reports, s/he has been able to export them into Excel for further analysis. By the end of Q3, the bookkeeper can make suggestions to the business owner about the future of the business.

In particular, the bookkeeper suggests that the units that have been superseded are marked down to clear as much stock as possible, and cease any new orders. Likewise, the discontinued models will be marked down.

Orders for the units that replaced the discontinued models will halve the order volume. Likewise, order volumes for the top selling units will reduced. The profit margin on these units is very low and they result in no additional revenue from installation or maintenance. The profit that would be earned on the additional units is negligible, however by reducing the unit volumes, the business improves its cash flow.

Act NOW for EOFY

If your business sells stock or a combination of stock and services, like the air conditioning business does above, start looking at your inventory now. Markdown any slow-moving stock at the end of Q3, to give your business time to move the remainder of it. If it doesn’t sell, write it off at EOFY.

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Our MYOB and Xero training courses have recently been updated to include a workbook on how to write off inventory. Learn more about our MYOB BAS Reporting and GST or Xero GST, Reporting and BAS training courses at our website.


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


 

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.


 

Basic Bookkeeping Reports in Xero: Profit and Loss

Learn How to Run a P&L Using Xero

Profit and Loss statement
Profit and loss statements should be run by businesses regularly and are required by law.

A basic, yet vitally important, report for every business owner is a profit and loss (P&L) statement. A profit and loss statement, as the name suggests, shows whether a business is running at a profit or a loss over a given period. We’ve written about why running multi-period P&Ls before in QuickBooks and MYOB is a good idea for businesses with inventory, but single period P&Ls are equally important for all businesses.

If you’re a bookkeeping newbie, a profit and loss statement, which sometimes goes by other names — income statements, earning statements, revenue statements, operating statements, statement of operations, or statement of financial performance — is a basic report you’ll learn to run in our Xero Daily Reconciliations Course. If you’re planning to work as a contract bookkeeper, you should get in the habit of running P&L statements for your clients regularly (if you’re a business owner, ask your bookkeeper to run them).

P&Ls are required by law

Depending on how a business is structured, it may be required by law to complete a P&L. A P&L shows how the revenue of the business is turned into net income by subtracting all expenses from income. They’re also useful for understanding a business’ net income, which helps with the decision making processes. A business will also need a P&L if they’re applying for a small business loan.

The contents of a P&L

profit and loss statements P&LsAlthough the process of running a P&L differ between accounting software packages, they usually all contain the same elements, depending only on the business itself. In the first section, the cost of sales is subtracted from the revenue, which highlights gross profit. The business’ operating expenses are then subtracted from the gross profit, which leaves the operating profit. Now, all of the non-operating revenues and expenses must be factored into account, after which the business’ profit or loss will be displayed.

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Because P&L statements are often used by a business’ owner to make financial decisions, to inform shareholders of the business’ performance, apply for a business loan, or as proof of income in the sale of a business, it’s important that you understand how to create one correctly. Our Xero Daily Reconciliations Training Course covers P&L statements, and much more. Visit our website to learn more or to enrol.

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online bookkeeping courses to earn cpd points

 

Did you know that 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.

 

 

 

 

Calculating PAYG Obligations Without a Payroll System

Third Quarter is Looming; Are You Up to Date with Payroll?

ad hoc payroll payments ExcelMost businesses using an accounting program like MYOB or Xero will use the included payroll package to manage their employees’ payroll. For businesses with only a few employees, however, the additional payroll function is an unnecessary expense.

In our recently updated Advanced Microsoft Excel training courses, we have included a micro course on ‘Ad Hoc Payroll’, featuring a detailed spreadsheet for calculating PAYG and superannuation obligations. In this instance, our micro course is a detailed spreadsheet based on a case study, so it’s relevant and applicable to real life.

PAYG and the businesses it applies to

Every Australian business with employees who are each paid more than the tax-free threshold has a legal obligation to withhold tax on their employees’ behalf. This is known as the PAYG System (or Pay As You Go), where amounts of tax are withheld from each employee’s wage payments.

Businesses that withhold up to $25,000 each year only need to make payments to the ATO each quarter; businesses withholding amounts greater than $25,001 may have to make payments to the ATO each month or as regularly as each week.

At the time of writing, the tax-free threshold is currently $18,200, which is equivalent to:

  • $350 a week
  • $700 a fortnight
  • $1,517 a month

Superannuation contributions

Again, any business that pays its employees more than $450 each month must also make regular superannuation contributions on their employees’ behalf. We’ve written in the past about the government’s clearing house called SuperStream, which allows you to easily make super contributions — for free.

But first, you need to work out how much super you need to contribute for your employees. The superannuation guarantee is currently 9.5 percent of your employees’ gross wages, which is payable on top of their wages — not deducted out of.

Using tax tables to calculate wages

Each year, the ATO produces a range of tax tables to help you work out how much to withhold from payments you make to your employees. In our Ad Hoc Payroll Micro Course, we’ve already added the most current tax tables to the accompanying payroll spreadsheet, as well as the superannuation guarantee tables.

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We feature a number of real-life case studies, which we have turned into micro courses. You can use the Ad Hoc Payroll Micro Course to determine the rate of PAYG tax to withhold and the required super contribution amounts in Excel, rather than paying to access the payroll functions of MYOB or Xero. Our Intermediate Microsoft Excel training courses will also teach you how to create a payroll spreadsheet from scratch to suit your own business. Visit our website for more information on all of our Excel training courses.

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online bookkeeping courses to earn 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.

 

 

 

 

 

How and What Kind of Receipts Do You Need to Keep?

Online Receipt Keeping is the Way to Go

A HUGE PART of reconciling your bank account involves coding business expenses or purchases. You then need to keep a record of those expenses in the event you’re ever audited.

Our Xero Bank Reconciliations and Journal Entries Course covers how to code an expense or purchase in Xero, and it’s important to also store your receipts and get them to your bookkeeper if they’re working remotely.

Many people have used Dropbox to capture images of receipts but there are even better ways. Continue reading How and What Kind of Receipts Do You Need to Keep?

Performing Weekly Reconciliations in Xero

Why it Pays to do Regular Bank Reconciliations

bank reconciliations weekly
Doing regular weekly bank reconciliations will help avoid confusion or errors later on.

In our Xero Bank Reconciliations and Journal Entries Course, you’ll learn how to carry out each step in the reconciliation process, in particular how to set up bank feeds. Bank feeds are an important function that allows transactions on your linked bank account or credit card to automatically show up in Xero, so you (or your bookkeeper) don’t have to spend time entering the details from scratch.

Even though bank feeds can dramatically reduce the amount of time spent coding transactions in your accounting software, if your business has a lot of transactions each month, it’s a good idea to perform weekly — or even twice weekly — reconciliations. You’ll not only further reduce the potential for errors, but it’ll also help to give you a clearer picture of your finances.

Improved cashflow management

Even though internet banking allows you to look at how much money you have in the bank, this is an imprecise way of managing your cashflow. By reconciling your accounts on a weekly basis, you’ll be able to see what money’s gone out of your account, and what’s due to be coming in. If you have staff, this will eliminate a lot of the stress of wondering whether you’ll have enough money in the bank to make payroll, because you’ll know in advance if there’ll be any cash shortfalls.

Improved reporting

With weekly bank reconciliations, you’ll also find that your financial reports are greatly improved. This will enable you to make more correct sales forecasts, and to plan for machinery or equipment upgrades with a greater sense of accuracy. It’ll also help you to identify late paying clients and peak business cycles, so you can better manage your business operations — limit credit to late payers, hire more staff, etc. This type of financial information is the lifeblood of every successful business, so it has to be accurate.

If you’re hiring a bookkeeper to manage this for you, it’s worthwhile discussing whether they will perform this work once a week, or a couple of times each week. If your bookkeeper is contracted to perform a certain number of hours each week, they may decide to perform a few tasks a few times a week, so they’re more available to their other clients during the week. This is a bonus to the business owner, because it improves the accuracy of your reporting even further.

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Weekly bank reconciliations is an important task for all businesses, not just large ones. Our Xero Bank Reconciliations and Journal Entries Course covers how to reconcile a bank account, plus much much more. Alternatively, to take it back a step, you can learn about invoicing, credits and reporting in our Xero Day-to-Day Transactions Course

Or if you want to see why incorporating bank feeds might be useful for your business, read here.