the philosophy of outsourcing

Did you know only 10% of our clients actually LOVE to do their own bookkeeping!  Not really a surprising result!

For everything an entrepreneur doesn’t like to do, there is someone who loves to do it and can do it well.  By surrounding yourself with someone who fits your business – whether it’s marketing, bookkeeping, social media, graphic designers – it is money well spent if it means you get to do what you love doing in your business.  More often than not what you love is seeing your business grow, making sales and feeling you are all over your business.

Over the last couple of years our portfolio of clients is bursting with the most amazing businesses and entrepreneurs who have taken the step of outsourcing their bookkeeping.   Why?  Some took the plunge after feeling like a sinking ship every BAS quarter, some were startups at the time and just wanted it done right from the start and some are existing businesses wanting to grow so are setting themselves up and getting it right now.

Whatever your reason, outsourcing can help grow your business but most importantly free you up so you can focus on the things you really need to do.

Can’t get into your MYOB?

Just in case you’ve missed it and are still struggling to get into your MYOB, see below a statement released by MYOB last night.   If your computer is set up like mine, it automatically updates for Windows on a Monday – this has caused issues with the MYOB software.  See below on how to fix this.

I find it interesting that MYOB and Xero both have had issues this month.  When Xero went down at the start of this month and there were MYOB loyals tweeting #justsaying …. those people were very quiet yesterday.  With technology nothing is perfect.  Both accounting packages are fantastic for SME’s, some suit some better than others.  But rubbishing one over the other is not ok.  They are just different and what is working for you might not work for others.  I have clients still on MYOB so I’ve been affected by both issues.  Doesn’t make Xero better than MYOB or vice versa.  The only difference is I actually still have to do something to get my MYOB to work (which I haven’t done yet!).  Xero just fixed the issue and it was working again.

Happy bookkeeping!


ACTION REQUIRED: Microsoft security update & AccountRight

Microsoft has released a Windows security update that is impacting numerous clients worldwide, and may prevent you accessing your AccountRight company files. Microsoft is working to address this issue and will be releasing communications and a fix within the next 24-hours. MYOB have developed a solution to ensure continued access to your company file. WHAT YOU NEED TO DO

  • If you have already installed the Windows update and are having difficulty accessing AccountRight We’ve created a tool that solves this issue. You’ll need to run this tool on all AccountRight company files that you use. Follow our easy step-by-step guide on the MYOB Community Forum .
  • For all other users To maintain access to your company files, go to the Help menu and choose Confirm Company File. You will then be able to apply the Microsoft Windows security update.

Regards, The MYOB Team

The evolution of bookkeeping

I just got super excited today over the ease at which I could export data and create reports to tell one of my clients just how their business sales were tracking.  At the drop of a hat!  It made me revel in the evolution of bookkeeping from using counting machines, cash book ledgers, calculators, excel, computer based accounting packages and finally the cloud.  At each progressive development stage, the financial clarity we can achieve in a business got clearer and clearer.

Bookkeeping has been around as long as the civilised world with the primary role of keeping track of your numbers.  Bookkeeping and businesses have both evolved to take advantage of the technological advances in accounting.  No one can deny the introduction of the calculator made the job of bookkeeping easier.  But it was the introduction of the computer and accounting software packages that revolutionised the way businesses managed their finances.

We said goodbye to ledger books, writing paper invoices, cheques, pencils, erasers, filing in returns by hand and the trusty calculator.

We said hello to online banking, the cloud, bank feeds, email, filing our taxes online, real time accounting and a paperless way of working.

As accounting technology continues to evolve, keeping track of our money and budgeting has become easier and easier.  Not only that, bookkeeping is now a fast paced and dynamic profession that requires fast paced and progressive people.  With the introduction of the cloud based accounting systems such as Xero, accountability is at an all-time high with Directors, shareholders and managers all having access to the same financial information and in real time.  Businesses are transparent and those that have kept up with the evolution of bookkeeping are seeing the benefits first hand.

With the extensive information accounting systems can now generate, I am finding the role of a bookkeeper and accountant is also evolving to become a business consultant as well.  It’s an exciting time to be in this industry with all the changes!

The advantages of embracing technology has always meant increased speed and efficiency.  If embracing technology means:
  • Fewer mistakes (and mistakes are easier to find)
  • Greater accountability
  • Faster calculations
  • Less hours spent on bookkeeping (and more time in growing your business)
  • More time to interpret data
  • Meeting your compliance deadlines
Why wouldn’t you?!

Bookkeeping mums popular with SMEs

I’ve had a lot of questions about what Bookkeeping Mums is about because hinted throughout our site is the promotion and support for working parents. The name itself is self-explanatory.  Mums and bookkeeping.  But there is so much more to it than that.

Broadly defined, bookkeeping mums are highly skilled and seasoned finance professionals who have diverted their career path in order to dedicate time to raising a family. However, they have also taken the initiative to seek work in the finance sector during hours where family matters do not take precedence.  Rather than seeing their qualifications, skills and talents become redundant, these finance professionals seek ways to continue working while at the same time as maintaining the family obligations.  Take it from me, it’s not easy.  But it does tell you something about the tenacity and dedication of these emerging bookkeeping mums.

This pool of talent is huge with so much untapped potential it’s not a surprise many SMEs have already discovered this market force as a means to improve, become efficient and grow the business.

Bookkeeping mums are not your traditional 9 – 5 full time employee position. No, slightly less conventional is the bookkeeping mum.  There are thousands of qualified, professional mums that are seeking finance work between a window of 9 – 3, or thereabouts.  This window believe it or not is ample time for the carrying out of any business tasks, making a bookkeeping mum the ideal choice for Australian SMEs.

Bookkeeping mums are looking for the kind of flexible employment that allows them to tend to their family needs and their responsibilities – thus are able to put in the hours needed when they are needed, no more and no less. What you get is someone who knows what needs to be done, is qualified to do it and has a time frame in which to complete it.  You get someone efficient and professional.

Match made in heaven

Put aside the mum part. These are accounting and bookkeeping professionals who just want to work with up to 20 hours a week to spare (give or take) .  On the flip side, hard times in our economy has seen existing businesses needing to cut costs and are desperate for flexible and low-cost effective working relationships.  Australia is also the land of start ups.  With intelligent entrepreneurs at the helm, they know they need to start small but do it right.  By offering flexible working conditions, existing businesses and start ups are engaging in working relationships with highly qualified and hands on professionals who get stuck into the nitty gritty of how the business operates at a lower cost.

In addition to being perhaps the most cost-effective value for money option on the market today, the bookkeeping mum also has a level of genuine enthusiasm to work with like-minded businesses.  They essentially have the kind of hours to spare for an SME who doesn’t have a full time gig to offer.  The pairing was meant to be.

The benefits

Well there’s the money. Bookkeeping mums come at a cheaper rate than accountants.  That’s just the plain truth.  Many bookkeeping mums are also registered BAS agents but stop short of becoming a tax agent.  This means there is still the need for bookkeepers to work with accountants with the accountants being happy doing the stuff they love, tax and strategic advisory roles and less of the detailed bookkeeping.

Bookkeeping mums keep their costs low because many work from home and therefore there are less overheads to have to pass on compared to larger accounting firms.

Efficiency and no nonsense. Let’s be honest, mums simply don’t have time to waste let alone a working mum!

The willingness to work and an appreciation for flexible working conditions allows bookkeeping mums to enjoy their work and who they work with.   The stuck in a rut mentality we often find in the conventional jobs rarely exists because bookkeeping mums actually want to work.

Where can you find bookkeeping mums?

Bookkeeping mums seem to be largely through word of mouth so they have been hard to find which is why Bookkeeping Mums Australia is inviting bookkeeping mums all over the country to join its network. To bring more talent to one location will help SMEs make the decision to seek help with their bookkeeping.

Are you a bookkeeping mum?

Do you have time on your hands during the week? This is your opportunity to make the most of your time, meet some amazing businesses and their people.  We invite all bookkeepers to contact us so we can help provide more opportunities to businesses.  Even if you are studying or planning to study to become a bookkeeper we’d love to hear from you and offer what support we can!

Bookkeeping: add value with your chart of accounts

Are your chart of accounts giving you the information you need to grow your business?

Setting up a chart of accounts for your business is one of the first tasks you will be required to do when subscribing to an accounting system whether you do your accounts manually (eg: excel), programmed packages (Xero, MYOB, Quickbooks) or custom made accounting packages.  It is essentially the core of your online filing cabinet for your business finances.

What is the chart of accounts?

The chart of accounts are the foundation level that every transaction in your accounting system is coded to. It is the backbone of your accounting system and believe it or not, it organises your business finances by giving all transactions a category. Transactions are separated into expenditure, revenue, assets and liabilities in order to give parties such as business owners, shareholders, accountants, committees and boards a better understanding of the financial health of the entity.

One of the first things I check in any business is the chart of accounts.  It gives me a good overview for how the business operates before I start reconciling transactions.

A business needs to know where the money is coming from and where it is going.

For example, how many revenue centres has your business got? A landscape gardener who does garden maintenance may want different accounts so he can gauge what he earns from landscape projects and general garden maintenance.

If you are just starting out, grab a pen and paper and jot down how you want your business to make revenue and what expenses you think you will have and then categorize them into small groups. Your bookkeeper or accountant can then tailor your chart of accounts especially for your business.

How the chart of accounts helps your business

A well designed chart of accounts will allow you to extract meaningful reports that will allow you to put your own business under the microscope. You can review which divisions are doing well, which sections have higher percentage of COGS compared to others and where you can streamline operating costs.

This information will give your business an edge, make you competitive and give you the information you need to improve, make changes and grow your business. At the end of the day, figures do not lie.

Can the chart of accounts be changed?

Yes of course! Whether you have an existing data file or are just starting out, accounting packages such as Xero, MYOB and Quickbooks all offer standard chart of accounts to work with depending on your industry and all can be tailored to your business.

We all know every business is unique.

This month one of my clients set up a new Chart of Accounts in hospitality and we needed to add items such as Restaurant Consumables and DJ Contractors. These are accounts you would not see in a landscaping business but you would find Tool Consumables and Protective Clothing.  But you wouldn’t find either of those in my bookkeeping business!

How can you review your chart of accounts?

Speak to your bookkeeper to check you have the chart of accounts working for your business properly. Write down what you want your Profit and Loss to tell you when you look at it.  Design your chart of accounts on what you need not what was programmed! 

The chart of accounts is also the default for the coding of GST on your transactions. To make sure you are compliant for tax purposes, ask your bookkeeper or accountant to check the GST code allocated to the account codes.