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A Cyber Warden Bookkeeper Adds Value to Business

In today’s digital age, cyber threats are a growing concern for small businesses. With 43% of cyber-attacks targeting small enterprises and each breach costing an average of $46,000, the need for robust cybersecurity measures is more critical than ever.

If your Bookkeeper has already completed the Cyber Wardens course, you’ve gained a valuable ally in protecting your business from these threats.

The Cyber Wardens initiative, developed by the Council of Small Business Organisations Australia (COSBOA), equips small business professionals with the skills and knowledge needed to secure their digital environments. A Bookkeeper who has completed this course is more than just a financial expert; they are now a proactive defender of your business’s sensitive information.

How Your Cyber Warden Bookkeeper Adds Value
By completing the Cyber Wardens course, your Bookkeeper has significantly enhanced their ability to safeguard your business against cyber threats.

Here’s how this added expertise benefits you:

Advanced Protection: Your Bookkeeper is now well-versed in identifying and protecting crucial business data. This means they can implement effective strategies to secure your financial information from potential cyber-attacks.
Proactive Defence: With their new knowledge, your Bookkeeper can spot and neutralise common scams and digital threats before they impact your business. This proactive approach helps prevent costly disruptions and losses.
Team Leadership: As a trained Cyber Warden, your Bookkeeper can promote cyber safety practices within your team, ensuring that everyone in your business is aware of and follows essential cybersecurity protocols.
Confidence and Peace of Mind: Knowing that your Bookkeeper has undergone this specialised training gives you confidence in their ability to protect your business. It’s one less thing to worry about as you focus on growing your enterprise.
Cybersecurity as a Value-Added Service
Your Bookkeeper’s cybersecurity expertise is an invaluable addition to the services they already provide. Beyond managing your finances, they now play a crucial role in safeguarding your entire business from digital threats. This dual role enhances the overall security of your operations and demonstrates their commitment to your business’s success.

By taking this course, your Bookkeeper has gone above and beyond to ensure they are fully equipped to meet the challenges of today’s digital landscape. Their proactive stance on cybersecurity reflects their dedication to providing comprehensive, high-quality service to your business.

A Course for Everyone
The Cyber Wardens course isn’t just for Bookkeepers; it’s available to all small business owners and their teams. This course is designed to be accessible, offering straightforward, jargon-free training that anyone can benefit from, regardless of their technical expertise. Whether you’re a business owner, a staff member, or a supplier, this course empowers you to play a crucial role in protecting your business from cyber threats.

A Future-Proofed Partnership
As cyber threats evolve, a Bookkeeper who is a trained Cyber Warden ensures your business is better prepared for the future. They can inform you about emerging risks, recommend best practices, and help you stay ahead of potential cyber-attacks. This proactive approach keeps your business resilient and secure.

With a certified Cyber Warden as your Bookkeeper, you gain a financial expert and a partner in protecting your digital assets. Their enhanced skills offer peace of mind, knowing your business is in capable hands.

If you’re not yet benefiting from a Cyber Warden Bookkeeper, reach out to see how they can help fortify your business’s defences. The Cyber Wardens course is available to everyone in your business – take this opportunity to strengthen your cybersecurity. For more information, visit Cyber Wardens – ICB – Enrol now and see how this initiative can enhance your Bookkeeper’s and team’s services.

From the ATO

The instant asset write-off (IAWO) is now law. Eligible businesses with an aggregated annual turnover of less than $10 million may deduct the full cost of eligible assets costing less than $20,000.

Eligible assets can be new or second-hand. They must be first used or installed and ready for use between 1st July 2023 and 30th June, 2024. The $20,000 threshold will apply on a per-asset basis, so you can instantly write off multiple assets.

The IAWO is one of several depreciation methods available to small businesses. It has been offered under changing conditions since 2011; however, it was suspended when temporary full expensing (TFE) was available. TFE ended on 30th June 2023.

The usual rules for claiming deductions still apply. You can only claim the business portion of the expense, and you need to make sure you have records to prove it. For more information about the instant asset write-off, including eligibility criteria, visit ATO – Instant asset write-off for eligible businesses.

The Current Year 1st July 2024 to 30th June 2025

The recent Budget also announced that the measure would continue into this year. However, once again, it is not yet law, and the announcement is subject to parliament’s process.

What is Instant Asset Write-Off?

Instant Asset Write-Off allows eligible small businesses with an annual turnover of less than $10 million to immediately deduct the full cost of assets that cost less than $20,000 rather than depreciating them over several years. This applies to both new and second-hand assets first used or installed and ready for use between 1st July 2023 and 30th June 2024.

Businesses can write off multiple assets, provided each one is under the $20,000 threshold. The deduction is only for the portion of the asset used for business purposes, and proper records must be maintained to prove the purchase and business use. This write-off provides immediate tax relief, helping to reduce taxable income for eligible businesses.

The Role of Your Bookkeeper

Your Bookkeeper plays a crucial role in managing your business’s finances, particularly in tracking all asset purchases and installations. They ensure that each asset is accurately recorded with precise purchase dates and costs. Collaborating closely with your Tax Agent, your Bookkeeper monitors each asset’s cost to ensure it falls below the relevant threshold for the instant asset write-off (IAWO).

At the end of the financial year, your Bookkeeper will highlight any equipment purchases to your Tax Agent. This step is essential to ensure that all eligible assets are correctly claimed in your tax return, maximising your business’s potential benefits from the IAWO. Throughout the year, your Bookkeeper maintains thorough documentation and accurate records, facilitating this process and ensuring compliance and optimal tax outcomes for your business.

If you are unsure if your Bookkeeper is undertaking these important tasks within your business, have a discussion with them and explore the value of having your Bookkeeper keep your asset purchases and important asset records up to date and gaining the maximum results for your business.

Protect Your Information

The ATO has seen an increase in scams targeting individuals’ personally identifiable information (PII).

In 2022, a person’s birthdate was the most common piece of PII divulged to scammers. Nowadays, scammers are getting their hands on far more valuable information.

Last year, the ATO saw an increase in reports of scams targeting people’s PII, including myGov sign-in credentials – the doorway to their ATO accounts and financial information.

PII forms pieces of a scammer’s puzzle that, when completed, gives them a detailed picture of a person’s identity. Scammers can then use this information to steal the person’s identity and commit crimes in their name, such as tax fraud.

The Role of Your Bookkeeper

Bookkeepers play a crucial role in helping clients safeguard their PII. They educate clients on the importance of protecting personal details, and encourage verification of requests for such information. Bookkeepers protect client data by implementing secure practices like encrypted storage and access controls.

Staying informed about security threats enables bookkeepers to provide timely updates and guidance. By promoting best practices and prompt reporting of suspicious activity, bookkeepers help maintain client identity integrity and build trust through proactive management of personal information.

It is important for your bookkeeper to have a conversation with you about protecting your PII – especially your myGov credentials.

Here are some key points to remember:

Stop – Don’t share any PII unless you trust the person you’re communicating with and they have a legitimate need for your details.
Think – Always consider if a message or call could be fake. Never click on hyperlinks to an online login portal from an unexpected source.
Protect – If you notice any suspicious activity on your ATO accounts, contact the ATO immediately.
Your security is our priority, so please stay vigilant and protect your information. These may seem like simple steps, but following them could prevent a scammer from putting your identity together.

If you do encounter a scammer, don’t engage. Report it via [email protected] or use the online form at ato.gov.au/scams.

More information and practical steps to help your clients protect their information are available at ato.gov.au/protectyourself.

Source: ATO – Scams are on the rise. Protect client information

Is it Reasonable?

The Fair Work Legislation Amendment (Closing Loopholes No. 2) Act 2024 introduces a significant change to the Fair Work Act 2009, under the heading of “a right to disconnect” for all national system employees.

The amendments will introduce an employee right to disconnect into the Fair Work Act 2009 which makes clear that employees are not required to monitor, read, or respond to employer or work-related contact out of hours, unless refusing to do so is unreasonable.

ICB explains the context:

• The right to disconnect is not that the employee is allowed to ignore communication nor is it that the employee should not receive communication.
• It is that the employee is allowed to raise concerns if the employer is making unreasonable requests for a response.
• Communication is not a problem.
• Unreasonable expectations of a response out of hours could become a problem.
• The new legislation, which commences on 26th August 2025 for small employers, establishes a statutory right for employees to disconnect from work communications if it is reasonable to do so, outside of normal working hours, with provisions for dispute resolution. Larger businesses will be subject to the new provisions from 26th August 2024.

Definition of ‘Small Business Employer’

A small business employer is an employer with fewer than 15 employees at a particular time. If an employer has 15 or more employees at a particular time, they are no longer a small business employer. When counting the number of employees, employees of associated entities of the employer are included. Casual employees are not included unless engaged on a regular and systematic basis.

Key Points of the Amendment

Employee Rights
Employees are permitted to disengage from work-related activities during their non-working hours. The change provides that an employee may refuse to:

• Monitor, read or respond to contact or attempted contact from an employer (or third party relating to their work) outside of the employee’s working hours unless the refusal is unreasonable.
  This right is a workplace right within the meaning of Part 3-1, General Protections of the FW Act.

What Practical Steps Can Employers & Business Owners Take Now?

Proper approaches and processes can effectively manage the implementation of the new legislation. In many respects, these laws complement existing obligations that businesses have to safeguard the psychological well-being of their employees. Even if you don’t employ anyone at this stage of your business, this may change in time, and the principles of safeguarding will need to always be considered under these laws.

Employers should proactively review and update their work practices and policies to align with the new regulations. Providing managers with training on the nuances of the right to disconnect is essential. Moreover, employers must handle performance management processes with sensitivity, considering the implications of the new right.

The new law has resulted in many employers seeking guidance on responding to the changes. Please see the checklist below for some practical steps employers can take now in preparation for the start of the changes.

But a determination of unreasonable contact should be discussed with the employee and employer. The right to disconnect is not that the employee is allowed to ignore communication, nor is it that the employee should not receive communication. The essence of the law is that the employee may refuse.

Record Keeping Practices

Maintaining accurate and complete records is paramount for the success and sustainability of your business. Proper record keeping practices are not only essential for compliance but also serve as the backbone of informed decision making and financial stability.

As a business owner, it’s crucial to recognise the significance of meticulous record-keeping. These records provide invaluable insights into your company’s financial health, performance trends, and areas needing improvement. They also facilitate tax compliance, audits, and financial reporting, ensuring transparency and accountability.

Understanding Record Keeping Requirements

By tax law, businesses must maintain records of all transactions related to taxes, superannuation, and registrations. This encompasses documents concerning income, expenses, and any decisions or calculations made for tax and super affairs. It’s important for businesses to grasp which records are necessary and to keep them accurately. Failure to adhere to these regulations can result in legal and financial consequences.

Employment and common law extend the need to keep some records for longer periods.

What is the Law – Document Retention Requirements

In Australia, businesses must adhere to both common law principles and legislative requirements regarding document retention. Common law dictates that corporate documents are the property of the company, but destruction before or during litigation may result in adverse legal consequences.

Legislative requirements vary and include mandates from federal and state laws, such as:

• Privacy (Tax File Number) Rule 2015 Requires companies to securely destroy or de-identify tax file number information that is no longer required by law or for taxation, personal assistance, or superannuation purposes.
• The Criminal Code 1913 (WA) and Crimes Act 1914 (Cth) create similar offences where a person, knowing that any book, document or other thing of any kind is or may be required in evidence in a judicial proceeding, intentionally destroys it or renders it illegible or undecipherable or incapable of identification, with the intent of preventing it from being used in evidence.
• The Income Tax Assessment Act (1936) (Cth) requires retention of income and expenditure records for at least five (5) years.
• The Fair Work Act (2009) (Cth) Requires the retention of employee records for a minimum of Seven (7) years from the end of the financial year in which the document was created. Employers must maintain accurate records for each employee, including general details, pay, hours worked, leave, superannuation contributions, and agreements. Records should be accessible, legible, and in English. Employees have the right to access their records, and Fair Work Inspectors can request them for compliance checks. Failure to keep records or keeping false records can lead to penalties.
  Source: FWO – Record-keeping
• The Corporations Act 2001 (Cth) Imposes various retention requirements, including keeping financial records for at least Seven (7) years, retaining company documents and registers for specific periods, and complying with limitations on legal action.

Businesses must ensure compliance with these laws by implementing proper document retention policies tailored to their specific obligations and circumstances. Failure to adhere to these requirements may result in legal consequences, emphasising the importance of proactive compliance measures.

Source: Document retention and destruction: be aware of legal requirements

What is a Financial Record?

Financial records are important documents that show how a business manages its money. These records include things like:

• Invoices: Papers showing what the company sold and how much it charged.
• Receipts: Papers showing when the company received payments.
• Cheques: Records of payments made by check.
• Books of Prime Entry: Initial records where transactions are first noted.
• Working Papers and Other Financial Documents: Supporting papers used to make financial statements.

These records can be electronic but must be able to be turned into paper if needed. Even if someone else, like a Bookkeeper, keeps the business records, the business owner is still responsible for giving copies to auditors or anyone who has the right to see them. According to Section 286 of the Corporations Act, financial records must be retained for at least seven years after the completion of the transactions they cover. Examples of records that companies should retain include:

• Financial Statements: Including profit and loss statements, balance sheets, depreciation schedules, and taxation returns.
• General Ledgers and Journals: Primary accounting records detailing all financial transactions of the company.
• Cash Records: Records of cash receipts, bank deposits, petty cash transactions, and cheque stubs.
• Bank Statements and Loan Documents: Documents related to the company’s banking activities and any loans it has obtained.
• Sales and Debtor Records: Records of sales transactions and amounts owed to the company by customers.
• Invoices and Statements: Records of invoices issued and received, along with statements of account.
• Minutes of Members or Directors’ Meetings: Documentation of discussions and decisions made during company meetings.
• Registers: Registers of members, options, debenture holders, assets, or any other relevant items.
• Deeds: Legal documents such as deeds of trust, contracts, agreements, and inter-company transactions.

Businesses should also prepare monthly statements to track their financial performance. These statements show, for example, how much money is coming in and going out each month.

Source: ASIC – What books and records should my company keep?

Five Rules for Effective Record Keeping

To effectively meet record keeping requirements, businesses and their Bookkeepers should adhere to five fundamental principles:

1. Comprehensive Coverage: Businesses must retain records related to starting, operating, altering, and closing their operations, ensuring relevance to tax and super affairs. Maintaining clear documentation for expenses relating to business and personal use is essential.
2. Integrity and Security: The integrity of records should be preserved, preventing alterations and ensuring secure storage to prevent damage. Businesses should be prepared to reconstruct original data if their record keeping systems undergo changes.
3. Retention Period: Most records should be retained for a minimum of five years from the time they are prepared, acquired, or completed. Certain records may require longer retention periods based on specific legal stipulations. Businesses should maintain records detailing routine procedures for destroying digital records and be able to furnish them upon request.
4. Accessibility and Format: Businesses must ensure they can readily provide their records upon request. They should maintain information about their record keeping systems to demonstrate compliance with requirements. Records must contain all relevant details to meet tax, super, and employer obligations.

If storing data digitally, they should be prepared to provide encryption keys and access instructions, ensuring data can be extracted and converted into standard formats such as Excel or CSV. If passwords are used for protection, accessibility instructions should be provided. Finally, businesses should organise their data and records with identifiable labels or indexes to facilitate efficient retrieval and review processes.

5. Language: Businesses must ensure that their records are either in English or easily convertible to English.

Source: ATO – Overview of record keeping rules for business

Benefits of Accurate Record Keeping

Maintaining accurate and complete records is crucial for businesses to effectively manage their finances and stay compliant with regulations. It allows them to keep tabs on their financial health, ensuring they know whether they’re making money or facing losses. Good records also empower businesses to make informed decisions and keep track of their financial obligations, such as paying bills on time.

Keeping clear and organised records helps businesses avoid potential penalties from regulatory authorities. By having everything in order, they can easily determine their tax liabilities and demonstrate their financial standing to lenders or potential buyers. Additionally, when it comes to audits, having well-maintained records saves time and effort for both businesses and auditors.

The Role of Your Bookkeeper

The business owner is responsible for understanding record keeping obligations. Even with the assistance of a registered Tax or BAS Agent, the primary accountability remains with the business owner.

However, your bookkeeper is an essential partner in maintaining accurate records and complying with laws. They ensure your data is secure and assist you in understanding regulations. By organising and safeguarding your information, they simplify financial management and enable informed decision making.

Their guidance helps prevent issues by reminding you of regulatory requirements and regularly reviewing your records. With their support, you can navigate complexities confidently, avoiding penalties and legal complications. Trust your bookkeeper to keep your records in order, providing peace of mind and allowing you to focus on growing your business.

ATO Record Keeping Course

The ATO Record Keeping Course provides business owners with essential knowledge and skills to manage their record keeping obligations effectively. This course offers a comprehensive overview of record keeping requirements, emphasising the importance of accurate and organised records for financial management and compliance.

Business owners will learn practical strategies for maintaining clear and detailed records, including documentation of income, expenses, and other financial transactions. The course covers various record keeping methods and tools tailored to suit different business needs and preferences. Additionally, business owners will gain insights into the legal and financial implications of inadequate record keeping practices and learn how to avoid common pitfalls.

By completing this course, business owners will be better equipped to fulfil their record keeping obligations and confidently manage their business finances.

For more information: ATO – Record keeping | Essentials to strengthen your small business

Digital Record Keeping – 2024 View

In the current landscape, leveraging technology is instrumental for businesses to effectively meet tax record keeping requirements. Incorporating tech solutions streamlines processes enhances accuracy and ensures compliance with tax regulations. Cloud-based accounting software allows real time tracking of income and expenses, simplifying record keeping tasks. Automation features further reduce manual input errors and save time, enabling businesses to focus on core operations.

Moreover, they facilitate the creation of summaries and reports for various tax-related purposes, including GST, income tax, fringe benefits tax (FBT), and Taxable Payments Reporting System (TPRS). Additionally, using software ensures compliance with the legal requirements for Single Touch Payroll (STP) reporting.

For businesses utilising cloud storage, whether integrated into their accounting software or provided by a separate service provider, it is imperative to ensure that the storage solution meets the ATO’s record keeping requirements mentioned above.

Businesses should download complete copies of any records stored in the cloud before transitioning to new software providers to prevent potential loss of access to critical information. Consult with the software provider or a professional advisor to understand the specific terms and conditions related to data retention and access after cancellation.

Beyond Technology

Success in record keeping goes beyond technology. It requires a steadfast commitment to compliance and best practices. By prioritising integrity and security, businesses also uphold their reputation, safeguard sensitive information, and foster a culture of accountability and transparency.

Accurate record keeping, with the expertise of Professional Bookkeepers, digital solutions, and accessible small business training, lays the foundation for financial transparency and strategic decision making. This enables small businesses to excel in today’s competitive landscape.

Leading a business can be hard work. But the good news is that you’re not the only founder, owner-manager or CEO who’s treading this path. Networking with your peers is a great way to make connections with other entrepreneurs, while also looking for new business opportunities.

5 ways to improve your networking skills

Being part of a wide network of entrepreneurs and business leaders is about being part of the business community. It’s about giving to the community, as well as being supported by it – and knowing that you’re surrounded by other entrepreneurs who share very similar goals.

So, networking is a valuable thing to take part in, whether you’re a brand new founder, or a seasoned business owner who’s been around the track a few times. But how do you get GOOD at networking? There’s no simple answer to this, but we’ve highlighted five key things you can do to get more from your networking and to give more back to your community.

To become a better networker:

– Be authentic and relational – if you’re going to make a success of networking, it naturally makes sense to appeal to people. Being genuine and interested in getting to know your peers will help a lot. Be yourself, be friendly and take the time to learn about the people you meet. Ask questions about their work, their interests, their goals and what generally makes them tick. This isn’t just about ‘doing business’, remember; it’s about getting to know people as people, and being part of this community.
– Be a good listener and ask thoughtful questions – in networking, listening is just as important as talking. When you’re talking to someone, listen intently, look people in the eye and pay real attention. Resist the temptation to interrupt or start thinking about what you’re going to say next. Instead, focus on understanding their perspective and asking thoughtful questions. Ultimately, you want to make it clear that you’re interested in what this person has to say, and that you’ve found some common ground together.
– Be helpful and offer your expertise – one of the best ways to build relationships is to be an asset to your industry community. Look for ways to use your experience and skills, and offer ideas, advice and help (if people are looking for assistance). This could mean sharing your industry knowledge, providing resources, or making introductions to other people in your network. When you help others, you help the community, underline that you’re a valuable resource and that you’re interested in building relationships.
– Be an asset to your niche/sector/industry – share new ideas, drive innovation and be a voice that stands out in the network. If you want to make an impact, it’s important to stand out from the crowd. A good approach is to be someone who’s known for their expertise, creativity and thought leadership. Get involved in industry discussions, and write articles and blog posts about the big issues in your sector. The more you contribute to your niche/sector/industry, the faster your star will rise.
– Follow up after networking events – getting the networking right is one thing, but it’s important to also get your follow-ups right too. Get people’s business cards, phone numbers or emails and get in touch after the event to touch base. A quick email or LinkedIn message could well be the start of a blossoming new business relationship or friendship. It’s also a good idea to connect on social media and to comment, share and repost your new contact’s posts.
What are the best places for networking?

– Industry-specific events and conferences – industry events are great places to rub shoulders with other professionals in your field. You can get involved in discussions, learn about the latest trends and developments and even present your own sessions.
– Social media platforms – you’re spoilt for choice when it comes to social media sites to help your industry networking. LinkedIn, X(Twitter), Facebook, Threads and BlueSky all help you connect with the people you’ve met through your networking, and build on those relationships to share your insights and ideas more widely.
– Local meetups and workshops – most cities and towns will have regular business meetups and workshops that you can dip into. Business breakfast events and evening get-togethers are a great way to meet local business owners and to find out what’s going on in your local community.
If you’re looking to raise your profile and improve your networking, we’d love to lend a helping hand. We’re connected to hundreds of different business owners and leaders – and we’re more than happy to introduce you.

Our advice is to put yourself out there in your industry community, track down your local business peers and get busy with your content marketing and social media posts.

In today’s digital times, you’re probably used to having unrivalled access to your financial numbers, key performance indicators (KPIs) and cashflow metrics. Without good bookkeeping, the speed and quality of your reporting can quickly fall down.

So, why is fast and accurate bookkeeping so important? And what are the main bookkeeping tasks that your business should be getting right?

The financial importance of good bookkeeping

Bookkeeping is a fundamental part of your financial process as a business. Without it, your accounting software has no financial data to work with, your FD doesn’t have the most current numbers, and your accountant can’t see the current financial health of the business.

Inputting your financial transaction into some form of record-keeping system is also a mandatory commitment if you’re a registered business and paying goods and services or value-added tax. Bookkeeping is what provides you with a historic breadcrumb trail of your finances – allowing you to track your cashflow, revenues and profits over a given period.

How to maximise your bookkeeping

So, bookkeeping is a vital part of your financial management. And the key to having your transactions recorded, available for reporting and accessible whenever you need them.

But how should the bookkeeping process work, in an ideal world? Let’s walk through the core bookkeeping steps and how you can get the most from this financial admin task.

To keep on top of your bookkeeping:

– Scan all financial paperwork – the initial part of the bookkeeping process is to scan and record all receipts, invoices and remittances. This gives you a digital copy of the paperwork that relates to your income and expenses – important when you get around to filing tax returns and expense claims etc.
– Record all transactions immediately – getting your transaction recorded and in the books ASAP is vital. This includes recording both your income and expenses, as soon as they occur, and matching them with the scanned paperwork. This not only helps you stay organised but also means your financial data is always up-to-date and can provide real-time reporting and numbers. This can be a huge help when running the business.
– Categorise transactions accurately – when recording transactions, make sure you’re accurate and categorise each item correctly. Not only does this remove the potential for errors and miss-keying in your books, it also helps you track your spending and income more accurately, so your reports are an honest reflection of your financial health.
– Reconcile your accounts regularly – reconciliation is the process of matching your transactions (both income and expenses) against your bank statement and other financial statements. It’s a key part of your bookkeeping and should be done regularly, to ensure that your balances are correct and that your records are totally up to date.
– Use a cloud-based accounting system – bookkeeping doesn’t involve books (ledgers, in accounting-speak) anymore. In the digital world, you can use cloud-based accounting software, like Xero, to record your transactions and access your financial data in the cloud from anywhere, at any time. This makes it easier to keep on top of your numbers when out of the office (and Xero will even automate the reconciliation process too).
– Outsource your bookkeeping to a professional – yes, you can do your own bookkeeping. But there’s a LOT of value to delegating all the hard work to a professional bookkeeper. If you don’t have the time or expertise to manage your bookkeeping yourself, outsourcing is a smart move. A bookkeeper will make sure your books are always accurate and under control. Plus, they can produce cashflow statements, revenue forecasts and other reports to help your business decision-making.
Talk to us about outsourcing your booking

With today’s cloud accounting software, bookkeeping is a far less tedious task than it used to be. But it’s still a regular, time-consuming job that can take you away from running the business.

If you’re thinking about outsourcing your bookkeeping, and freeing up that admin time, we’d love to talk to you. Our outsourced bookkeeping service will take on your bookkeeping tasks, to streamline the whole process. We’ll also introduce you to automated data-entry tools like Dext Prepare, Auto Entry and Hubdoc, that make snapping receipts and scanning invoices a breeze.

Let us do the books, so you can get back to talking to customers and winning work.

Get in touch to discuss our outsourced bookkeeping.

Running a business costs money. There are always costs, overheads and supplier bills that mount up – and these expenses will gradually chip away at your cash position, making it more difficult to grow and make a profit.

So, what can you do to reduce your spend levels? And what impact will this have on your overall margins, profits and ability to fund the next stage in your business journey?

Getting proactive with your spend management

Spend management is all about getting in control of your expenses – and, where possible, aiming to reduce the level of costs and overheads that you incur as a company.

Excessive spending eats into your cashflow, reduces your profit margins and stops you from achieving the profits that you’re capable of as a business. So if you can get proactive with your spend management, you can actually make your company a far more financially productive enterprise – and that’s great for your overall business health.

So, what can you do to reduce spend and slim down your company expenses?

Here are some key ways to reduce expenses:

– Reduce your overheads – your overheads are the unavoidable costs of running your business, producing your products or supplying your services. If you have bricks and mortar premises, these overheads will include rental payments, utility bills and the cost of paying your staff. Drill down into the numbers and see where there are opportunities to reduce these overhead costs. That could mean moving to smaller premises, or reducing the size of your workforce, to reduce payroll expenditure.
– Put limits on staff expenses – if your employees can claim expenses, or buy raw materials and equipment with the company’s money, these costs can soon start to rack up. It’s a good idea to put a spending limit in place, so each staff member can only spend up to an agreed amount. Having a clear expenses policy helps, as will training up your staff in good spend management techniques. Expenses cards or expense managment software will allow you to quickly set spend limits, track expenses and pull your expenses data through to your cloud accounting platform for processing.
– Look for cheaper suppliers – if you can reduce your supplier costs, this will go a long way to bringing down your overall spend. If you’ve been with certain key suppliers for years, look around for new quotes, look at current market prices and see if you can negotiate better deals. And if your old suppliers aren’t flexible enough, try swapping to newer, more eager suppliers who will be willing to meet you in the middle on price.
– Make your operations leaner – the bigger your operational costs are, the less margin you’ll make on your end products and services. One way to resolve this is to aim for a ‘lean approach’, paring back your staff, resources and operational complexity to the bare minimum. By making the business as lean as possible, whilst still delivering the same output, you keep your revenue stable, but reduce the spend level that’s eating into your cost of goods sold (COGS). The smaller your COGS, the more profit you make on each unit or sale – and that means better cashflow, more working capital and bigger profits.
– Explore tax reliefs – you might assume that tax costs are an unavoidable expense when running your business, but it’s worth exploring which tax reliefs, grants or other business benefits you may benefit from. For example, research and development (R&D) tax credits that help cut your corporation tax expenses if you can demonstrate that you’re involved in innovation and groundbreaking R&D within your industry or specialism.
Talk to us about improving your spend management

If you’d like to get in control of your expenses, we’d love to chat. We’ll review your current costs and will highlight the key areas where expenses can be cut. Then we’ll help you formulate a proactive spend management programme, to reduce your unnecessary spending.

Create a Custom Business Plan

For those thinking about starting a new business or wanting to improve your existing business plan, the business plan tool from business.gov.au is an easy way to evaluate your business idea and set goals for the year ahead. It asks a series of questions about your business and generates a custom plan for you.

Objective: A business plan aims to establish a framework and guide for setting up the management tools and requirements to run a successful business and helps you adapt as the business grows.

Evaluating a New Business Idea: Whether you’re in the early stages of conceptualising a business or exploring a new venture, the template guides you through assessing the feasibility of your ideas. It prompts you to conduct market research, analyse competitors, and define a strategic approach to ensure your business idea is viable.

Setting Goals for the Year Ahead: For those already in business, the template assists in charting a course for the future. By setting specific and measurable goals, you can outline achievable milestones for the upcoming year. This proactive approach ensures a clear direction and helps measure progress over time.

Keeping Your Business on Track: The template acts as a roadmap for your business journey. It helps establish key performance indicators, enabling you to regularly monitor your business’s performance. Providing a structured framework keeps you on track, aiding in decision-making and adapting strategies as needed to navigate challenges effectively.

Seek Advice from a Professional

Before finalising your business plans, it’s crucial to consult with professionals such as Bookkeepers, Accountants, or experienced business mentors. These experts possess the knowledge and insights to guide you in starting a business and can identify potential gaps in your strategy. Seeking their input ensures a thorough examination of your financial projections, helps validate your ideas, and provides valuable feedback to strengthen your overall business approach.

Guides To Help Your Business

Use these guides from business.gov.au to help you plan, start and run your business. You’ll find resources, tools and where to go for more help.

• Guide to starting a business: This guide will take you through each step of starting a business.
• New businesses: Consider what’s involved in running a business before you start.

Some Thoughts For Business Owners

Business owners have a unique opportunity at this time of year to reflect on their company’s achievements and set the stage for financial success in the upcoming year. Here’s a comprehensive guide to help business owners establish meaningful financial goals and strategies for the new year.

Evaluate Current Business Performance: Before diving into goal setting, take a moment to assess your current business performance. Review key financial indicators, analyse operational efficiency, and identify improvement areas. This baseline assessment will provide valuable insights into the overall health of your business.

Define Clear and Measurable Objectives: The most effective goals are those that are specific and measurable. Instead of vague goals like ‘increase profits’, consider setting a more precise target, such as ‘achieve a 15% increase in net profit margins’. This clarity provides direction and facilitates easier tracking and assessment of progress.

Embrace Technological Advancements: Evaluate your current technology infrastructure and set goals for leveraging technology to improve efficiency. Explore new features in your existing software, automate routine tasks, and consider implementing advanced analytics tools and staying up to date with technological advancements that can position your business as innovative and capable of adapting to changing market dynamics.

Cultivate Stronger Customer Relationships: Building solid customer relationships is integral to business success – set goals for enhancing communication, responsiveness, and overall customer satisfaction. Consider implementing customer feedback mechanisms, personalised communication strategies, and loyalty programs to foster lasting relationships with your clientele.

Develop Robust Risk Management Strategies: Identify potential risks that could impact your business, and formulate strategies to mitigate them. This may include cybersecurity measures, disaster recovery plans, and contingency plans for unforeseen events. Proactively addressing risks ensures the resilience and reliability of your business operations.

Optimise Operational Efficiency: Time management is a critical aspect of business success. Set goals for optimising work hours, streamlining processes, and improving overall productivity. This may involve reevaluating workflows, delegating tasks, and implementing time-tracking tools to identify areas for improvement.

Establish Financial Milestones: Define specific financial milestones for your business. These could encompass revenue growth targets, profit margin goals, or expansion plans. Breaking down larger financial objectives into achievable milestones provides a roadmap for success and allows for a sense of accomplishment throughout the year.

Strategies for Business Success: Achieving success in the new year involves setting transparent, achievable, and measurable goals. Business owners find success by focusing on strategic objectives that not only elevate their company’s standing but also contribute to the business’s overall financial health. By adhering to clear and attainable goals, business owners can confidently enter the new year, fostering personal growth and positively impacting their businesses.

The Value of Time Management for Business Owners: In the pursuit of increased productivity and efficiency, business owners need to recognise the value of time beyond its immediate impact on work. The strategic use of productivity tools and best practices should aim to reclaim time for meaningful pursuits – reducing work hours, spending more time with family, or investing in continuous professional education.

The ultimate goal should be to work smarter, not just harder. By adopting a holistic approach to time management, business owners can strike a balance that enhances personal well-being and growth. This strategic use of time aligns with the broader objective of achieving success that encompasses both professional and personal dimensions, contributing to a more fulfilling and balanced life outside business.

Your Bookkeeper

A skilled bookkeeper is a vital partner in steering your business towards success in the upcoming year. Beyond managing financial records, they contribute by assessing your current financial position, setting measurable objectives, and optimising operational efficiency through technology integration. Their expertise aids in defining clear financial milestones, implementing risk management strategies and providing valuable insights for informed decision-making.

With a focus on cultivating stronger client relationships, a proactive bookkeeper becomes a key asset in navigating the financial landscape, ensuring your business is well-prepared, efficient, and poised for sustainable growth.