Can Outsourced Bookkeeping Ease The Pain?? by Paddy Gahan
For many businesses their bookkeeping causes a lot of pain. However, when handled correctly there are many pains that proper bookkeeping can remedy. Common reasons that bookkeeping causes pain are: it is intimidating, people don’t like it, and it’s often way behind because it gets pushed to the back burner. A solid bookkeeping system that is handled properly can solve many of the common pains below.
When you start talking bookkeeping and taxes with many business owners you often trigger a worried look. Bookkeeping can cause a lot of anxiety and worry for the small business owner, but for us as outsourced bookkeepers it creates an opportunity. When we take over books from previous bookkeepers sometimes they are clean with a good system in place, but most of the time they are a mess and full of mistakes. Creating the proper bookkeeping system and giving a business owner a set of books that adds value will reduce their anxiety and worry when it comes to their business finances. Quite often the key is accurately updating the books on a regular basis.
Another pain that bookkeeping can create is a lack of access to updated information. New clients often complain that the books are behind and inaccurate. Business owners complain to me that they don’t get reports from their bookkeeper often enough and when they do they don’t contain accurate or relevant information. In order to run a business you need updated and accurate financial information that can aid you in making business decisions.
A good bookkeeping system can and should give a business owner access to regularly updated financial information that is accurate. The major trends in the accounting industry right now are a movement to cloud based solutions and the need for more regularly updated information. You should set expectations with your bookkeeper on how often you would like to see the books updated. Also, be sure that you have access to your bookkeeping system and financial reports anytime you want them and from where ever you are.
So If you want to find out how outsourced bookkeeping can help your business please call us at 01 6684411.
“I can’t find the time for marketing”.
The Painful truth is, if you don’t market, you’ll soon have plenty of time on your hands.
Not having the time for marketing sounds ludicrous when you say it – but I hear it or something similar again and again.
You don’t find the time for marketing – you make the time.
We advise most small businesses and professionals that they should be spending between 10 – 20% of their time on marketing and business development and More in the early stages of their business.
If you can’t make that time, then you’ve either got your priorities wrong, or (if you need to be billing for 80%+ of the time to make ends meet) you’ve got your economic model seriously wrong.
More usually, the problem is that people avoid marketing because they don’t feel competent or comfortable with it, and unlike the area where they’re an expert, it holds out the terrible potential for failure and rejection.
If you want to be successful you’ve got to get over this, and you’ve got to get over yourself. You’ve got to knuckle down, book the time, and get your marketing done.
A well known UK Entrepreneur spends about a half an hour each morning on marketing matters. He says if you do this for a month you will be amazed at the results.
“Are you are Missing Valuable Tax Deductions Right Now that Are Potentially Costing You Thousands of Euros in Tax Savings”
Every year without exception, small business owners like you overpay taxes. But believe it or not, some business owners pay a whole lot less in taxes than others…even on the very same income. Time and time again we take on new clients who are not claimimg proper business expenses. A few examples might help.
We took on a new client recently who previously had been claiming an estimate of monthly expenses of 100 to 200 euros a month. We set up a simple recording system and he is now keeping a detailed record of his expenses. As a result his monthly claim is now about 900 euros per month. That’s nearly 10,000 euros per annum.
Another client we took on was a small IT company run by a husband and wife team. Again we introduced a simple system and the result is a combined monthly claim of about a 1000 euro. That’s 12,000 per annum.
So if you feel you are not availing of this tax relief set up a system and you will be really surprised at the amount you have not been claiming.
Better still let us get you set up with receipt bank and make it easy to handle those small receipts see link https://www.receipt-bank.com/
Can you Hit 1 Million in Sales This Year ??
After dealing with a number of very successful companies in the last year who hit a million turnover an interesting picture has emerged. Business owners with at least one million euros in sales show a different set of attitudes than people running companies with less than a million in sales.
Nowhere is the difference starker than attitudes toward hiring a management team. Ninety percent of million euro plus businesses have some sort of management team in place whereas just 30% of smaller companies have a management group in place.
But you could look at it the way we do. Which is to say that, if you want to grow a business – one you could sell one day, you need a few senior people around you and the earlier you can bring them on board, the better.
Start with a Second in Command or No 2
You may want to start with a Second-In-Command (SIC). Make sure your SIC has some incentive (shares, options, long-term incentive plan, stay bonus, etc.).
Next, find a head of sales
Next, try to find someone to lead your sales and marketing. Most founders are naturally good at sales and marketing, but if you insist on keeping this role for yourself, it leaves your business too dependent on you personally to fill the funnel. Being your company’s chief sales officer also means you get sucked into solving customer problems because you’re the face of the company. Hire a head of sales and you get a double bump in productivity because you’re no longer doing the selling nor dealing with the aftermath.
Hang on to product/service delivery
Finally, try to find someone to lead the production of your product or service. The late Steve Jobs never really delegated this and it showed in the stock price. It’s the area you should give up last, but once you hit a certain level it’s time to slowly wean yourself from being your product / service quality guru.
Use a virtual CFO
Although a CFO can be important when growing a business, I’d rely on a good bookkeeper and a part time accountant / virtual CFO for as long as you can. Quality books and numbers are important, but you can often have sufficient financial control using this hybrid solution, and neither you nor the buyer will have to deal with a hefty severance cheque when they integrate your finance department into theirs.
If the million dollar businesses in our survey had one thing in common, it is a deep belief in getting things done through others.
Can I Run My Office In The Cloud
This is a question I am asked time and time again. Well the simple answer is YES.
There are literally hundreds of apps available for free or very little cost and simple to use. Here are some of the ones we use on a daily basis
1. Xero accounts
This is a brilliant package which allows you to access your business accounts anywhere anytime. We are now using it for our own accounts and rolling it out to our clients who love it.
2. Receipt Bank.
This is a brilliant service for bookkeeping and organising receipts plus it integrates with Xero. Cuts bookkeeping time and costs by half.
3. Capsule CRM
I use Capsule to keep track of the people and companies I do business with, communications with them, opportunities in the pipeline, and what needs to be done when.
4. Survey Monkey
Survey Monkey makes it easy to get feedback from contacts. You create a questionnaire using their templates, and then ask your contacts to complete the survey via e-mail or a social media platform like Linkedin.
This is an online package that’s great for email marketing and newsletters and linking these with social media sites like Twitter, Facebook and Linkedin.
A free service that lets people bring their documents, photos and videos everywhere and share them easily. It allows us file all our documents online.
7. Hootsuite and Bufferapp
Two great apps to automate and control your social media activities
Are the PCs days numbered? Gary Turner thinks so.
Have we seen the beginning of the end for PCs in the workplace? Attendees at the Xero Village at Accountex will have seen XERO MD, Gary Turner, arguing that the desktop PCs day is well and truly over. In this post-PC world, working in the cloud no longer makes you an anomaly, but one of a growing majority of businesses who’ve moved on from the flawed model of desktop-based accounting and have embraced cloud accounting.
When a large chunk of business owners are still relying on Excel spreadsheets to run their accounts, then you know that desktop-based accounting really missed a trick in the first few decades of the internet age. In 1999, 220m people were regularly using the internet: in 2014 that number has risen to approximately 2.5bn people. That’s an absolutely huge shift in usage and spotlights just how quickly technological change and internet adoption has moved. And it begs the question: if we’re using the internet and the cloud for your day-to-day leisure, entertainment and shopping activities then why not for your accounting needs as well? Many start-ups and small businesses are doing just that.
So if you want to see how cloud accounting can transform your business please call us and take Xero for a test drive.
Old School Accounting !!
Annual financial statements often 6 to 9 months after year end
Once a year meeting or phone call
Never visits you and no proactive advice
Never calls you unless there is a problem
Never available when you need help
Real Time Accounting !!
Free xero accounting software
Annual financial statements at year end
Regular management accounts
Regular review meetings
Unlimited telephone support when you need it
Fixed fees paid monthly
Is your bookkeeping still in the “olden days” of when the accountant (or bookkeeper) took care of everything and the client had no access to the books at all. In a lot of cases our clients have decided that they’d rather not be doing the bookkeeping at all and would rather leave this to us.
A question I am always asked is.
“How do you provide bookkeeping services when you are not at the client’s location?”
How We Do It
1. We give all our clients free access to Xero online accounts. Xero is available 24/7 via internet connection.
2. Our clients usually raise and issue all sales invoices via email on Xero.
3. All other accounting records ( purchase invoices, receipts, etc. ) are scanned and emailed to Receipt Bank.
4. Receipt Bank then process and enter all these items on Xero.
5. Our clients, of course, have access to all this information online anytime anywhere.
In my own business, I’ve been working with clients 100% virtually since 2010. So if you want to streamline your bookkeeping and accounting please call us at 6684411 for further details.
Xero Powered Accounting
Our business accounting package is designed to make meeting your annual compliance requirements as easy as possible, whilst getting the most from Xero Accounting Software for day to day financial management.
Your dedicated Xero Accountant will help you optimise Xero for your business. In no time at all you will be using Xero to invoice your clients, monitor your expenses, submit your VAT returns and tracking your financial performance. Xero can be accessed from your laptop, iPad or even iPhone.
Because all your financial data is stored within your Xero account in the cloud, our Cloud Accountants can see all your financial information in real time. When it comes time to prepare your year end returns we can get on with them with no disruption to your business as the information we require is already available.
Call me at 01 6684411 to get a free test drive.