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The popularity of cloud bookkeeping programs such as XERO, SAASU, MYOB essentials, Sage One etc. in today’s world continues to increase as updates are made everyday in order to make it more reliable, quick and user-friendly. Despite its advantages, however, like everything, cloud programs also have their limitations that restrict it from deriving an accurate, complete and reliable result that a bookkeeper can provide.
Cloud programs are used commonly to store data on virtual servers instead of a PC making it accessible almost any place from which you can an internet connection. Not only that, due to such software being available on a subscription basis, it saves business owners the upfront cost involved in purchasing the software outright and installing it on a desktop where its accessibility is limited. These are some of the most common reasons why small business owners choose to switch to cloud programs.
Due to the automation, availability of live bank feeds and real time data, lot of business owners assume they don’t need a bookkeeper anymore.
In spite of the ease of accessibility and cost benefits, other factors also need to be taken into consideration when doing business bookkeeping. Bookkeeping requires precision and accuracy and dealing with complexities of the business transactions such as complex payroll transactions, year-end processes, import GST transactions etc.
Bookkeepers can perform complex the transactions, oversee data and systems or recognise an oversight which a cloud program like Xero can’t do.
I regularly come across business owner who let go of their bookkeeper as they use Xero now and they think they don’t need a bookkeeper. Very often while reviewing their accounts, we can find numerous errors in postings, mix up between balance sheet and profit and loss items etc.
A bookkeeping system like Xero or any other is a means not an end in itself, you still need qualified and experienced bookkeeper who can process the information accurately.
A bookkeeping program cannot replace a bookkeeper, yes an efficient cloud program can reduce the time required for bookkeeping, however in no way it is a bookkeeper in itself.
Got any more question how you can use a cloud program best for your business bookkeeping? Give HS Bookkeeping Service a call today on 1300 664 796 to get the answers.
It’s that time of the year, END OF FINANCIAL YEAR.
Every business would have essentially maintained their bookkeeping all year round nevertheless there are several business owners out there who may have time limitations and struggle to be on top of their accounts and bookkeeping. Following these few pointers will ensure that your accounts are all reconciled and balanced to be presented to your accountant.
Begin by reconciling your bank accounts, receivables and payables.
Do a stock take at the end of June and reconcile your inventory.
Reconcile your payroll and GST for the year before lodging the June Quarter BAS so that any variations with the ATO for the previous quarters could be adjusted in the June quarter.
If you have any outstanding tax liability, it is advisable to reconcile the ATO statements to make sure that you have included the interest charges.
Likewise reconcile the vehicle or equipment lease accounts, if any, to ensure the interest charge is included on the company books.
Don't freak out, if you cannot manage all of this, HS Bookkeeping Service are here to help, give us a call on 1300 664 796.
Once your accounts are all up to date, you will need to provide the information to your accountant for the taxation purposes. Most accountants will require the following information:
Company MYOB or QuickBooks File
Bank Reconciliation Report
GST Reconciliation Report.
PAYG Reconciliation Report.
Receivables and Payables Reconciliation Report.
Lease documents of any new lease started during the year
Inventory Valuation Report
Getting this information organised could save you time, money and stress.
Experiencing difficulty with keeping up with the year end requirements, give HS Bookkeeping Service a call on 1300 664 796 and we can take care of your accounts to ensure you accounts are all up to date for the end of financial year and help you meet with the end of financial year statutory obligations.
Xero is an award winning online accounting system that puts small business owners back in control. Xero gives small business and their advisors easy access to bank transactions, invoices, reports - anytime and anywhere. It not only enables business owners to access their accounts in real time, at any time and from anywhere around the world. This software is available on Internet access via your smartphones, tablets and other mobile technologies.
With the help of bank feeds, we can get better visibility of the cashflow with real time data. We do not need to install any software or keep backups because it is done automatically.
Cloud accounting is the most secure way to store information. For example, if your laptop gets stolen then no once can access your data because it is not stored on hard drive. Also, In the event of natural disaster, business productivity is not affected because of no downtime, if you have access to internet.
Good thing about Xero is that they offer free trail to the customers so that they can have a look and feel free to try new things on it.
Businesses pay monthly subscription to Xero. As of March 2014, Xero monthly plans starts from $25 and goes up to $80. Most popular plan is worth $60m, where 10GB storage is applicable and function like bank feeds, bank transactions reconciliation, invoices, bills, auto superannuation and multi currency is available
Moving across to Xero is fairly easy, contact us on 1300 664 796 to find out how we can help.