What do you need to do to get ready for the New Financial Year?

What do you need to do to get ready for the New Financial Year?

For many the 31st of March feels like a huge milestone on the calendar. It can be a busy and frenetic time, and can feel even more stressful for business owners. Add to that Easter and it feels overwhelming! However the end of financial year process need not be a painful one! Read on to find out how.

A recent US study found 69% of adults attribute their stress to “money-related” issues and, as the End of the Financial Year (EOFY) draws near, it is typical for thoughts of money and dreaded taxes to dominate our mental space and drive us to despair.

To help take some of the pressure off GoFi8ure has prepared some simple steps for you to follow in your accounting software so that EOFY feels more manageable:

Step 1: Gather your paperwork aka “source documents”

The more information/paperwork you give to your Accountant, the less time they need to spend chasing you (which costs time and money).

Go through your files and emails and collate your source documents (Statements, Invoices, Receipts etc) for your accounts.

Paperwork includes at a minimum bank, credit card, loan statements as at the 31.3.2019, copies of all fixed asset invoices purchased during the last financial year, GST work papers and returns/receipts to IR, year to date payroll records, ACC invoices, insurances and premiums, legal, repairs and maintenance, lease expenses, finance agreements, use of home office, out of pocket expenses and year to date personal tax information if you are a shareholder. Depending on the complexity of your accounts you may need to provide more examples of source documents. Your Accountant will ask for these so be prepared.

Tip: Use Xero’s File Library to upload all of your paperwork/source documents as PDFs. It is really easy to do and your Accountant will love you for it.

  1. On the top left hand side click on the company name
  2. Click on the Files option
  3. Create a new folder called EOFY2019
  4. Label each file with a clear name. For example: 00 Savings Bank Statement 31.3.2019 or ACC Levy Invoice etc
  5. Upload labelled files into the electronic folder – it is that easy! This will keep everything your Accountant needs in one easy to view/access location in the cloud

Step 2: Complete a Stock Take / Stock Valuation

If you are carrying stock, you are required to do a stock take to record how much and the “value” you have on hand as at the 31st of March 2019. The figures should be at cost, excluding GST. It is important when you are dealing with stock that you use the best tools available. Whatever tracking system you use, make sure you have the right software to support it. If you are currently using Excel spreadsheets to manage your inventory, you may want to consider moving to a cloud based inventory system like Unleashed.

An effective, easy-to-use inventory system eliminates human error that can occur whilst using Excel. Inventory software gives you real-time inventory control and reporting. It also helps you to understand your product margins and provides you with important information to help you make better decisions based on real-time, accurate profit reporting.

Step 3: Round up those overdue invoices and debt collect

Review your Aged Receivables detail report and identify all invoices that are 30+ days overdue. Once this has been done make one final determined effort to collect the debt before the 31st of March. If you have exhausted all avenues for collecting unpaid invoices and do not envisage collecting them at any point in the future, you can write off the outstanding invoices to a bad debt expense. Contact us to find out how.

Tip: If you are going to write off any outstanding invoices; make sure to apply a credit note against the invoice owing. We do not recommend using the “void” option in your accounting software.

Step 4: Review Creditors entered and reconcile to Supplier Statements

Do you have outstanding supplier invoices showing on your ledger? Are you confident that these are correct? GoFi8ure recommends that you reconcile all creditors to supplier statements and balances before the 31st of March to ensure any missing invoices are received and entered into Xero. You may find that some suppliers have in fact been paid, however, the payment was not allocated against the supplier invoice. If this has happened it is important to correct it soon as possible.

Need help actioning a creditors reconciliation? Send us a message so we can help.

Tip: If you are disputing an account or are no longer paying an invoice then you should apply to the supplier for a credit note and once received reconcile the credit note to the invoice in your ledger (creditors reconciliation). If you would like accounting support please contact us.

Now is the time to make the conscious decision to take action with steps 1-4. If you would like GoFi8ure to take your end of year stress away and do these steps for you, get in touch with us today via email or call us on 0800 463 488 and quote End of Financial Year Help.

 

 

Women in Business on Fire

Women in Business on Fire

Lisa’s key messages are that when goal setting there are always further goals to achieve and that self-actualization is important to try and achieve. On digital disruption within the accounting industry, she is riding the way with her firm offering innovative products. Lisa understands the reason why for her business as well as the importance of goal setting! What goals are you setting for your business? We can help! please a comment and we will be in touch! #communityovercompetition
#lovewhatyoudo

CLICK HERE TO VIEW THE VIDEO. 

Charitable donations may be tax deductible – here is what you need to know

Donating to charity not only supports the vital work of an organisation but also has positive side-effects when claiming tax deductions.  

Donating to charity not only supports the vital work of an organisation or group, but it can have positive side-effects when it comes to claiming tax deductions. To be eligible for a tax credit, you need to make sure that your contributions meet certain conditions, and that you’re making a legitimate claim.

In general, when a charity is an approved donee organisation or registered as a ‘deductible gift recipient’ (DGR), and you donate over a certain amount, you can claim a tax deduction. You can find out if a charity is a DGR organisation by checking their website, calling them, or searching the register for charities.

But, be careful. There’s a difference between making a donation and making a contribution. When you’re making a donation, you must be doing so willingly, without receiving any ‘material advantage’. This means that you can’t be getting anything in return for your cash. So no chocolate bars, no raffle tickets, no movie tickets and no fancy dinners. If you receive anything after handing over your cash, then this is considered a contribution, and you should not claim this as a tax deduction.

Other situations which are commonly misunderstood to be donations are membership fees, expenses incurred by providing volunteer work (or the value of the time spent doing that work), donating gift vouchers, or money donated through a will.

The last two things you need to know are that a tax deduction for most gifts is claimed in the tax return for the income year in which the gift is made. However, in some circumstances, you can spread the tax deduction over five income years. And, just like any other tax deduction you’re hoping to claim, you’ll need to get and keep the receipt for your donation.

The tax department sometimes demands repayment for ineligible deductions. So, as with all things tax, it’s best to avoid penalties by checking in the with the experts.

Talk to us about your charitable donations and ensure you keep receipts for the payments you have made.

Taking a closer look at the benefits of business software

Taking a closer look at the benefits of business software

Have you been running your business the ‘old-fashioned’ way, with an office suite for spreadsheets, word processing and presentations? If so, we would like to share how new types of business software can streamline things.

For a small business like yours, the explosion of apps in the past few years gives you much more choice. These apps connect together almost like building blocks and can be accessed anywhere to give you more flexibility.

Xero has put together a great guide to business software. It covers the issues with traditional software and the benefits of new apps – so you can shape the software around your business, instead of the other way around.

Please have a read and if you would like to talk about the right software to help you manage (accounting, timekeeping, ecommerce, customer data, workflows), send us a message and book in your complimentary meeting.

 

Creating Excellence in Business

Excellence in Business

 

 

 

 

 

It is very easy to get comfortable with just being good in the business world. Being good at what you do means all is well – things are moving the way they are supposed to, and everything is under control. The financial equivalent of this, known as “treading water”, does not equate to success but rather, stagnation. In business, just as in nature, it is always better to be proactive then reactive when striving for excellence. By focusing on constantly pushing yourself and your business to be in a constant state of growth, both yourself and the company you lead will be constantly evolving and improving ahead of your competitors.

Here are some thoughts to keep in mind for yourself and your business as you strive for business excellence:

1. Realise that there is always room for improvement
It is very easy to say “I’m good” and leave it at that. Google is famed for saying “We are Always in Beta”, and Business Insider once published an article “Always Be in Beta or You’ll Never Learn Anything New”.  The article mentions the value of learning, as learning keeps stagnation at bay. It also states, “in the early stages of learning a new subject, people feel as though they have nothing to lose, which makes them more likely to accept failure as part of the process.” This mentality will enable you as a business owner to add more power and range to your skill set, as well as become more comfortable with the risk that comes with learning curves.

2. Do not get too comfortable
Ignorance is bliss, but it is also dangerous, which is exactly what getting comfortable in the business world defines as. While you are sitting back being comfortable, others are advancing, strategising and closing in on any distance you have put between yourself and your competition. Strive to stay relevant and vigilant, and remember that success is not a destination, but rather a goal which constantly evolves and manifests with the company’s growth itself. Think of your business as an athlete; there is no such thing as a comfortable and effective workout.

3.  Do not give your clients a reason to go elsewhere
We are all human, and sometimes mistakes are made. However, there is no reason why you cannot apologise, provide feedback and agree on a solution to fix these mistakes with your clients to retain their business, and look for ways to improve. At the very least, you should make sure that you are doing a better job than your competitors. Even if you feel you are already doing this, it is worth asking yourself a couple of times a year, “if a competing company opened tomorrow, would I have any reason to be worried?”

If you would like to talk to GoFi8ure about how we can make your business more excellent send us an email.

Tips for Efficiency in your Business

Efficiency in Business

 

 

 

 

 

 

Efficiency in a business refers to how long it takes for a task to get completed. An employee may be effective at completing a task to a high level, but may take way longer than needed to complete the task, which is inefficient. 

Check out these top tips and techniques to make your business more efficient.

1. Set shorter time limits
The shorter the amount of time you allow yourself, the more you will get done. This is because when we know we do not have time to pause, wander around the office or stare into space and must use every second of the time we have, we do so because we do not want to fail. So, make sure the first 90 minutes of your day is focused on growing your business. Turn off your email and phones and concentrate only on that. Also, divide your working day into 45- or 30-minute chunks (use a timer to ensure you stick to this time limit!) and during that time think of doing (and do!) only that task.

2. Figure out how much money you are throwing away, then find a way to reduce it
How often do you lose money because of simple mistakes, like missing a job or sending out an invoice with incorrect details? How often are your invoices delayed or forgotten, and how often do you spend hours searching for information to answer a complaint from a customer?

Even if you accept that a certain amount of waste is inevitable, the fact is that lots of small costs can add up over the year, potentially taking a large chunk out of your profits. Take time out each month to analyse your business; look at your accounts to see what money is being spent and what costs could be reduced. Also, keep a note of mistakes you notice being made and jot down ideas on how to stop or limit these mistakes being made. Review these notes monthly also, and if the mistakes are still occurring at the same or similar rate, reevaluate your ideas on how to stop and/or limit these. With perseverance comes success, and with frequent review you will see your systems becoming more effective and your profit level rising. 

3. Use technology to speed up workflow
Technology plays an essential role in the efficiency and effectiveness of a company nowadays. Make use of computers, tablets or smartphones to improve the efficiency of the company, by using software or sharing tools for things like keeping different members of a team up-to-date with client and project information accessible anywhere, anytime. Look at areas of your business that are still being done manually (which is time consuming), and contact a professional who can help provide you with technology solutions to solve your day-to-day inconveniences.

Accounting software can be a business owner’s smartest investment. Software lets you easily manage your business data. One software example is Xero, which looks after your accounts receivable, expenses and taxes, and allows access to these anytime, anywhere, stored together all in one place – and with easy access to reporting tools for this data. Because most  business owners are not qualified accountants, finding the right tool that ensures your accounting is done effectively can save you valuable time, while also improving your financial visibility. It also alleviates a lot of headaches when it comes to looking at financial information to help identify areas in your business that needs assessing with features such as in-built reports which are easy to generate, understand and use.
 
As the great Bill Gates once said, “The first rule of any technology used in a business is that automation applied to an efficient operation will magnify the efficiency. The second is the automation applied to an inefficient operation will magnify the inefficiency”. 

Making consistent improvements to make your business better is a conscious choice. Not only must you balance your time, but you must also choose the right area of business, the one which will make the biggest impact, to spend this time working on. If you would like GoFi8ure to help your business run more efficiently, send us an email or call us on 0800 463 488.

 

 

Do you have a strategy for your business?

Do you have a strategy for your business?

When it comes to Business Strategy there are two rules:

Rule #1: Have a strategy.

Rule #2: Make sure everyone is literally on the same page in understanding the components of the strategy, and how to implement it.

All too often strategies contain words or concepts that take on as many meanings and interpretations as the number of people who read them. Having a clear and focused strategy is critically important to the success of your business. Without a well-defined strategy, your business may stall – or even fail.

You need to have a plan for day-to-day business, and you also need to spend time looking at and listening to the changes that are happening in your industry. To ensure you make progress towards your long-term goals, it is a matter of having a daily plan to get things done, in conjunction with an overarching strategy to guide those daily plans.

Success is about planning, and planning is about success; if you plan to succeed, you will succeed. Here are some questions to ask yourself to help you plan your success:

  1. Do you have a current Business Plan?
  2. Have you set realistic and measurable goals?
  3. Do you have clear strategies to achieve your goals?
  4. Can you identify what you will need to achieve your goals?
  5. Do you regularly review your goals with regards to changing circumstances?
  6. Have you set up a platform to develop Financial Forecasts?
  7. Do you have the right systems and tools in place to help you achieve your strategy?

The key aspect of strategic planning is aligning all members of the team with the purpose and vision of the company; both in the short- and long-term. Strategy challenges are indicated by a slowing in top-line revenue growth. If revenue is not growing as quickly as you like, then it is time to re-examine your strategy.

Any time is a good time to make a Business Plan if you do not have one; however, it is particularly relevant at the start of a New Financial Year.  If you are contemplating a major change in your existing business, or starting a new venture, a Business Plan is crucial.  You will also require a Business Plan to support any financial applications.

Do you have a GST return due this month? Worried about not getting it done in time? Remember, you have until the 7th of May to submit your return. For all current GoFi8ure clients, your GoFi8urine will be in touch shortly to ask for your paperwork – aka “source documents”.

Do you need a hand getting your GST completed and ready to file? Never fear, GoFi8ure are here to help. Please send us an email, or call us on 0800 463 488, and we will help get you sorted.

 

 

 

 

How having cloud accounting software can help your business

How having cloud accounting software can help your business

For those who are not very familiar with the concept, the cloud might seem like a scary, ambiguous place where information disappears. In reality, it is anything but that. Cloud computing has a massive array of benefits when it comes to the business world.

With the new Financial Year just around the corner, now is the time to start looking into how your current accounting system or software fits into your 2018 goals and business growth strategy. Getting organised now will help you manage the books faster and more efficiently than ever before.

To sum it up: cloud computing is a way for people and companies to access digital resources (files, music, photos, software, social media, etc.) over the internet. These resources are not stored on your personal or company hard drive. Instead, they are stored on the premises of a cloud computing company.

When it comes to how cloud computing can impact your business, the benefits are abundant. Here are some reasons why you may want to jump on board.  

• Multiple user access: Financial data is available to anyone with login credentials. The company accountant can access the books from their home or office and play a bigger role in the financials of the business.

• Data entry: Cloud accounting software connects to your bank account and other cloud based software. This allows data to automatically flow between the systems, removing the need for as much manual entry.

• Transferring data: You almost never need to transfer data out of the cloud since it is housed in a single location and can be accessed directly through the internet.

• Protecting data: Because the information is not stored locally, there is no risk of losing data in the event of a computer failure.

• Software update: The great thing about the cloud is the updates take place automatically. You always have the most recent version of the software, without being forced to pay extra or go through another installation process.

• Insights: Cloud computing gives business owners’ access to real-time data. This big data can help inform business decisions with real time information which will help you to grow your company in a more productive manner.

 

So what do you think? Do you have a better understanding of all the ins and outs of the cloud? And are you ready to use it for your business? If you are ready to move to the cloud get in touch – we are cloud integration specialists that can help make your transition to the cloud smooth and stress free.

 

Learn how to use Xero to run your business

Learn how to use Xero to run your business

There are various stages of what we call the “Xero journey”. The Xero journey is a pathway of learning about how to use Xero and the Add-On software products available so businesses can streamline their processes.

So, where are you on your Xero journey? What do you need to learn now?

1. You have never heard about Xero and currently spend hours entering data into a spreadsheet or other accounting software.

2. Heard of Xero but not confident about how “the Cloud” works but you do not want to be left behind.

3. You have recently started using Xero & are loving it! You are telling all your friends & feeling confident you can do this!

4. You have been using Xero for a while and have started looking at reports regularly, but things just do not look right and the numbers are not making sense. You need someone to help you understand the numbers and check your Xero to make sure it is accurate and up to date.

5. You have found an Add-On solution that you believe meets your business needs but you do not know how to implement it or use it.

6. You are telling all your friends about how Xero and the Xero Add-On’s have changed your life!

Getting the absolute best from your accounting software helps to make everything else in the business run like clockwork. Learning the best tips and tricks for using your Xero account to its true potential is a great way to improve your accounting, cut out a big chunk of admin and get a better view of your business health.

If you would like to talk about booking in some Xero training get in touch by emailing us on enquiries@gofi8ure.co.nz or call us on 0800 463 488 today.

 

Become Financially Aware in 2018

Become Financially Aware in 2018Become Financially Aware in 2018

The better you understand your business, the easier it will be to make more money. Management decisions rely on a sound understanding of the financial implications for a business. It is important when you choose an Accountant that they support you in other ways, not just preparing and filing your annual Tax Returns. At GoFi8ure we help to empower business owners so they can fully understand and interpret their numbers. This gives them a strong foundation on which to grow their business.

 

Who would benefit from Financial Awareness Coaching?
If you are passionate about your business and want to better understand your numbers so you can answer questions like:
• How much profit have I made this year?
• Why has my profit increased but I have no cash?
• Is my cash level increasing or decreasing?
• What is affecting my cash level?

 

So, when should you begin Financial Awareness Coaching?
Any time is a good time to improve your understanding of your financial reports in order to improve business performance. The sooner you start Financial Awareness Coaching the better your understanding of financial results and their implications, and the more control you will have over outcomes.

 

Interested to know what the benefits of Financial Awareness Coaching are?
It will…

• Enable you to better understand your business
• Iron out any existing errors to ensure accuracy in your financial reports
• Help you better manage and monitor your cash-flow
• Customise your reports to ensure you capture the right information
• Allow you to format your reports in a way that makes decision making easier
• Help you gain better understanding of the financial implications of decisions
• Give you the ability to make better informed decisions
• Allow you to review your reports and record actions to be achieved before the next meeting
• Help you be held accountable so you can achieve progress between meetings
• Identify any burning issues that need to be addressed
• Access the collective wisdom of our accountants, our systems, products and services
• Phone support to address any burning issues between meetings

 

Call us now on 0800 463 488 to further discuss how Financial Awareness Coaching can help you and your business.