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.

 

 

External Solutions for Inside Opportunities

External Solutions for Inside Opportunities

Outsourcing is where a business contracts out a business process to a third party. Often though, outsourcing is simply thought of as a way to save costs – that is, outsourcing allows us to produce a good or service cheaper than we can produce it ourselves. However, that is not the ONLY value, or opportunity you can tap into, that outsourcing provides.

Outsourcing is not a new solution, but it is one that is either not used due to fear the job will not be done right, or is used with overseas suppliers as they charge $2 an hour. However, higher outsourcing costs are still far cheaper than employee costs (which we will discuss in more detail later) and, you pay for what you get. So, make sure you research local New Zealand outsourcing providers first who, yes, do charge more than overseas suppliers, but will provide a much superior result – and to a standard which meets New Zealand laws and regulations.

At GoFi8ure, instead of offering “outsourcing”, we offer “External Solutions for Inside Opportunities”. Why? Because it really highlights the services and value that we can add for a business from the outside in “external solutions”, AND we work alongside our clients “inside” their business to drive best results and open the door to many new “opportunities” for their business.

When you and your current employees are unable to manage the day-to-day business of your company, whilst still working on building the business satisfactorily, it may be time to consider finding an external solution for your accounting functions. So, let’s look at the real benefits an external solution can provide.

The right company can offer you:

Expertise at your side. External solution providers give you full-time knowledge on your team without having to pay for a full-time employee.  By putting your books into the hands of highly-skilled external providers, who understand the best practices and how to properly staff for certain tasks, your job becomes a whole lot easier – and more effective.

Focus on your business. Delegating your business’s accounting functions frees up valuable time that can be put into building and bettering the company.  Back-end office functions can be a heavy distraction from the day-to-day running of things, and having your bookkeeping in-house can lead to a conflict of interests.  Hence, the time-wasters and distractions need to go – out of sight, out of mind.

Reduce the risk of fraud. Most external providers have two sets of eyes reviewing each step, with different levels of staff working on one account. There are steps taken for one employee to review the others work to ensure there are no discrepancies or errors. This also means proper internal controls are set-up to ensure that the flow of information into the accounting system is accurate, timely, classified correctly, and entered into the right accounting period. It also provides a series of checks and balances that help reduce the risk of getting ripped-off.

Quality and efficiency. Efficiency plays a key role in making a great impression towards your clients. Efficiency should be so sharp that your clients should never hesitate to assign major projects to you, as they know the project will be completed to the highest level, but also with a short turn-around. Remember, when it comes to getting an external solution provider on board it is important to remember that quality is always a winner; without quality, good accounting work is never possible.

Save money. The bottom line is that by delegating your accounting operations to a company that lives and breathes those services, you save money, as you are only paying for what you need and the company will not take a week to do the work like an employee might, simply because they are on the payroll and do not want to have nothing to do by having finished the task too quickly! Also, by not using an employee for the job, you will save on paying full-time or part-time wages, as well as save on the lost productivity costs that come along with hiring employees onto the payroll.

And last but not least… Save time! If you are thinking it is time to get an external provider to help with your accounts, it is fair to say accounting probably is not your business’s strength. Any time spent working out the finances could be better spent working on improving your products or services, and whatever it is that YOU do best. Good business people know that time is an asset, and it can be a scarce one for somebody trying to run a successful business. So, it is worth investing your time in doing the things you do well.

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.

What are the four most important areas you need to consider in your business?

What are the four most important areas you need to consider in your business?

As a business owner, you must be committed to constantly evaluating your business practices and making the necessary changes if you want to see growth. If your business is stagnant, or not as profitable as you would like it to be, doing the same thing repeatedly will not help your business move forward. Your success is the total sum of all the decisions you make!

So, what are the four most important areas you need to consider in your business? They are:

  1. People
  2. Strategy
  3. Execution
  4. Cash

Good decisions equal success. Even though most growing businesses face continual challenges in all these areas, the challenges in one area at any one time can impact the others.

Let us start with the “People” strategy.

In 2016, Warehouse Stationery conducted a survey of over 1000 of their BizReward customers. From that survey, 9 out of 10 customers were small businesses.

When asked about the personal challenges they faced in business, half of the respondents to this question (51%) selected work-life balance. Work-life balance was the most common concern, followed by time management (41%) – which is a necessary tool to achieve the sought-after work-life balance, by ensuring work does not take over every aspect of your life.

One of the most critical components of growing any business is working with the right people. Get it right, and your business’s growth trajectory is likely to continue, or accelerate. Get it wrong, and your tentative step forward might lead to the proverbial three steps back. The purpose of hiring staff or outsourced specialists is to free the business owner from some of their multiple “hats”, and the wrong hire can have the opposite effect as it can be costly, stressful and time-consuming to manage the consequences. Having someone who fundamentally understands their role, and what is required to do it successfully, is crucial for any business.

Where do you start? Ask yourself why you need to hire someone – and do not accept obvious answers such as, I am busy, tired or overworked.

Below are some core questions you should ask yourself:

  1. What do I expect the new hire to do in their first month, and in the months that follow?
  2. What can I reasonably expect them to achieve, how quickly, and what can I do to help them?
  3. What core skills and attributes are absolute necessities for my business?
  4. Is an employee the right way to go, or should I look at outsourcing?

The last question is an interesting one. There are advantages for either hiring an employee or outsourcing to a specialist. To make this a little easier for you, we have put together a list of steps that will help you determine which option is best for you:

  1. Identify what areas you can outsource.

Before you figure out whether to outsource, you need to identify what areas you can outsource, and whether any of these areas are where you need help right now.

  1. Identify business-critical functions.

If the function you need help with is not a core function of your business model, outsourcing will probably create fewer headaches for you.

  1. Assess the market availability of skills.

You may prefer having someone in-house, but if you cannot find the right talent, outsourcing may be your only option.

  1. Identify all the costs for both in-housing and outsourcing.

When you are considering the financial difference between the two options, remember to include the costs of your time and emotional energy.  While hiring in-house is generally cheaper on paper, there are a host of responsibilities that go along with managing a new staff member including holiday and sick leave, training, downtime, and so on.

Remember, when it comes to making the decision of in-house or outsourcing you do not need to choose either/or; it is pretty common that one part of your business may be better off with an employee, while another may be better off with an external company managing it.

If you are ready to outsource the financial side of the business come then you need GoFi8ure. This is what we do – it is in our DNA and we are passionate about helping ease the accounting pain that business owners face. Send us an email or call us on 0800 463 488 today.

Tip: Gazelles has a one-page “People” tool that will help you sort out these accountabilities and metrics.

 

GoFi8ure listed as Top 25 Most Popular Accounting and Tax Services for 2017

GoFi8ure listed as Top 25 Most Popular Accounting and Tax Services for 2017. 

Recently GoFi8ure were advised that we made the Top 25 Most Popular Accounting and Tax Services for 2017 through Search4Accountants. How cool is that!

If you are looking for an accounting firm that you can trust, check out our profile by clicking here.

GoFi8ure – in the business of helping you work smarter with better tools, information and advice when you need it.

 

 

 

Wellington Region Business Excellence Awards Finalist GoFi8ure – Professional Services Category

GoFi8ure were honoured to be named a Finalist in the Wellington Region Business Excellence Awards – Professional Services Category.

It was great to be in a room with so many successful businesses. You can check out the Awards introduction video by clicking here. 

To read the announcement click here. 

 

 

 

 

GoFi8ure – Winner of the Bookkeeping Trainer of the Year Award– Gayle Buchanan Memorial Trophy

Winning the Gayle Buchanan Memorial Trophy was such an honour and privilege for Lisa Martin and the GoFi8ure team.

Click on the video image to see GoFi8ure accept this special award. #Hugabookkeeper #Bookkeepcon17

Winner of Xero Bookkeeping Partner of the Year New Zealand 2016 – GoFi8ure!

We are so humbled and honoured to be named Xero Bookkeeping Partner of the Year New Zealand. To win Wellington Bookkeeping Partner was awesome, but winning this is absolutely amazing.

Thank you so much to everyone at Xero for your support and for providing us with such awesome tools – they make our lives easier and our clients too! Also a massive thank you to our awesome team, what a great team effort – thank you for your passion.

Thank you to our fans and clients – you rock!! And finally a huge thank you to our fellow Bookkeepers and our Bookkeeping community. You are all amazing and we are so lucky to work alongside you! What a great way to kick off Global Bookkeepers Week!

#nzbkfirst #BookkeepersOnBrand #FirsttoseetheSun #GlobalBookkeepingWeek

 

 

 

 

 

 

 

 

GoFi8ure wins Xero Bookkeeping Partner of the Year Wellington 2016

We are so honoured to win the Xero Bookkeeping Partner of the Year Wellington 2016 award. We had such an amazing day at the Wellington Xero Roadshow, and to finish the day with this award was just amazing. Xero we love you.

“Massive congratulations to Lisa Martin, Tania Hayes, Gabby Simpson and the rest of the GoFi8ure team on winning the Wellington Bookkeeping Partner of the Year. I don’t need to tell anyone here about how much you put into the Bookkeeping industry and how much of an asset you are to this community. You have been amazing advocates for Xero for a long time. We love you guys! Well deserved!” Reed Middleton, Xero

“This achievement is so well deserved, you and the team are so passionate about your bookkeeping business and clients.” Melanie Morris, Xero

“Congratulations Lisa Martin and team GoFi8ure! Such a wonderful achievement – well done!” Melanie Power, Xero

 

 

 

 

 

 

 

 

 

 

GoFi8ure wins Wellington Region Business Excellence – Education in Business Award second year in a row!

Education Specialists, GoFi8ure win Education in Business Award two years in a row. The GoFi8ure team are honoured and thrilled to awarded this important prize. A massive thank you to Crowe Horwath who sponsored this award.

We love educating people in Bookkeeping and Xero, so this award is very fitting to what we are passionate about and we will continue to do so. Changing one accounts person or business owner at a time. A huge congratulations to all the winners, finalists and nominees on the night – we were so proud to have been a part of such a great event.

If you would like to watch the Education Award video please CLICK HERE.

If you would like to watch the Leadership Award video please CLICK HERE.