Bookkeeping Advice

May 26, 2016

Guide to Seamless Payroll Processing in Melbourne

When it comes to managing a business, one of the most important things you need to deal with is payroll. It’s no secret that human resource is one, if not the most, valuable company resource. Failure to handle this efficiently can result to disappointment and poor employee performance which would, over time, reflect on the company’s reputation and sales. Payroll problems can cause great amount of frustration and profit loss for business owners. Luckily, it’s one of the easiest to handle, too. Here’s how to get it right. Understand how payroll is computed. Whether you are going to process your company’s payroll on your own or you have a dedicated bookkeeper Melbourne , know what goes around in the payslip. […]

February 9, 2016

Understanding Your Profit and Loss Statement

Most entrepreneurs start organisations because they are passionate about the primary work of the business — which usually isn’t accounting. This means that most entrepreneurs aren’t completely comfortable interpreting the monthly financial reports they receive. We have met hundreds of entrepreneurs who never look at their profit and loss statements because they do not understand them and explanations have been too complicated. While we can’t teach you to be a Bookkeeper Melbourne or Melbourne Accountant we can give you some basics that will help you with this important financial tool. All P&Ls are based on a very simple formula — sales minus costs equals profit. It really is that simple. Everything else is a matter of breaking out sales or cost into […]

February 1, 2016

Why Accuracy is Critical in Bookkeeping

Bookkeeping is the process of maintaining an accurate record of a company’s business transactions. Business reports are generated using bookkeeping numbers and used to help maintain profitability. Before determining whether you want to invest in a bookkeeping service or try doing the bookkeeping yourself, you need to understand the many advantages of accurate bookkeeping. Administration Accurate bookkeeping provides up-to-date figures a business owner or manager can access at any time to decide on whether to make an investment or plan a capital purchase. It also helps deliver a complete package to the ATO when reporting taxes, lowers the possibility of an error that could trigger an audit and eliminates the expense of in fees and penalties from having to file […]

January 4, 2016

How to Manage Profit & Loss

very business must focus continually on managing profit and loss to remain solvent. Profit is the money a company keeps after paying all of its expenses. A loss results from expenses exceeding the amount of sales a company makes in a specific accounting period. Companies must manage their income statements, also known as profit and loss statements, to keep earnings positive and expenses under control and in line with revenue. Initial Financial Assessment Managing profit and loss begins with an assessment of the company’s current financial position. Management must review the current profit and loss statement and compare it to the company’s last two or three years of historical data. An accountant or analyst can use this information to establish […]