In our blog post this week, we continue a series looking at the three key steps that businesses need to tackle to get their business finances sorted. And our focus in this blog post is on accounting software and managing your finances.
Step 2 – How to use an accounting software to track your performance
The first thing you need is an accounting software for your business. Some of the key things you should think about when looking at accounting software are:
Cloud v desktop. Do you need access on the go and have multiple users or want to share data with your bookkeeper and accountant in real time, than a cloud based accounting software package is probably more suitable for you.
Do you invoice and need unlimited invoicing? Accounting software has a strong focus on invoicing and should be able to help you manage this function.
Do you track inventory? Make sure that your accounting software has this functionality so you don’t need to worry about costly addons.
Do you have overseas sales and need to consider other currencies. It will often be an additional cost but it is so important in tracking things effectively.
Startup Daily today interviewed Xero about how its customers use its accounting software. And Emma Petroulas from Nudge Accounting gave her views in the article on how accounting software, including Xero, can help startups and small businesses.
So what were some of the things that Emma had to say about Xero and accounting numbers for businesses:
“The thing about numbers is that they don’t lie,” she says. “What we generally find with startups is that they tend to overstate the financial health of their business, but when they have their numbers in front of them it forces them to make some difficult decisions.”
When a client knows their numbers, they can make the best decisions for their business. Nudge Accounting says that they use Xero to process clients’ numbers each month, which means that they have almost real time financials at their fingertips.
Many of our small business clients have found it difficult to use Xero payroll,” she says.“Setting up payroll in Xero is easy when clients have staff who are on annual salaries, but when our clients have lots of casual staff working different shifts or irregular hours, they find it hard to navigate their way around the different payroll calendars.” In saying this, Petroulas says that they still use Xero and “love it”.
This is a vital tool in the startup environment and could very well prove an early indicator for founders that things are going pear-shaped long before that ‘closing down’ sign rears its head. Based on the numbers in a management report, clients can recognise inefficiencies in their business and improve many parts of their operations process.
“Using the tracking function in Xero, they have also been able to isolate and understand the most profitable product lines of their business, and change their strategic direction based on this,” adds Petroulas.
We reflect often in Nudge on why we have made the decisions we have. And one of the biggest decisions we had to make was to use Xero accounting software. As a Gold Partner and one of the largest Xero accounting partners in Australia, we thought about what makes our small business and startup clients happy. And here are some of the reasons we think we have made the right choice to use Xero with our great clients!
Nothing beats getting a top quality looking invoice out to a client and feeling a rush when you see your logo on the top and the dollars owing down the page. That’s what our startup clients tell us when they make their first sale or send an invoice as they are receiving a grant! And the recurring invoicing function is a nifty feature that many of our subscription based clients use as well.
A simple to use employee portal that takes a combination of timesheets, leave and hours worked and can calculate pay easily is what our clients love about Xero. When we educate our clients on payroll and they understand how the system works, you know that it must be ticking all the right boxes. Plus the recent addition that allows our clients to lodge TFN declarations for their staff online through Xero is just another time saver that we love.
Registering for GST – when do you need to start worrying about GST? You need to register for GST if your 12-month turnover or anticipated 12-month turnover is $75,000 or more
Tax & Hiring staff – when it comes to hiring staff, you need to provide staff with a Tax File Number Declaration Form, as well as assessing whether to pay superannuation, how much superannuation to pay, and how much tax must be withheld from their wages.
Superannuation – a mistake a lot of startups make is in thinking that superannuation is not payable for casual staff. This is not right. The same superannuation requirements apply for casuals and permanent employees. Continue reading “Worrying about tax & my startup”
We are proud that the Nudge message about helping start-ups and small business make better business decisions is spreading around Australia.
Starting with clients in Sydney and Melbourne, Nudge now have clients as south as Hobart, as west as Perth and as north as Darwin and Cairns. We even have a start-up client near Ayers Rock.
Creating ongoing conversation with small businesses about using accounting numbers to grow their business is one that Nudge loves to have. We have to say a big thanks to our amazing clients for embracing the Nudge model and allowing us to be a part of their business journey.
So what do we love about the packages Nudge and why we think you will love it to:
Our packages include the price of Xero so you don’t need to pay anything extra
We do your monthly bookkeeping each month. Why pay a monthly accounting fee if you still have to do your own bookkeeping?
We give you monthly performance summaries that help you make better business decisions now, not in six to twelve months time!
We do your Quarterly BAS’s, Annual Income Tax Return and Financial Statements. That’s easy.
All for one fixed monthly price and done by Chartered Accountants
Nudge are proud to be start of the success of our clients and as we reach more Aussie start-ups and small businesses, we will share their stories. Watch this space!
One of the questions StartUp businesses often ask is how do they know what accounting package is right for them. At Nudge we use both MYOB and Xero (for more about why we chose these packages, read Aaron’s blog post “Why MYOB and Xero. Why not MYOB or Xero?”).
This week I wrote an article for Shoe String StartUps on how to choose the right accounting package for your Startup. In deciding which accounting package to use, it’s really important to understand whether the accounting package has features which your StartUp needs.
Steps to choosing the right package for your startup, involves asking questions such as:
Do you want your package to be in the cloud or do you prefer desktop software?
Do you have staff, so need a payroll feature?
Do you need unlimited invoicing?
Do you keep stock and want to record the stock inside your accounting package?
Do you sell to overseas customers, so need mult-currency features?
How much do you want to spend on software?
If you want to have a read through the article on Shoe String, it is available here.
I had a potential client call up this week and we spent a bit of time talking about the return on investment (ROI) of the work that Nudge does. Having only started her business in August, she wanted to get on top of the numbers. And she was interested in what Nudge could offer her business. But most of all, she wanted to understand what return her business would generate from one of our monthly Nudge packages.
It was a really good question. How do you assess the ROI on the work that your accountant does? From a Nudge perspective, we think about it as follows:
Traditional accountants generally help you comply with your taxes. The return that you generate from them doing this work can be broken down into (1) you are not an expert in it so let them do it all and (2) the time you need to spend getting them the work. This work really can be viewed as something to help you stay on the right side of the ATO but does it really add any value to your business.
On top of the cost of a traditional accountant, you have the following choices in getting your books up to speed. You can do it yourself, at a considerable time cost (time which you could spend getting more sales through the door) or you can hire a bookkeeper which is another separate cost.
How do you track your income and expenses? Often you will need to go and buy some accounting software to help you manage the business finances and to do your invoicing. You need to pay for this on top of your accounting and bookkeeping costs.
Then, because you bookkeeper and accountant work for different companies, you need to help them talk to each other and often when they have questions, you somehow get involved in answering them.
Is something missing here? With this complicated, timely and expensive process, have you noticed that no one is talking about how this helps your small business grow!
Mat Beeche from ShoeString Startups is talking about how Nudge Accounting gives startups and small businesses their numbers each month.
A quote we love is when he is talking about the importance of the monthly numbers as says “one of the biggest things that I have seen with a lot of start-ups that I have interviewed that have failed or gone under, is that they are not managing their finances properly, and think they are growing faster than they actually are”. You can read more about what you can achieve from knowing your numbers here.
At Nudge, we do it all for your small business: bookkeeping, accounting and tax. we can also help you with tax advice, company setups, personal tax, monthly performance summaries and specialist advice for small business owners. All work is completed by Aussie Accountants so you’ll never have to worry about compliance again.
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Jane Lu - CEO
“Nudge has been a fantastic company to work with. They’ve really gone above and beyond in providing an extremely high level of service and truly care about our business and its growth. Their team is very personable and supportive. By providing us financial transparency, Nudge has better equipped us to make informed business decisions.”
Steven Fine - Managing Director
“The nudge service has been a massive cost and time saver for me. Having a separate bookkeeper to my accountant was causing double handling. I was spending far to much time on admin tasks. The automation, workflows, responsiveness and easy access to real time information has allowed me to focus on the growth aspects of the business rather than administration.”
SHOE STRING MEDIA GROUP
“Nudge is like having my own personal CFO for my startup without the cost. The team go above and beyond to make sure they take the time to assess your numbers in order to help you strategise on getting your business to the next level”
Dan Stinton - Managing Director
“Nudge takes the hassle out of bookkeeping and accounting. Their service utilises cloud accounting to make things fast, painless and easily accessible, so I can spend less time on administrative tasks and more time on growing my business. I recommend them to any startup, as well as any other business who wants a thoroughly modern approach to accounting.”
RESOURCES FOR PROFIT
“Nudge rescued us from a midsized accounting practice who, amongst other things, messed up our GST returns. As an ex Accountant, I have to say, to move to a cloud based solution (but very cost effective) had me feeling uneasy, but we decided to take “the risk”. The outcome (we’ve now done a full years cycle) was much better than expected. Accounting is now a simple process for us, no longer a distraction from running our business. Monthly reports, GST returns and our annual return are prompt, and any questions (there are very few) are answered quickly. We can’t give a strong enough recommendation for Nudge.”
Kate Miller - Director
“The biggest challenge that I have faced since starting my own business 3 years ago is finding a good accountant/bookkeeper who not only understands my business but can provide advice and solutions to help grow my business. Nudge takes care of all of my bookkeeping and financial reporting in a timely and professional manner. They never grow tired of answering my questions – no matter how silly they may sound! I would strongly recommend Nudge to any business owner.”
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Russell Wells - Managing Director
“Nudge have been awesome from the very start, from flawlessly migrating our accounting software mid way through a financial year, to giving us clarity on our numbers with tailored reports that are meaningful to our business. Their team has a genuine interest in seeing us succeed and are always available with any support that we need.”
With the uprising of technology and the plethora of competition in the majority of industries, business owners tend to seek help and assistance in managing and tailoring their business to suit the era’s needs and expectations. The process of accounting provides reports that bring key financial indicators together. Understanding financial concepts and gearing clients to financial success is what we exceed at here at Nudge Accounting.
Our expertise lingers throughout the field of online accounting and engulfs all financial cases. With years of extensive experience and a dedication for our clients success, we endeavour to evolve our existing methodologies, in order to transform into Australia’s leading online financial firm.
OUR COMPANY Commitment
A successful marriage between bookkeeping and accounting will contribute to the long-term financial success of any business. Nudge Accounting takes pride with their online bookkeeping and online accounting services that encompass all aspects and sectors of finance to ensure our clients receive the utmost finest service. Commitment is an attribute we stand for as client satisfaction is always key to evolution.
Our reliability is second to none, as we ensure our clients are well organised and pursuit their financial tasks with accuracy and precision. Nudge Accounting propelled their excellence and with their dynamic team of online accounting professionals transcended competition and have cemented themselves as the leading online bookkeepers in Australia.
OUR COMPANY Success
Our software and technological client interface is meticulous and seldom do alternative online accounting companies acquire this quality of infrastructure. This is what portrays our excellence and gears Nudge Accounting towards success. We ensure client satisfaction, by going through all the details and explaining financial situations to our clients. Engaging the client is what makes us stand out!
Online accounting software, combined with online accounting techniques is a much more effective procedure than filling out paperwork because half the work is already done for you!
Nudge Accounting take pride in providing the utmost finest online accounting service across Australia, with a variety of small to medium businesses and accounting excellence, technology and Nudge go hand in hand, just like the glove fits the hand!
WE HELPING SMALL BUSINESSES
Nudge provide exceptional accounting service and support whilst remaining price competitive. All of our packages provide the same great features for your small business accounting needs, which includes:
For companies that are finding themselves growing more and more and are struggling with basing thems
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