Organising Your Business Information For Your Accountant

I often have new business clients which are not sure what information to give me as their accountant or bookkeeper in order to prepare Australian Accounting and Tax returns, or Financial statements. So I have put together a brief explanation of a simple method of getting it all together. If you use this simple method you will not only look professional to your accountants but save them time (by doing some of the legwork and having all of the relevant information available) getting you a cheaper accounting invoice by saving accounting time and you money. This is a process primarily for businesses which, do not have an internal accounts or bookkeeper person and simply provide information to accountants to prepare returns.

I want to stress that all good businesses know how well they are doing. In fact many businesses fail because of a lack of current financial information. It is vital you know your current financial position and profit or loss statement ideally monthly or at least quarterly if the business is well established with comfortable cash flow. If you are a business who only reviews their financial position annually, I strongly recommend you consider obtaining more regular financial information. This is so you have relevant information to manage your business and profitability. This can easily be done by engaging in a bookkeeper or accountant who can also come to your office. However if you wish to prepare information for the accountant and bring it to their office here is a quick process for you to complete.

The starting point of accounting is that it is based on recording all transactions from bank statements of all relevant bank accounts including cheque accounts, investments,credit cards and loans. For this reason, businesses should aim to track all business transactions through one of their bank accounts and hence have little or no cash transactions. If you have cash transactions you may need to provide additional information.

Step one
The first simple step is to collate all your bank statements of all business accounts, credit cards and loans for the period you need to report on. Some examples to illustrate the periods involved for a tax return 2010 you’ll need to gather statements from 1st of July 2009 to 30th of June 2010, or for a BAS return March 2010 you will need to gather statements from 1 January 2010 to 31 March 2010. You should receive all statements from your bank, if any are lost or misplaced your need to reorder from your bank incurring normally a bank fee. Sort this out before you provide the accountant your information. Better still accountants love to get electronic files of your bank statements as they are quick and easier to data entry, contact your bank to do this.

Step two
Once you have collated all bank statements review all individual lines and code them with relevant information (write a relevant description of them if not obvious from the bank statement line entry). For example all credit entries all money going into your accounts, you should indicate if they are income or sometimes they are owner contributions. With all money expended (money out) from accounts, you should also be describing relevant details especially cheque numbers and EFT transfers. Remember any additional information may be useful to your accountant such as asset detail so they can process specific taxation rules. If you are GST registered, you should also indicate whether the transaction involved GST or was GST free. The more you code the more you make your financial reports accurate and speed up things for your accountants processing which will lead to cheaper fees.

Step three
If you have coded all bank statements as for step two and have made sure all relevant bank statements have been collated. You may provide this to the accountant so that the financial report can be prepared. However, as tax law requires substantiation of your transactions and keeping these records, I would also suggest, attaching all relevant invoices relating to transactions on each bank statement. There may be a few transactions which do not have invoices such as bank charges and direct debit all regular charges loan payments etc. You may have other ways of filing invoices which are also acceptable.

This has been a quick outline of how to provide information to your accountant to prepare your financial or taxation reports. It is advisable eventually for a business to take the next step and to complete it’s bookkeeping internally which may result in even greater savings. I recommend this is done with the combination of internal resources, suitable accounting software and professional accounting involvement to control and develop the financial information further. Speak to an accountant or business adviser on this issue or to discuss installing an accounting software and training you to do some of the work. Often this will streamline some of your other administration tasks such as payroll, quoting and invoicing customers, knowing which debtor accounts are due or to facilitate a purchase ordering system, and to better track creditors or cash flow.

However, if you know book work is not an optimal use of your time and do not have internal resources, please do use a professional registered BAS agent, TAX agent (in Australia) or registered accountant in your country. But, perhaps consider updating your financial information on a more regular basis. I also had a recent experience with a client who did not wish to prepare their accounts themselves, but is available when I am coding their transactions; they were also able to see how the financial report is put together giving them a better understanding of the financial information. I also recommend that you do query, and get involved with the information provided to you at a summarized level so that you are sure that it is correct.

Overall, the key to book work is to do it regularly to stay on top of it and to complete while many transactions are fresh in your memory. Having up-to-date financial reports will give you a greater sense of pride in knowing how your business is tracking. By having current financial information you are in the much more informed position to make better business management as against having only annual and lagged financial information from your accountant.

Building Your Coaching Business – Information Marketing – What to Do When You Get the Appointment

Here are some power questions that will grab your prospective client when you have your meeting.

Stop selling, and start helping. You will see your sales close ratio go up 5-10 times from where you are if you’ve been “selling” during those meetings.

Although this article is meant to show you how to follow up the Information Marketing letters we mentioned in the previous article, this approach still works for almost any sales appointment.

Just keep in mind that “you are not there to sell,” you are there “to help.” There is a clear distinction, at least as far as how the prospect perceives it.

Does that mean that you aren’t going to close, no, you will. However, you MUST be there to help him no matter where that may go. You are there to help the prospect find the answers he needs to solve the problems you are going to help him discover. You will work on HIS problems together heading for the answers. When he finds those answers, he will recognize that you were the one that guided him there. And, in most cases, there is still more work to do. He’ll want you around to help him find more and more answers, and help him implement the actions.

Since you are not here to SELL, you will not be in the TELL mode. You will be coaching him to find his most important answers to his most important problems.

Here are some questions that just might help:

Start your meeting off by asking them to explain what was the most beneficial thing they got from the article (assuming this is the follow up to that information marketing campaign). If this isn’t a follow-up to an information article campaign then just go directly into the questions that follow.

  • What are your biggest goals for your business this year?
  • What are they worth to you, if you could achieve them?
  • If you could achieve them sooner than expected, what would that do for you?
  • What has been the biggest obstacles to you pulling that off?
  • What might have delayed achieving those on time?
  • If you could solve those problems in the next week or two, what would that do for you?
  • What has it cost you for not achieving those?
  • What is it costing you every week that you don’t achieve those goals?

You want the prospect to define the value of achieving those goals in dollars and cents. What it has cost them in not achieving them. That sets a value for moving forward and a cost for not acting.

You’ll see that most will decide to move forward either at this meeting, or a meeting that follows up quickly.

If the prospect ultimately says he isn’t ready to move forward, what do you do?

Ask him when he absolutely has to have this problem resolved?

Make sure that you know what the weekly cost to him is for every week that this is delayed, because the chances are that the delay is more costly than your fee. This might be worth a discussion before leaving.

When he gives you a date, ask him if he’d like to continue receiving your articles on how to resolve his problems. He’ll be on your list, and it wouldn’t hurt to have some hints and tips about it.

When the date comes up, give him a call. There is a really big chance that he hasn’t done anything to fix the problem. In that case, show a concern that he said it was costing him $______ a week, and you have some other suggestions that might help out. Schedule another appointment to talk it over.

Remember, your fees ARE going to be less than the costs he is facing in not getting it fixed.

You are selling your value, not coaching or consulting. Be able to give a testimonial that shows how much other clients gained from your coaching.

Put Business Information on Top With Promotional Baseball Caps

Wearing caps has been a craze among people of all ages since their inception. There are different types of caps available, but baseball caps have been hot favorite because of various reasons. These caps are not only popular in the Brazil, Japan or United States, but also in almost all parts of the world. Because of their popularity and wide use, they have also gained popularity as one of the very much preferred promotional advertising gift items. Now, all types of organisations give preference to these caps because they have hot favorite of people of all ages.

No doubt, these caps are the common form of promotional apparel that every entrepreneur wants to present his existing customers, potential clients, employees and anyone related to business. In order to increase the sale of the products or services, these caps are the right promotional tool. Why these caps are preferred very much? Reason is simple as they have enough space on the front to imprint company name, logo, message or website address. In addition to the front, they have also enough space on various other sides to imprint something. At the working places like in retail stores, workshops, these caps are distributed frequently among the workers.

Distribution of these caps not only promotes your business, but also helps in making a unique working environment. Talking about the baseball caps, they are not only associated with those who participate in the game of baseball, but also it is worn as a fashion accessory or semi-practical headgear. They are like the soft caps with long, stiff brim that may either be curved or flat. Plastic or elastic adjusters are used in the back of these caps in order to quickly adjust to fit different wearers.

You can buy them according to your choice as they are available in a variety of colors, designs, shapes and sizes at easy on the pocket prices. You can also get them made in your desired designs and color. These caps can really increase your sales to a great level because when people see people wearing caps imprinted with your business name or logo, they will attract towards you and prefer to use your services or products.

How to Start a Business Information As a Unique Christmas Gift

Starting a business in no “walk in the park” for most of us. There are expenses to consider, the likely hood of success verses failure. A person has to take their time to research their idea, find out every scrap of information they possibly can about this business. In truth starting a business from scratch is a whole lot of hard work. Just when you think you have asked every possible question there is a dozen more pop up. Would it not be a unique Christmas gift to find a way to help your friend or loved one with some of that much needed information?

When searching for a business to start many of us do not have thousands and thousands of dollars in liquid assets to invest in a franchise. Today’s new business owners have had to get creative and find “real” businesses that can be operated from home. This is where the word “real” applies, there are many scammers out there trying to get your money. You will see overwhelming amounts of sites that offer to make you rich while you are lazy, asleep, in your pajamas – you name it! And get this – it will only cost you 29.00 to start your business. Get real; it is not going to happen so easily.

Creative people need to think outside the box to find a business that they can work from home. Look at service businesses especially. Mobile gyms, mobile pet care, mobile car wash, mobile windshield, mobile oil change and mobile lawnmower repair. People are starting cleaning businesses, delivery service and daycare centers in and from their own home. These businesses allow you to start and run them from your own home at a much lower cost than your typical “sticks and bricks” businesses.

Back to the unique Christmas gift, that is easy. If you know someone who is looking to start their own business but needs guidance, support and most of all information why not do a little research yourself and print it out, put it in a binder and present that as a gift? Or better yet, if you can find a “How to Start” manual that applies to the subject your friend or loved one is interested in buy it as a gift. It not only shows that you are a crafty shopper but a person who cares about their dream. It shows your support for their idea.

Just a thought…