Posts from — June 2009

One wonders if it makes good bookkeeping sense to chase up a five cent debt

Apparently the Australian Taxation Office thinks so – but that could be because it’s a government organisation that really does not have to worry about the bottom line

Where is the sense (cents) in making a five cent payment?

One of our bookkeeping clients received a communication from the ATO advising that they owe $0.05

Let’s just think about this simple transaction in terms of human and energy resources:
There’s the cost the ATO $0.55 for the postage. That’s before you take into account the cost of printing the letter, the cost of the paper and the envelope, and the cost of paying someone to handle the letter.

Our bookkeeping client was going to make a phone call, but that would cost 500% more than the value of the enquiry

Whilst they do not have a problem paying the 5 cents, it’s quite obvious why ordinary hard-working Australians are having to pay so much tax overall.

Apparently there is a great deal of wastage of resources at the ATO – typical of the Public Service that doesn’t have to worry about keeping costs down

So, our bookkeeping client was going to do internet banking and make a BPAY transfer, to find out that the ATO does not accept such small amount of payment for a BPAY transfer

So how does our bookkeeping client pay the 5 cents that the ATO is asking for?
Are they expected to go to the Post Office and make a payment over the counter?

Again, what is the cost of that simple exercise?
The Government is concerned about carbon pollution, yet the ATO wants our bookkeeping client to jump in their gas guzzling motor vehicle to drive to the shopping centre, find a car park, then walk to the Post Office, stand in a queue, take up the time of a Post Office Staff member, to process a 5 cent payment

Can anyone from the Australian Taxation Office or the Federal Treasury please tell us, where is the sense (no pun in tended) in making this five cent payment?

Bookkeeping Services
Our team of bookkeepers will travel to your premises and work on your computer helping you keep your bookkeeping up to date.

Whether you are based in Mandurah, Dudley Park, Coodanup, Greenfields, Erskine, Pinjarra and Meadow Springs, Western Australia, we can service all your bookkeeping requirements

Our mobile bookkeepers can assist you with all aspects of your bookkeeping. You may be using MYOB or Quickbooks, or other accounting software. Contact our team of Mandurah bookkeepers to help you get your accounting in order

So you’ve bought Quickbooks or MYOB – What Next?
Our team of bookkeepers will show you how to install the accounting software package. Just let us know when would be a suitable time, and we can spend an hour or so getting everything functioning to suit your individual business

We can show your bookkeeping staff how to use the software. Many business owners raise invoices directly with MYOB or Quickbooks – We’ll show you how to customise the invoices and add your company logo, address details and any other information that you may need on your invoices

Software Installation Service
Our mobile bookkeeping team offer businesses in and around Mandurah a software installation service for businesses that have purchased an accounting package, such as MYOB, Quicken or others, and have no idea were to start.

Our installation service of computer accounting package includes
· Setting up all your Chart of Accounts to suit your business
· Entering Customers, Supplier & Employee information (or showing you how to)
· Enter Opening balances, including accountants, customer & supplier Opening Balances.
· Training you and / or your staff on inputting YOUR own business day to day data in plain English.

We recommend two hours for the first site visit. It may take longer if you require us to enter all your data in the first visit. We can then organise a second visit after 2-3 weeks, to check what you have done and give additional training if required.

Our Mandurah Bookkeepers save you time, worry and most importantly you will save MONEY!! For your business’ sake and your sanity Contact usNOW!

For a limited time are offering a FREE consultation.
To take advantage of this offer Contact Us TODAY!

Many small business owners in and around Mandurah, Dudley Park, Coodanup, Greenfields, Erskine, Pinjarra and Meadow Springs, Western Australia believe that by cutting the price of their goods and services, their business will increase. It an achieve more sales, but it can also affect your bottom line

If your existing customers are already buying from you, then how will they feel if you are selling the same product / service to new customers at a lesser rate? You’ll soon find you have to reduce the rate for your existing customers

Do you really believe that your prices are an issue? People are not necessarily buying because your price is too high. It’s just that they may want to conserve their cash to slow down in spending.

So unless you are sure that your price is too high, then cutting prices will not help your turnover. From a bookkeeping perspective, let’s say you sell your services for $100 per hour. You have overheads etc that work out o be $70/hr , so your profit is around $30 .

To make a sale you feel compelled to drop your rate to $80, meaning your profit is now $10 and not $30, resulting in a 66% cut in your profits for a price reduction of 20%

And now your time is worth $80 not $100

Offer Added Value
When times get tough, and competition increases, have a look at ways to increase your level of service, or offer extra value for money. Maybe you can offer extended warranty, or offer services that really do not cost you anything extra.

We have found many small business owners phoning around bookkeepers looking for the cheapest option. We’ve talked before about the difference between price and cost. A cheap bookkeeper may be a short term solution that can create long term problems

Contact our mobile bookkeepers in and around Mandurah, Dudley Park, Coodanup, Greenfields, Erskine, Pinjarra and Meadow Springs, Western Australia for a free appraisal of your bookkeeping needs