Purple Cows and Bookkeeping - new models for new users

Part of Financial Mastery for entrepreneurs is choosing a way to complete the books for your business. Here are the options below and what you should look out for.

Current bookkeeping models:
1. ONLINE bookkeeping - also called outsourced bookkeeping
2. OFFSITE bookkeeping
3. ONSITE bookkeeping

ONLINE bookkeeping - where online software and a scanner can create a bookkeeping service for most micro-businesses at about the $200+ a month mark. For example, a business looking for a Sydney bookkeeping service might find a site with an office in Sydney, but the work being done over the Internet. Bookkeeping questions are asked locally in Sydney.

Pros - Usually cheaper and faster -

Cons - Often user-intensive service - ie YOU the user, do all the scanning and paper shuffling, while the operator just processes the numbers, not visible who is doing the work usually

OFFSITE bookkeeping - where bookkeeping is done offsite, the materials usually dropped off or picked up, the provider then completes the bookkeeping at their own offices and might meet with the client at their office (or the client comes to the bookkeepers office) for a meeting about numbers and to run through any questions.

Pros - Cheap and fast,

Cons - important paperwork might sit at your office for too long, paperwork can go missing, leads to business owner not looking at anything financial until the bookkeeper comes in

ONSITE bookkeeping - where a bookkeeping service goes out to a client each week, month, quarter to complete all filing and work for the business owner.

Pros - visible and transparent (what you see is what you get)

Cons - Expensive, reliance on office space, bookkeeper may not have resources to complete work

I haven't completed my BAS!

I get this from clients all the time.

The first step is to collect all your information - that's bank information, transactions and details (write on them is necessary) and make sure you have it all for the period. Then send it to a bookkeeper or - or DIY. Note, completing a small business BAS could take from 5 - 8 hours if you don't know what you are doing. A bookkeeper can usually do it in 3.

The worst part is not the ATO fine - it's that most of the time, these people haven't looked at their numbers for 3 months. Can you imagine not looking in the mirror for 3 months! How rough would your shaving be? What's stuck in your teeth and how long has nobody told me about it?

If your really interested in DIY BAS, write in the comments below.

When people ask me what I do

I tell everyone I meet that I help business owners read numbers.

I am an accountant, but that's not what I do. I am a business owner, but that's not what I do either.

My skills are listening for what business owners need, and telling them whether or not a relationship with my business will help them get that.

Bare Figures - is a group of businesses providing access to Financial Mastery for small business owners.

• Bare Figures Education
• Bare Figures Bookkeeping
• Bare Figures Taxation
• Bare Figures Sales Consulting

Our business is about empowering entrepreneurs through financial education.

Bare Figures Education

Before our clients start working with us we EDUCATE them. You need to know the language That we speak and why. That way YOU control the conversation and the relationship. It benefits you because you are empowered. It benefits us and every accountant because we know the difference between what you are saying and what you mean. We can help you find the solution you need.

Bare Figures Bookkeeping

Once you have that education we can start to have fun. You want to build a better business, make more profit, have more fun? You need numbers. At Bare Figures Bookkeeping we turn your business into numbers you can understand. We can catchup from 5 years ago and we can provide ongoing onsite and offsite services to help you get your numbers when you need them. From basic compliance and filing to weekly reporting and analysis, you can have Financial Mastery over your business.

Bare Figures Tax

Sets of numbers allow you to start working WITH the tax system not against it. With regular bookkeeping above, we can help you plan how much tax you'll need to pay and how to reduce it. Whether you are expanding the business, setting up your Super Fund or just looking for easy-to-use strategies, our Taxation division will help make the right decisions for you and you family.

Bare Figures Sales Consulting

Once our clients see the real dollars going into their pockets each week, they want to know how to improve their top line. Our Sales Consulting division provides affordable, action-steps for any size business to grow their sales. From customer analysis, profit-pricing and sales strategies, through online and offline meetings your business will start to go where you dreamed it would.

For more details see http://www.barefigures.com.au/

What Do Bookkeepers Do For a Small Business Owner?

As an accountant I spend a fair amount of time helping business owners get their numbers into shape. And by shape I mean they need to be able to represent the business in a way that can allow us to have an active conversation about the business with them.



But what does that really mean for you - the business owner?



Sometimes, accountants get confused between the language they have and the language other people have. By learning what it is that accountants DO and WHY, you can learn a lot about how to improve your own business.



Accountant - what do they DO for small business



Ensure a client's business complies with the relevant legislation.



But what does that mean? Legislation can cover TAX issues, LEGAL issues, staffing and payroll issues, DOCUMENTATION issues... so many issues... it's no wonder professional services is such a confusing place to sell. A lot of my success with clients has come down to something I know which others don't:



1. Business Owners - Want Confirmation, Not Justification.



No one wants to know WHY, they just want to know that what they are doing is right. That's advice. That's Professional Advice.



Many clients come to Bare Figures because they are confused and that's just not something the team at Bare Figures can have happen! Below lets run through what needs to happen for Financial Mastery to occur.

Business start-up

• Registration of business name, domain name, entity structure names
• Registration for tax for the above, GST, FBT, IAS, PAYG
• Filing set-up
• Setting up bank accounts
• Setting up policies, procedures, systems and templates for business performance

Ongoing Bookkeeping

• Choosing software
• Sending out invoices to get paid and tracking invoices
• Paying bills and staff
• Balancing bank accounts
• Filing and sending to bookkeeper to process

Accounting Functions

• Reviewing file and updating documentation and classification
• Preparing and lodging BAS, IAS, PAYG, FBT, ITR
• Prepare and processing additional journals into software
• Planning for tax and tax strategy

Financial Management

• Budgeting and forecasting
• Business planning
• Pricing and market research
• Sales strategy, implementation and performance management
• Cost minimisation
• Financial process improvement

As you can see above - the lines start to vary between you, the bookkeeper and your accountant as to who is in charge. I would also point out to you that the most VALUE adding items are in the 'Financial Management' section above, and NO bookkeepers, NO accountants do those. Excuse the plug, but at Bare Figures we consider those mandatory parts of our services - goto our website to find out more.

Why would you read this Blog?

This blog is for you if you:

• Have just started a business or are trying to start one
• Want to use your business to achieve your goals
• See business as an opportunity for financial freedom
• Respect and cherish the opportunity to help people

I have always loved the idea of owning my own business.

I especially love the idea of turning NOTHING into SOMETHING.

It's magic. It's ALCHEMY.

I am fascinated by how people turn ideas, into living breathing brands that change the emotional state in people that briefly come into contact with them.

As a young businessman, entrepreneur, accountant and business-nut - I'll be writing about my experiences in a way that will help you see new opportunities for yourself and your business.