Month: February 2021

  • Reasons to Outsource Your Bookkeeping

    Bookkeeping is essential to any business. When done right, bookkeeping lets you set a budget for your business and prepare for tax fees. Additionally, it helps you keep your finances organised, allowing you to make decisions that could further expand your business. Are you doing bookkeeping by yourself or do you outsource bookkeeping to a trusted service provider?

    Bookkeeping doesn’t always come easy for some small business owners. Many don’t have time to keep their books up-to-date. Some entrepreneurs would rather focus on other aspects of their businesses. Others find bookkeeping complicated. 

    Common Bookkeeping Problems of Small Business Owners

    common bookkeeping problems

    We’ve worked with many sole traders and small business owners, and when it comes to bookkeeping, many struggle with the same things. Here are some common bookkeeping problems that can be solved when you outsource bookkeeping.

    Inaccurate Financial Data

    Everything starts with your financial data. If your financial information were inaccurate, your data interpretation would also be incorrect. 

    Suppose you don’t catch the mistake quickly. It could create a snowball effect and cause significant issues to your business operations and finances. 

    Make sure your books and other accounting documents are clear and accurate. Be precise when logging your income, expenses, and miscellaneous costs. It’s also a good idea to have a regular schedule for logging in your financial information in your books. Set a day and time when you could sit down and focus on your books. Put it on your calendar so you don’t forget. 

    Misinterpretation of Financial Data

    Data interpretation may not always be a straightforward process. This is especially true if you’re using a complicated bookkeeping and accounting system. 

    Not confident with your bookkeeping or accounting skills? Working with an experienced bookkeeper or accountant would be the best option. Doing so lets you fully understand what your numbers mean and get a full picture of your business’s financial situation.

    Mixing Personal and Business Finances 

    This is a common problem among sole traders and small business owners. Whether it’s unintentional or not, mixing your personal and business finances is a habit you should break. 

    Avoid using your business account for personal finances and vice versa. When you do this, it’ll be challenging to track your business’ cash flow and profit. 

    Not Tracking Finances Monthly 

    Some entrepreneurs prefer to work on their books quarterly or even semi-annually. The problem with this is that you may not be able to track your finances as closely as you should. 

    For instance, you may not catch a dip in your income until it has gone down significantly. Another issue is invoices left unpaid, which could affect your reputation with your suppliers. Additionally, it could hurt your cash flow when customers don’t pay their invoices on time. 

    Using the Wrong Bookkeeping and Accounting Software

    You have many options when it comes to bookkeeping and accounting software. It can be quite tempting to choose one with all the bells and whistles. However, your choice should depend on your company’s needs and not on the most popular product on the market. 

    Do you find yourself always stressed out with bookkeeping or bumping it towards the end of your to-do list? It might be time to outsource bookkeeping of your business. 

    Why Small Business Owners Should Outsource Bookkeeping

    why small business owners should outsource their bookkeeping

    Save Time and Money 

    For sole traders and small business owners, time is currency. For many, every moment spent on tasks that don’t bring in money is time taken away from growing their business. 

    Outsourcing your bookkeeping lets you focus on what you do best. It gives you the confidence that while you’re growing your business, your books are in order.

    Understand Your Cash Flow and Make Sense of Your Numbers

    When you know where and when money is coming in, you’d be able to make sound business decisions and set long-term goals. 

    Receive Financial Advice from Experts 

    Understanding your numbers gives you a strong edge to make your business successful. With the help of experts, you could further grow your business and leverage your current financial situation. 

    Receive expert advice on setting up a budget, pricing your services, or implementing a more effective cash flow system. 

    Bookkeeping and Accounting Trends

    bookkeeping and accounting trends

    Bookkeeping and accounting trends are leaning towards three significant factors: moving your accounting to the cloud, automation, and data analytics.

    When you outsource bookkeeping, you could benefit from all of these without investing in additional hardware and software.

    Cloud Accounting 

    Cloud accounting lets you access your books anytime and anywhere you have Internet connection. Additionally, you can securely give team members access to your books.

    Many cloud accounting software update your account real-time. This means that anytime you access your account, you see the latest information about your finances.


    Did you know that many cloud accounting software allows you to set automatic processes? For instance, you can automatically send invoices and invoice reminders to your customers. It ensures that you don’t forget any invoice. You could also set up your account to automatically reflect any charges on your business’s credit card. You can forget about doing this manually.

    Data Analytics 

    Many service providers use a robust system to help with interpreting your numbers efficiently. With accurate data and interpretation from experts, you could confidently make the best financial decisions for your business.

    What to Look for in a Bookkeeping Outsource Service

    When you plan to outsource your bookkeeping, take time to choose a service provider that aligns with your business values. It would also help to have a list of things to look for in a bookkeeping service to make sure you’re getting someone you can trust. 

    What to Look for in a Bookkeeping Outsource Service

    Here are some things to look for in bookkeeping outsourcing services: 

    Experience and Reputation

    Choose a service provider that has experience working with businesses like yours or within your industry. This way, you know that they are already familiar with what you do and how to help you with your books. 

    Don’t forget to check out client feedback or testimonials. If this isn’t available on their website, you could request it from the provider. Another option is to ask around your industry if anyone has already worked with them. Doing this would give you an idea of what to expect when you get their services. 

    Scope of Services 

    Before even looking for a service provider, it would help to have clarity on what it is you need help with. What type of financial service support do you require for your business? Once you know your needs and requirements, it’ll be easy to shortlist providers. 

    Tools and Technology 

    Don’t be shy to ask about the tools and technology a service provider uses. Are they using cloud accounting, or are they stuck doing things manually? Would they require you to have the same tools they use, and would they help you get familiar with these tools and technology?

    Customer Support

    You’d want to make sure that you could easily reach your service provider when you need them. Before signing up with any provider, consider assessing how long they reply to your email. Do they answer your call or text message? Can you reach them through their social media accounts? 

    Outsource Bookkeeping Service By Hay Accounting Group

    Outsource Bookkeeping Service By Hay Accounting Group

    Hay Accounting Group offers a full range of bookkeeping, payroll, BAS lodgment, business accounting and technology solutions for sole traders and small business owners. We make bookkeeping and accounting simple and easy, so you could focus on building a business you love.

    With a dedicated team of experts, Hay Accounting Group ensures accurate and detailed accounting records. We take the stress out of managing your books and help you increase productivity, profit, and cost savings. 

    Stop worrying about your bookkeeping and accounting. Let Hay Accounting Group handle them for you. To learn more about our services and find out how we can help you, book a FREE chat with us. You can also send an email to [email protected] or call 0404 328 415. 


  • How to Prepare a Budget for Your Small Business

    Let’s face it, building and growing your small business is both exciting and nerve-racking. On the one hand, nothing compares to seeing something you’ve built on your own succeed. On the other, you always have to be on top of everything, such as your Budget, Cash Flow Plan or Profit Plan. You must also be able to adjust your action plan when things don’t go as you want them to. 

    This is why planning is crucial, especially for sole traders and small business owners. As you’re wearing many hats, a plan guides and directs you to ensure you’re on track with your business goals. 

    One thing you have to prepare for is your business budget. A detailed budget plan helps you move your business forward. It could also allow you to consider other growth opportunities.

    Why Prepare a Budget

    Reasons to outsource bookkeeping

    Your budget helps you track your business’s financial health. It gives you — and future investors— an overview of your business finances. A business budget shows your long-term goals and essential information on the current situation of your finances. 

    Without one, you run the risk of overspending and not having enough fund for crucial business activities and items. 

    When you have a budget in place, you’d be able to: 

    1. Pinpoint when and where to cut spending in your business
    2. Decide when you can hire additional employees
    3. Make confident financial decisions 
    4. Re-invest money in your business 
    5. Apply for loans or raise funding through investors 

    Budgeting Vs. Forecasting 

    Some entrepreneurs are confused between budgeting and forecasting. While they may seem similar, these two business financial activities have key differences and functions. 

    Budgeting quantifies your business goals. It shows you in numbers your expected results and the financial position you want to be in. Furthermore, it shows the kind of cash flow you want to have within a specific period. 

    Forecasting provides an estimate of what you can expect to happen. It gives you a roadmap based on factors like historical data and business performance. Forecasting also lets you know where your business is heading and whether you’re moving in the right direction. 

    You can think of a budget plan as a tactical tool for managing your business operations. A forecast, on the other hand, is a strategic tool for monitoring business growth. 

    Tools and Apps for Budget Planning

    tools and apps for budget planning

    When it comes to apps and tools for budget planning, you’ll find hundreds of options online. The most important question is “how do you choose budget planning tools and apps for your business?” 

    First, it’s essential to take stock of the current apps and tools you’re using for bookkeeping and accounting. Then, think about your business’s bookkeeping and accounting processes. 

    When choosing tools and apps for budget planning, remember that “fancy” doesn’t always mean a tool or app is right for you. 

    We found that what many small business owners and sole traders need is an easy-to-use tool that doesn’t overwhelm them. 

    Some bookkeeping and accounting apps we recommend and love using are: 

    • Wave — for solopreneurs and start-up businesses 
      • Rounded —for entrepreneurs who are in the service industries
      • Quickbooks Online — for small business owners who are on a budget 
      • Xero — for small and medium businesses 
      • MYOB — for small and medium businesses

    Would you like to use any of these apps in your bookkeeping and accounting process? We can help you integrate them in your business. We can also help you choose the right one that’s perfect for your business needs. 

    How to Develop Your Budget

    Now that you understand the importance of creating a budget for your business and available tools you could use, you’re ready to start creating your budget. 

    how to develop your budget plan

    Create Your Budget

    When creating a budget for your business, you must first decide on the following factors: 

    • Timeframe — You may choose to set a business budget monthly, quarterly, or even annually. It all depends on your business needs. 
    • Costs — Your costs include your fixed, variable, and one-time expenses. 
      • Fixed costs are expenses that don’t often change, such as rent, insurance, and salary. 
      • Variable costs are expenses that may change regularly, such as your utilities and direct materials costs. 
      • One-time spends or expenses are costs that happen less frequently than variable costs. 
    • Expected Business Income — Create a list of all your income sources and how much income each source should bring every month. It will give you a clear picture of your expected monthly income. 

    Prepare Your Budget 

    Once you got all information mentioned above, you can now decide on a business budget for your chosen timeframe. 

    Unfortunately, many small business owners find they need help with setting their budget. Are you unsure about how much budget you should allocate for different aspects of your business? Are you confused about how to set a budget based on your current and expected monthly income and expenses? It’s best to consult a bookkeeper or accountant. 

    Before anything else, make sure your numbers are accurate and up-to-date. If they’re not, you may have problems in the long run when it comes to budget spending. 

    Monitor Your Budget Progress

    The best way to track your budget usage is by having a bookkeeping system. This is where your bookkeeping or budget planning apps would come handy. 

    If you don’t have any tools or apps yet, you could start by creating spreadsheets for the following: 

    • Balance Sheet — A balance sheet shows a summary of your capital, assets, and liabilities. It tells you how much money you have left once all costs are paid. 
    • Cash Flow — Your cash flow shows the movement of money within your business. It’s vital to keep your cash flow statement as accurate and up-to-date as possible, especially if you’re looking into getting investors in the future. You’ll also need this when working with creditors. 
    • Profit and Loss — Profit and Loss (P&L) provides a summary of your expenses and income over a certain period. This statement helps you evaluate your business’s performance and creates a forecast you could use to plan for business growth.

    How Hay Accounting Group can Help 

    Hay Accounting Group understands how stressful and overwhelming it can be to manage business finances. We were once small business owners ourselves. We have experienced the stress of growing our business and managing our books at the same time. 

    We can help you build a business you love without being overwhelmed with working out your cash flow and finances. Let us handle those for you through our bespoke bookkeeping and business services. 

    To get started, book a FREE chat with Jodi or send an email to [email protected] to learn how we can help you based on your needs.