In this month’s blog we take a look back in time to the birth of bookkeeping. The word bookkeeping itself is very old fashioned but just because it is old doesn’t make it irrelevant! Just look at the last couple of US Presidents! (OK, BAD example!) But seriously when we are looking for a new bookkeeper for the team we want to know they understand double entry bookkeeping, NOT Xero or MYOB. We can teach them that…
It appears that the labour shortages might be with us for some time because it’s not just an isolated problem here in NZ but a worldwide one. The blog talks about the sort of tasks that can be outsourced, why you might consider it, and what to look for in providers.
Having started offering payroll only services in the last 12 months we have significantly increased our knowledge in this area. This increase in payroll knowledge actually started over two years ago when Covid hit and that’s the reason we decided to offer this service. We THINK payroll, we don’t just process it and that is because there are so many different scenarios that pop up that need a human touch that software alone cannot rectify.
My grandmother grew up in Bombay, South Auckland and back then it used to take them half a day to get into the city (circa 1920’s), I now make that trip in 45-60mins even at peak times. My point is that as the world develops so too does our efficiency in doing things and that couldn’t be more true in bookkeeping, particularly over the last 5-10 years…
Mistaking a bookkeeper for an accountant can lead to poor advice, which can be very detrimental to your tax position. We’ve seen cases where the wrong advice resulted in taxpayers paying significantly more tax than they needed to. Even worse, we’ve had new clients come to us who were in strife with the IRD because they had paid too little tax, on the advice of a bookkeeper. On the other hand, using a qualified chartered accountant for bookkeeping work would be unnecessarily expensive.
When I look at the SME market, I am more convinced than ever that we should really stick to our main focus which is being the best bookkeepers in the NZ market. We are not tax experts and we are not add-on software implementors (other than Xero/MYOB and some generic apps that we use a lot) and we are not consultants who provide business advice, we’re BOOKKEEPERS and we are striving to be the best we can.
Having recently returned from Xerocon in Brisbane it made me realise that the more technology we have the more we need good people to be able to use it effectively. There are so many different applications available it can be very daunting for a business owner to know the best one to go for, and consequently, some do nothing! This is where a good bookkeeper can really help as we are often familiar with a larger scope of these apps.
With our business now over two years old we have started to gain a good reputation in the market for doing a quality job. Most of our clients are referred to us so it is vital to our ongoing success that we maintain these high-quality standards. Of course, this all comes down to the fact that we have great staff who know their stuff and take pride in doing a good job. So, how do we attract the best staff and why do they like working with us?
I’m sure by now you’ve heard of the ‘gig economy’, an economy that relies heavily on independent contractors or freelance workers. There’s a growing trend in the marketplace for this type of work in western economies especially. It is estimated by some commentators that this type of work already makes up about 25% of the workforce, and is growing.
Have you heard the story of how to boil a frog? There are two ways, firstly you can boil a pot of water on the stove and when it’s boiling throw the frog in. However this generally results in the frog jumping straight out of the pot. The most efficient way to boil a frog is to put him in a pot of cold water and slowly turn the heat up, then bingo...your boiled frog sir.
We recently had the NZ Bookkeepers Association annual conference and the theme was the Future of Bookkeeping. I found this to be very interesting; particularly given some recent reports in the media suggesting that NZ would only require 18 accountants by the year 2030! There’s also been a recent article published suggesting that we should prepare for a less human future as business decisions will be more automated and more reliable due to artificial intelligence (AI).
Having transitioned from the recruitment industry into the bookkeeping market over the last few years, there are a few things I have observed when speaking to bookkeepers and clients about their bookkeeping needs. One of the major things I’ve seen is the many tools now available to bookkeepers allowing them to do their job much more efficiently. The landscape of the bookkeeping market is changing.
A small business owner, almost by definition, does a lot of their own admin, marketing, sales, operations and accounts, but is that really what they got into business for? Probably not, but in the beginning, it does make sense to keep costs down while getting the business off the ground. However, once you have some customers and your business becomes more successful, this work starts eating into your productive time.
From an outside perspective, if you don’t understand the difference between a bookkeeper and an accountant, it may seem odd that a number of chartered accountants refer their clients to us. But it’s actually in the best interest of the chartered accountant and their client. Here’s why.
Most small business owners understand that good record keeping is important. In many cases, they don't think they can afford a professional bookkeeper. Instead, they try to do it themselves. After all, if they can renovate a kitchen or complete electrical work for a new build, then how hard can bookkeeping be?
Let’s say you’ve been using the perfect cloud-based accounting software for your business like Xero or MYOB. It’s great for your online invoicing, payroll and purchase orders and your bookkeeper and accountant can easily access all of the necessary information. But, if your business has outgrown the capabilities of the cloud-based accounting software or you’re looking to improve efficiencies within your business, you may need to consider using add-ons.
Let’s say you’ve been using the perfect cloud-based accounting software for your business like Xero or MYOB. It’s great for your online invoicing, payroll and purchase orders and your bookkeeper and accountant can easily access all of the necessary information. But, if your business has outgrown the capabilities of the cloud-based accounting software or you’re looking to improve efficiencies within your business, you may need to consider using add-ons.
Bookkeeping in many ways is like going to the dentist. No one wants to take the time to do it! Many business owners dread managing their accounts and have that recurring feeling every March. To compound the issue, many Kiwi SMEs don’t have the funds to have a full time or part time accountant or bookkeeper in house that regularly maintains the books.
Bookkeeping in many ways is like going to the dentist. No one wants to take the time to do it! Many business owners dread managing their accounts and have that recurring feeling every March. To compound the issue, many Kiwi SMEs don’t have the funds to have a full time or part time accountant or bookkeeper in house that regularly maintains the books.
