Keeping your finances in check is one of the most important parts of running your
Australian business. Bookkeeping is a tedious task that no business owner or manager should have to get involved with since it is so time consuming and I guarantee you have a million other things your plate.
Save yourself the time and agony of all the fine detail tracking and recording. Focus on the bottom line! Small businesses throughout Australia have had great success using outsourcing services for their bookkeeping. Saving time is just the beginning to the list of benefits you experience when you outsource bookkeeping services.
Secures Financial Data
When you outsource bookkeeping services and other financial processes you reduce the risk of fraud in your business. You need to ensure segregation of duties and privacy when dealing with the businesses finances. No better way of accomplishing that for your Australian business than to hire an outsourcing company located overseas to handle bookkeeping for you. BPO companies are experts when it comes to protecting your company’s most sensitive asset and are constantly upgrading their security measures to stay ahead of the game. It is both morally and legally the responsibility of your third party bookkeeping service to keep your data secure.
Most small businesses and startup companies have limited resources so their bookkeeping tasks fall to either someone that has little training and experience or has a much larger role in the company. Let’s face it, creating business strategies and closing deals take priority. With that, bookkeeping processes get mismanaged and placed on the back-burner. Hiring a bookkeeping service that specializes in Australian accounting will ensure all financial reporting is on time and 100% accurate. Outsourced bookkeepers are completely certified and attend continuous improvement training classes to ensure they are up to date with the latest trends in accounting.
Outsourcing bookkeeping services is a no-brainer when it comes to cutting costs in Australia. In-house bookkeepers usually have a base salary of about $50-70K before any overhead costs. Add that extra 25% to factor in benefits, taxes, facility cost, etc., and you are at about $75K for bookkeeping. With outsourcing there are is no overhead costs, you pay a monthly flat rate (around $1000) which covers all bookkeeping needs. Add it all up and you save more than 75% when you outsource bookkeeping. Don’t forget the training and management costs you are cutting by using a bookkeeping service that handles Australian businesses.
Bookkeeping will always be one of those important administrative tasks that nobody likes to do. Bookkeepers employed by overseas BPO companies are experts at this stressful, number crunching, time-consuming process. Using an outsourcing company is the most efficient way of handling your bookkeeping processes in Australia. Keep your finances up to date with little cost and no effort by hiring a third party bookkeeping service.
Small business owners in Australia are often overwhelmed with the many things critical to growing their business. Managing marketing strategies, employees and social media accounts is proof enough that there are not enough hours in a day. Accounting is often an overlooked task that is taking away more time than realized from managing the important things that directly lead to gaining an edge on the competition in Australia. With that being said, there are multiple benefits for using outsourced accounting services that specialize in handling companies based out of Australia.
Increased Energy and Focus
By outsourcing accounting services, businesses will be able to dedicate more of their employees and resources to their core mission. Small businesses in Australia especially benefit from this since they are often limited on resources compared to the bigger companies. Back office functions like bookkeeping and accounting can become a distraction to the in-house staff. Outsourcing these financial tasks will allow entrepreneurs to maintain energy and focus on developing new ideas and better ways to do business.
Proven Expertise & Quality Assured
Accounting services are handled by trained professionals hired by outsourcing companies in Australia to only focus on financial functions. It is not uncommon for small to midsize companies to assign the bookkeeping and accounting tasks to employees that have other primary duties. This lack of proper training and focus leads to errors and miscalculations in companies finances. Outsourced accounting providers use teams of professionals to ensure double checking of all accounting work accomplished. Outsourcing accounting services in Australia increases the quality and accuracy of the work.
Businesses are able to cut the costs of their accounting services up to 50% by using an outsource service provider compared to hiring in-house accountants. Here is a quick breakdown on where the savings come from:
- Operational Costs – Training for the employees, purchases of hardware and software, software licenses, system administration, HR services and management.
- Employee Costs – Not only does this include salary, social assistance contributions and recruitment but also the costs of compensated vacations and absences.
- Infrastructure Costs – The most obvious is the space provided for the accountants and bookkeepers to work but also includes office supplies, equipment and storage space for documents rather it be paper or virtual.
Outsourcing these financial functions allows Australian companies to pay on monthly flat rate without worrying about the additional costs. In addition, the flat rate streamlines budgeting and simplifies cost control procedures.
Small to midsize businesses are continuously changing, ramping up at times while throttling back at other times depending on business flow. Accounting services must be able to adjust to these changes which could be quite difficult with in-house accountants. Companies using a third party accounting provider simply get in touch with them and explain their new requirements. No need of recruiting or laying off staff. Outsourcing gives Australian business owners the ability to leverage financial professionals when they’re needed and only for how long they are needed without paying any additional time.
As the stock market appears to being bouncing back from its worst single day drop in years it is important to identify the reasons for the long overdue market pullback. The recent surge in the US economy along with the lowest unemployment rate in 17 years has many experts worrying about inflation. Let’s take a look at three other key factors contributing to this week’s wild ride in the stock market.
1. Sell-off Started from the Jobs Report. The labor department released their monthly jobs report last Friday on how many jobs were created in January 2018. 200,000 jobs were created with an increase in wages of 2.9% making it the biggest jump since 2009. How can that be a negative? Well on wall street they figure if you pay workers more than it has to lower profits.
2. New Chair of the Federal Reserve. Jerome H. Powell took over as leader of the federal reserve on Monday. Investors are uncertain if the new leader will follow in Janet L. Yellen’s of keeping interest rates low with extremely subtle increases. Nobody knows Powell’s strategy to keeping inflation in check. Will he mess it up?
3. Wall Street was Due to Come Back to Earth. On average the stock market gains somewhere around 8 percent a year. From January 2017 to January 2018 the stock market increased by 26 percent, almost 3 times more than the average. Investors knew stocks should not really be at these high of levels.
As alarming as the dip might seem it is not a true correction. A correction is when the market suffers a 10 percent drop from its peak. On Monday the market was about 8.5 percent lower than its January 26th peak. There have only been four official corrections since 2009 so people should not be predicting the worst just yet.
Consumers and companies are currently on the trend of spending money and it doesn’t seem to be slowing down in 2018. The stock market is not the economy though so don’t expect this downturn to be pointed at some bad economic news. Too much good news is the most likely cause of the dip.
The bottom line is that Wall street is mostly worried about inflation. When the costs of everything continues to rise and rise then people can lose faith in the value of money. In the most extreme example of too much inflation is the currency turns meaningless and the economy collapses.
Investors are not worried about the economy collapsing but with the latest taxes cuts and jobs report they fear the currency value could take a slight dip. The strong economy should offset the inflation scare and the stock market will recover and continue to rise. Just don’t expect the 26 percent increase of last year.
The negative impact and overall costs of having a poor reputation is often underestimated and can drag your business through the mud. We all know the story, someone chooses to join hands with you for some business deal but before finalizing the deal they will “Google” you and your business. If you happen to have some negative publicity from some unhappy previous customers then there is a high chance that deal will fall through and you will be left scratching your head about what happened.
Online reputation management is something every business needs to consider in order to build your company a strong image and protect it from getting maligned. It is important to make it a point of conserving your assumed good reputation because repairing a bad one could be difficult and takes quite some time.
The reality is that dissatisfied clients or customers are 60% more likely to write a review about their experience compared to a satisfied customer. It has been estimated it takes about 12 positive reviews to offset the bad reputation gained from a negative review. Business reputation matters and it is vital to your company’s success.
Do a quick search to see what is showing up on Google when you query your business. Do not feel overwhelmed when you see 100’s of thousands results for you search; the first websites that show up are the most relevant. Besides, it is unlikely that a potential customer will search more than the first few pages of results and Google has a habit of getting those negative reviews to show up on the first page. You must also search different search engines along with trying to add some keywords after your business name like: review, experience or feedback. If you are able to find some negative reviews it is imperative that you immediately start to do some damage control.
Ignoring negative comments about you or your business will only make the situation worse while the bad review reaches more and more potential customers. Respond to the comment promptly but tactfully. Make an attempt to empathize the situation of the client by completely understanding what occurred to cause their bad experience.
Do not get defensive with the client or other readers and reassure everyone that this is by no means a routine occurrence. People realize that misunderstandings happen from time to time when doing business and by you simply addressing the situation will usually go a long way towards repairing your bad reputation.
In addition to acknowledging your bad reviews you need to be proactive in receiving positive reviews. Invite your customers to review their experiences on all the different social media platforms available. Positive reviews will quickly outnumber the negative ones and that will boost your overall reputation. You also need to be active across all social media with providing updates to your products or services, interacting with the public and engaging potential customers.
In a nutshell, just be sure to closely monitor what is being said about your brand. There are even add-ons and different types of software available that will alert you anytime your company name is mentioned on any type of social media or website. This is a great way to stay on top and resolve immediately any bad reviews your receive.
If you are currently or looking to start offering some type of product or services it is essential that you conduct some type of market research. Entrepreneurs must know everything about their customer based, whether it be an individual customer or a company that is a customer. You must analyze the buying behaviors of your customers. What they want, what they believe in, what they need and how they are currently supplying those needs.
It is vital to your success that you understand why customers are buying specific products and services from you or your competitors. With proper market research you can easily succeed in lowering risks within your business since your products and services are geared towards market demand.
Market research is the process that gathers information from the market and then extracts the specific data related to customers behavior in order to prepare an effective marketing strategy. The main purpose of the collection activity is to give an understanding of your customers behaviors in the market your business operates. Basic market research gives you the answers to the following questions:
- What customers should you target?
- How frequently do customers buy your product or service?
- How much do competitors charge and how much is a customer willing to pay?
In order to get the required quality and quantity of data for your market research you must pursue a number of different sources. Getting customer feedback from your current customers is usually the best way to start your market research. Customers will be able to tell you a lot about the strengths and weaknesses in your current business process. Surveys via email, telephone or interviews can be used to collect information about people and their opinions about products and services.
The internet has unlimited amount of data along with finalized analysis that can be extremely useful for any type of market research. Google’s trends offers valuable information about what internet users are most likely to be searching for. The list goes on and on for where to collect data but the important thing is that you use many different types of sources to get your information needed when doing your market research.
In order to succeed in business you need more than the right equipment, financing, talent and experience. You must have that stream of information coming in that tells you why people buy your product or services. Hiring someone else to do your market research can save you time and uncover valuable information that is often overlooked. Get a free quote!