Australian tax office has huge database of information regarding the industry operations and have benchmarks of performance in various industries. They use various financial ratios in order to compare the performance of individual business with that of industry performance.
You need to ensure that you select correct industry code along with your tax return in order to ensure that you fall under correct business code.
These benchmarks are expectations of ATO from individual businesses and expect the same level of performance than that. Business operating out of benchmark may attract the attention of ATO.
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Documentation is at heart of accounting. However question arises as to the time period for which the tax records needs to be maintained.
How long to keep bookkeeping documents :
There is a requirement that you need to keep your tax records for five years from the date you file your tax returns.
However there are certain cases in which you are required to keep the tax records for enhanced time period. For example in case you are availing depreciation on assets, you need to keep records for more than 5 years. You need to keep proof of purchase of asset for period more than 5 years.
Medium of Storage: You can keep the records in electronic form as well. However the same should be easily accessible and should be in English Language.
You need to have a good record keeping system in place in order to avoid any trouble in future. Absence of record keeping can lead to heavy penalties as dis-allowance of tax deductions.
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Outsourcing bookkeeping to Rayvat Accounting is similar to business process engineering model where there is a complete shift in the manner of how the business is done.
In Business process Re-engineering, there is a fresh pondering on the present business and how the process has been done of late.
Business Process Re-engineering (BPR) is basically rethinking and radically redesigning an organization’s existing resources.
BPR is all about redesigning of the workflow and methodology to a more better model which can decrease cost as well as increase in overall efficiency of the business process. The ultimate purpose of re-engineering is to optimize the overall performance of business and generate superlative profits for the business.
Moving to Outsourcing model can be beneficial to your business if it has been implemented in planned manner.Are you planning to Outsourcing your books and still thinking of when to start on Outsourcing model?
Well we recommend to move on to Outsourcing with start of new financial year. This would have a benefit of easy and smooth transition to outsourcing carrying with a switch in the work methodology.
However we recommend early transition which would give us time to settle the process and make it worthy for you.
Call us to know more how we can redesign your Accounting business processes and help you to excel in your business.
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Many of my prospective Australian clients ask me if it is Legal to Outsource my Bookkeeping work?
The answer to same is definitely yes.
You can outsource bookkeeping work offshore to get benefits of outsourcing provided you take adequate care and inform the owner of the information regarding the outsourced work.
A written letter of approval is required from the client giving a consent for outsourcing the work to third party.
However the organization outsourcing the accounts is required to take due care and needs to do due diligence in order to ensure all the pieces fall in correct place.
Here are some of the points which the outsourcer needs to in order to reap all the benefits by outsourcing the job offshore:
- Quality of services:
The Outsourcer needs to be assured of the quality services from the outsourced organization.Quality control procedures should be in place with the third party service organizations to ensure qualitative work.
- Integrity of third party service provider:
The outsourcer needs to ensure that there are proper non disclosure agreements in place for avoiding misuse of information.
- Professional Expertise:
The outsourcer needs to be ensured of the professional expertise of the service organization.
- Resources of the Service Provider:
The performance of the third party service provider would depend upon the resources of the service provider and the infrastructure available with the service provider.
- Monitoring of work:
Outsourcer needs to monitor the work in order to ensure that the objectives of outsourcing are achieved.
Best luck for your new outsourcing relationship!!
The article is written by Rushabh Shah, he is operations manager at Rayvat Accounting. Rayvat Accounting provides Outsource Accounting and bookkeeping services at low cost to Australia and US based clients. For no obligation free trial of Accounting services contact us at email@example.com
Once you have decided to outsource your bookkeeping and Accounting the shifting to outsourcing model from traditional model to outsourcing model has to be done in phased manner. This would ensure maximum benefits from outsourcing model.
Generally transition takes around 90 to 180 days to complete and achieve all the benefits of Outsourcing.Here are some of the points which would help in effective transition to outsourcing model:
Communication: To communicate with the End client and knowing the requirements of the client.
- Communication before transition
Rayvat Accounting team shall explain the transition methodology and give the required information to the customers to make them ready for transition. It is more focused on convincing the clients for smooth transition to new systems and process. It effectively communicates need for change.
- Post transition Communication:
Post transition communication seeks to get input/feedback from the client and devise the strategies to help the client to smoothly adopt the new system.
A checklist should be developed to help in conducting client service interviews. The findings of client service interview would be well documented in order to ensure that we completely understand the client requirements and cater them according to their needs.
Additional Service Benefits Explaining the client of the additional services Rayvat Accounting shall provide in addition to the outsource accounting services which the customer used to get previously. For e.g., Additional reports which we can generate for the clients which can be used by client to have a better decision about his business.
Training: Proper training would be given to the end client to help the client to get accustom to the outsourcing methodology.
Service Level Agreements: Rayvat Accounting would sign a Service Level Agreement with the end client to ensure that the roles and responsibility of the client and Rayvat Accounting are well defined. It seeks to have all the client expectations in Service Level Agreements.
Take Over: The team would take over the work from the staff of previous accountant in phased manner and handle it over to the Indian Transition team.
Feedback: Constant feedback would be taken from the client to ensure that the client is satisfied with the services.
Ticket raising and Support: Transition team can raise a ticket and support question for the team in United States on behalf of the client.
Quality Control: The information provided to the client would be routed through the transition team in united states providing a two way review of the information sent to the client.
Audit: They shall perform a regular check the ledgers to ensure that the accounts are error free.
You can view more about our outsourcing methodology.We at Rayvat Accounting Specialize in Accounting and Bookkeeping leveraging on cost difference between India and developed countries like Australia and United States.
There is a recent buzz in F&A sector to outsource their complete accounting departments to professional Outsourcing Firms.
A Research report of “Global Services 100 Study” states that More than 55 percent of F&A contracts offshore F&A services to India. Of more than 20 leading F&A service providers tracked by Everest, 18 have delivery presence in India with close to 80 delivery centers when taken together. In recent years India has emerged as a buyer geography for F&A.
Total F&A Market in India is $12bn as per research by “Hfs Research group”
- There is a $2.6 bn market for engagements having a contract value of less than $25 mn as per the estimate of Hfs Research
- There is a $7.96 bn market for engagements having a contract value of more than $25 mn as per the estimate of Hfs Research.
F&A Market in India has developed in recent past and there are many developed players in India who compose
of The Accounts Outsourcing Market in India is yet to grow in India due to developing confidence in India.
As per a report India is the most preferred destination for outsource accounting services.
The main reasons for development of FAO markets in India are :
- Labour Arbitrage due to difference in cost of the people having same skillset.
- Availability of Skilled workforce in India and shortage of same in developed nations.
- Availability of English speaking work force in India Shift of organizational processes from manual to technology oriented.
- Availability of infrastructure, technology and high speed connectivity in developing nations.
- Implementation of Information technology laws in developing countries which prevent data misuse. Information Technology Act, 2000 in India helps in protecting the data in virtual environment.
- Time lag between eastern and western countries helps in updating data in almost half a day’s time. It helps in completing work in time deadline. For eg. Audit work or Deloitte US is transferred back and forth between Deloitte US and India helping in getting work done in tight deadlines.
- Reporting norms levelised at global level. (For eg. Emergence of IFRS and XBRL standards).
We at Rayvat Accounting Specialize in Accounting and Bookkeeping leveraging on cost difference between India and developed countries like Australia and United States.
Planning is first step towards conversion of ideas into a business strategy. It helps to effectively achieve the goal by proper allocation of resources. Business plan is one such step towards planning where the entrepreneur converts his idea on paper.
A business plan is any plan that works for a business to look ahead, allocate resources, focus on key points, and prepare for problems and opportunities.
Business Plan helps to visualize your business and forecasting the future based on present deployment of resources.
Here are some of the tips to write a good business plan:
1. Know your Audience:
Business plan written with a target audience in mind can be much helpful as you can prepare the business plan as per the knowledge and level of understanding of Audience.
2. Important parts of Business Plan:
A good business plan should have a proper flow of information and should be classified into various parts.
Generally a good business plan should be divided in following parts:
• Executive Summary of business plan
• Product Service
• Management team
• Target Market and competition
• Implementation schedule
• Milestones to be achieved
• Threats and opportunities (SWOT Analysis)
3. Structure of business plan:
A well defined business plan should have a proper structure and logical flow of ideas. It aims at convincing the reader of successful business in future.
4. Clear definition of milestones and time frame for achievement:
With clear strategies business plan should state the time frame for achieving the business goal and tentative schedule for implementation and achieving the goals of business.
5. Emphasize on cash flow:
An effective business plan should emphasize on cash flow of the business. For analysts it is important to have a cash earnings for business rather than just generating a positive gains for the business.
Rayvat Accounting offers business plan preparation services for small and medium sized business helping them to present their business various stakeholders effectively. For more information on our business plan preparation services contact firstname.lastname@example.org and we shall get back to you as soon as possible.
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“Tips for better management of your Receivables”
Here are some tips for better management of your receivables:
1.Prompt recording and invoicing:
Record sales as quickly as possible and ensure that the invoices are delivered to client as soon as the product is sold or when the service is completed.This helps in faster conversation from cash after sales transaction.
Customers should be made to adhere to the credit policies and should be followed up immediately after the invoices are sent.
3.Outsourcing of Receivables:
In case the present staff is not able to effectively manage your receivables it would be a good decision to outsource to third party vendors. This would have a dual advantage of lower cost as well as increase in efficiency.
4.Follow-up of Receivables:
Timely follow-up of the receivables would help in faster collection and reduce the amount of bad debts. You can hire an agency to have a timely
follow up of receivables.
Business should do regular ageing analysis and thereby getting an overview of where the receivables management stand.
Business should also analyze the present credit practices of competitors to know the recent trends in collection.
Automation of business process can prove to be cost advantageous. We can provide Automation with Software’s like intuit Quick-books freeing up your majority of time. Quick-Books can do automation for you.
8.Quality of Receivables:
Business should ensure that the receivables are of high quality and would not default. Various tools like bank guarantee, letter of credit etc. can be used for reducing the default risk of receivables.
9.Mode of payments:
Business should accept payments in as many ways as possible which makes it easier for the business to pay on time.
We at Rayvat Accounting would help you to manage your receivables effectively. You can drop a mail at email@example.com for a free analysis of your present process and how can we help you manage your receivables at competitive rates.
Starting of the year for finance and accounting outsourcing. international economy is slowly and steady from one among the worst recessions fully fledged within the last fifty years. Organizations ar gazing ways that to scale back the prices and be competitive within the market within the returning years. To get over the case firms ar progressively gazing finance and accounts outsource.
Outsourced Accounting processes usually requested were payroll, assets and accounts due outsourcing processes. rising method trends in finance and accounting outsourcing ar monetary designing and analysis.
Demand for Outsourcing Accounting continues to be considerable
There area unit still several untapped Finance and accounting outsourcing chance areas, a recent study estimates that there area unit fewer than 800 live engagements and solely one-in-six enterprises outsourcing transactional accounting activities to a 3rd party service supplier.
Recovering economy rekindles outsourcing motives
The F&A BPO market was at its peak between 2004 to 2008; interest cooled throughout the recession as enterprises targeted on shorter-term survival measures and place amendment initiatives, like BPO End-to-End Finance and Accounting (F&A) Services on the backburner. However, with recovery beneath method, several businesses area unit localization attention on international outsourcing opportunities as a way to scale back expense. Studies estimates that, additional enterprises area unit currently assuming to get into associate degree F&A BPO model over future year, with robust motivation returning from mid-market organizations.
More evolved Finance and Accounting deals
A key trend seen these days is that variety of shoppers UN agency have already entered the finance and accounting outsourcing area ar currently moving on the far side ancient outsourcing areas and practices. Their previous expertise has been a useful learning ground. they’re additional conscious of what to try to to, and additional significantly, what to not do. As a result, they’re that specialize in putting in a much more evolved source surroundings.
businesses set-up accounting systems, clean-up existing books and implement outsourcing agreements. His firm focuses on providing accounting and reportage services to little medium businesses in australia
Accounts Receivables management becomes an important aspect of your business when the it is in growing phase. Accounts Receivables Management can act as a savior when the business is facing working capital crunch.
How we manage your receivables:
• You can consider us an extended member of your team.
• We would document all the calls made on your behalf and all email communications done for your business.
• The staff is fully trained in managing your receivables
We would give you a complete report of:
1. Ageing of your receivables
2. Follow up done by us
3. Responses of the clients
4. Report of Disputed Amounts
Advantages of working with us:
1. Cost Benefit: We provide services at highly competitive by outsourcing model.
2. At Rayvat Accounting we shall provide you timely reports to help you analyze the current status of your receivables.
3. Better Receivables Management can help in better working capital turnover and thus help the business to thrive.
4. In most of the cases the receivables are left untouched due to overworked staff and business
5. We shall comply with fair policies for converting your receivables to cash by realistic, prompt as well as pragmatic approach towards receivables management.
6. We shall always ensure to maintain reputation and goodwill of your enterprise.
We would surely reduce unnecessary ageing of your receivable by outsourcing your receivables and thereby better management of working capital.
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