Professional Agency Start-Up Assured and Confident

This partnership started up over a year ago but their accountant quickly restructured their business. Within a few months of operating under their new structure they reached out for assistance for a number of reasons. Firstly they were confused about the process of changing over to the new structure. Secondly they were confused about letters they were receiving from the ATO about PAYG and thirdly their financial planner had recommended they engage a bookkeeper. They had taught themselves Xero but knew they would be better off outsourcing this function so that they could focus on growing their business.

Issues Corrected

We made a detailed inspection of the accounts from the start of their new structure only a few months earlier. During this inspection we discovered that some transactions had been posted to the wrong legal entity. We tidied up several accounts and corrected various errors. We reconciled all bank and credit card accounts and then made some changes to their chart of accounts to improve their reporting. Upon completing the corrections we re-lodged their first and only BAS to ensure a clean and accurate start.

Improvements

Their payroll is simple and minimal; nevertheless, we have been able to advise on some payroll-related compliance matters to assist their understanding of payroll processes. We now process all of their expenses, reconcile their bank accounts and run payroll on a weekly basis.

Current Work

Whilst we inform them of due dates, obligations and liabilities, they manage all staff and supplier payments themselves. They also issue their own sales invoices. Sometimes we’re asked to assist with chasing up customers for outstanding amounts. We also reconcile payroll on a quarterly basis, prepare the quarterly BAS, issue annual payment summaries and assist in completing their annual workers compensation declaration.

Summary

It has been a great experience to start out with a brand new business and guide them along the journey to best practices, while helping to get their business off to an excellent start as they grow and strengthen. We have been able to reassure the owners they are doing the right things and to offer valuable support as they navigate their way through the challenges of growing a start-up business. They are now running their business with much greater understanding and confidence and far less stress!