CPA Online

 





 

Accounting

Phase III is able to offer a  range of accounting services, including:

Our consultants can work with your staff to not only address various accounting issues, but where required, train your staff to be able to perform the task themselves in future.

Software Selection and Set-up

If you operate a business, then you need to maintain appropriate books and records to:

  • measure and review the performance of your business;
  • complete your income tax return;
  • meet relevant legislation (i.e. - Corporations Law);
  • satisfy lenders' requirements (i.e. banks).

Using an established accounting software package can make bookkeeping and reporting simple - providing the software is configured to suit your business and its reporting needs. 

Coding information at the time it is paid/processed is much easier than trying to find it at year-end when you  invariably need it in a hurry.  Understanding your reporting needs and setting up your software package to suit is the first step in reducing your workload and ultimately the cost to your business. 

Phase III can help you choose a suitable software package and advise on how your Chart of Accounts should be established to record the information you need.


Management Accounting

Management accounting is focused on producing accounting and other information that is relevant to making day to day decisions on issues such as product profitability, sales & marketing campaigns, cost control and breakeven point. 

As a minimum, most businesses should prepare at least a detailed profit & loss statement and balance sheet on a regular basis. Ideally, other management reports should be produced that highlight trends in the business's key drivers. Waiting for the business's annual tax return or accounts is too late to be of any effective help in managing the business throughout the year. Monthly, and in some cases daily, reporting is required to ensure effective control is being kept over key revenues or expenditures.

Phase III has skilled consultants that can help you identify you key business drivers and develop standardised reports so that you can manage your business more effectively. In some cases your existing accounting software package can already provide detailed management accounting information while, for other reporting formats, it is easier to export the raw information into a spreadsheet package such as Microsoft Excel® and perform the analysis or graphing there. Phase III can help you develop spreadsheet based models for reporting, budgeting or other special needs.


Financial Accounting
 

The preparation of your business's annual accounts is an important event, particularly if your business is operated through a company or you are required to submit annual accounts to a bank or other stakeholder. While the type of structure you operate through and the purpose for which the accounts are required both have implications for the presentation of financial accounts, generally financial accounts are expected to meet certain accounting standards and possibly the disclosure requirements of the Corporations Law. 

Financial accounts are normally provided with a series of notes to the accounts that aim to provide readers of the reports with an insight into a number of summarised balances appearing in the financial accounts. Accurate calculation of prepayments and accrued expenses is important, as is reconciliation of fixed assets and calculation of depreciation.

Many small-medium businesses manage throughout the year but require assistance with their year-end financial accounts. Phase III can provide assistance with all these requirements and provide helpful instructions to assist your staff streamline the reporting processes for future periods. This should lead to a transfer of knowledge and a cost reduction in external accounting fees.


Bookkeeping
 

Keeping up with the 'bookkeeping' is one of those chores which, if left too long, can become quite onerous. If you need help with your bookkeeping, whether permanently or just to cover a short-term staff shortage, Phase III can help. We can either perform the work off-site for you (subject to software compatibility) or, if you prefer, arrange for a bookkeeper to work at your premises.

Additionally, we can review your bookkeeping practices and procedures to identify areas for improvement or changes to improve the efficiency of the various regular tasks.


General Ledger Reconciliations
 

Prior to preparing any accounts or tax returns, one of the first things an accountant will do is attempt to ensure all balance sheet carrying amounts are accurate and supportable. In our experience, this is where a significant proportion of an accountant/tax agent's time is spent - attempting to clarify what year-end balances contain. With businesses that provide reconciled accounts, the task is immensely easier.

At Phase III we recommend that all balance sheet accounts be reconciled monthly, along with selected profit & loss accounts. While some general ledger accounts may see little movement during the month and therefore require little, if any reconciliation, others, such as bank accounts often have considerable transactions posted through them and require monthly reconciliations to keep the task manageable. 

Our consultants can not only help you perform you general ledger reconciliations, but also setup the reconciliations so that your staff can continue the reconciliations each month with little or no further help.


Capital Expenditure Evaluation
 

If your business is involved in significant capital expenditure, then having proper evaluation techniques and procedures in place is critical.

Major capital acquisitions often require two key decisions:

  • is the investment worth it ?; and
  • how will the investment be funded.

The two are quite separate and should not be confused.

Major acquisitions usually require the preparation of cash-flow projections for the potential investment over 2-10 years, including estimating any residual value the investment may have at the end of the analysis period. Net cash-flows need to be 'discounted' at an appropriate weighted average cost of capital to calculate whether the investment returns a positive net present value.

Specific considerations include the impact of taxation, payback period and risk associated with making the investment and the risks associated with NOT doing the investment. Additionally, the use of sensitivity analysis or, for larger projects, scenario analysis call for some advanced spreadsheet modelling skills.

So, whether your looking to put in place capital investment guidelines, undertake a capital investment evaluation or seek funding for a particular capital project, Phase III can help.


Training
 

Do you or your staff require some basic training ? Phase III can provide training on:

  • accounting for GST, FBT and PAYG;
  • basic bookkeeping;
  • advanced accounting principles, including accounts preparation;
  • basic spread sheeting.

Training can be arranged either one-on-one or for groups of up to 12. Where formal 'classroom' training is conducted written notes are provided to all attendees.

 

 

 



TIP

Make sure your Chart of Accounts and record keeping gathers your required information at source - not at year-end!


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