Frequently Asked Questions

Similar questions seem to come up all the time. Many people are also shy in asking what's on their mind.

Here are just some of topics that are useful to explain up front:

  • How affordable are our services?
  • Why should I switch?
  • How does management accounting differ from tax accounting?

 

In such hard times, how can I afford your services?

Unfortunately, if you feel you cannot afford professional accounting and bookkeeping, it means that you actually need our services the most – and quickly.

You can’t afford to wait any longer to find out where you stand financially. You need a clear picture of your assets and liabilities, your cash flow, where your expenses are, where your profitable work comes from, your goals to break even, etc.

Getting in our management accountants and bookkeepers could be the difference between going broke, or turning your red to black!

I have a bookkeeper, why should I switch?

Many small businesses have an in-house bookkeeper but are not getting the value they should out of the arrangement.

When you use Red To Black’s trained, experienced bookkeepers you can rest assured that we put in place best practices to ensure you, as the business owner, have all the details you need to manage your business, such as: regular reconciliations to ensure accuracy; prompt invoicing to clients; debt management for slow payers; correct management of payroll; putting checks to ensure errors or fraud are picked up; and regular reports to enable you to assess how your business is performing (and where to make adjustments).

Do I need to clean up before you start?

No, we do it all. We will pick up your records in whatever shape they are in (even if they are just receipts thrown in a shoe box) and we will set up a structured accounting system that can be used moving forward to deliver our quality bookkeeping services (and all the associated benefits) to you.

How much do your services cost?

We provide management accounting, bookkeeping and administration support services at different rates.

Our rates are reviewed on an annual basis to ensure we remain very competitive within our industry. Whether your needs are short or long term, we will provide you with a rate that you will be very happy with, based on the level of expertise that you need.

One thing we can assure you is that using our services will be cheaper for you in the long run than doing things yourself or with inexperienced or unqualified staff.

Since we have been in business, we have recovered for our clients hundreds of thousands of dollars by picking up overdue, missed or forgotten invoices and even fraud! Significantly more than what they invested in our services.

What is cash flow? Profit and loss? Balance Sheet

There are three key reports for running a business:

The profit and loss report which shows income (how many sales were made during the period) and expenses (what was spent during the period);

The balance sheet, which shows the current financial position, broken down into assets (what you have or own) and liabilities (what you owe).

The cash flow report is important because a business needs to know that money is coming in at least at quickly as it is spent (positive cash flow) or it will eventually go broke (unable to pay its bills).

What is management accounting?

Management accounting services, as opposed to the typically annual tax accounting services, assist business owner with the ongoing running of their businesses. Services include generation and discussion of management reports such as: balance sheets; profit and loss reports (and comparison to budgets).

Other services include: review and improvement of business processes; identifying performance issues and setting up recovery plans; setting up budgets; and training staff.

Can you train my staff?

There are many businesses out there that think they can download MYOB or XERO and just figure it out as they go.

Unfortunately, without an understanding of bookkeeping and accounting principles and requirements, this just leads to trouble with corrupt and erroneous data that will need to be fixed up before it can be used to understand how your business is going or before it can be used to file your BAS and Tax obligations.

Because of this, we highly recommend that if you intend to use your own staff for bookkeeping, that you consider bringing us in to train them properly.