Visory Insights: Clarity Beyond the Numbers 

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Built for businesses that want to grow with confidence. 

Visory Insights was born out of what we saw every day from years of working with growing businesses. Most businesses were paying for detailed reports accompanied by financial jargon, but few were able to easily interpret them. 

Some had clean books while others had fancy dashboards. But what they lacked was clarity about what was working, what wasn’t, and most importantly, what to do next. 

 

So, we built the solution in-house. Insights is the brainchild of one of our co-founders, Jordan Bevans and with the support of our talented product team and financial specialists, we created Visory Insights: a powerful reporting and business strategy tool that gives businesses the full financial picture, with the support of a dedicated Business Performance team.  

With so many moving parts in a business, from sales to staffing and operations, it can be difficult to keep track of every key metric in your business.  Often, this results in focussing on two to three of the most important ones at a time.  

So rather than inundating our clients with more fluffy commentary, we focus on cutting through to the most important levers a business can pull to achieve its goals. 

 

What is Visory Insights? 

Visory Insights is a business performance tool built directly into the Visory platform.
It takes clean, up-to-date bookkeeping data, combines this with business context you share with us over time, and turns it into a clear strategy, with easy-to-follow, actionable steps.  

Each month or quarter, depending on your plan, you’ll receive an Insights performance report that highlights key trends, risks, and opportunities across your business. You’ll also have access to 1:1 strategic sessions with your Business Performance Partner, who helps you break down your performance and decide what to do next. It’s like having the clarity of a CFO, without the complex financial models, or the price tag.  

 

Sample Insights and action items

 

Why It Works 

Because it’s built on your Visory bookkeeping data, everything is accurate, timely, and easy to action. We already know how your business runs, so we can provide insights that are relevant, not generic. 

Visory Insights lives inside our platform, storing your reports, actions, and results in one place. As the product evolves, it will continue to learn from the context you share about your business and financials and compare your business evolution to trends in your industry, therefore helping you improve faster.
 

Why Choose Visory Insights? 

If you’re a growing service business that wants to stop reacting and start making more profit through actionable steps, Insights is made for you. 

Boost Profitability 

We uncover pricing gaps, unprofitable services, and underperforming areas so you can take action and grow profit without all the hassle. 

Free Up Time 

We strip away the complexity of financial reporting. You’ll get the insights you need, fast and with clear next steps. 

See the Full Picture 

From gross profit margins to project-level reporting, Insights gives you financial visibility that’s easy to understand and allows you spot problems early and make data-backed decisions. 

Make Progress Toward Your Goals 

We align your financials to your strategic goals, so you’re not just tracking numbers, you’re building a sustainable business. 

 

Ready to increase your profits? 

Visory Insights is now available. If you’re ready to stop guessing and start making smarter financial decisions, we’d love to show you how it works. 

Talk to our team Book a Demo

Can You Claim Tax Deductions Without Receipts?

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If you’re wondering what you can claim on tax without receipts, this guide may help. In Australia, taxpayers can claim a deduction for many out-of-pocket expenses incurred while earning their income. These include work-related travel expenses, clothing and equipment costs, union fees, and other professional expenses.

However, the Australian Taxation Office (ATO) requires taxpayers to have a valid record or receipt to claim a deduction. This is to ensure that taxpayers are only claiming deductions for legitimate expenses. But what happens if you are missing receipts? Can you still claim tax deductions without a receipt?

In this article, we’ll look at what the ATO says about tax deductions without receipts. We’ll also outline which items you can claim without receipts and how you should ensure you are following ATO guidelines.

Australian Taxation Office rules for claiming tax deductions

Any expenses you claim on your taxes must meet three primary requirements: 

  • It must be necessary for you to earn your income.
  • You must have been the one who purchased it. Also, it can’t be an expense a company reimbursed you for. 
  • You must prove you purchased it with a record or receipt. 

If you meet the first two requirements, then all you need are the receipts. The ATO is clear on its stance when it comes to claiming tax deductions without receipts. According to the ATO website, “You must have a record of your expenses to show how you calculated your claims.” If you don’t have a valid receipt, you won’t be able to claim the deduction. However, there are some exceptions to this rule. 

What can you claim without receipts? 

For example, if you’re claiming for a work-related expense that costs less than $100, you may be able to use other records (such as your bank statements) to prove your claim. You should still track expenses.

The $300 rule

If you’re claiming for expenses that cost more than $300, you’ll need written evidence (such as receipts or invoices) to support your claim. You must also keep records of your expenses for five years in case the ATO needs to review your case.

Examples of tax deductions

Businesses and individuals can claim deductions on their tax returns. Claiming tax deductions can save you money. It lowers your overall taxable income, so you could end up paying less in taxes. Examples of tax deductions you can claim include:  

Lodging your taxes

Some costs associated with managing your tax affairs are deductible. For instance, if you pay a registered tax agent to lodge your return or provide advice, you might be able to claim the cost as a deduction. Other costs you can claim include: 

  • Travel expenses incurred when you travel to meet with your agent for professional advice
  • The fees involved with preparing and lodging your tax return and activity statements
  • Expenses related to communicating with the ATO on your behalf
  • Any litigation fees, such as court fees
  • Credit/debit card payment fees for business tax liabilities (GST etc.) and debit 

You may also be able to claim expenses associated with obtaining and using materials or software to assist in the process. However, you can only claim part of the cost if you use the software for other purposes besides lodging tax returns.

Car expenses

If you’re using your own car for work purposes, you can claim a deduction for the cost of running your vehicle.

What it includes: 

  • Fuel
  • Oil
  • Repairs
  • Maintenance

You can calculate your claim using the cents per kilometre or logbook method. 

Home office expenses

You can claim a deduction for a portion of your mortgage interest, rent, insurance, and utilities. However, you must be using a room in your house as a dedicated home office. 

Home office expenses include: 

  • Utility, rent, or mortgage costs for the portion your home office uses
  • Internet costs 
  • Stationery and office supplies

Work-related travel expenses

Some work-related travel expenses are deductible. Many businesses reimburse employees for travel costs. So, remember if you’re reimbursed, you can’t claim it on taxes.

What travel expenses include:

  • Airfares
  • Accommodation
  • Car hire

Clothing and uniform expenses

If you’re required to wear a uniform to work or if you need to purchase protective clothing, you can claim a deduction for the cost of these items. 

Education and professional development

You may need to take professional development courses or incur other education expenses for work. As long as your employer didn’t reimburse you for the costs, you can claim a tax deduction.

How to track receipts and expenses 

Tracking your receipts and expenses helps show proof of your expenditure. ATO’s myDeductions app can simplify this process for individuals and sole traders.

However, it’s not suitable for businesses. Instead, businesses should track their expenses with accounting software or receipt tracking via Dext or Xero. Working with an online bookkeeping service can also help you record and organize your expenses and other finances to make lodging taxes easy. 

How can you claim tax deductions without receipts? 

Keeping a record of your receipts is the most straightforward way to claim tax deductions. However, receipts are not the only records that businesses keep to log their income and expenses. 

Here are some examples of records you might also have:

Bank statements 

If you’re working with a bookkeeper, they may already be reviewing your bank statements to make sure your books are accurate. A bank statement will usually show a record of your transactions including the dates, amounts, and suppliers.

Logbooks

A logbook is a detailed record of vehicle usage over a specified period. If you use your car for work purposes, maintaining a logbook can help provide evidence of your claim for vehicle-related expenses.

The ATO will look at the total kilometres driven, how much of that was for work, type of car, and purchase date to determine whether you are eligible for the deduction.

Work Diary

A work diary is a record of work-related activities, often including dates, hours worked, and tasks performed. It can serve as proof of work-related expenses such as long-distance travel or overtime meals, helping substantiate your claims for tax deductions.

What records you can’t use for tax deductions

The ATO has a list of unaccepted proof of deductions, which includes the following:

  • Handwritten notes
  • Oral agreements
  • Estimated receipts
  • Spreadsheets

How do you get the most out of tax deductions?

There are a few things you can do to make sure you get the most out of your deductions.

  1. Keep records: As we mentioned earlier, keep records of all your expenses in case the ATO needs to review your claim. This includes receipts, invoices, bank statements, and wage records.
  2. Know the rules: It’s essential to know the rules around claiming a deduction. This includes knowing which items you can claim without receipts and what evidence the ATO will accept.
  3. Get help: If you’re unsure about something or need assistance calculating your deductions, you can speak to a registered tax agent or accountant.

A registered tax agent or accountant will help you:

  • Understand the rules and ensure you’re claiming deductions correctly.
  • Calculate your deductions so you don’t miss anything.
  • Lodge your tax return and maximise your refund.

At the end of the day, it’s important to remember that you can only claim deductions for expenses that are directly related to your job. However, with the help of a professional, you can be confident that you’re getting the most out of your tax return.

The Bottom Line

You can claim tax deductions without receipts, but you need to show evidence of your expenses through other records such as invoices, bank statements, and wage records. If you don’t have documents to support your claims, you can’t claim the deduction.

Items you can claim without receipts include car expenses, home office expenses, work-related travel expenses, clothing and uniform expenses, and education expenses.

To get the most out of your deductions keep records of all your expenses and know the rules around claiming deductions. If you’re unsure about something or need help calculating your deductions, you can speak to a registered tax agent or accountant. They can help you understand the rules and make sure you’re claiming deductions correctly.

Contact Visory Today

If you need help with getting your books in order for taxes, our team at Visory can help. We are a team of expert bookkeepers who can help you with all aspects of your bookkeeping. We’re here to help you maximise your savings and manage your books. Contact us today to find out how we can help you.

EOFY Survival Guide for Creative Agencies: The Most Commonly Forgotten Financial Tasks

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The end of the financial year (EOFY) is crunch time for creative agencies. While you’re focused on wrapping campaigns, billing clients, and managing deadlines, your financials often take a back seat, until it’s too late. This is why we have created this EOFY checklist for creative agencies.

At Visory, we help creative agencies streamline their bookkeeping and uncover smarter business insights from their finances. So we know exactly where things tend to unravel at the EOFY. This EOFY checklist for creative agencies covers the most commonly forgotten financial tasks, and what you can do now to stay ahead.

 

  1. Unbilled Work That Gets Missed

Have you completed work that hasn’t been invoiced yet? That’s called Work in Progress (WIP), and it may need to be recognised as income, especially for accrual-based accounting.

What to do: Review projects delivered in June. Log hours or progress, and generate any missing invoices. Ensure WIP is properly tracked in tools like Streamtime or Harvest, and synced to Xero.

 

  1. Project Profitability Left Unreviewed

EOFY is the perfect time to understand which clients or projects drove the most profit, and which cost more than they should’ve.

What to do: Run a profitability report across major accounts. Look at time tracked vs. budgeted hours, and flag scope creep for next year’s planning.

 

  1. Accruals and Prepayments Overlooked

If you’ve paid for software or services in advance, only a portion may be deductible this financial year. Similarly, any services you’ve received but haven’t paid for should be accrued.

What to do: Review large annual subscriptions, deposits, or retainers. Work with your bookkeeper or finance partner to allocate expenses across the correct financial periods.

 

  1. Missing Contractor Details for TPAR

If your agency uses freelancers or contractors (especially for design, production, or video), you may need to complete a Taxable Payments Annual Report (TPAR).

What to do: Confirm if your agency falls under reporting obligations. Gather ABNs and contractor payment details. The deadline is 28 August, but it pays to prep now.

 

  1. Forecasting the New Financial Year

EOFY isn’t just about closing the books, it’s a chance to plan ahead. Many agencies forget to build or update cash flow and revenue forecasts until Q1 is already in full swing.

What to do: Use EOFY as a trigger to reset your forecast. Base it on pipeline activity, retained accounts, and recurring costs and don’t forget to align it with your wider business growth goals

 

  1. Chart of Accounts That No Longer Makes Sense

Over time, your Chart of Accounts can become messy, especially if you’re adding new services or team structures. This creates confusion for reporting and budgeting.

What to do: Look at whether your current setup gives you the clarity you need on things like project profitability, team costs, or software spend. If not, we can help restructure your books and provide you with smarter business insights.

EOFY doesn’t have to be a headache

EOFY can be a huge opportunity to clean up, look ahead, and take control of your agency’s finances. But only if you stop putting it off.

With Visory, you get a team of experts who handle the numbers behind the scenes, so you can stay creative and in control. Whether it’s prepping your tax data, running reports, or highlighting key insights, we’ve got you covered.

 

Book a Quick EOFY Chat

 

Frequently Asked Questions Read more

Work-related travel expenses: How to track them and what to claim for your business

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Many business owners and employees travel, so you’ll likely need to record work-related travel expenses. The good news is that business travel expenses are often tax deductible, so tracking them can help you save money on taxes. Tax deductions can lower your taxable income, so you could pay less in taxes overall. 

In this post, we’ll cover everything businesses need to know to track, record, and claim work-related travel expenses, including: 

  • What are work-related travel expenses?
  • Business travel expenses you can claim
  • What you can’t claim
  • Records you need to claim business travel expenses
  • How to track work-related travel expenses

What are work-related travel expenses? 

Work-related travel expenses may include costs for business travel, accommodation, or meals. However, not all travel expenses qualify as work-related. 

Many small businesses run into issues with the Australian Tax Office when they deduct travel expenses. It can be confusing to determine what counts as a qualified business travel expense and what doesn’t.

One of the key issues employers run into is understanding the line that separates personal and business expenses. So, the ATO established clear definitions for the types of expenses that qualify to be tax deductible.

Business travel expenses you can claim

To qualify as a work-related travel expense, you or your employees must be:

  • Travelling away from your home and staying away overnight
  • Able to prove that the travel was necessary for your business

Some of the common travel expenses businesses can deduct are costs for:

  • Rental cars and additional fees for parking, fuel, tolls, etc.
  • Public transport (bus, trains, etc.)
  • Taxis or ride-share (Uber)
  • Airfare (tickets and baggage costs)
  • Accommodations (hotels)
  • Overnight meals

What you can’t claim

You can’t deduct travel expenses that aren’t necessary for conducting business. In other words, you can’t deduct your holiday. However, you can deduct the travel costs to go to another city and meet with a client. In that case, you may deduct transport, hotel, and even some meal costs. 

Other types of non-deductible travel expenses include: 

  • Leisure activities while on a business trip
  • Holidays during business travel
  • Travel insurance, visas, and other documents
  • Gifts and entertainment

If you combine a business trip with holiday, then you can only claim the portion of the trip that was for business. For example, if you live in Perth and attend a work conference in Sydney, you can claim those costs. But, if you decide to stay in Sydney a few days after to sightsee, then the extra days and money doesn’t qualify. 

To qualify part of those expenses, you’ll need to show how you separated the work from personal costs. 

Records you need to claim business travel expenses

Businesses may cover employees’ work-related travel expenses through travel allowances. However, there are specific guidelines for how much an employee may spend daily on travel allowances, which we’ll cover later in this post. 

To claim travel expenses, you’ll need to keep records. If you can prove something was a qualified business travel expense, you should have no issues with your tax return.

Businesses should keep these records for five years:

  • Meal and other receipts
  • Tax invoices
  • Ticket stubs
  • Boarding passes
  • Travel diaries

You may be able to show proof that something is a work-related travel expense through: 

  • Signed contracts 
  • Meetings with documentation
  • Proposals
  • Email confirmations

How to track work-related travel expenses

Businesses can cover work-related travel expenses for employees and track them. To do this, you generally have three options: 

  • Pay for expenses directly with a company card or business bank account
  • Set up a reimbursement program for travel expenses 
  • Pay employees a travel allowance

If your business covers travel expenses through any of the above methods, then employees can’t claim those on their personal taxes. Instead, you may be able to claim them and deduct the cost from business taxes. 

Keep in mind if you offer travel allowances that they might trigger the fringe benefits tax, which is a separate income tax. For example, some businesses offer an employee a living-away-from-home allowance instead of a travel allowance. Because the employee is away from home to work for long periods, it might be considered a fringe benefit.

Businesses need to keep accurate records on those travel expenses. Here are some tips to help you track work-related travel expenses.

1. Educate employees on what they can claim

You can reduce errors and missing records by training employees on how to track travel expenses before they go on a trip. Even a simple checklist of what travel expenses you cover and don’t will be helpful. 

Again, if you offer travel allowances, inform employees of the daily limits or reasonable amounts for meal, accommodation, and incidental expenses. The reasonable amounts vary depending on location and other factors, so consult ATO’s guidelines.

Additionally, your employees should keep all of their receipts and documents while travellingon business. 

2. Track expenses and keep records 

The ATO requires that businesses keep records for five years as proof of travel claims. There are several expense tracking apps that make it easier to save receipts and other documents. 

The ATO app also has a myDeductions tool for sole traders. Larger small-to-medium enterprises will want to invest in a more robust tool. Accounting software like Xero and MYOB also have expense tracking features. 

3. Log a travel diary

If you’re a sole trader or partner and travel for work for more than six consecutive nights, the ATO requires you to keep a travel diary. It’s a logbook of what you do and spend money on while traveling. 

A travel diary can be in any format as long as it shows:

  • The days you travelled
  • What you did each day
  • The times you did it 

These entries should all correlate with the records you keep—this acts as an activity timeline with records. 

Keeping a travel diary even for trips shorter than six nights might be beneficial. If you ask your travelling employees to keep a travel diary, you’ll have an extra way to verify their claimed expenses.

4. Track expenses with a bookkeeper

The ATO is particular about what you can and can’t claim for travel expenses, and it can be costly if you track them incorrectly. At the same time, business travel expenses can become complicated to track, deduct, and report. When your business is fast-growing and you have over 100 employees to track, this is especially true. 

Online bookkeeping services like Visory can help you track, record, and report your travel expenses. Once you need to lodge your business taxes, you’ll have organised books that include all the documents the ATO may need.

To learn how Visory can help you manage work-related travel expenses, and all your back-office finance needs, chat with one of our bookkeeping experts. Once you schedule a time to chat, we’ll get to know your business and identify the best services for you. 

The Ultimate Guide to Year-End Bookkeeping for Business Owners

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As the calendar year winds down, it’s time for business owners to shift gears and focus on closing the year strong while setting the stage for success in 2025. The end of the year is not just about tidying up loose ends, it’s an opportunity to evaluate, plan, and optimise your business operations.

This is why we have developed a financial guide to year-end bookkeeping for business owners, to streamline your finances, align with your goals and prepare for a successful new year.

 

  1. Conduct a Financial Health Check Before Year-End

Start by reviewing your financial statements for 2024. Are they accurate, up-to-date, and reflective of your business performance? This is critical for understanding cash flow, profitability, and potential growth opportunities.

Key Actions:

  • Reconcile bank accounts and transactions.
  • Review profit and loss statements and balance sheets.
  • Identify unpaid invoices or outstanding debts.

Our expert bookkeepers can clean up your financial records and ensure your data is organised and reliable. This provides business owners with a clear picture of your financial health as you head into the new year. Better yet, visit our website to avail of a free Financial Health Check.

 

  1. Optimise Your Tax Strategy

The end of the calendar year is a crucial time to prepare for the end of the fiscal year. Proactive tax planning can reduce liabilities and maximise deductions, ensuring you’re not leaving money on the table.

Key Actions:

  • Identify tax-deductible expenses and ensure they’re recorded.
  • If registered for Fringe Benefits Tax, review benefits provided to employees.
  • Review payroll compliance to avoid year-end surprises.

We collaborate with your accountant to ensure your books are tax-ready, minimising stress and maximising efficiency during tax season.

 

  1. Plan for Cash Flow in 2025

Strong cash flow is the lifeblood of any business. Planning now ensures you won’t face bottlenecks in the new year, especially during slower seasons.

Key Actions:

  • Create a budget for 2025, forecasting revenue and expenses.
  • Identify upcoming investments or large expenses to prepare for.
  • Analyse trends in client payments and adjust forecasts if needed.

We provide insights into your financial data, helping you build a realistic budget and spot opportunities to improve cash flow management.

 

  1. Evaluate Your Operational Efficiency

The end of the year is an ideal time to assess how well your back-office processes are working. Are there bottlenecks or inefficiencies that are holding you back?

Key Actions:

  • Audit your current bookkeeping and reporting workflows.
  • Assess the technology and tools you’re using – are they helping or hindering you?
  • Look for opportunities to outsource time-consuming administrative tasks.

We take time-consuming admin tasks off your plate, from payroll to data entry, so you can focus on growing your business. Plus, our software integrations ensure your systems work seamlessly together.

 

  1. Set Goals and KPIs for 2025

A fresh year means fresh opportunities. Define clear goals and key performance indicators (KPIs) that will guide your business strategy in 2025.

Key Actions:

  • Review this year’s goals: What worked? What didn’t?
  • Identify areas for growth, like expanding services or improving profitability.
  • Establish KPIs to measure progress and success in the coming year.

Our detailed reporting tools give you actionable insights to track your business’s performance and stay aligned with your goals.

 

  1. Review Compliance and Legal Obligations

Ensure your business is compliant with all necessary regulations before the year ends. This avoids penalties and ensures you start the year on the right foot.

Key Actions:

  • Verify employee records and superannuation compliance.
  • Update business licenses and permits if required.
  • Ensure your accounting practices align with the latest standards.

We simplify compliance by keeping your financial records organised and up to date, so you don’t have to worry about falling behind.

 

  1. Prepare for Year-End Reporting

Year-end reporting is critical for stakeholders, investors, and tax purposes. A polished set of reports can also help you make better decisions in 2025.

Key Actions:

  • Compile accurate financial and operational reports.
  • Summarize key metrics, like profitability and growth rates.
  • Share insights with your team to align everyone on next year’s priorities.

We provide real-time reporting that’s customised to your business needs, offering clarity and confidence as you wrap up the year.

Act Now to Set Your Business Up for Success

The end of the year is a busy time, but it’s also an opportunity for business owners to strengthen their foundation for growth. By partnering with Visory, you can eliminate the back-office headaches and focus on building a thriving business in 2025.

Don’t wait—schedule a call with us today to get started!

Introducing Visory’s New Customer Solutions Team

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At Visory, we believe managing your business finances should be easy, efficient, and adaptable to your unique needs. That’s why we’re shaking up the traditional bookkeeping model and delivering a new way to get the support you need, when you need it.

We’re proud to introduce the Visory Customer Solutions Team, a game-changing approach to financial support that replaces the outdated, one-size-fits-all model many businesses have relied on for years.

Why Change the Status Quo?

For decades, the industry standard has been assigning businesses a single point of contact in the form of a bookkeeper or an account manager. While this works for some, it can also present challenges:

  • Conflicting Priorities: Your bookkeeper manages multiple clients, so what you deem a priority, may not align with your bookkeepers.
  • Limited Expertise: Bookkeepers may have a narrow scope of expertise. Complex needs such as migrating from one software to another, may be outside of their scope of knowledge.
  • Inflexible Support: Many businesses need help on the go, not just at their desks.

At Visory, we see things differently. Your business deserves fast access to specialised expertise across a range of financial needs. That’s where our new Customer Solutions Team comes in.

Meet the Customer Solutions Team

This isn’t just a team, it’s a resource designed to fit seamlessly into your operations, offering faster, more tailored support than ever before. Here’s what you can expect:

  • Faster Responses: Enquiries are routed to the most suitable expert quickly, so you’re never left waiting.
  • Specialised Expertise: Our team includes experts in everything from software migrations to cash flow management, giving you access to deep knowledge across a variety of needs and industries.
  • Flexible Support Options: Whether you’re in the office or out in the field, you can reach us however works best for you:
    • The Visory Platform: Log requests, track progress, and get updates all in one place.
    • “New Request” Button: Submit and track your requests with clear timelines for responses.
    • Phone: For urgent issues, call us at 1800 VISORY during business hours.
    • Email: Share detailed questions or documents whenever it’s convenient for you.

The Visory Advantage

This shift isn’t just about solving problems faster, it’s about redefining what great financial support looks like. Unlike traditional bookkeepers, who juggle multiple clients with varying priorities, our team gives you:

  • Dedicated Focus: Your requests are prioritised based on your needs, not someone else’s schedule.
  • Broader Range of Expertise: Whatever challenge your business faces, we have the right specialist to help.

Ready to Get Started with Visory?

From December 13th, the Customer Solutions Team is ready to help you tackle challenges big and small. Whether you’re looking for quick advice, strategic guidance, or hands-on support, we’ve got you covered.

Contact us today to learn more about how this new approach can elevate your financial operations and your business success.

 

Do I Need a Bookkeeper, an Accountant, or Both?

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As a small business grows into a medium- or large-sized operation, it often becomes impractical for the founder to balance the books. Picture a back-office employee, already stretched thin, trying to manage the detailed work of itemizing and coding transactions—where would they find the time?  While office managers can temporarily bridge the gaps, bringing in a dedicated bookkeeper or accountant becomes essential for maintaining efficiency and accuracy.

The terms bookkeeper and accountant are often used interchangeably, but in fact, they are not one and the same. The educational requirements, daily schedule, and specific skills of these two roles can overlap but are not synonymous. Let’s look at why accountants and bookkeepers can each help your business, and how to tell if you need a bookkeeper or an accountant. 

What does a bookkeeper do?

Bookkeepers are responsible for the day-to-day record keeping of your business’s money. The duties of a bookkeeper can include documenting financial transactions, posting credits and debits to a balance sheet, processing payroll, generating invoices, and merging accounts. The bookkeeper may also stay on top of the vital records required by the Australian Tax Office (ATO) or New Zealand’s Inland Revenue Department (IRD). 

In short, bookkeepers create the financial records that an accountant can later analyse and use to create more complex reports or file full tax returns. A bookkeeper is the first stage in the accounting process. They benefit your business by tackling daily financial records that must be accurate in order to create useful reports later. 

Who is a bookkeeper? Some bookkeepers are trained by their employers, but other bookkeepers learn their skills by getting a Certificate in Accounting and Bookkeeping and registering to become a BAS Agent. You may want to hire a bookkeeper if you have a tax accountant but need someone to handle your office’s in-house financial records.

What do accountants do?

Not only will an accountant use the records that a bookkeeper created, but they will also crunch the numbers on their own reports. Their work tends to be more senior level and they may even advise the company regarding high-level company decisions. As a result, the salary of an accountant can be nearly double that of a bookkeeper. 

The typical role of an accountant encompasses things like prepping for taxes, preparing financial statements, plotting the growth of your business, verifying that the company’s finances are government compliant, examining revenue and recommending budgets, resolving accounting discrepancies, and setting up accounting processes. When you’re deciding between a bookkeeper or an accountant, you know you’re ready for a full-time accountant if you have the need for financial analysis and advice regarding the impact of financial decisions. 

An accountant may have a Diploma of Accounting or another advanced degree. Many businesses can get by with one in-house accountant, but you may need the expertise of a whole team as you grow and scale. 

When you need both an accountant and a bookkeeper

It is important to understand when you might need both a bookkeeper and an accountant. Having both roles working together offers significant benefits. Separating their duties helps ensure compliance with government reporting and creates a built-in system for cross-checking. The bookkeeper records the financial transactions, while the accountant reviews and verifies the books, reducing the likelihood of errors.

A complicated tax structure may also call for both roles. You want one professional to keep an accurate general ledger and track daily expenditures (the bookkeeper) and another to analyse the books, look for available tax credits, and prepare tax reports (the accountant). If your business is growing and in search of investors, having both a bookkeeper and an accountant also strengthens the financial picture of your growing organisation. 

So, do you need a bookkeeper or an accountant, or both? Bookkeeping services keep your day-to-day financial tasks done on time. You’ll never miss payroll again. Meanwhile, an accountant offers more robust analysis and internal financing advice. Larger companies probably need both. Bookkeeping services keep you running smoothly in the present day and accountants make sure the future remains stable, allowing you to focus on growth.

If you need a team of financial experts to keep your company’s ship upright, contact Visory. Our highly skilled experts are tailored to the expertise you need, and we can tackle bookkeeping and accounting projects large and small. We’ll become such a part of your team you’ll want to invite us to the holiday party (after we tell you if that can be expensed).

6 Signs You Need to Upgrade Your Business Bookkeeping

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Here you are again, burning the midnight oil to reconcile your bank statements. Are you spending more time crunching numbers than enjoying the fruits of your labour? It might be time to upgrade your business bookkeeping system. 

As your business grows, your original accounting system won’t make sense anymore. Keeping a general ledger in a spreadsheet is too basic for a growing enterprise. Are you getting in the weeds trying to do your own bookkeeping? You may be able to save time and money by upgrading to a new bookkeeping system. 

Do these sound familiar? It’s time to upgrade your bookkeeping

There are some common red flags that signal your business’ bookkeeping is not up to scratch. Some common themes include: wasted time, wasted money, and lack of compliance. If any of these scenarios sound familiar: you may need to overhaul your bookkeeping system.

You spend more time on bookkeeping than your business

If your DIY bookkeeping system is taking up all your time, who is running your business? Too many business owners waste hours entering transactions and finding accounting errors. This is all time that could be spent winning new business or inventing new marketing ideas.  

It’s also important to acknowledge the differences between an accountant vs. bookkeeper. If your in-house accountant is also doing daily bookkeeping, they may be taking time away from vital business processes like payroll.

You’re always behind on your business bookkeeping

You just can’t seem to get ahead in your bookkeeping anymore. Surprise, surprise — bigger businesses have more complex financial records. If catch-up bookkeeping is your only form of bookkeeping, there is a problem. The health of your business will suffer if you can’t get an accurate snapshot of your accounts payable and accounts receivable when you need it. 

When you try to do your own books as an expanding organisation, you will nearly always make mistakes. Not only are you dealing with an increased volume in transactions, but your small business tactics may not apply anymore. Larger businesses often need to switch from single-entry bookkeeping to double-entry bookkeeping and make other structural changes to stay current. 

You have reached the limits of your current software

Small business software has its limitations, including the number of transactions, staff, and clients you are allowed to track. Your business’ bookkeeping needs an upgrade if you can’t scale within your current system. Simply put, using small business accounting software when you’re no longer a small business is asking for trouble. Ideally, you would upgrade to a new system before you hit your official limit and have to scramble to transfer your data.

Your business’s tax seasons are always chaotic

Do you find yourself in chaos each June? Tax season means tracking income tax rates for business, capital gains tax, fringe benefits tax, PAYG withholdings, goods and services taxes, payroll taxes, tax deductions, tax credits, and more. Plus, staying compliant is the only way to avoid certain government penalties. 

Despite the complexities, lodging your taxes doesn’t have to be a nightmare. If it is, you are probably not using the right bookkeeping system.

Your cash flow is unpredictable

A good business bookkeeping system helps you strategise. You should be able to estimate peak seasons, low seasons, and estimate overhead costs. Another sign that it’s time to upgrade your bookkeeping is that you can’t forecast your cash flow. While there could always be other things at play as well, inconsistent record keeping makes it more difficult to accurately predict your accounts receivable. 

You can never get ahold of your bookkeeper

Your financial records should not be a mystery. Do you struggle to contact your bookkeeper when you have a question about a bank statement, or you need a balance sheet? This is a sure sign that you’ve outgrown the person or service that you currently work with. The right bookkeeper will make your records available to you around the clock, not hold accounting software passwords hostage or failing to offer guidance when you need it. 

Have you outgrown your business bookkeeping system? Whether you are trying to do it all yourself or you just have a bookkeeper who can’t keep up with your growth, it’s wise to bring in reinforcements. Visory is a business bookkeeping service that can scale with you. Begin with basic bookkeeping needs, then add new experts to your remote team as you need them. Contact us today to see if we can help.

How to Manage Your Bookkeeping This Black Friday

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Black Friday offers huge sales opportunities for small businesses, but it also brings a surge in bookkeeping tasks. For small business owners, managing your finances efficiently during this period is crucial to ensure profitability, cash flow stability, and accurate reporting.

Our top tips for bookkeeping this Black Friday

We have developed a guide to help you stay on top of your bookkeeping this Black Friday, so you can make the most of the holiday sales season.

1. Prepare for Increased Sales Volume

The influx of sales during Black Friday can be exciting, but it also means handling a higher volume of transactions. To stay organised:

  • Use Automated Bookkeeping Tools: Platforms like Xero, or other bookkeeping software can streamline data entry, track sales in real-time, and reduce manual entry errors.
  • Reconcile Daily: Regular reconciliations ensure accurate records and prevent the end-of-month backlog. With high sales volume, daily or weekly reconciliations keep your books accurate.

 

2. Stay on Top of Inventory Costs and Management

Inventory management becomes essential as demand increases during Black Friday. Here’s how to stay on track:

  • Record Inventory Changes Promptly: Ensure that your inventory purchases and restocking costs are accurately tracked. Proper tracking allows you to stay aware of cost of goods sold and prevent stock shortages.
  • Adjust for Discounts: Offering Black Friday discounts? Track the inventory and cost changes accordingly to avoid impacting profit margins and financial reporting.

 

3. Keep a Close Eye on Cash Flow

Cash flow management is key during Black Friday. Increased revenue is great, but promotions, marketing, and increased operational costs can put pressure on cash flow. To manage this:

  • Monitor Incoming and Outgoing Cash Closely: Track the sales inflows and promotional expenses to maintain a clear understanding of cash flow.
  • Plan for Immediate and Future Expenses: Black Friday might mean a temporary cash boost, but setting aside funds for future expenses, like restocking or holiday bonuses, helps maintain stability.

 

4. Track Expenses and Understand Profit Margins

Black Friday promotions often involve discounts and marketing expenses, which can impact profit margins. Accurate bookkeeping is essential to understanding these costs and assessing profitability:

  • Categorise Promotional Expenses: Use specific categories for Black Friday marketing, shipping, or other promotional costs. This helps you track how much you’re spending on the sale and assess its overall profitability.
  • Review Profit Margins: With proper expense tracking, you’ll have insights into profit margins after discounts. This information is valuable for future Black Friday planning and pricing strategies.

 

5. Consider Tax Implications and Potential Liability

An increase in Black Friday revenue could affect your tax liabilities, especially if your business is close to moving into a higher tax bracket. To avoid surprises at tax time:

  • Track Revenue Accurately: Make sure all Black Friday sales and discounts are recorded in detail. Accurate records are key for both tax filings and financial analysis.
  • Set Aside Funds for Taxes: Based on your expected profit from Black Friday, set aside a portion of revenue to cover potential tax liabilities. This can prevent cash flow shortages later in the fiscal year.

 

6. Use Black Friday Insights for Financial Reporting and Future Planning

The data generated during Black Friday can provide valuable insights for your business:

  • Analyse Sales Data: With thorough bookkeeping, you can review which products sold best, track customer behaviour, and evaluate the success of promotional efforts. This data will guide you in future promotions by helping you understand profit margins and bestsellers.
  • Strategic re-investment: If your Black Friday sales brought a boost in cash flow, consider reinvesting it strategically. Stock up on bestselling products, enhance your marketing efforts, or upgrade technology to streamline operations. You could also expand your product line, improve customer experiences, or set aside funds as a financial buffer. Thoughtful reinvestment can drive long-term growth and set your business up for future success.

 

Final Tips for a Successful Black Friday Bookkeeping Strategy

Managing bookkeeping during Black Friday can feel overwhelming, but with a proactive approach, you can handle the increased volume and make the most of your sales. If you’re looking for extra support, partnering with a bookkeeping service like Visory can streamline the process, from daily reconciliations to managing cash flow and generating timely financial reports.

This Black Friday, let Visory handle the numbers so you can focus on growing your business and delivering outstanding customer experiences. Contact Visory today to learn how we can support your business through the holiday season and beyond.

7 of the Most Common Bookkeeping Mistakes

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You’re motivated, savvy, on the move and incredibly time starved. Between growing your client base and seeking new investors, it’s common for day-to-day tasks to fall to the wayside. Just don’t let bookkeeping be one of them. Small bookkeeping errors add up to a major landslide. A few missed financial transactions here and there can throw off entire financial reports, or even lead to tax implications. Here are seven common bookkeeping mistakes you can avoid with the right bookkeeping help. 

7 of the most common bookkeeping mistakes and how to avoid them

Businesses of all sizes experience bookkeeping errors. From undocumented expenses to unfiled taxes, accounting mistakes come in all shapes and sizes. You could face not only unexpected losses, but government penalties if you fall into one of these seven avoidable traps. 

1. Falling behind in bookkeeping

One of the most common bookkeeping mistakes is simply falling behind. Even a month of missed reports stops you from accurately understanding your cash flow and current debts. Keeping a daily general ledger, the right way means staying on top of every single transaction that comes in and out of your accounts. 

2. Using accounting software incorrectly

Popular accounting software programs can do a lot of heavy lifting. But they are still subject to human error. In other words: You can’t skip taking the tutorial. Do an annual check-in with your accounting software and ask yourself: Am I using the most up-to-date version of this software? Can this software handle the scale of my bookkeeping needs? Is this software updated with the latest tax rates?

3. Incorrectly paying employees

If you have a full-time employee classified as a casual worker, the mistake could cost you thousands. You may be held responsible for back wages plus interest, and face legal penalties. What might seem like a small formality is in fact a major decision. Familiarise yourself with employee classification in Australia and New Zealand to avoid this costly mistake.  

4. Inaccurately reporting payroll and sales tax

A major part of keeping accurate business finances is paying the proper tax rate. Since payroll taxes vary across states and territories, you may need some help sorting out how to set up your payroll system the right way. In this case, it is always better to triple check than risk a hefty penalty at the end of the year. 

You must also make sure your point-of-sale systems are set up with the right sales tax (10% in most cases in Australia and 15% for most goods and services in New Zealand). Rest assured, if you don’t pay enough in taxes now, you will end up paying for it later. 

5. Mixing business and personal

The best financial practice for any business – even a small or medium-size organisation – is to separate personal and business transactions. When you’re trying to calculate tax deductions and reconcile your end-of-year reports later on, blended finances are a headache. You will have less to untangle later if you use a designated business account now. 

6. Tossing your records too early

Did you know the government requires your business to keep certain financial records for a set period of time? It turns out you can’t just send everything to the shredder when tax time is over for the year. In Australia, you should keep written evidence of your financial reports for five years after you lodge your tax return. In New Zealand, financial records should be kept on hand for seven years after you lodge the year’s taxes. This includes everything from invoices and receipts to wage books and vehicle logbooks. 

7. Hiring an inexperienced bookkeeper

Many of the above errors trace back to one common misstep: hiring a bookkeeper who is not able to keep up with your evolving bookkeeping needs. Someone with more experience can manage financial reports, prepare an accurate balance sheet, and stay on top of tax requirements. If you keep running into inaccuracies, it may be time to enlist a more robust bookkeeping team to round out your back office and keep things in line. 

If you’re a growing business in need of additional help, outsourcing your bookkeeping service may be the answer. Visory can help your organisation avoid these common mistakes. You will be connected with a team of experts with industry specific knowledge, and you will have 24/7 access to your financial reports. Contact Visory today to learn more about our suite of services that support your back office and help you avoid common bookkeeping errors.