06 May New Business Setup
MIL Group is an Australian based private company specialising in services for trustees, healthcare agencies and private individuals. The owner operates the business with three staff.
Prior to this engagement, Microsoft Excel was used to track income and expenses which had sufficed but took considerable effort to be able to report on even basic income trends. Payroll was done with a freeware product that took considerable configuration on a regular basis.
Due to steady business growth, the owner could foresee the need to register for the Goods and Services Tax (GST). LedgerWorkx’s CEO, Philip Beresford, was asked to get involved. Initially it was an assessment of turnover to establish when thresholds were likely to be met. Once this was determined, assistance was given to register for GST.
GST registration brings with it quarterly reporting requirements that would have required considerable work utilising the existing systems, would be prone to error and have limited auditability. Philip reviewed the requirements and then proceeded to implement Quickbooks Online. This included:
- Creating a relevant Chart of Accounts
- Loading past accounting data
- Linking bank accounts
- Reconciling accounts
- Payroll setup
MIL Group is now in a position to generate profit and loss statements, balance sheets, cashflow statements, business activity statements (BAS) and other required reporting on demand. Bank accounts are automatically reconciled, BAS returns are electronically submitted to the Australian Tax Office as is payroll information via Single Touch Payroll. Invoicing is substantially easier than it was before, and accounts receivable are easily tracked.
This project has resulted in substantial time savings. Things that would have taken many hours under the old system can now be done in minutes. This has freed MIL Group up to focus on its core business and continue to grow their relationships with clients.
When presented with the financial records at the end of the first year utilising the new systems, MIL Group’s specialist tax accountants said:
we just wanted to let you know that your Quickbooks file is immaculate