Westpac is a publicly listed company with a focus on providing banking services through a portfolio of financial products and services. The selected article discloses the “fee scandal”, Westpac has been involved in lately. Predictably, by the bank to attempt to remediate the scandal resulting in reduced profits by the massive cash outflow reduction in profits that was induced by the rise in provisions. The investigation launched by the Royal Commission has negatively impacted Westpac Banking by reputation but also affected the company’s earnings. As a result, Westpac’s stock price plummeted at the time of the investigation at the amount of $23.83, the lowest in 5 years. Despite the falling stock price, Westpac has reported a higher profit compared to the previous financial year (Westpac, 2018). Reports like this lead to many business risks and the integrity of the accounts within the financial statement as it is inconsistent with the practices of generating revenue.

A business risk that is prominent in Westpac is the risk of liquidity due to the significant outflow in economic resources. According to the article, the Royal Commission is imposing a $510 million pre-tax provision on Westpac in regards to the illegal problem. The rule will have a significant impact on the bank’s liquidity as well as the availability for funds. The rising cost from the Royal Commission has dramatically impacted the bank; especially it will increase the strain on the financial position with a “potential repayment” of $297 million back to the customers. Besides, this has also driven a widespread investor pessimism which could affect the bank’s credit rating as well as the ability to raise capital. Instead, to maintain funding flexibility, the bank did not change its dividend policy. By attempting a significant positive outlook, the bank is trying to keeping it consistent, by paying the same amount of dividends as previous financial years. As the risk in liquidity increases, this will also increase the chance of Westpac’s management to manipulate the provision for remediation as a result of artificially improving the financial health of the firm. About the following standard, AASB 137 paragraph 14 – “Provisions shall be recognised when there is the present obligation with a probable outflow of economic benefits that can be reliably estimated”. The provision for remediation of accounts overcharged may not have accounted for all the customer accounts. Therefore, the 2018 & upcoming 2019, the annual report could be subjected to manipulation to increase financial capability. The compensation for the fee also comprises missed earning on interest by the bank. Consequently, the “provision account” signifies a higher audit risk since the calculation of interest is more comfortable to manipulate compared to principal payments. The result could accentuate material misstatement on the provision for remediation account and will increase the chance of providing inappropriate audit opinion (ASA 200).

January 2019

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Online accounting has taken over the accounting software marketplace, with solutions to fit every industry and business type. Companies have made it simple to sign up and import data from your current program. Automated processes cut down on time spent performing routine bookkeeping tasks, and reminders keep you on top of your business.
There are many compelling reasons to enter your books in the cloud using any of the providers listed in our selection of the best accounting software. If you need convincing, we’re here to break them down for you.

Real-time data

Doing your books in the cloud means you’ll never have to wait for a bookkeeper to enter your transactions to know how much cash you have in the bank. Cloud-based accounting software programs sync with bank accounts to pull in individual bank transactions. After you set up rules to match bank transactions to an “Expense” type, cash flowing through your bank will categorise automatically for you.
Real-time data enables you to stay on top of your business’s finances, even if your bookkeeper calls in sick.

Build-in Backups – no worries

In addition to secure encryption and data protection, cloud-based accounting software providers offer free backup. With multiple realtime data recovery Servers in place. Applied SSL encryption and disaster recovery plans, they can far better protect your data than you might be able to.

Always accessible books

Many of the more prominent players in the cloud-based accounting market, such as QuickBooks Online, Wave and Xero, have invested in apps. Once you’ve downloaded an app to your phone and signed in, your data can be updated in real-time because you can access it anywhere at any time.
There are many advantages to that accessibility. If you’re on a job site and a client asks if they have past due invoices, you can check the app instead of calling a bookkeeper at the office. Some apps include built-in payment processing, so if they do have a past-due invoice, you can collect it right there.
Consider employees of project-based businesses that use Programs or Apps with built-in “Projects Functions” or Expenses, such as FreshBooks or “Xero Expenses” Apps. It can make a task very easy for the Bookkeeper and the company.

Automated Processes

Many bookkeepers perform the same tasks on a weekly or monthly basis. The likes of paying rent or electricity, invoicing clients and reconciling the books. The above are examples of functions that can become mindless and repetitive, which means they can also be left out by accident.

Conveniently Cloud-based accounting software will send recurring invoices and send out automatic late payment reminders. The software will also assign bank account transactions according to rules you define. Automating processes cuts down on user errors and forgetfulness.

Saving Time

Accounting and bookkeeping functions are cost centres because they generate no revenue for the business. Reducing the time and resources devoted to them frees resources to use elsewhere. While the automated processes in most cloud-based accounting software save time, the programs give you much more.
Businesses that bill by the hour won’t have to collect paper timesheets and manually input data if they sign up for FreshBooks’s or Xero Accounting project functions. Time tracking in the software, which employees can access through the app, feeds into invoices.

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Here is a list of questions you need to ask yourself and evaluate when deciding if you should hire a bookkeeper.

After thinking about the questions above, it is time for you to decide if you should hire a bookkeeper?

With no doubt, you do need a Bookkeeper if you answered yes to all or most of the questions above (where applicable). Having bad taxes and delaying the process can prove costly for your business.

As a business owner time is of the essence. Your day to day work is a juggling act of planning, doing, managing and delegating (to name a few!) You’re a miracle worker of the highest order, a connoisseur of efficiency.

Yet in all the hustle and bustle you may be falling behind on your books, or maybe you’re keeping up, but the effort is costing you. Is it really worth it to hire a professional to do the job for you? We think so! Here are three benefits of outsourcing your bookkeeping that we can think of right off the bat.

1. Saving time.

What if you could free up hours in your week to be able to focus on delivering quality work and solutions to your customers? Or would you like to do more in an area that you excel in already? With our team of professionals, we can save you time to get to the things that you love to do. In this particular case, the adage really is true, time is money!

2. Having it done correctly.

Your business is your baby. You’ve grown and nurtured it since the beginning. Can you really trust someone else to give it the same attention to detail or quality of care? The answer is yes! Bookkeeping can require a lot of oversight and little slip-ups along the way can cause bigger problems later on. We make sure it’s done correctly the first time, and best of all, we grow with your business.

3. Peace of mind.

That second point brings us to our last one. What if we told you, you could spend the weekend with your family or take a much-needed break without worrying about the stack of paperwork and receipts that need to be organised or data entry that needs to be logged. When you put your bookkeeping in our hands you give yourself peace of mind, and that my friend is priceless.

Well if that has been concluded, it is now time to do some research on what a good bookkeeper is like and how you can find one for your business and we are the one Bookkeepers that is the perfect partner for you.

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Arrange a time to talk to us about your debt. Call now.

Determine your current budget.

Keep a record of all money moving in or out of your company for two weeks—or a month. Need help to create a budget?
Acknowledge any mistakes you may have made and rather than dwelling on the past, though, try to agree on a way forward and correct in making future financial decisions.

Reduce your expenses.

With reducing cost, this is the fastest way to start floating again. Stick to the car or fleet of vehicles you have right now. Do not upgrade right now. Start with the most significant expenses and work your way down. Even the little ones can save you money. TRY THIS: Once you have prepared an initial budget, discuss how everyone, your managers and staff members can reduce expenses or increase the companies income. Involve your staff to show you where it is possible to “save” or reduce costs (money) – you be surprised what they have to say. Seeing one another’s sacrifices can help to pull you together in the fight against debt and staff will feel like part of the business. They may have noticed a saving that could be done for a long time and did not feel like saying anything and talking up. Reduce your utility costs by conserving electricity, water, and heat. Office and or workshop: If possible, move into premises with a smaller monthly payment, or if you have two locations or more – can you combine them.

Analyse your debt and act.

First, determine for each debt the interest rate, the fees, the impact of a late or missed payment, and the possibility that the payment is already overdue.
Examine the wording of the loan or bill carefully, since creditors may be deceptive. For example, one short-term loan service in the United States stated that its interest rate was 24 per cent, when, in fact, it was over 400 per cent.
Next, determine the order in which you will tackle your debts. One approach is to pay toward the debt with the highest interest rate first. Another option is to pay off smaller balances first, since receiving fewer bills each month will likely boost your morale. If you have loans with a high-interest rate, you might benefit from getting a new loan at a lower interest rate to pay off the existing ones. Talk to your bank for some advice. Get us involved to give you a budget or profit & Loss statement to convince your money lender.

Negotiate new payment plans.

Finally, if you cannot meet your obligations, try to negotiate new payment plans with your creditors. You could ask for an extension or a lower interest rate. Some creditors may even be willing to reduce what you owe if you can pay the smaller amount in full right now. Try to make a payment plan with a reduced amount until you get out of the debt. Creditors are humans as well, and it is better to have something slowly than nothing at all! Be honest and courteous in explaining your financial situation. Some people hate doing this; ask us, and we can assist you in this matter.

Put any agreements in writing.

Even if your first request is not successful, be willing to persist in asking for an adjustment if necessary.
Of course, you will need to be realistic as you manage your finances. Even the best plan can fail as a result of factors beyond your control since money often “makes wings for itself like those of an eagle and flies away toward the heavens.
The borrower must realise that until the money is paid back, he is under obligation to the lender. We have an African saying: “If you borrow a man’s legs, you will go where he directs you.” The idea is that one who is heavily in debt is no longer at liberty to do what he would like.

How can you increase your income?

If you sell products, can you buy them cheaper from another source? If you sell products that you are manufacturing, can you make it more efficient to produce, can you find better ways to make it, can you find other cheaper parts without downgrading the product.

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