Blog Accounting

Simple concepts for your approach to accounting

Property Accounting
Property accounting in practice is related to financial reporting and taxation for real
estate investors. Property accounting encompasses serveral tasks and areas, including:
rents’ calculation and reviews, recovery charges, mortgage payments GST returns (if
applicable), business rates, etc. Rents, Recovery charges and mortgage repayments are
the most important for the owners and tenants.
Property accountant plays an important role in investment firms, providing
information to hotel chains, real estate investors, timeshare companies and landowners.
Such as information on costs, revenues, financial performance and investment planning
and profitability assessment and it is conducted according to strict standards to provide
clear and reliable information. Property accountant in practice is related to financial
reporting for taxing purposes and for investors purposes – valuation, performance
assessment.

 Property investment structuring

 Tax on rental income
 Rental property tax returns
 Rental income tax compliance and requirements
 Investment property tax deductions
 Depreciation on rental properties
 Rental property tax returns
 Commercial property accounting
 Property tax law
Some of the most common expenses in property accounting are:

 Accounting fees
 Body corporate fees
 Depreciation, including chattel valuations
  Insurance
 Home office expense claim (a percentage of your home expenses, based on
the ratio of the size of your home office as a percentage of your home)
 Property management fees
 Repairs and maintenance
 Rates
 Mortgage Interest* 
 Telephone and toll costs incurred in relation to management of
your property
 Vehicle costs associated with running your property portfolio
 Valuation fees relating to financing

Automation
Business Process Automation

Business process automation (BPA) is the process of automating repetitive,

cumbersome business transactions. Depending on the needs of the organization, the BPA
solution will flexibly connect the system as well as the departments in the enterprise and
adjust to the needs of the organization. From the adoption of BPA, the organization's
workflow is streamlined and more efficient, allowing employees to focus on what they
specialize in instead of doing repetitive, tedious tasks, often annoying. From this solution,
business activities will focus on "running the business" rather than "counting the
business", thereby maximizing work efficiency, improving service delivery or limiting
expense.

To automate the business process, we have 5 basic steps:

 Identify inefficiencies and set goals to drive automation

 Build the right process.
 Select deployment software.
 Training Employees.
 Measure performance.
 Here are the best steps to automate your business

 Building a digital business model, digitizing business structure

 Automate the timekeeping and payroll process
 Automate internal and administrative processes
 Automate departmental work processes
There are several workflow softwares and business process automation softwares that
exist to help companies design and automate business processes. We have expertise in
using Zapier, Integromat or creating custom software processes for you.

Invoice Automation

Invoice processing automation is software used by businesses to ultimately help

streamline account payable processes by automating bill payments to suppliers.
Automated invoice processing is the ongoing process of extracting data from invoices
into your system and feeding it into your ERP system so that payment processing can be
done in minutes. In this way, automating invoice processing reduces oversight and
increases accuracy, eliminates repetitive, slow processes that waste time and money, and
simplifies your workflow.
The following are common tasks used to automate invoices:
Manage supplier orders and invoices
Extract data from invoices and put them in the ERP system

 Compare and contrast accounts payable with accounts receivable

 Make payment via e-wallet or bank
Usually, in the process of processing any invoice, there are 3 basic steps as follows:

 Physical bill scan

 Collect data on invoices according to set rules
 Save those data to the ERP system for mining

Bookkeeping
As you can see, 'accounting' is the department responsible for all matters related to
the financial position of the business. The concept of 'bookkeeping' is a bit different from
'accounting' because it is only responsible for the financial transactions that take place on
a daily basis. 'Bookkeeping' is simply a method of recording all financial transactions in
the books so that information about day-to-day transactions is passed on to the
accounting department. 'Bookkeeping' is not responsible for accounting analysis or
understanding of taxes or other significant financial matters.
Think of 'bookkeeping' as keeping the books. When a person comes to your store to
make a purchase, you record the transaction on a ledger, this is called 'bookkeeping.' All
the smallest transactions must also be recorded for the accounting department to work
effectively. fruit. 'Bookkeeping' usually refers to accounting software that includes
various types of ledgers. This ledger system helps you keep track of the incoming and
outgoing cash flows of your business.
Bookkeeping is the first step of accounting. It helps to turn operation transactions into
financial transactions. It helps to create a journal of a business and from there accountants
and decision makers could perform their financial requirements.
Without bookkeeping, accountants won’t be able to file tax returns, business owners
won’t be able to do any financial analysis to know now to improve the business’s
profitability.
As a bookkeeper, here's what you'll need to do:

 First, you need to record all of your business's payments to suppliers

 Second, you need to record business loans
 Third, record the customer's payment for the invoice transacted with the
business.
 Fourth, record and track asset depreciation
 Fifth, it is through the records that employees are responsible for keeping
records in the business, and usually this responsibility will fall to the
accounting department in the business and assign to one person to take notes.

Financial Modelling
A financial model is a specific type of financial planning. In essence, businesses use
financial modeling as a tool to reflect financial planning through calculation,
measurement, and quantification.
 A financial model is a summary of a business's performance, along with specific
inputs and assumptions, to help a business predict future financial performance. In other
words, using a quantitative approach, financial modeling helps a company calculate the
financial results of an intended decision or policy.
There are two basic types of financial models:

 The 3 statement model is a basic model based on building blocks, the specific
blocks are 3 financial statements (income statement, balance sheet, and
financial statement). cash flow statements). The model will connect 3 reports
with formulas in Excel to create a financial model with all components linked
together, the end result is that the user can recognize the fluctuations of the
components. in particular and the fluctuations of the enterprise in general.
 The Discounted cash flow (DCF Model) is developed based on a 3-report
model (income statement, balance sheet and cash flow statement), but with the
specific purpose of focusing on cash flow analysis to calculate Enterprise
value. To do that, the DCF model will evaluate the cash flows from the 3-
report model, through making adjustments or discounting these future cash
flows. Specifically, we use the XNPV function in Excel to discount the current
cash flow with the discount rate as the Weighted Average Cost of Capital
(WACC) of the business.
Some of the assumptions tested by financial modeling include: growth rates, profit
margins, product lines, individual production segments/areas, and refinancing.
The skills and areas used to build financial models include: knowledge of business
operations, accounting, corporate finance, and techniques of financial functions and excel
spreadsheets.Modeling is a combination of the above skills to analyze business
performance and thereby analyze how a business responds to different economic
situations or events.

Cash flow forecast

Money and capital are the first and necessary factors to start a business. For financial
managers, cash flow management is crucial to the survival of the whole business and it is
closely related to the business. that business throughout the operation process, so the role
of cash flow management is very important in the business activities of the business. . So
to effectively manage and develop a business, business owners and managers need to learn and
understand cash flow and the factors surrounding it.

Cash flow is understood as the movement of money in and out of money (ie received
and spent) of currencies in a business. For example: When your business sells products
and receives money, that is cash inflow. On the contrary, when paying for expenses, it is
cash outflow.

The top goal of business is to create a Positive Cash Flow, that is, how to receive
more money in than spend money. This sounds easy and simple, but a lot of companies
have problems with their cash flow. Understand what is cash flow and prepare a cash
flow forecast so you can stay on top of your finances.

Net cash flow or net cash is understood as the amount of money received and used in
business activities. Net cash flow will be calculated, divided into 3 groups based on areas:
production activities, financial activities and investment activities

We can understand net cash flow as the money that we receive and use in our
business. There are three main types of net cash flows:

 Net cash flow from investing activities

 Net cash flow in financial activities
 Net cash flow from operating activities

The first thing a smart financial manager needs to do is cash flow planning because
an accurate cash flow can best warn of problems before they happen. Therefore, cash
flow planning is very important because you have to see the possibilities in the future and
predict the balance of a number of factors such as debts, customer payment history ...
And be very careful with the assumptions you make.
The next step in accurately predicting cash flow is predicting in detail how much
money and when it will be spent. This means that you have to anticipate all the
possibilities as you not only know when you spend your money but also know what you
spend your money on and how much time.Cash flow planning is not an easy thing for any
manager, but it is an important step that any business must do, it is equal to the future
business plan. of the enterprise.
There are a number of measures to help managers effectively manage cash outflows:

 Take advantage of special debts that should not be paid off early
 Create a relationship with a partner because your debts can be deferred based
on how your relationship with that partner
 Don't focus on low prices sometimes we need flexibility in payment terms
more than getting low prices
Cash inflow can be obtained from the revenue of the business and managers can fully
forecast and improve this cash flow in the following ways:

 Get rid of obsolete, obsolete inventory with anything you can get
 Require the customer to pay at the time the pre-order is made
 Offer discount policies for customers who pay bills quickly
 Monitor accounts receivable to identify and prevent late paying customers.
Establishing a cash-on-delivery policy is another way to opt out of paying late
customers.
There are basically two main types of cash forecasting methods - direct and indirect.

 The direct method is used to forecast short-term cash flows, typically less than
90 days, and forecast cash flows and balances for short-term liquidity
management purposes. The direct method lists cash receipts and payments,
specific in value to time. Receivables are mainly receivables from recent sales,
but also include sales of fixed assets, investments, etc… Expenses include
salary payments, payment of payables from recent purchases, dividends and
interest...Thus the method is directly based on the available data.
 The indirect method for forecasting cash flows in the long term and based on
various indirect methods for constructing the cash forecast such as using
balance sheet and income statement.
 The table below is the key differences between direct and indirect cash flow
forecasting:

Direct method Indirect method

Period Short-term Long-term
Result Money needed for working capital Money needed for long-term
development strategy and big projects
Making Calculation based on receivables Calculations are based on financial
and short-term debt payments. statements.
It is necessary to regularly review the difference between forecast and reality. Other
deviations need to be analyzed on a daily basis. Large differences need to be analyzed to
determine the cause, make adjustments for subsequent forecasts to improve forecast
quality.

Bugeting Services
Budgeting services are out there to provide advice to everyone. The income and
expenses will be clarified to suit you, so you will have less financial difficulties. To do
business smoothly and develop for your company or individual, you need to have a
specific budget and how to use it best. It is essential that you know how to plan for a
definite period of time. You know how much money you own and how much you spend
every day/monthly/yearly. It's a great way to manage your own finances and avoid
running out of bills, insolvency, and debt. Often, financial services will warn you of late
fees to make sure you never have to pay dues again. The items in your budget are also
divided and organized for maximum savings.
Budgeting makes actual planning more optimal, managers will have to consider
changing conditions related to the organization to be prepared before they arise. Besides,
in an organization, the coordination and coordination of activities between departments
will be more flexible and easier. In addition to the budget, there are other necessary
elements such as resource management, motivating stakeholders to achieve budget
targets, evaluating the performance of managers and evaluating capacity and performance
of the organization.
As we all know before you want to make money you have to know how to spend it.
Creating a plan is a great way for you to keep track of the cash, business expenses, and
current revenue you need to achieve in order for your business to grow. By analyzing
these numbers you can predict future needs, expenditures, profits and cash flows thereby
increasing your chances of business success. From the analyzed numbers, you can partly
predict the upcoming problems, thereby changing the way of operation to be more
suitable.
In short, the key point is that when using a budgeting service, your business will
know exactly how much money is holding, how much to spend and how much money to
take away to invest in goals. other business. In addition, there is another issue that is,
when you want to borrow money to start a business or expand your business, your bank
or investor needs to know exactly what your budget has from which to request a loan.
Yours will become easier. Sharing the budget with your subordinates is also quite
important, share the budget so that employees know what the company is doing and
where the direction is going, from which employees will become more hardworking.
Make sure every employee knows this, as they will know what the target of the budget
will be, then work harder to help your goal reach you faster, if they don't know it's even a
dream. lake, their efforts are almost nonexistent.
Here are some types of budgets
• Sales budget - To create a sales target for a business, it is necessary to calculate and
forecast future sales revenue and will be divided into units and currencies.
• Production budget - To meet the sales target, it is necessary to calculate the quantity
to be produced to meet the market's buying and selling needs. It is necessary to calculate
the costs involved for production including labor and materials.
• Capital budget - In the future new supplies, replacement materials, new factories,
new products and research development projects are what are seen as requiring long-term
investment. Take a look at capital budgets to see if they're worth the investment.
 • Cash flow/cash treasury - In the short-term future, a forecast of cash receipts and
disbursements will be required. A cash flow budget will help an organization know when
it needs external funding, when the budget is sufficient.
• Marketing budget - New products or services, we need to calculate how much
money we need to spend on advertising, public relations or promotions.
• Revenue budget - includes receipts for government revenues and expenditures met
from these revenues. Tax revenue is made up of taxes and other obligations levied by the
government.
• Spending budget - includes spending data items.