Online accounting software packages are taking on the old players that had the market share for decades. Maybe the idea of changing your systems is not a priority but are you considering online bookkeeping?
Xero is becoming a very popular system for bookkeepers. We get regular requests from our clients to make the switch from computer based options. There are a lot of reasons and advantages, the main thing being accessibility. You can access you accounting data from any computer, phone or tablet with an Internet connection. Just have having this instant connection is a game changer with keeping instant knowledge of your financials. Managing your day to day cash flow is quicker for different levels of access that can be given. The sales staff can invoice and check to see if sales have been paid to staff entering there own hours, this is just a few of the unique features that emerging in this space. The service is charged on a monthly basis and is quite easy to use. With this ease of use has seen the rise of even better add ons that make the collection and reporting of data amazing.
Accounting Anywhere
The convenience of these online applications make it possible to bookkeep anywhere and at anytime. You don’t need to purchase software, install it and setup the software to suit your requirements. As long as you have an Internet connection you are ready to go. This makes it easier for businesses with multiple locations and departments. Being online – You, your bookkeeper, accountant, and staff can have access to the file at any time. As already explained you have the ability to control the access each user has.
The bookkeeping tasks can done in real time. You can invoice on the go and not have to enter it in later. You can check how much owe a supplier and pay it immediately. This makes for a more efficient and streamlined business. With the ability to connect to your bank account you have up to date financials.
Monthly subscription
The switch to software as a service model for accounting applications is usually a lot less than traditional up front accounting packages. Paying a monthly subscription is manageable keeping new business from spending to much of there start up capital. Online subscriptions vary in cost for a range of options depending on the need and size of the business.
Traditional software have upgrades from time to time and new versions which can be expensive. This can mean backing up, upgrading making sure there is no loss of data. Online systems get upgraded on a regular basis with low to no effect to the user. The hassle is a lot less that the traditional computer accounting packages.
Data safety and security
One major concern with online applications is the security of the financial data . This concern from businesses is natural, and the safety of the financial records is paramount. A breach in the system can mean loss, theft or destruction of the data.
The online applications boast greater data protection measures than computer based software. A lot of the time the computer based systems don’t have passwords or back ups of the software. The biggest threat is not usually being hacked but the loss of data. The hours of work that took to input all the data can be a mammoth task. As a bookkeeper this is all to real to get called to start over putting together all the data again. A computers hard drive can have meltdown, a server crash, the computer an be stolen and hacked, or it could just fail. This threat to data loss has devastating effects. Online accounting systems have a high level of security with often two stage access, the data is backed up in multiple locations in real time. The online application invest heavily in encryption, firewalls and anti-virus systems to protect their data which is far better than household systems.
Final assessment
Some of the functionality from desktop software is still easier to use but the online versions but with third party add ons and major development to online and phone application this gap is closing quickly. The demand for the online option is getting greater by the day.
The rise of online bookkeeping has allowed us to bookkeep for business all over Australia. From day to day data entry, payroll to processing BAS’s and paying bills the online accounting application has allowed us to be more efficient and more cost effective.
Accounting for Builders Melbourne: 5 Fixes to Improve Builder Cash Flow
Flat out doesn’t always mean cashed up. Many builders and subcontractors run full schedules yet still feel short on cash. From our work in accounting for builders Melbourne, we see the same patterns again and again: good operators losing cash flow because of five avoidable traps. Here are the most common issues and simple fixes you can start this week.
1) Slow Customer Payments Choke Cash (A Common Accounting Issue for Builders in Melbourne)
Late payments plague the Australian construction sector. Recent data shows 92% of construction businesses had overdue invoices in the past year—cash stuck in someone else’s bank account, not funding your jobs.
Even when clients pay, retentions (usually 5% on contract value) stay withheld. In Queensland, trust rules make this even tighter, but Melbourne builders still feel the same pain: you earn the money, but you can’t use it.
Quick fixes
Add clear payment expectations on every invoice: due date, supporting docs, who signs off.
Track retentions in a simple register.
Use a “progress claim checklist” to avoid delays caused by missing details.
2) Over/Under-Billing and WIP Confusion Hide Cash Pressure
Many Melbourne builders show profit on paper while running out of cash because of incorrect Work-in-Progress (WIP) treatment. Over-billing shows a profit before work is complete; under-billing means you’re funding the job yourself. Under AASB 15, these timing gaps create nasty surprises.
Quick fixes
Review WIP weekly: % complete vs claims vs cash received.
Align billing to milestones clients actually approve.
Keep a single dashboard for negative WIP (over-billed) and positive WIP (under-billed).
3) Retention Rules and Contract Conditions Lock Up Cash
Even though trust account rules differ by state, the cash impact is similar for Melbourne builders: retentions are money you’ve earned but can’t spend. These withheld amounts often sit untouched for months.
Quick fixes
Don’t count retentions as available cash in your budget.
Maintain a retention ledger with release dates.
Review which contracts have strict retention terms and adjust your cash planning accordingly.
4) Cost Inflation + Long Payment Terms = Negative Cash Cycle
Across Australia, large clients often push 30–90-day payment terms. Pair that with rising labour, materials, and insurance costs, and builders easily slip into a negative cash cycle. Late payments cost Aussie SMEs $2,500+ per month in real losses.
Construction remains a top industry for insolvency nationwide—cash strain is a major reason.
Quick fixes
Negotiate deposits or shorter terms.
Negotiate longer supplier terms to match your collections.
Standardise reminders (3/7/14 days) and escalate overdue accounts quickly.
The Weekly Rhythm That Changes Everything
You don’t need a 30-page report. Every Friday, check three numbers:
Bank balance today
Bills due in the next 14 days
Invoices due in the next 14 days (and what’s blocking approval)
This is your “mini-CFO” view. If the gap looks ugly, act immediately: send a claim, chase approval, or pause non-critical spending.
When to Get Help From Accounting for Builders Melbourne Experts
You might need support if you’re:
Busy but constantly cash-tight
Always chasing progress claim approvals
Unsure whether a job actually made money
Dreading compliance reporting
If that’s you, you don’t need more spreadsheets, you need clean claims, tight retention tracking, accurate WIP, and a weekly cash rhythm.
Need Help? We literally do this for our clients every day. Start with a free 20-minute Numbers Health Check — we’ll show you the 3 changes that can move cash within the next 30 days.
Are you considering online bookkeeping?
Online accounting software packages are taking on the old players that had the market share for decades. Maybe the idea of changing your systems is not a priority but are you considering online bookkeeping?
Xero is becoming a very popular system for bookkeepers. We get regular requests from our clients to make the switch from computer based options. There are a lot of reasons and advantages, the main thing being accessibility. You can access you accounting data from any computer, phone or tablet with an Internet connection. Just have having this instant connection is a game changer with keeping instant knowledge of your financials. Managing your day to day cash flow is quicker for different levels of access that can be given. The sales staff can invoice and check to see if sales have been paid to staff entering there own hours, this is just a few of the unique features that emerging in this space. The service is charged on a monthly basis and is quite easy to use. With this ease of use has seen the rise of even better add ons that make the collection and reporting of data amazing.
Accounting Anywhere
The convenience of these online applications make it possible to bookkeep anywhere and at anytime. You don’t need to purchase software, install it and setup the software to suit your requirements. As long as you have an Internet connection you are ready to go. This makes it easier for businesses with multiple locations and departments. Being online – You, your bookkeeper, accountant, and staff can have access to the file at any time. As already explained you have the ability to control the access each user has.
The bookkeeping tasks can done in real time. You can invoice on the go and not have to enter it in later. You can check how much owe a supplier and pay it immediately. This makes for a more efficient and streamlined business. With the ability to connect to your bank account you have up to date financials.
Monthly subscription
The switch to software as a service model for accounting applications is usually a lot less than traditional up front accounting packages. Paying a monthly subscription is manageable keeping new business from spending to much of there start up capital. Online subscriptions vary in cost for a range of options depending on the need and size of the business.
Traditional software have upgrades from time to time and new versions which can be expensive. This can mean backing up, upgrading making sure there is no loss of data. Online systems get upgraded on a regular basis with low to no effect to the user. The hassle is a lot less that the traditional computer accounting packages.
Data safety and security
One major concern with online applications is the security of the financial data . This concern from businesses is natural, and the safety of the financial records is paramount. A breach in the system can mean loss, theft or destruction of the data.
The online applications boast greater data protection measures than computer based software. A lot of the time the computer based systems don’t have passwords or back ups of the software. The biggest threat is not usually being hacked but the loss of data. The hours of work that took to input all the data can be a mammoth task. As a bookkeeper this is all to real to get called to start over putting together all the data again. A computers hard drive can have meltdown, a server crash, the computer an be stolen and hacked, or it could just fail. This threat to data loss has devastating effects. Online accounting systems have a high level of security with often two stage access, the data is backed up in multiple locations in real time. The online application invest heavily in encryption, firewalls and anti-virus systems to protect their data which is far better than household systems.
Final assessment
Some of the functionality from desktop software is still easier to use but the online versions but with third party add ons and major development to online and phone application this gap is closing quickly. The demand for the online option is getting greater by the day.
The rise of online bookkeeping has allowed us to bookkeep for business all over Australia. From day to day data entry, payroll to processing BAS’s and paying bills the online accounting application has allowed us to be more efficient and more cost effective.
4 Things not-to-do list
When you have a mountain of work your first reaction is to create to-do lists for everything that needs to be done. My desk has paper from days of scribbling the things that need to get done. On most days the items make it from yesterdays list and cycle continues. By employing some simple tactics of things not-to-do you can help in getting on top and through your list. This is not just for bookkeepers but for any business owner or staff.
I have created 4 do-nots that you need to stop. This will help with time sucking activities that annoy even the most focused of us. By cutting these activities out you will gain more time makes you more effective and productive.
1 Avoid bad customers
Your customers are the most important thing and the success of any business. Some customers are not worth your time and take to much of it. Their either to difficult and complex or they have just unreasonable expectations. You need to ask yourself if they are worth your time and in most cases they won’t be. Explore ways you automate the relationship your processes to stream line If your time is money then focusing on easier customers will free up time and allow time for more customers.