I had a potential client call me about 9 months ago. They were a cleaning business who won a contract to provide ten cleaners to clean an industrial site on a daily basis. The contract themselves were quite simple:
- Weekdays at one set rate
- Saturdays at Time x 1.5
- Sundays at Time x 2
- Overtime at Time x 2
- All weekday time paid by the head contractor at one flat rate
- All weekend time paid by the head contractor at another flat rate, regardless of whether it is Saturday or Sunday.
So what this client needed was someone to not only prepare their payroll but also to take the payroll hours and create a detailed invoice listing the different types of times for each employee, each fortnightly.
They had a lady in the office who was looking after their systems using Quickbooks but she had no bookkeeping training and lacked the experience to get the payroll correct on a regular basis and if the payroll wasn’t correct, the invoice wasn’t correct. The client wouldn’t pay the invoice until it was correct and that impacted their ability to fund the payroll expense. She wasn’t coping, not only this but she was charging them $600 to sit in their office, process payroll and invoice once a fortnight. Although she answered the phone, they had no idea what she did for the rest of the time as they were always out cleaning.
We had a chat about whether they actually needed the Admin lady in their office and the decision was made that no, they didn’t need her and could divert the phone to their mobiles. There was simply nothing else for her to do all day as there was no need for a person to be contactable at all time. We also discussed the ability to use a virtual assistant or phone answering company to take the phone calls if they were out of range or otherwise unavailable. This was the perfect solution.
The Bookkeeper Hub provided these clients with a quote, we now prepare all their bookkeeping, their payroll, invoicing and Monthly BAS. Invoicing now includes regular weekly invoicing for smaller jobs and the fortnightly invoice for the big industry client. Timesheets are emailed on a weekly basis, signed off by the appropriate manager which are then taken and entered into Deputy. We use Deputy for the rostering and scheduling then this is transferred to a timesheet and with a click of a button syncs with Xero to produce the payroll. The hours from payroll are then used to create the Invoice for the client. This takes a maximum of 1 hour per week and we expect that as the workforce settles down it to take much less.
The reasons we use deputy are:
- We can copy the schedule from one week to the next and simply change the names on the weekend roster
- Roster transfers to Timesheets which are approved in Deputy
- Deputy Timesheets are synced with Xero to prepare the payroll
We haven’t as yet found a way to push the payroll hours straight through to the invoice but we are working on a way to automate this process as well.
As mentioned, The Bookkeeper Hub does their full bookkeeping. We use Entryless as the method to capture bills, the business owner has an app on his phone that he uses to click his receipts as he buys something. On a monthly basis we bring it across into Xero and reconcile his accounts.
The charges for this are relatively low as there is very little processing involved other than invoicing and payroll checking. In this situation we charge them a fixed fee per month + a charge per employee processed for payroll + Xero and Deputy fees (Entryless is free). It very rarely comes anywhere near $500 per month, let alone the $600 per week they were paying. As a small business owner this makes a massive difference in timesaving and cashflow to them – $1800 per month that they can put towards improving their other systems to go after other work or improving their business. If they choose not to put it back into the business then it’s extra profit for them.
So the bottom line – have a good think about the way you do things, this has been a case study of a real, live client showcasing the savings that we have made for them and the way that we have been able to systemise their business. Going forward we are looking at using the timeclock facility within Deputy for the staff to clock on and log their time using a device on site rather than a paper entry system however this is all dependent on the internet access on site which is remote. We will keep you posted on that one but the availability is there which will again save additional dollars.
If you would like The Bookkeeper Hub to review your systems to see if there are ways we can save you money, contact Victoria by email at firstname.lastname@example.org to find out more.
Photo credit: Storyblocks