Monday, March 02, 2015

Jamie Parker Bookkeeper

Jamie Parker Accredited Bookkeeper - Newcastle NSW 

“I have noticed a lack of personal attention 
throughout the financial services industry. 
My goal is to give clients the service they need 
at a price they can afford.”

Do you have a particular industry or niche that you tend to work with business from? 

My niche is in Hospitality and Retail. These are the areas that I have a passion for and the businesses that need the most help. As they generally have the largest employee base in small business, they need constant assistance to decipher their complicated taxation, super and payroll obligations.

What advantages and traps do you see that are particular to young entrepreneurs?

Advantages: Young entrepreneurs have incredible motivation and passion for their businesses. They understand the market they’re appealing to and often have the confidence associated with youth to set themselves apart from the other competitors in their industry.

They have the energy to invest heavily in new concepts. Consumers are attracted to businesses that appeal to their interests and take extra steps to show their appreciation for their loyalty.

Disadvantages: Young entrepreneurs are often attracted to the idea of working for themselves. The majority don’t understand the amount of time and money that gets invested into running a successful business. Goals and hard work DO NOT ENSURE SUCCESS.

These are great attributes for any entrepreneur, however, these along with a good business plan and a small team of experienced professionals can help lead to a very profitable enterprise!

Trust in business is essential. Young entrepreneurs need to understand that being in total control is not often healthy. A good businessman/businesswoman understands when to offload their responsibilities.

What would you say are the three most common problems that these businesses present with when you start working with them? 

  1. Poor Planning

Most businesses will often assume that a plan is going to develop over time. This is not the case. Business is a dollars and cents game.

Have a clearly established business plan. Have an exit plan, in case you wish to sell down the track.

In Accounting we use benchmarks to assess a business’ financial performance. These benchmarks are provided on the ATO website.

Benchmarks provide a target percentage for the expenses within the business, based on its turnover.

To understand more clearly:

Café Benchmark:

Wages: 27%

Turnover= $1 000 000

Total Wages per annum should be equal to or less than= $270 000

Business owners should use this as their guide.

A suggestion is to first create a realistic estimate for the Gross Turnover of the business in its first year, based on the surrounding market. They can then use the benchmarks as a guide for their pricing.

If the benchmarks can’t be met on that pricing, they need to re-evaluate the pricing in their business plan.

  1. Business Capital

Once invested in a company, it is important for any equity personally contributed to remain within the business. Owners should not be taking money from the business as they see fit. Rather, they benefit more by paying themselves a wage, allowing their equity share to grow with their assets. The wealthiest people in the world have become that way through the understanding of working capital.

Using equity invested in the business to pay something like backdated wages, although fixing the problem temporarily, often creates larger issues in the long term. If businesses are needing to borrow funds externally to pay wages, they have a serious cash flow problem that needs to be reviewed.

  1. Delegation of Responsibilities

A good work environment promotes a good work ethic.

Part of creating a good work environment is allowing employees the freedom to undertake their tasks with some independence. There should be procedures in place to guide staff, but micro-managing can often put added stress on the business owner as well as the employees.

A business owner’s biggest asset is their time.

Proper delegation of tasks ensures that the business owner has the time and energy to focus on the performance and growth of their business.

There needs to be a mutual trust between business owners and staff. If the team is not performing, this will become evident over time. Staff have a good sense of fairness, and will normally inform you as the business owner if they feel that another staff member is not pulling their weight.

Is there a particular training that businesses like this would benefit from doing that is not generally undertaken in the industry? 

In most enterprises, the owner of the business has come from a background in the industry that they are trading in.

On the assumption they have previous experience in their industry, most business owners would benefit by undertaking a business course of some kind. This does not mean a 2-day seminar. Such seminars are often filled with slogans like “Make Your Dreams a Reality!” and quotes from celebrities with no business expertise. They are usually a sales pitch and lack any real practical advice on business growth.

Again, business is dollars and cents. An inspirational quote will not magically create cash flow within a business.

The courses most beneficial to a small business owner are usually accredited. They lay out the pros and cons of running a business and educate the business owner on how to manage their staff and their finances. Correctly identifying ways to cut costs and increase turnover are essential in running a profitable business. Therefore pick the right course.

How much money should someone reasonably expect to make in a business like this in the first few years? 

If it is an individual’s first venture, they need to be prepared to sacrifice an income while they grow their business. Income is accumulated over time. After paying the government, creditors and employees, there is often no surplus of funds from which to draw an income. Most businesses experience this during their initial period of growth. It is important to note that most successful entrepreneurs have had to endure these hardships.

I see many cafes and restaurants opening and closing again in only a year or two. Can hospitality businesses improve the potential of their business to be one of the ones that lasts for the long term and is sell-able when the owners want to move on? 

A business’ value is commonly associated with the value of its assets less any debts.

Therefore, by accumulating assets in the business and making an earnest effort to pay off any debts associated with those assets, business owners grow their equity in the business and its resale value. A good bookkeeper and accountant will make an earnest effort to monitor and track the business’ assets, which is why it is so important to understand the value of these professionals.

To ensure the best chance of success, it may be best to consult professionals in the conceptual stage of the business.

Most businesses close due to poor planning. They often hire financial professionals later on in their first year of operation. Hiring an accountant late can be like hiring a doctor post-mortem.

It is important not to narrow pricing margins in order to compete or undercut competitors in the industry. Business owners would do well to invest in a good quality product, rather than sacrificing the quality of that product to bring down their pricing.

For someone looking to start a new business, is there a way to calculate how much money they will need to have in reserve to support the business beyond the initial set-up costs? 

Each business requires different financial support. An accountant and business advisor can provide forecasting. The assistance of these professionals can give you some idea of the initial start-up costs. These costs in a start-up café/restaurant can include:

Rent and rental bond
Kitchen Equipment etc.

I see a lot of restaurant owners complaining lately about penalty rates. Is this not just a cost of doing business that should be factored in to the business by the owner as part of their business plan? 

Unfortunately, penalty rates are just a cost of trading. In the hospitality and retail sector, the weekends tend to be a higher turnover period, which is some consolation.

Business owners must follow the rules governed by Fair Work Australia. There are heavy penalties associated with non-compliance. As penalty rates are based on percentage, it may be more beneficial for a business to employ juniors during periods where penalty rates apply.

What are some other expenses that you find are not budgeted for or funded to get done that the business needs for it to be sustainable and able to last the distance?

Often businesses underestimate the cost of their wages. Although the business may pay an hourly rate, they often don’t include the costs associated with the employment of their staff. For example things like Super, Insurance, Annual Leave, Sick Leave, Worker’s Compensation etc. are commonly overlooked and not budgeted for when allowing for labour cost.

As a bookkeeper, I often find that business owners rarely separate their income from the GST that they have charged. Along with GST Withheld comes PAYG Withholding and other taxes that are lodged at BAS time.

When these accumulated taxes are not withheld, BAS time can hit a business hard. By correctly tracking GST and PAYG Withholding obligations, a business can ensure that at BAS time they have the funds aside to pay the government in a timely manner.

Have you found that businesses are typically good at pricing their goods? What is a good tip for a restaurant or cafe when it comes to pricing? 

Pricing is usually quite fair across the restaurant and café industries due to the overwhelming amount of competition. These businesses should aim to price their products somewhere mid-range.

Turnover is what helps promote the success of a hospitality business. Turnover in hospitality is linked to the number of patrons that frequent a business and how often they do so.

In the restaurant and café industries, patrons are attracted to service, atmosphere and product. Combined with a good location and the correct use of marketing tools such as social media and promotional deals, these businesses are more likely to see growth.

If you could advise every person considering starting a new business in hospitality, what would be your key recommendations for them BEFORE they start ... and when the business opens? 

As a bookkeeper I cannot legally advise anyone. As someone with a strong client base in hospitality I can suggest that these businesses estimate how much time they can commit and how much money they can invest. Regular family commitments and personal problems often distract a business owner from efficiently running their businesses. An honest self-evaluation of personal commitments will help a business owner decide if they can commit 100% to the growth of their business.

Once these decisions have been made, it is important that they seek professional advice BEFORE starting their business.

These professionals can suggest business structures that reduce tax and overall ways to ensure accuracy and efficiency in payroll function, pay rates, bank account structure and financial reporting. On the opening of the business they should work with small this team of professionals to keep clearly informed on the performance of their new venture.
In business, information is power. Your team of business service professionals can give your business the best chance of success.

Running a successful business can be a very rewarding accomplishment! Surround yourself with people that are passionate about your business!

Jamie Parker is: 
An Accredited Bookkeeper with a professional background in:

Industry Niches:
Construction &
Business Services

Value Focus:
A focus on timely and accurate reports for Financial Performance and BAS.

A networking professional with connections in:

Financial Services &
Legal Services

A full range of bookkeeping services including:

Bank Reconciliations
Financial Reporting &
GST Tracking

Accounting software:
Highly experienced using Xero, MYOB and Quickbooks.

You can reach Jamie Parker at
M 0412 938 049

Thursday, August 21, 2014

Rally challenges mandate to cut railway: video | Newcastle Herald

Newcastle prostate cancer treatment will save thousands of lives

A NEW treatment for prostate cancer, which Hunter researchers administered, is predicted to save more than 1000 Australian lives each year.
University of Newcastle conjoint Professor Jim Denham described the new medication option as “the holy grail” to beating the most aggressive forms of the disease.
He said this was because it reduced the spread of localised tumours by 40 per cent.
In a trial called RADAR, men were put on a combination of testosterone-suppression therapy, a drug that’s used for osteoporosis, called zoledronic acid, and radiation therapy over 18 months.
See full article...

Newcastle prostate cancer treatment will save thousands of lives | Newcastle Herald:

Wednesday, August 20, 2014

Winners 2014 Hunter Wine Show

Congratulations to Drayton's Wines success at the recent Hunter Valley Wine Show
The Heritage Vines Liqueur Verdelho received the trophy for the best fortified at the Show while the Heritage Vines 1978 Tawny was the International Judge’s Wine of the show –  winner of “The Silver Bullet” both available at the Drayton winery, at 555 Oakey Creek Road, Pokolbin, at and in wine stores.

As one of those that have attended Edgar’s Fortified Master Classes at Dayton's it's no surprise but it is nice to see Drayton's fine fortified wines get the recognition they deserve. 

For the full run-down on all the Hunter winners and their fine wines see the full list here Hunter Wine Show results 2014

Friday, February 21, 2014

Will Newcastle Views Be Sold Off To Appease Developers?

Will high rise developments ruin the view and the ambiance of this historical Australian city?

Could we find Newcastle reserved for the cashed up property investors from Sydney and
overseas, blocking sun to existing residents leading the way for our historic centre to be locked off from the visitors from outlying towns who and tourists to the region and reserved just for those with the cash to pay for our fabulous city views?

"While full details of the plan won’t be released until late March, the plan 
has already sparked strong debate over the city’s future, with many saying 
that views to and from the city’s iconic Christ Church Cathedral should 
be protected.

Dean of the cathedral the Very Reverend Stephen Williams said
he hoped the  views would be defended.
‘‘The cathedral community wants to be part of the renewal of Newcastle
and we welcome signs of fresh investment and energy coming into the city,’’
he said.
‘‘We share a hope that view corridors to the cathedral are not unduly
compromised, and that developments add, rather than detract, from
the liveability of a great city.’’ "

Herald story 

Ann Hardy writes an opinion piece on this that is well worth a read.

OPINION: No point cutting out city’s historic heart

"This is the jewel in our crown.
 Increased building heights would seriously affect the city’s historic character and setting.
Other cities don’t target their historic hearts for increased development, especially when other solutions are available –  truly vibrant cities are those where there is a complex interplay of new and old – not just new replacing old as Cr McCloy is suggesting.
Planning in Newcastle must be carefully considered to respect its character and certainly the planning framework has for many years produced a variety of new buildings – all of which have maintained the views of the Cathedral.
In Newcastle, the visual landscape of our city is equally important as the rich mix of heritage buildings in the city centre." Read the full piece here 

Heartbreaking Loss Of Maddie Tippett

Touching articles on the life and loss of Maddie Tippett who died so suddenly this week from complications from two cold viruses.  Maddie was three years old.

Wishing her family and community around them condolences for this tragic loss.

Read Maddie's story here
Sydney Herald 
Daily Telegraph

UPDATE:  You can help remember Maddie by contributing to this fund to buy a park bench in Maddie's name. Monies raised above that needed will be donated to John Hunter Hospital.

 March 2015 Update: The Mourning After

You can find the memorial bench for Maddie that was built with money donated via crowdsourcing  here