“Not only are we less stressed, we have so much more clarity on our business and can now make well informed, considered decisions about the future expansion of our business”Shane Hill
The Barral Institute Australia
The Barral Institute Australia is Australia’s number one visceral and neural manipulation education provider. They also deliver world renowned lecturers to global audiences.
Payment for courses and lectures were traditionally received via a mix of direct transfer and online Paypal transactions. As the business grew, so too did the requirement for online payments and a method for easily recording online payments against invoices. A basic Xero file was setup by The Barral Institute.
As the Barral Institute’s income relates mostly to deposits, adequate procedures were not set in place to identify these amounts and to ensure that income tax and GST were not paid on these amounts in advance of the services being rendered.
The current set-up of Xero was quite basic Xero and didn’t provide any of the juicy (and useful) Xero data that help business owners track their business situation and forecast for the future.
Tracking of payments received through PayPal were not done correctly and caused issues with bank reconciliations and debtor management. As their income related mostly to deposits, adequate procedures were not set in place to identify these amounts and to ensure that income tax and GST were not paid on these deposit payments.
A way forward
Historically, there had been a myriad of accounting issues so Stu set about completing a historical investigation dating back to the beginning of the company. Leaving no stone unturned, Stu made sure all Xero payments agreed to bank statements and PayPal transactions ensuring all debtors were appropriately accounted for.
A thorough education and training course was then facilitated by Stu to make sure that directors not only understood the procedures being used but could conduct their everyday Xero processes easily as well as fully understand the tax implications associated with deposit income.
The Barral Institute of Australia have now mapped a clear path to expansion. Not only are they thrilled with their new business processes, the directors of Barral are breathing easy with Xero’s organisational capacity. Accurate debtor and creditor numbers are now easily available and the guesswork has been taken out of financial planning and managerial decisions with Xero being utilized to provide insight into the profitability of courses.
The directors of The Barral Institute also have a great appreciation of their new found knowledge as they have now learnt how to follow the appropriate accounting procedures, conduct accurate everyday input into Xero and generate meaningful reports. Together with the team at 542 Partners, they are looking forward to managing their growing business into a profitable future.