We have all seen with our own eyes, the day-to-day life of a business owner can be very overwhelming. Overwhelmed business owners try to attempt multiple tasks in a typical day including answering phones, doing the work, manage staffing issues and staying on top of the admin and compliance.
Getting the bookkeeping and accounting process streamlined is crucial to ensure a business can run and operate in a sustainable manner. With the correct processes and people in place you can manage to stay on top of the myriad of record keeping a small business involves, you will not only keep your business organized, you will also be able to build a strong foundation for future growth and success in your business.
So here are some tips that can help you keep make your business a success:
KEEP YOUR RECORDS ORGANISED
Some people like a bit of a mess and others may not be able to work if their documents are not in order, this is ok in your personal life, but in business this is one of the reasons many businesses fail. Time wasted trying to find where these documents are or phoning suppliers and other contacts for copies is time better spent on your business.
Ensure to keep all records of your sales invoices, bank deposits, receipts and invoices for money spent. This includes any other notes you need to track such as names of people with whom you meet, or kilometers travelled on business trips.
There are many softwares in the marketplace that can assist in keeping your records organized, as well as professionals that can assist in teaching you how they are used and can be useful in interpreting data in your business.
TECHNOLOGY IS YOUR FRIEND
Thanks to technological advances through the years, there are a lot of wonderful applications out there that you can use in your bookkeeping platform to make the bookkeeping process easy, less time consuming and streamlined. In our office our software of preference is either Xero or Myob predominantly, we can set you up and train you on these systems and/or we can assist you in your business with the bookkeeping.
These softwares, in particular, are cloud based with no need to install big chucky software on your computer or server. They can help you with invoicing on the go, send auto reminders to customers, receive payments from customers, they can be your electronic storage systems for receipts and invoices.
There are many short videos on the web which you could use as a starting point to understand briefly how these options could benefit your business and save you time.
MAKE SURE YOU REVIEW YOUR FINANCIAL INFORMATION REGULARLY
Its not just a matter of keeping an eye on your daily bank balance, but regular tracking and review of Profit & Loss Statements and Cashflow statements over a short or long period of time is a very effective way of being on top of your overall financial health of your business.
Regular review of reports will provide key information as to where money is being spent in the business, average days it takes customers to pay, average days it take you to pay suppliers, identify gains and losses on a particular job or income stream, staffing and employment opportunities. It can also help
in being able to spot discrepancies that should be investigated; assist you in making business decisions such as – is now the right time to purchase that equipment? Is now the right time to finance that big purchase? Is now the right time to take on that big job? Can we afford additional staff?
Which leads me to my next point…
REMEMBER TAX DEADLINES
Anything that can help you remember GST, PAYG, Super and Payroll tax deadlines do it! A post-it note, calendar reminder, or a phone a reminder for a countdown – anything! An approaching tax deadline, when your behind in your paperwork or bookkeeping, can be quite stressful and can lead to small or big errors.
Adding extra stress and pressure to your already hectic day will lead to errors on your BAS, documents being lodged with the wrong figures, anything can happen! This just makes the process of BAS lodgement more difficult and more time consuming.
Not to mention ensuring you have enough funds for payment. Set a reminder beforehand, leave yourself enough time to complete your BAS correctly and ensure you have the funds, the rest will be a breeze! Your records will be accurate, and you can just forget about them until the next deadline. Remember to be in constant contact with your Bookkeeper and/or Tax Agent about upcoming deadlines, they can give you a reminder also.
TALK TO YOUR ACCOUNTANT OR BOOKKEEPER — WHAT’S THE DIFFERENCE?
Remember we are your friends! Some of you may call us “nerds”, “bean counters” or “number crunchers” but we still consider you our friend, we enjoy getting to know you and your business and how best we can assist. Your Accountant/Tax Agent is there to provide tax advice, strategic and succession planning whilst ensuring that you are operating to the best structure and protecting your most valuable assets.
Your bookkeeper is there to maintain your books on a daily or even weekly basis, they can lodge your monthly or quarterly BAS, ensure you are up to date with employee super, process payroll and maintain employee entitlements. There are lots of jobs that us bookkeepers can assist with.
Forte in Numbers – keeping small business in business by providing efficient and time saving opportunities to our clients.
P: 1300 436 783
E: info@forteinnumbers.com.au