Have you got the basics right?
When running a business, it’s important to have the right systems and processes in place to know how your finances are progressing at any point of time.
So how do you do this?
It’s simply all about “excellent” bookkeeping and not ignoring the basics!
We talked to Sydney accounting and bookkeeping experts to uncover how you go from ordinary to excellence with your bookkeeping.
1. Ditch the Shoebox. It’s costly
This is the first step in being able to take control of your books. Going paperless with a cloud-based solution allows you to track and access your financial position instantly.
Eliminating manual processes will also save you money on bookkeeping services.
2. Get into a solid routine with your bookkeeping
Many Sydney small business owners lack routine with their bookkeeping which means they may not realise debts have not been paid for months or certain suppliers had been overpaid.
Get into a good routine to reconcile your accounts and review outstanding debtors and invoices. This is something you can work with your bookkeeper to establish. It may be every week or every month based on the size of your business and number of transactions.
3. Don’t do it alone
You need to focus on your business and let your bookkeeper do what they do best- safeguard your accounts and ensure they are accurate so that you can make the right decisions.
Effective business management requires knowing what to prioritise. Let the experts handle what they do best so you can focus. Engage a bookkeeper that cares about making your life easier and being a true enabler to your business success.
4. Be smart about your cashflow management
Cashflow issues are a major concern for many Sydney small business owners.
There is nothing worse than wasting your time chasing customers for payment. And it’s costly!
Consider credit card payments, payments in advance, and having a strict process of following up unpaid money the moment they become overdue as a solution to better manage your cashflow.
5. Always remember cash is king
Having clear visibility to your business making a profit with sufficient money in the bank is critical.
Poor bookkeeping practices is a risk, as it means you will not have such transparency over your financials when you really need it. What if you are seeking finance or new funding or plan to spend on a new marketing campaign?
A great bookkeeper will help you gain control of your books and cash situation so that you can make the right decisions when you need them.
Other useful links:
Bookkeepings Inner West Sydney
Accountants Castle Hill and Hills District
Bookkeepers Castle Hill and Hills District