Now that we have entered a new financial year it is time to take a look at your business and ensure that it is on track. When it comes to running a small business there are many processes that can be streamlined or revisited that will help your business find success into 2020. One big component could be your bookkeeping.
Many business owners hit the ground running into a new financial year. There is a big list of things to-do and seemingly endless new ideas. However, taking a moment to step back and reflect could be extremely beneficial. It is a good idea to use this time to go through your bookkeeping and accounting processes, pointing out what caused unnecessary stress in the previous financial year.
Each year, as your business grows and technology advances, new options and opportunities open up for you to streamline your bookkeeping and accounting processes, setting your business up for further success. Here are some aspects of your business where you can adjust your approach to get your financials working for you.
Are you marketing to the right audience still? Does your business continue to fit into the market? These are important questions to consider. Markets are fluid, with new technological advances and potentially disruptive competitors, you could see your market shift dramatically.
By revising your market and marketing strategy you will be able to better understand your consumers and competitors allowing you to find your place. Maybe the market has opened new doors you may have missed without revision. With fresh, solid research on your competitors, similar products/services, suppliers, trends and customers, you will be able to shift your approach to ensure that you continue to capture that market.
Take another look at your budget
Have another look at your budget, ensure that it is realistic and reaching the goals that you want to achieve. Look at any new ways you can tighten spending or streamline other processes to reduce spending. Getting your budget right is critical to the future success of your business, and regular revision will keep it on track.
If budgeting is not your strong suit, consider looking for help. It can be a tedious process that requires advanced strategic planning abilities that relate specifically to financing. To help with your budgeting consider hiring a professional bookkeeping service to keep your business on track.
Look over your cashflow
There are so many new technological solutions to help manage your cashflow, they can even automate part of it. These software solutions can track outstanding invoices, send notifications and timely reminders to customers, and link it all back to your accounting software. If you aren’t looking at software solutions for your accounting, bookkeeping or cashflow management, talk to a Xero expert, they can help set your business up on one of the best software platforms available.
Stop lumping your money for GST and other taxes into your main account
This is a slippery slope that many small businesses fall into. Lumping all your taxes that you are obligated to pay to the ATO, like PAYG withholding and GST, into the same account as your business’s expenditures is a recipe for disaster. It causes unnecessary stress come BAS and tax time and risks an accidental dip into the tax you owe.
Instead create a separate account for your taxes that you do not touch until you are required to pay the ATO. It will make tax time so much easier, all you need to do is look at your balance for the account when filling out your BAS. You will now have a clearer picture of your finances and have avoided the dangers of using tax dollars on your expenses.
Take a look at your receipts
How are you storing your receipts? If it’s in a shoe box or a drawer, or a stack in the office somewhere, you are causing a lot of stress. Instead you should take advantage of accounting software, like Xero, to store your receipts.
Good accounting software will allow you to store your receipts digitally so they can be categorised, won’t fade, and won’t be lost. That way, come tax time next year, you will have cut out the run around, scrambling to find the right receipts, it will all be a click away.
If you need help managing your receipts, if the pile has grown too big, talk to a professional bookkeeping service, like Link Strategies, and we will help you get them in order.
Stop trying to do everything
Are you managing your finances, your marketing, your IT, your sales, staff and more? You don’t have to be. Instead you can focus on your business’ growth, taking advantage of new opportunities, by allowing professionals to take the reins.
No longer do you have to burnout trying to fix everything, while trying to fix your finances and figure out your marketing. Sure, it may be costly in the short term to hire a service to help you with some of these tasks, but the long-term gains could transform your business. Your time will be freed up to focus on the business, not stuck in the backroom looking over tax returns.
At Link Strategies we aim to free business owners from the time consuming and remedial task of bookkeeping. If you want more time to focus on your business and a big weight lifted off your shoulders, talk to Link Strategies today.