There’s no shortage of details to consider when you’re a small business owner! Getting the back-office basics of your accounting practices in order will save time and is important for growing your business.
Here are a few handy tips to help you get started:
1. GO PAPERLESS
Still printing and mailing invoices to your clients? Think about how much you’re spending on paper, envelopes and postage. Going paperless is better for the environment and for your business.The efficiencies gained add value to your business operations and to your client’s experience.
2. DITCH THE SHOEBOX
New year, new filing system. Start organising those receipts and financial records now. This allows your business to stay on track and helps your accountant at tax time.There are some useful mobile applications available for tracking those receipts you collect as well.
3. USE TECHNOLOGY
Cloud technology gives small business owners greater flexibility. You can access information and work on the go, it also helps automate a lot of data entry saving time. It also allows your accountant and bookkeeper to provide you a higher level of service.
4. DON’T PAY BILLS TOO SOON
If your supplier gives you thirty days to pay them, take it. Paying your bills only when they're due improves your company's cash flow.Of course, if there are discounts available for early payment of bills this can improve your longer term cashflow and is often worthwhile.
5. LEARN THE BASICS
Every business owner should have a basic understanding of their company’s finances in order to make successful decisions. Look at your financial statements every month to help plan for profits and prevent potential problems.Ask your accountant for guidance if you think the figures are wrong.
6. HAVE A GROWTH PLAN
Your accountant can help forecast future growth and identify any financial risks based on previous financial decisions/results. Forecasting and risk management is essential for a successful business.
7. KEEP IT SEPARATE
Always separate business funds from personal funds. You’ll find it’s so much easier to balance those books when there are only business-related transactions to deal with. Plus, you avoid the potential for Fringe Benefits Tax applying to your personal transactions.
8. ASK THE QUESTION
Your accountant should be a trusted advisor and part of your support team. Communication is vital to help your accountant gain an understanding into your circumstances. Engage your accountant for regular reviews and open up opportunities to understand your business better.
9. RECORD STAFF TIMES ACCURATELY
Use a time clock to log employees in and out, overtime is expensive and accurate timekeeping can help to keep those costs down. There are some affordable tools on the market including some accounting systems that allow time tracking.
10. THE SOCIAL AGE
It is said we are now living in the “Social Age” and a lack of social presence makes potential customers question your legitimacy. Set aside a small amount of time each week to maintain these platforms and keep your presence current. Engage with your clients on social media with relevant material to improve your position in the market.
Finance is the backbone of any business, so learning good small business accounting practices is a must. If you need any assistance with your accounting needs please do not hesitate to contact us on (07) 3446 5906 or via email by clicking here.