Do you have big plans for 2018? Maybe something on your list of new year’s resolutions is to grow your business? Preparing your business for growth is a smart idea but are you ready to take it to the next level? Getting things right for the next phase of growth comes down to setting the right foundation. Here are five bookkeeping tips to ensure you’re giving your business the best possible chance of succeeding.
Get your books up to date (and keep them there). To have any chance of growing your business you need accurate, up-to-date information. Automate as much as you can with tools such as Xero and Receipt Bank. Options also include Payroll to record your staff leave entitlements and assist in the preparation of Payment Summaries at the end of the Financial year. This way you can enter all expenses paid, raise invoices, track if payments have been received, reconcile bank accounts. All within one package, so all your records are kept neat and tidy.
Running a business can be overwhelming and requires a variety of skills and unless you are on point with them all, it could be costing you both financially and emotionally. Work out what you do best and then have the courage to trust and engage with specialists who can help you. That may mean investing in a bookkeeper for your finances. This will enable you to invest your energy into your area of expertise. Build partnerships with the right people with the right skills to help you achieve your goals.
Work out your Key Performance Indicators (KPIs). Identifying the business KPIs you’ll need to keep track of through financial statements is a great way to predict how profitable your business should be. And this is where taking your books to a specialist really pays off. Just remember that as your business changes your KPIs will need to change so you can keep measuring your business’ success.
You may think predicting your business’ financial future is as simple as looking at its past performance and then projecting it into the future. Unfortunately, this method doesn’t cater for other costs associated with doing business you’ve never had to worry about before. A financial forecast will take these new costs into consideration, and help you predict your business’ financial needs both now and in the immediate future. And that information will help you prepare for any problems that come up, which will save you both time and money.
There are many government and non-government organisations that exist purely to offer assistance to small businesses owners, from mentoring programs to local government grants. Take the time to research the many avenues available to access small business support in your industry and take advantage of the resources that can help your small business thrive.
A new year is the perfect time to make positive and useful changes to your business for improvement and growth. Why not plan for transformation in 2018 and make it your best year in business yet?
Disclaimer: The advice contained in Balance Books blogs and newsletters is of a general nature only and may not apply to your individual business circumstances. For specific advice relating to your situation, please contact your Accountant or other professional adviser to discuss further.