Business is going well… I love spending time with my customers…
Does this sound familiar? Most small business owners will delay and avoid their bookkeeping duties until the end of the week, fortnight, month and even quarter when the shoebox ships out to their accountant.
When business is going well why do we have to pay attention to the detail in our bookkeeping and not take shortcuts to focus on more important things like selling? It is better to record more rather than less detail, in order to have ‘some’ data available. Chances are in the future analysis will need to be done to identify what exactly drove the success in your business at that time. Further this can be used to magnify the success by spreading this behaviour across more of your business whether they are extending out to other products or services.
Bookkeeping is an activity that is often learned while on the job for most Small business owners. These skills are learnt in the midst of setting up your business and often only done to maintain customer billings and keeping creditors at bay. Once you start hiring staff, payroll becomes another daunting task that needs to be completed. Not to mention the Payroll Tax, PAYG and super payments that needs to be paid on top of the respective mandatory paperwork. With the added pressure of potentially creating more work by undoing then redoing coupled with the penalties associated with failing to get it right the first time.
Sounds like a lot doesn’t it? Without scaring you completely silly, many do manage to cope and others choose to have it done for them by professional bookkeepers or outsourcing the payroll functionality. There comes a time however with the multitude of scenarios you need to let someone take care of it for you. For example when your business strikes up a growth phase or an opportunity presents itself and you need all your time devoted to managing and making a success out of what is dealt to you at that time.
Accounting is often described as the language of business. In the early stages one can go without paying much attention to it. However, with growth and experience you will soon find that business decisions need to be quantified and justification via cold hard facts is what separates success and disappointments. As an owner you need to be able to read the financials of your business and read into all that it’s telling you. Simple things like keeping an up to date bank reconciliation, debtors or creditors ledger can have a great deal of influence over some behaviours that could optimise your purchasing, allow for clarity on which customer(s) you want to promote more frequently to etc.
By having your information entered in correctly the first time allows the current and future periods to be accurately analysed and forecasted. All of a sudden you have moved from being reactive to your current state of affairs to being proactive and purposefully making decisions along with tactically setting up for a few quarters in advance.
At CubedBiz we just can’t hide the excitement and passion we feel about our services and the unlimited potential we bring to our clients. Just waiting for you to take the next step and give us the opportunity to get you off your back foot and striding forward with purpose.