If your books are a mess, then chances are so is your business.
To truly understand the health and financial position of your business, you must keep your paperwork & bookkeeping organised and current.
This article is part 2: my series of “getting organised”. Your can read Part 1 “Getting Creative with getting it all organised” here
The above statement sums up the important belief that healthy books deliver an equally healthy business! To help small businesses clean up their bookkeeping and take back control of their business, here are my 4 golden rules to get started :
1. Get Serious
“Problems always arise when businesses have a lackadaisical view of filing and organization. Getting serious and creating a good organizational system will help keep you on track and on top of your financial situation,” says a Financial Adviser.
This is critically important to the health of your business. Getting serious about getting organised may just sound like a lot of hard work, especially if your filing tray is as high as Mount Everest, however it is worth the effort – believe me. One of the biggest tips I can give you is ‘do the big chuck out’. Streamlining your bookkeeping processes is paramount the health of your business. Have a look at my recent Blog for tips of how to start the process of getting organised whilst flexing your creative muscle.
Businesses that succeed know where they stand financially. Therefore it is also essential to the health of your business to seriously develop an up to date Profit and Loss and Balance Sheet. Most of my clients glaze over the second I mention Balance Sheet, however the good news is that as long as you create a good organizational system and keep it all up to date, your accounting software such as XERO and MYOB will organise the reports for you.
2. Stay Serious
Once you’ve gone to the trouble to get it all organised, you’re winning– you have a current Profit and Loss and even an up to date Balance Sheet. You know where you stand financially, you maybe have even time to start doing a bit of planning! Don’t let it slip. Diarise an hour of ‘organisation’ – down tools, log off and keep it all current. Staying serious about the small and tedious tasks will help you increase your chances of succeeding in the long term.
3. Develop a Budget
A budget is a critical step to maintaining the health of your business. By taking charge of your cash flow, whether you have a little or a lot, you will ease money stress and feel more secure and in control. ASIC’s MoneySmart website has a helpful budgeting tool that takes the hassle and confusion out of setting up a budget. It’s simple and easy to use.
Most Accounting packages also have budgeting functions. For example Xero, our online Small Business Accounting Software can help you develop a budget in a few minutes. Once you have a budget in place, you have the ability to analyse your spending, find out where there are deviations, areas for improvement and areas that need to be cut back.
4. Do the Monthly Review
Lets face it, Bookkeeping is the last thing we really need to think about when life is so hectic. Keeping up is one thing, but analysis and decision making is another. Who has time to sit down with your finances on the table in front of you and have a monthly review. Your Bookkeeping service can provide an in-depth monthly financial report for you to look over. However, if you are doing your own Bookkeeping, analysing expenses and income trends, budgeting, and planning for the future is essential to the health of your business. Do the monthly review – it will be worth it.
Staying up to date of the little, sometimes boring and tedious activities is the foundation that will keep your business healthy and alive. Don’t neglect bookkeeping!! Contact us at email@example.com for assistance with cleaning up your Books.
Have you got any tips to keeping on top of the Bookkeeping in your office?