December 8, 2017

Why bookkeeping is important

Why bookkeeping is important Organising your finances seem overwhelming but it is one of the most essential functions of any business, no matter how large or small. According to a report published by CPA Australia, the major factor behind failure of many businesses is bad management of their financial records. Here are some of the reasons why bookkeeping is important for the survival and growth of your business and why you should keep proper books: Monitor where your money is going: When you keep proper accounting records you know exactly where your money is going and how much you are spending in each area of your business. Not checking your expenses on regular basis can result in spending too much money in certain areas and not enough in others; and the end result being not having enough left over to cover those expenses that are vital to the success of […]
December 7, 2017

Why You Need A Bookkeeping Expert In Your Business

Why You Need A Bookkeeping Expert In Your Business The need for a bookkeeping expert in both small and medium-sized businesses is a must if they want to grow to the next level. Experts that have a good understanding of the environment in which the business operates can advise on the expenditure of funds, budgeting, planning, and forecasting of the business growth.  It helps them to offer advice and suggestions to the business owners. Unfortunately, most SMEs face financial constraints that make it difficult for them to hire and maintain experts. In this post, we’ll look at reasons that makes it mandatory for SMEs to hire bookkeeping expert. It Saves Time Bookkeeping and accounting is a complicated subject that is anchored by rules that can only be understood and implemented by experts. SMEs should hire a bookkeeping expert to help them save their valuable time keeping business records.  By partnering […]
November 17, 2016

Small Business Cash Flow Crisis

Small Business Cash Flow Crisis In 2014/15, 20,018 businesses in Australia became insolvent, with inadequate cash flow being a key reason. At 30 June 2016, small business owed more than $12 billion in collectable debt, accounting for almost two-thirds of total collectable debt. Evidence shows that businesses which manage their cash flow effectively are more likely to succeed. Despite the large amount of information on cash flow management already available in the market place, it is recognised that cash flow remains a significant issue for small business. The ATO provided the following information on statistics and research: There are more than 2 million small businesses in Australia. The ATO defines a small business entity as a business with less than $2 million aggregated turnover. 96% of all Australia’s businesses are small businesses, producing over $330 billion of our nation’s total economic output. Small businesses employ 4.5 million people, almost half of […]
June 16, 2016

Where’s the cash?

Someone once told me an old adage that remains true to this day: ‘Expenses rise to meet income.’ How often to do you or someone you know has asked the question: ‘Where’s the cash?’ It’s a prevalent question with a multitude of answers. The first things we suggest for people to check are the debtors and ask yourself the following questions: Are they paying on time? Are we invoicing regularly enough? Are they actually receiving our invoices? If the answer is no to any of the above questions, we suggest you apply the ‘If not, why not?’ principle. Why are they not paying on time? Is it lack of cash flow on their end? Make contact with them, suggest a payment plan so that they can at least pay it off incrementally/ If they’re repeat offenders, you might consider a stricter credit policy to deter them from taking advantage of […]