The new year is often a time to make resolutions around effecting improvements and being more organised. But sometimes you need to get some outside help to assist with making the necessary changes.
The modern business environment is constantly shifting, more so now than ever before. It is not only technological advances driving this change; it is also being influenced by the constantly evolving habits of consumers, economic fluctuations and even political disruption. Is it any wonder then that owners and managers of all types of businesses are struggling to keep on top of all of the paperwork and constantly varying regulatory requirements necessary to run a modern enterprise? Never has it been more important to engage some outside help.
There are many factors in the current economic climate that can cause a small business to fail; a decline in customers, increasing costs, insufficient cash flow are just to name a few. However, one of the most easily prevented reasons that small businesses fail is poor record-keeping at the operational level, and failure to seek the advice of professionals quickly when it becomes obvious there’s a problem.
It is not uncommon for people to start a business without having some sort of record-keeping structure in place. This is especially true of tradespeople or sole traders who start with a great idea, have technical or product knowledge, but no understanding of the role of financial records in support of the business. Often all they are concerned with is banking income, paying bills and getting someone to do their tax.
For a small business, having a competent and experienced bookkeeper can mean the difference between a smooth and orderly back office, and frayed tempers, cash flow problems and inaccurate end-of-month financial data. As a business grows, it is not enough to consign the paperwork to an archive box and drop it to the accountant’s office once a month. There needs to be regular attention given to banking, invoicing, chasing debtors, keeping creditors on side, paying staff, remitting tax, reconciling accounts and producing financial reports.
A good bookkeeper can do all of these things and more, all while keeping the supporting records and documents in an orderly manner as required by the taxation authorities. Engaging the services of a professional bookkeeper may seem like an additional cost to your business but it is money well spent and could mean the difference between a robust and growing business and one that is being strangled by lack of funds and uncontrolled costs.
If one of your New Year resolutions is to get your paperwork under control, contact us for a FREE 1 hour business health check to review your current systems.
Book your business health check NOW!
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