How to Be in Control of your Accounts
Over the many years, I’ve been helping small businesses as well as running my own businesses I have become an absolute believer that the business owner MUST have a clear understanding of their financials, on a regular basis. I have done a few blogs on cash flow and profitability. This means nothing if you don’t have the systems to monitor them.
So, if you are a small business get a system to manage your business as soon as you can. If you invoice others get XERO. It is miles ahead of everything else on the market for small businesses. I have stopped recommending any other system unless you are a much larger business, in a specialist area, where a more dedicated system is more appropriate.
If you are a cash based business (e.g. hairdresser) you might be able to choose another system. Either way, please get a system you can use and understand.
If your accountant says they will offer you reports each month (or more likely two monthly at GST time) challenge them on this. You MUST be in control of your finances not your accountant. Sorry, but if they continue to push back on this move to a more progressive accountant as your accountant is serving their own interests, not yours.
This does not mean you must do it all yourself, especially your GST. Get help with this if you are too busy, and dislike and doing administration. Your time is better spent elsewhere and there are some exceptional bookkeepers around who can assist.
If you are struggling to know what to look at in your financials seek out some help. You can also look at a few other blogs I have written. I’d be also happy to catch up with you over a coffee, with no obligation, to show you what you need to keep an eye on.
By Bob Weir, July 2018