In my previous blog post we explored the first step of setting up solid financial foundations for your business - that is, getting yourself a separate business bank account. If you haven’t done that I highly recommend going back, having another read and then grabbing the list of accounts you can look into so you can set one up and tick that off your list.
Which leads us to Step 2.....
The prospect of managing your own finances can be quite daunting for those who are in no way, shape or form, "numbers" people. Or even if you are, the thought of sitting down and entering invoices, expenses etc doesn’t excite you in the slightest and so you end up ignoring it for as long as possible, usually until tax time comes knocking.
Yes, you can utilise spreadsheets for a little while, but, like with bank accounts, if you’re serious about your business and looking for it to grow and scale, then getting started with a good accounting software will save you so much pain both now and in the long run.
Let’s look at some of the reasons why bookkeeping should be a non-negotiable for your business:
The ability to track the financial health of your business
When you’re able to see your income, expenses, assets and liabilities of your business it makes it so much easier for you to make good business decisions. Having everything in one place and this information at your fingertips is gold, you’ll feel more in control and more confident in the direction your business is heading.
Make managing your cashflow a breeze
I’ll say it again and again….cashflow is the lifeblood of your business. And if you don’t have your finger on the pulse then you'll end up watching your business fade away. Accounting softwares are able to easily track the money flowing in and out of your business (this is different to your income and expenses). Knowing the timing of cash movements and making sure you have enough ,when you need it, is critical and can save you so much stress, and keep your business alive and thriving.
Enable you to meet your compliance obligations
Imagine if, at the end of the tax year, you had all the information you needed to hand to your accountant ready to go, without having to scramble around to work out how much money you made, what your expenses were…..and where were those receipts again?!!
With a good system in place you can avoid all this extra stress because past you has looked after future you by gradually chipping away and keeping all your records in order throughout the financial year.
It will also make other things so much more simple when preparing your Business Activity Statement (most softwares have these reports built in), and for any other tax obligations.
The great news is that with the accounting software solutions available, all these things can be relatively painless, not to mention that, if you really don’t want to DIY with a system, you can outsource easily to someone else.
Ready for that next step and need help getting set-up?
I can help you sort out your financial foundations and get you started with some solid systems for your business, plus I’m able to provide you with a discount on a Quickbooks subscription, saving you money every month.
Book a call and we can have a chat about how I can help.