There are a lot of good reasons to go into business for yourself. There are also a lot of challenges you’ll need to overcome.
Everyone knows that it isn’t easy to start and manage a business. You’ll face all sorts of issues – and that includes financial problems too.
Bookkeeping can be time-consuming and prone to errors, especially if you still rely heavily on manual bookkeeping systems.
Not only is it a time sink, but it can often lead to financial trouble.
Luckily, landing in a bookkeeping mess doesn’t have to be permanent. Our small business bookkeepers in Melbourne can help get you out of it!
The 4 most common financial troubles for businesses
One of the most common issues many small business owners run into? Bookkeeping issues.
In particular, many small business owners seem to have this idea that they need to do everything on their own – bookkeeping included.
Unfortunately, many end up biting off more than they can chew, which leads to bookkeeping problems. And unless these issues are fixed in a timely manner, they can result in a huge range of other financial issues, such as…
Insufficient cash flow
Healthy cash flow is a lifeblood of any business.
This isn’t an exaggeration – you can have record profits, but without cold hard cash entering your bank account, businesses can struggle to pay off bad debt, cover expenses and keep the lights on.
Maintaining a good cash flow isn’t just about making lots of revenue – it also involves:
- Collecting debts and receivables
- Staying on top of invoices
- Monitoring cash inflows and expenses
- Finding more efficient systems for processing payments
Fortunately – a bookkeeper in Melbourne can help with each of these!
Whether you need us to take over monitoring your cash flow altogether, keeping on top of unpaid invoices or want assistance setting up a more efficient way of doing things, get in contact with our team.
You’ve made a sale – great! However, until the payment arrives in your bank account, that revenue can’t actually be used to pay for business expenses.
When there are insufficient funds, business owners would usually resort into credit to sustain their business operations. However, some business owners find it difficult to differentiate good credit from bad credit.
They would often fall into a debt trap where the accumulation of debt responsibilities is uncontrollable, yet payment for such responsibilities becomes less.
Mismanaged debts often lead to bankruptcy where the business owner cannot afford to pay each debt resulting in losing the business itself.
Uncontrollable spending leads to expenses and cash outflows exceeding revenue cash inflows.
And unfortunately, this often results in cash flow issues.
In many cases, the root cause of this is a problem with bookkeeping. A messy bookkeeping system and jumbled receipts can lead to transactions and expenses going undetected, or piling up.
Another issue is a lack of a consistent spending budget, which can lead to you spending more than you need to over a period.
Our bookkeepers in Melbourne can help organise your receipts and set a monthly spending budget, both of which can help you keep on top of your costs and improve your cash flow.
Manual bookkeeping practises
Bookkeeping is essential for any business – without a clear and organised bookkeeping system however, it isn’t uncommon for business owners to:
- Lose track of cash flows and day to day transactions
- Make calculation errors
- Allow invoices to slip through the cracks
A good bookkeeping system doesn’t only save you time – it also helps protect you from errors and issues such as these.
Our bookkeepers in Melbourne can set you up with a cloud bookkeeping system that does all of this and more.
We’ll choose a system for you, help migrate your current bookkeeping over to it and set up a custom suite of add ons and extras to help you get the most out of it!
How business owners can solve financial woes
Stick to the budget
Businesses, just like households, need a clear budget on listing their income, sales, profits and expenditures.
Without understanding these basic terms, business owners can feel a bit lost on how they can navigate their finances.
A good budget can help you keep track of your spending, protecting you from a budget blowout.
What’s more, it also helps you evaluate how you’re tracking when it comes to achieving your financial goals.
With clear and specific financial goals, business owners can measure how they are doing in terms of break-even and profit margin.
That in turn helps you set the direction for your business and make course corrections to help you get there.
Use cloud bookkeeping
Manually tracking your expenses, income, and debts can be a pain to handle, especially if you’re still using a manual system.
Data entry, calculations, setting up formulae in spreadsheets – all of this can take a considerable amount of time.
Not only that, but it can also lead to mistakes and errors – even a small typo or calculation error can add up, affecting your numbers in the long term.
Our small business bookkeepers in Melbourne recommend that you use a secure, effective and reliable cloud bookkeeping system.
Compared to traditional bookkeeping systems, cloud bookkeeping…
- Is more accurate
- Can be accessed from anywhere
- Is more versatile
- Automatically generates reports
- Calculates GST and creates BAS/IAS for you
When synced up with your bank accounts, as well as your production software and inventory database, cloud bookkeeping eliminates errors and automatically ensures that your bookkeeping is accurate.
When paired up with a range of powerful extras like time-tracking, and it’s clear to see why our Melbourne bookkeepers are such big proponents of this new technology!
Don’t be afraid to ask for help
Having a hard time keeping up? There’s no shame in asking for professional help!
In addition to helping migrate your current bookkeeping over to a more efficient cloud system, our small business bookkeepers in Melbourne can also help you by bringing other parts of your bookkeeping under control.
Working on a full-time basis for your business or only quarterly, our team can perform services such as:
A lot of the time, your accounts are in such a mess that it can be difficult to implement any of these suggestions. As professionals, a small business bookkeeper can help clean up your accounts, organise receipts and fill in missing gaps, setting you up for success.
And that can lead to better results like improved cash flow and reduced payroll issues that will help maintain your business’ financial health.
Not only that, but it’ll help make the transition to cloud bookkeeping even smoother!
Need bookkeeping help? That’s what our small business bookkeepers in Melbourne are here to help with!
Grow and focus on your business while we take care of all the financial areas that you need to worry about.
With a wide range of bookkeeping services and solutions, our team can help manage your business accounts, solve your financial woes, and turn yours into a more profitable business!
With experience helping small businesses of all shapes and sizes, our team has just what you need to bring your finances under control.
Maximum Business Solutions offers bookkeeping services to all types of businesses, including yours!