How small business bookkeeping helps your business grow

There are a lot of things that make a successful business. A good product, for one. Competitive prices are another. And you can’t forget the importance of a solid marketing strategy, either.

Of course, there’s one thing that every successful business has, and that’s a solid understanding of finances.

Understanding your finances is key to helping your business grow. This is something you can’t afford to get wrong.

It’s also something you shouldn’t be doing on your own, either. After all, not all business owners are maths whizzes, understand all of their legal obligations, or even have enough time to look after their bookkeeping.

In situations like this, a small business bookkeeper in Melbourne can help you make sense of it all…

The link between financial understanding and business growth

Making the right calls requires the right information

There are a lot of things to look at when making big decisions for your business like changing your prices or adding a new product or service to your business – one of the most important of which is how it’ll affect the all-important bottom line.

And of course, that requires a solid understanding of your financial situation.

Cash flow, expenses, profit margins… each of these can be affected by the decisions you make, which is why it’s so important that you know what impact your decisions may have.

And you can’t do that unless you have a solid understanding of your business finances, where you stand and how your decisions may affect your bottom line.

A small business bookkeeper can help you crunch the numbers, calculating what the financial ramifications of your decision are, as well as whether or not it’s worth the risk.

Your finances help you plan ahead

While long-term planning is more of an accountant’s job, that doesn’t mean that your bookkeeper can’t help.

To the contrary, in order to plan, you need to understand where you’re starting from.

And you can’t do that without a good understanding of your past and current financial position!

Good bookkeeping gives you all of the information you need to plan ahead. By telling you the status of your cash flow, revenue, expenses and more, you’re able to create plans that will help improve good results even further, or lift up areas that are underperforming.

For example, your bookkeeper in Melbourne may tell you that your cash flow isn’t looking great.

In this case, you can start preparing a plan together to turn things around and improve the numbers – something that isn’t possible unless you have an understanding of your financial situation.

Addressing small business bookkeeping problems is crucial for accurate planning, as these problems can often obscure your true financial position and future growth potential.

Understanding your business finances helps you uncover and respond to emergencies

As any small business owner knows, things can change quickly. When this happens, you need to be able to respond quickly, too!

To do that however, you need some way to uncover emergencies and learn when things aren’t going according to plan.

Keeping a close watch over your financial situation can help you understand what you’re up against, and allow you to identify issues as they arise, and not several months down the line.

Time is of the essence, especially when it comes to responding to emergencies or unexpected changes in your business’ circumstances. The last thing you want to happen is to be caught flat-footed.

By keeping up with your business’ finances, it’s possible to identify these situations as they arise and immediately start planning your response.

This requires up-to-date financial information – luckily, cloud bookkeeping has you covered.

With real-time financial information, you’ll be able to see what effect your decisions are having as they occur, allowing you to make the right choices for your business during emergencies.

One of the key benefits of small business bookkeeping is its ability to help you quickly identify and respond to business emergencies, ensuring financial stability.

Identify opportunities

Sometimes, your business gets lucky and strikes gold – but how are you supposed to know without an understanding of your financial situation?

In addition to tracking your overall cash flow, expenses and revenue, good bookkeeping can also be set up by into revenue generated by individual products, specific services or by date of sale.

This allows you to identify opportunities that you can seize to help your business grow.

For example, your business bookkeeping may reveal particular products that are selling faster than expected, or busy periods you may not even have been aware of.

These are just a handful of ways understanding your finances can directly help you identify growth opportunities – all the more reason to start paying closer attention to your finances!

How does cloud bookkeeping come into the picture?

Understanding your financial situation is the key to helping your business grow.

Whether it’s by identifying opportunities or helping you avoid potential pitfalls, understanding your finances is one of the best things you can do to help your business along.

Keeping up with your business’ finances requires good bookkeeping.

That doesn’t mean that it’s easy, however – especially if you use an old-fashioned, manual bookkeeping system.

Just as important than having good business finances is a system for keeping track of said business finances.

That’s what cloud bookkeeping provides.

Bookkeeping the traditional way was slow and time-consuming.

Worse, it meant that if you wanted updates on how you were doing, you either needed to make an appointment with your small business bookkeeper or spend hours crunching the numbers and doing the legwork yourself.

What small business owner has time for all that?

With their automated processes, cloud bookkeeping systems allow small business owners like yourself to easily keep track of your business finances, without having to spend hours poring over receipts and ledgers.

Cloud bookkeeping not only simplifies the process but also significantly reduces the likelihood of common bookkeeping mistakes, which can have far-reaching consequences for your business’s financial health.

Platforms like Xero, MYOB Essentials and QuickBooks:

• Are synced with your bank accounts
• Complete reports automatically
• Can be integrated with your POS and inventory systems
• Come with a range of powerful extras and add-ons
• Automatically calculate GST and other taxes for you

Thanks to all of these features and more, you’ll know exactly where you stand, without having to lift a finger yourself!

Make your business bookkeeping simpler, cleaner and quicker

Our bookkeepers in Melbourne can help your business with your bookkeeping – and not just by crunching all the numbers for you.

We understand that as a small business owner, you still want to be in the loop and able to directly access your financial information when needed.

That’s why we offer a range of setups, including incredibly powerful cloud bookkeeping systems that take the grunt work off your shoulders.

We’ll:

• Set your system up
• Migrate your current bookkeeping data over
• Provide training and help you transition

Understanding your business finances is critical, and we can help with that – call (03) 9589 0128, or click here to get in touch with our Melbourne bookkeepers online.