Smart Accounting Tips for Small Business

According to a CCIQ study in Queensland*, the biggest issue that faces 58 per cent of all small to medium sized businesses to be more more innovative and expand is a lack of cash flow and profitability.  What I find even more disturbing is that 85% of Queensland businesses think that innovation is only possible for large corporate enterprises.

How then, does a small business get more accounting smart and improve on their cash flow?

I will share with you four Smart tips for any small business owner to action.

1. Invoice Regularly and be diligent in following up!
2. Use online cloud accounting
3. Accept Credit Cards and Direct Debits
4. Change your approach to see managing payments is FUN!

INVOICING

My husband is one of many trades people who fail to invoice on a regular basis, that is until it’s just before his monthly credit card is due. This is not the way to improve you cashflow!

I can even hear your sign or groan as you read this paragraph, but seriously guys / ladies it’s really important that you get this right!

Here are some practical tips for you to apply.

• Invoice at the completion of work each and every time.
• Set payment terms at a maximum of 7 days and ensure payments are not lost or forgotten about
• Set reminders for your unpaid invoices 7, 14 and 30 days.
• Create a template for reminders and just email or text them out

USE ONLINE ACCOUNTING

Using a pure online accounting system is not only smart, but it’s also convenient and flexible.

There are three systems we recommend and they are Quickbooks (Intuit) Online, Xero and Myob Essentials. All three systems have various pros and cons and it depends on what you want them to do as to which system will suit you and your business the best. The advantages that all three have in common are the following.

• Bank Feeds automatically update
• Bank Feed rules cut down in data entry and bank reconciliation time
• Receipts can be stored online with your transactions
• All have a smart phone app for Andriod or iphones where you can invoice or record receipts on the go
• Provide timely, online reporting so you can keep track of your financial reports anywhere / anytime

ACCEPT CREDIT CARDS AND DEBIT CARDS

This is a BIG ADVANTAGE that all small business owners should avail themselves of. Yes, there are some small costs associated with accepting credit cards, but this is a cost that you can deduct and will greatly improve your business cash flow.

There are many options you can choose from such as paypal, with QBO, Myob and Xero all being able to be connected to a business account for bank feeds. There are other options like  ipinpay for iphones, Square to name just a few.

CHANGE YOUR APPROACH AND THINKING FROM DULL TO FUN

You might think that the word “fun” is a little strange and shouldn’t be associated with “payments”. However, I challenge you to give it a try.

To be innovative and forward thinking you need to work and think differently about payments and cash flow. When you have cash, your lifestyle, your family and business life all seems to flow. When you can pay your bills, live the lifestyle you dream of, then all of a sudden you see payments and knowing all about your business cash flow as fun and exciting.

WE CAN HELP YOU 

The team and I here at My Office Books can help you implement all the four above at a fixed fee that will not break the bank.

Not only will you find bookkeeping is fun, but it will be much easier than the old paper pen, excel spreadsheet or clunky time wasting desktop days of old.

Why not give me ( Amanda ) a call on 0419578578 to find out how we can help you and your business become Fun and Profitable!

* Source: CCIQ, The Ideas Advantage:Queensland Business Innovation

Amanda Hoffmann

Amanda Hoffmann is a registered Tax Practitioner / BAS Agent No.18613005, Associate of Finance, Xero, Myob & Quickbooks Proadvisor / Trainer and a Consultant for the Australian Taxation Office.

She says she is more than just a bookkeeper with experience in real estate investing, social media, podcasting, blogging and recently recording monthly youtube episodes

Amanda loves to teach smart, easy online cloud solutions and fix messy bookkeeping. Follow her on social media and say “Hi”