Whether you are setting up your SME, or have already embarked on your journey, one of the important tools for guiding you in the management of your business is your business books with effective bookkeeping services.
The biggest mistake you can make, and we see it often, is that business owners file papers into boxes, or capture part of it into a spreadsheet by either entering all or some of the information.
They then wait for the tax man to notify them that there are tax returns due, and suddenly there is a big scramble to get on top of things.
It ends up being a real waste of money for the business as suddenly they have put pressure on someone else to resolve a problem that had not been addressed in the beginning, and they end up been charged a ridiculous amount to get all up to date.
With technology today and service providers like QuickBooks, Sage and Xero etc there is no reason not to be online and have access to your business finances daily. The reality is you should start by ensuring, your business information starts working for you, and not the other way around. This will change the way you look at and engage with the day-to-day business requirements.
Let me explain.
You suddenly come across a good contract opportunity, or a tender but do not know where you stand from a finance point of view. Why? You might still live in a cardboard box, you cannot see if you need financing to take on the new business, or if financing is required. The reality is you do not know. How are you going to grow your business and take it to the next level?
If your business finances are being maintained by a professional service provider, you will have information at your fingertips to help you make important, and informed decisions for every step you take in your business.
If you continue to run your business from a box or spreadsheet, a year later, you think you will know what money has come in or what it has been spent, however the reality is this creates an unexpected or potential liability for you, and the business.
Today there are a lot of options for accounting systems and with technology today whatever the cost might be, it is not only a tax benefit to your business but helps you in the day to day management of your business.
It is important that you have a service provider that works with you in achieving your business objectives and can guide you where you are unsure. It should not be a burden or a frustration.
The service provider should also be prepared to support your business objectives with you otherwise it ends up being a waste of your time.
Remember the saying there are always three sides to a story. Your side, your service providers side, and your books 😊, the latter being the most important.