Your bookkeeping system is the engine room. Using a system that is cloud-based and available on any device is pivotal in ensuring you have access to the relevant and necessary information anywhere, any time. We recommend Xero.

It’s important to understand your numbers but not necessarily do the processing. Focussing on running the business well and engaging a bookkeeping service can be one of the smartest decisions a business owner makes.

Most businesses have a cash flow that follows a similar pattern year to year. Knowing when your highs and lows are, when you have periodic commitments (e.g., GST, tax instalments) due or whether you have a balloon payment on finance due, can all be captured in a well-constructed and regularly referred to cash flow budget. If you don’t have one or don’t know how to build one, Contact Us and we can help.

Absolutely!! We’ve seen many rapidly growing businesses fall apart because as they grow the cash needed to fund that gets in front of collecting the income. This can be commitments for equipment, people, premises, and stock, for example. On top of that there are back-office systems to make sure suppliers get paid and customers pay their accounts that need to be locked in and tight. Knowing you need finance and having it in place is smarter than running out of cash and needing to go cap in hand to a financier.

You need to understand your Profit & Loss (income and expenses, and how they relate to each other), Balance Sheet (what you own and what you owe) and your Cash Flow Statement (where cash comes from and goes to) are vital.

This is different for every business, but as an absolute minimum you should have cash reserves that cover 3 months of expenses and commitments.