Who are you? You are unique, that’s who, but you are also a small business owner. One of the special ones in the 2 million plus small business that contribute to Australia’s diversity and independent way of life.
Sunday, the first day of the week, but for most it feels like the last day in that wonderful weekend you worked and waited so long for to arrive. Now your mind is starting to fill with the hundreds of tasks that await you this week.
• Raise your sales invoices
• enter the timesheets
• check your marketing schedule
• Turn up to that networking event
• order new uniforms
• pay the suppliers
• order the stock
• attend to that pesky H.R. issue
A small business owner especially in the early years will find it hard to relax and spend their Sunday doing what they love when they know on Monday the cyclone begins. What would you rather be doing on Sunday?
Sophie wants to sleep in, like all day, she spent 60 plus hours last week making coffee and cronuts for her customers at her Food Van. Bad luck Sophie, better get to that paperwork to organize your orders next week.
Andrew, self -employed plumber, wants to go to The Royal Hotel with his mates and see that live band. His mates don’t have a small business, they will probably chuck a sickie tomorrow. Andrew needs to clean out his van and replenish the stock, then his week will run more smoothly.
Having a bookkeeper may not give you your Sundays back but systems and processes can streamline your business and get you on track. It is not the bookkeeping (things like paying the bills and lodgement of the BAS) that will turn your small business into a smooth-running machine, but the development of efficiencies and ideas to have you continually improving.
If your accounts are behind, then you cannot find the information that you desperately need to help you move forward. For example, when are Sophie’s peak periods? What are her staff costing her? Can she use junior staff at certain times or less staff at certain times? What hours are they legally allowed to work for? What costs are on top of those hourly rates? Did Sophie forget to add superannuation and the cost of holidays onto her hourly rates? How much do those paper cups cost? Are her competitors using better coffee? If so, how much does it cost?
Sophie should be spending her time on these questions and answers, finding new strategies and promotions for her business. She can employee qualified people around her such as Accountants and Bookkeepers to do the other compliance tasks. Have those accounts up to date at all times and then have a good conversation with your bookkeeper. Sometimes it is just as simple as a conversation to spark an idea that catalyzes into a great business idea.
If you are a Service business, then it is highly likely your cash flow will be poor if you leave your Sales invoicing to a weekly or monthly event. It would be way better to create an instant or regular method of invoicing your customers, so the payments come in faster.
If you want to sleep a little longer on Sunday like Sophie, then look for a good bookkeeper, they should help you achieve far more than you could on your own.
Do yourself a favour and get one that is qualified.
Check out iGrow Business Services – “Growing Your Business with Better Books”
It’s the first Wednesday in November, anywhere in Australia. What are you doing that day? Are you counting your winnings from the Melbourne Cup? Perhaps you are sporting a wee hangover from the extended lunch you and your mates had up at the The Royal Hotel?
Things got a bit out of hand when Davo won the trifecta and then shouted the bar, then his Missus showed up and dragged him out. “Not on a school night, Davo” she says, dragging him past the rowdy mob still drinking up real fast, like it’s the last beer on earth.
Small business owners beware, just like Anzac Day, Queen’s Birthday and all the other myriad of Public Holidays we have in this great land of Oz it will affect your business in some way. You may lose time, you may be down a few staff, you may lose chargeable hours, you don’t however want to be the last horse in the race, ever.
Whether it be post-race hangover or just plain tired, doing your bookkeeping without a clear head can lead to mistakes. Mistakes that cost you money. When you raise those invoices, have you covered all of your costs in that job? Have you allowed for all of your labour time and your materials, have you allowed sufficient markup to make a decent profit? Whack that GST on top and then still come in at a reasonable price so the customer does not think you ripped them off?
Davo is a lucky bastard, you might not think so, but his missus is a Bookkeeper. She keeps Davo in line in many ways. Not only does she see that he gets to bed at an early hour but she keeps a finger (well all them) on the pulse of his business. She uses cloud accounting software. Davo does the hard yakka and she emails those invoices out pronto. Mrs Davo tracks the GST on all the Sales. She swears at Johhny Howard every day but she transfers 1/11th of all Davo’s hard labours to their GST Savings Account. If she doesn’t do that she knows The Royal Hotel will increase their takings by at 10%.
Mrs Davo pays all the boys their wages, she has the Single Touch Payroll all stitched up like the tea cosy at the country fair. 9.5% super, no worries she says, it’s a cinch to pull a report out and submit the payment to the government.
Mrs Davo is a bonza bookkeeper, keeping up to date with all the latest information and red tape. Cross Counter won the Melbourne Cup in 2018. The horse came from behind but it had all it’s bases covered. Be like Cross Counter, have a bookkeeper count the things that matter. Make sure your bookkeeper is experienced like Mrs Davo, then you will be one of the frontrunners in the field, maybe even put your nose first to that winning post.