Running a business successfully for does not guarantee that the good times continue in the future. It is important for business owners to have a checklist of regular must-dos in order to keep mistakes at bay. No matter how you try to remember important tasks, the reality is that time may be insufficient to accomplish them—and worse, you may have inexperienced people doing them that leads to more costs and problems. Here are five ways to be on top of your business:
Tip 1 - Create a checklist of tasks.
List down the things that you and your bookkeeper / admin person need to accomplish every week, month, and quarter. Then designate a specific date when each item must be done, and stick to it. Make sure the date you choose is conducive, which means that it must be a day when business activities are not too hectic to allow you and your bookkeeper to work on them.
For example, if you decide that accounting software must be updated weekly, your bookkeeper should be working to a set date each week to have real time financial information for you to review—it will also help you stay up to date with your tax obligations and entitlements. Do this technique for other regular tasks that need to be done on a set date.
Tip 2 - Be updated with payments.
Falling behind in ATO Payments is easy to do, because naturally, you prioritise cashflow for other important things. That is a common procedure among businesses, but it does not mean payments—especially to the ATO—must be second in priority. To be updated with payments like tax, ABS & IAS, it is important to have an expert working for you, and can work with the ATO if you do happen to fall behind. It's better to be open about your situation than having the ATO come knocking.
Tip 3 - Keep in touch with your bank.
Your bank manager is one important person whom you should build a positive relationship with. Your bank manager can help you help your business in the future with new funding either for debt or growth. But how can you create a good image for your business? Ensure that you send your bank manager your management accounts every month in order to show that you are proactive in the partnership. Although your accounts may not show great financials, keeping the submission regular entails your confidence for your business. Also, send positive commentary and press to your bank manager, who can be another person to share the word of mouth about your business.
Tip 4 - Have enough cash in the bank.
Maintaining sufficient cash in your bank can ensure that you are able to cut unnecessary costs and identify areas to assign unused funds for. A two-month worth of funds in your bank account are a good safeguard both for resolving short-term financial problems and acting right away for urgent opportunities.
Tip 5 - Move onto the cloud.
Even a small business can occupy most of your time, that is why you have to utilise all technologies to have efficient processes. One huge shift you can do is moving your accounting software into the cloud. Together with an savvy bookkeeper, this software can help your business be up-to-date with all aspects of your business, with the added benefit that you will get real-time reporting, from anywhere at anytime