HELPFUL BOOKKEEPING TIPS TO RUN A SUCCESSFUL SMALL BUSINESS

Clever bookkeeping through harnessing technology available is what will help your small business grow in 2021. Emerging entrepreneurs in Melbourne and Mornington Peninsula through to established businesses looking to grow substantially can use new bookkeeping tools to take control and lead from the front.


If you are a small business in Melbourne or on the Mornington Peninsula, you can find an efficient bookkeeper to help you take control of your business and drive growth.

For big business, bookkeeping is about driving day to day results through clever accounting management.



For Small Business owners, having a bookkeeping partner that provides you with helpful accounting information and knowledge will help you unlock opportunities and take advantage of the low bearing fruit available to you. The aim is to help you better understand how to effectively forecast sales, understand financial reports and use them to make decisions as well as preparing for your 2021 Small Business Tax return from a credible melbourne and mornington peninsula provider.


What does a good bookkeeper do for small business in Victoria, Australia?

  1. Utilise accounting technology such as Xero and MYOB

  2. Monitor Cash Flow

  3. Keep track of sales revenue

  4. Conduct analysis to know where your costs are

  5. Minimise unnecessary expenses

  6. Manage GST and Income Tax

  7. Plan for the future

Let's break that down.


1. Utilise accounting technology such as Xero and MYOB

Clever bookkeepers use accounting software like Xero and MYOB to keep track of transactions and records. These systems are brilliant for all types of Small Business owners, because they provide real time insights into how your business is tracking to help you make better decisions. A good bookkeeper helps you customise Xero and MYOB for your business. Tier Accounting is an expert in Xero and MYOB and helps business owners understand the language to benefit from the technology.


Why have Xero and MYOB?

  • Because they are highly effective tools that help you save time and reduce errors from manual reporting.

  • They provide tools to generate financial reports

  • Payroll management

  • Invoicing

  • Automation to keep things moving when you are focused on your core business

"The rule of thumb in creating good business practices is to focus on your core business and outsource accounting, tax and marketing to the experts," - Danielle, Chartered Accountant.

Accounting automation is the future in 2021. Utilising the functions of Xero and MYOB to sync with websites and CRM platforms will help you better prepare for your tax records and Business Activity Statements. Accounting without the hassles.



2. Monitor Cash Flow

Cashflow management will help you monitor the financial health of your business in Melbourne and the Mornington Peninsula. Monitoring your cash flow will help you see the real story of your business.


You need to monitor what money is coming through the door versus what is being spent.

A clever bookkeeper will help you take control of the cash flow of your business through cash flow forecasting. The purpose of this is to ensure unnecessary costs are reduced or eliminated while also ensuring invoices are paid on time.


How do I make sure my invoices are paid on time?


  • Send out invoices asap on delivery of product or service

  • Set up automated reminders to ensure timely payment.

3. Keep track of sales revenue

Keeping track of your sales is key to successful small businesses operating in Melbourne and on the Mornington Peninsula. As a business, you know you cannot exist without sales.


A clever bookkeeper will help you understand where your sales are tracking on each day of the month, in real time and benchmarked against your forecasts. What is your break-even point? Are we achieving our business goals? The important thing is to activate systems that help you achieve this seamlessly and effortlessly. Tier Accounting helps small businesses track their sales to stay ahead of the game.


What can I do to drive revenue?


Work with a data driven accountant and bookkeeper that knows small business.

Find a marketing company that knows big business and small.


"Marketing for small business is often a formula that is based on consistency and persistence. There is an answer for every marketing problem. For small businesses in Melbourne and the Mornington Peninsula, my advice is to drive a marketing program that has minimal marketing wastage. You should see a result for every dollar spent," - Suzanne, Oliver and York

4. Conduct analysis to know where your costs are

Knowing the point where your business breaks even is key to running a successful small business in Melbourne and on the Mornington Peninsula. You want your business income to exceed the costs for each reporting period. This is the profit and it is important to run a profitable small business in 2021 so you can grow.


Clever bookkeepers will run cost analysis to help you know where your business stands and how to make improvements, such as assisting with pricing changes or expense reduction.


The focus is on clever small business decision making. Analysis is an essential part of ensuring you can set monthly goals and hit them.


What should your bookkeeper offer you?

  • How to reduce small business costs

  • How to harness technology to see real time results

5. Minimise unnecessary expenses

The role of a clever bookkeeper in Melbourne and the Mornington Peninsula is to help you cut down on unnecessary expenses that are a mistake for your small business. These costs directly impact your profit and loss statements.


Businesses in Melbourne and on the Mornington Peninsula have fixed costs as well as variable costs.


What are the usual fixed costs for small businesses in Victoria?

  • Hosting and maintenance of the websites, including software updates

  • Technical costs

  • Warehouse leases

  • Office leases

  • Utilities


What are the variable costs for small businesses in Victoria?


Marketing and advertising

Materials

Packaging

New technology


A clever bookkeeper can help you reduce costs by looking at the spend for each item and knowing where to make changes to drive growth and minimise unnecessary spend.


"We got rid of our office and moved online. This happened before Covid hit and it is great to see more companies doing this. It is the future of business operation because you can invest in your customers and products rather than expensive offices."

6. Manage GST and Income Tax

Small businesses often need guidance on Goods and Services Tax GST to navigate the applicable GST to goods sold and purchased in Australia. GST is usually paid to the ATO every quarter via your Business Activity Statement (BAS).


A clever bookkeeper provides clarity around these payment period using accurate reporting and utilising technology.


How can I make this process easier?


  • Engage a bookkeeper with Accounting experience

  • Utilise technology

  • Work as a partnership to meet business objectives

7. Plan for the future

Use these tips to make sure your bookkeeper is doing what is best for your business in 2021. Know the numbers and get organised.


If you would like to talk through how to find efficiencies for your business, book your free 15 minute appointment. Knowing is leading.