Small Companies with Accounts staff

Management of your financials is a fine line between success and failure. A national study conducted in Australia had found that 61% of SMEs had identified "failure to manage costs or anticipate rising costs" as one of the main reason (61%) for failure of Sole Traders with "inadequate bookkeeping" resulting in failure in 26% of the cases. So the dangers of business failure as a result of bad bookkeeping is more real than than what businesses may think.

As a small company, keeping up to date with what you are spending and earning is absolutely essential. As a trader you need to know:

  • Exactly where every penny of your money is going every month - are you wasting it on unnecessary items or services?
  • Whether you are getting a good deal on essential business purchases - are you paying too much for base materials? Should you look to source from somewhere else?
  • What your cash-flow forecasts are - it is important to have a cash-flow plan. A cash-flow plan can tell you if you need to borrow money and if so, how much, when and how you can repay the loan.
  • Whether you could manage your spending better. Where is money going? Do you need to set a more realistic budget or prioritise certain costs? For instance - pot plants and scatter cushions may look nice in a beauty parlour but they're not as important as the heating bill.
  • When are all of the tax and annual return deadlines? Late fees can mount up very quickly to extraordinary amounts.

 

Frequently Asked Questions (Click on the question below to expand the answer to them)

halcyonic-site-footer