It seems Australia is the place to be for startups these days. Many people dream of creating the next Atlassian. But before you begin shooting for the moon, it pays to remember that you need to get things right when you’re a small fish. And a common pitfall that many business owners face is ensuring that their enterprise’s financial systems are shipshape. So, before you launch that hot new app or ship your product to the shelves, take a moment to read this article and rethinking your financial processes.
Don’t Rely on Yourself for Accounting
You’d be surprised just how often this happens. While you may be a gun marketer or have your SEO down pat, it can amount to sweet nothing if you don’t have a head for numbers. That’s why it can be worth investing in small business accounting software. A tool like this can do so much for you – including robust reporting and analysis, tracking who owes you money and who you owe money to and automated systems like payroll. Also, accounting software has great security so your data is safe and sound.
Some authorities in the financial sector are pushing for a cashless society. If you’re a brick and mortar store this may make you shudder. Yet you need to be open to the idea. Do you have an EFTPOS minimum? How many potential customers have you turned away because they didn’t want to spend 10 dollars just to buy a 4 dollar item? Consider scrapping your minimum purchase, or implementing a small surcharge. Many people are happy to pay a small surcharge for the convenience of not having to carry cash or coins.
Can You Automate?
Do you have an in-house payroll staff member or team? Did you know that you could be saving money by automating your wages? While you may hesitate because it means letting go, staff, at the end of the day if they’re skilled they’ll find other employment and your bottom line matters most. While you’re at it, see if you can automate other aspects of your financial systems. The accounting software option we mentioned earlier can help with this.
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Be Ruthless When it Comes to Your Spend
Take some time and perform a thorough audit of all your spending. You need to examine every single aspect of your business and see where all your money is going. Chances are there will be some fat and wastage in places. Once you have the results you need to rethink where that money is going. Do you really need the expense? Could you find a cheaper, better option?
Get Your Tax Right
Not doing your taxes correctly can either result in a massive tax bill on one hand, or overpayment of tax on the other. Hire a professional to do your business tax return and ensure that you get the best outcome for your business.
In summary, there are a few things you can do to ensure your financial systems are sound. First of all, don’t rely on yourself for accounting. Invest in some decent accounting software and watch your efficiency soar. If you’re a brick & mortar store then remove your EFTPOS minimum and implement a small surcharge. Automate your payroll systems where you can, and audit your outgoings.
Finally, hire an accountant at tax time to ensure you pay only what you need to. At the end of the day you’ll have more space and time to focus on growth and profit – which is the aim, after all. Good luck!