3 Tips From An Accounting Firm To Help You Organise Your Business Finances This Year

By Author: Brigette
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For most mid to large businesses in Perth, a significant component of their business plan and annual goal is to improve their financial positioning, ensuring growth & expansion, year on year. If you’re an Australian business owner, chances are that financial growth is on your quarterly board meeting agenda, too. However, what many businesses often overlook, is that in order to plan for your business to experience significant financial growth, you first need to ensure your finances are correctly and efficiently organised to handle the growth. It can be a daunting task we know, and there is a multitude of factors to consider when you’re seeking to organise your financial position, so your question may be, ‘well, where shall I start?’. We have a few key elements for you to consider, and we’re a leading accounting firm in Perth with some of the most qualified and experienced business accountants in the state. Every day we witness the highs & lows of what it means to be a business owner, and we’ve helped many savvy business owners not dissimilar to you gain clarity on their finances and experience genuine growth. ...
... That’s why we’re offering up 3 of the most overlooked factors that can drastically improve your finances and increase your profit in 2019.

Retrieve Unpaid Debts & Invoices
One of the most time-consuming aspects of a business owners role is undoubtedly the dreaded task of chasing up unpaid invoices. If retrieving outstanding debts and pending invoices is a task that you find yourself procrastinating to tackle, don’t worry, you’re most certainly not alone. It’s one of the most neglected issues encountered by businesses, and naturally so. No one establishes a business because they thoroughly enjoy calling up Mr. Smith for the umpteenth time ‘just to check on the status of his outstanding invoice number 03324 that was due in March last year’. However, it’s an unavoidable & incredibly important component of organising your financials and managing your cash flow. By implementing an automatic invoice email sequence and placing automated processes within your businesses invoicing structure (Xero can help), you not only do you eliminate the burden of a tedious task that wastes both time & money, but the automation ensures that the invoices are paid and taken care of, if not by you, then by a debt collector

Eliminate Unnecessary Expenses & Sell Unwanted Assets
Depending on your business model and industry, it may be commonplace for you to accumulate assets that have wound up taking a large amount of money from your business, largely due to storage fees. The age-old adage, ‘out of sight, out of mind’ tends to apply here quite regularly. When many of our clients come to us seeking an accounting consultant to establish financial organisation within their business, we make sure to inquire into the status of their assets, and what we often discover is a wealth of assets that have not been accounted for. Selling any unused stock or equipment is a great way to not only create additional cash flow within your business, but it will simultaneously help to eliminate an unneeded business expense. Likewise taking inventory of your business expenses, including memberships, applications, rental payments & bills that no longer serve you effectively can drastically improve your financial standing. Too often businesses forget to review their outgoings efficiently leading to unaccounted for expenses, but for the businesses that do understand the value of quarterly reviews, their cash flow & financial positioning is generally far more healthy allowing for more continuous expansion.

Invest in a Business Accounting Firm
Investing in an accounting firm or accounting consultant is without a doubt the most important factor for your business. Many owners find themselves pinched for money & cash flow, and therefore conclude that spending money on an accountant is something they simply can not afford. However, you might be familiar with the phrase “You have to spend money to make money”, and it has never rung truer than in this instance. Investing your money in a skilled accountant is often the saving grace of business owners on the verge of collapse. A business accountant can enable you to gain clarity around your finances by highlighting areas of growth, and determining your business tendencies and patterns from stock management, invoice, and cash flow patterns. They’ll not only identify patterns & areas of development but a good accountant will always work alongside you, enabling you to make better business decisions through financial forecasting, budget adaptation & planning, and creating streamlined business strategies that help you achieve your financial goals.

Action Steps to Take Right Now
If you’re ready to take the next step to achieve financial liberty within your business, here at Lawrence Group we have a number of skilled accountants to assist you on your journey. We’ve been providing solutions to Perth business owners since 1996 and we offer consultations to ensure your experience with us is effective, clear & helpful. Call us today to learn how we can help you.