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Bookkeeping & Strategic Financial Management
- Up-to-date Financial Records
- Modern Bookkeeping Solutions
- Cash Flow Management
- Benchmarking
- Strategic Financial Reviews
Bookkeeping is a necessity from a tax perspective, but also a must from a prudent financial management perspective. For growth orientated business owners, the insights from financial records can also prove invaluable for strategic decision making.
Read Key Points & Transcript
Bookkeeping & Strategic Financial Management
video key points
- Starting with the basics of bookkeeping—tracking, classifying, and monitoring financial transactions—is essential for setting your business up for financial success.
- Inaccurate or inefficient bookkeeping can lead to significant problems, including wasted time, financial losses, and severe penalties for non-compliance with government authorities.
- Utilising bookkeeping for strategic financial management, rather than just compliance, can drive better business decisions and growth.
- Common bookkeeping issues include over-reliance on software and business owners spending too much time on it, detracting from focusing on their core business activities.
- Outsourcing bookkeeping tasks can free up time and provide advanced insights, enabling business owners to work on growing their business rather than getting bogged down in operational details.
- For more insights and the opportunity to focus on business growth, consider booking a no-obligation meeting with our specialist advisors.
Presented by: Rama Yudhistira
video transcript
In order to set you for financial success, no matter what you do, it is important you start with the basics – tracking, classifying and monitoring your financial transactions.
In business, the practice of tracking, classifying and monitoring your financial transactions is called bookkeeping.
You need to know where your money has gone, and how much you are making from your products and services
There are many problems that can come from inefficient or inaccurate bookkeeping, such as:
- Lots of time and resources wasted unnecessarily.
- Inability to perform financial analysis.
- Financial losses through such issues as missed payments, invoicing errors and cash flow problems.
- Non-compliance with relevant government authorities, such as the ATO and the State Revenue Office, which could lead to severe penalties wasting thousands and thousands of dollars.
As accountants in business since 1973, we know business owners don’t only need to get the bookkeeping done for compliance purposes, they also should utilize it for powerful strategic financial management.
Insights gained from your financial records can, and should be, a key driver in how you make better decisions to grow your business.
But, the first place always starts with accurate, up-to-date bookkeeping.
A couple of the common issues we’ve seen with bookkeeping include:
- relying on the software too much, and
- business owners wasting too much time on the bookkeeping.
The software these days is far better than it has ever been, but it’s seldom a plug-in and let rip solution. This is especially true when payroll is involved.
We also mention business owners wasting too much time on bookkeeping because it’s not usually where your talent and best output lies.
Whether you are starting your business or looking to grow, you should be putting adequate time into working ON your business rather than IN your business.
You don’t need to concern yourself with endless amounts of paperwork and general bookkeeping tasks. These can be better left to skilled employees or to professionals such as ourselves.
Before we finish this video, we’ll use an example of a bookkeeping problem, and solution, to give you additional context about what we’ve been discussing.
Say you are a small business experiencing net profit growth year-on-year. Due to increased revenue over the last year, you are required by the tax system to lodge more frequent Business Activity Statements.
Up to then, you maintained your financial records in a spreadsheet, which presented many issues such as inefficiency and inaccuracy. So, things have to change.
In a situation like this, we could assist you in setting up a modern bookkeeping system, and provide you with comprehensive training on how to use the program.
The result, an improved bookkeeping system allowing you increased functionality to track your business performance and meet your tax obligations.
Additionally, with the more efficient bookkeeping system, you might also free up some of your time, which could then be used to grow your – allowing you to work ON your business, rather than IN your business.
If you want more time, and advanced insights, so you can focus on growing your business, please don’t hesitate to contact us and book a no-obligation meeting with one of our specialist advisors. We guarantee you won’t regret it.
Setup Accurate Accounting from the Beginning
Setup Accurate Accounting from the Beginning
video key points
- Maintaining accurate financial records is crucial for business success, yet it’s commonly neglected or mishandled.
- The initial setup of an accounting system, if done inaccurately, can lead to costly mistakes affecting time and financial resources.
- A professional example highlights the complexities and potential mess arising from self-managed bookkeeping connected with professional software.
- Key accounting tasks such as payroll, debtor collections, creditor obligations, and GST compliance grow in complexity with business expansion, requiring skilled bookkeeping.
- Effective bookkeeping delegation relies on a well-functioning system, underscoring the value of professional setup to save time and money and support business growth.
Presented by: Rama Yudhistira
video transcript
Most business owners know that bookkeeping and maintaining accurate financial records are very important… and yet, some business owners unfortunately tend to neglect their paperwork…. or, they may not realise that they are essentially neglecting their paperwork by not realising the mistakes they are making with their books.
For many people, it may be tempting to setup your own accounting system in the beginning. However, please be wary that setting up an inaccurate accounting system can be very costly.
How can this be? Let me explain with an example.
A professional in their field sets up a new business. They setup their bookkeeping themselves, connected it with their industry’s professional software, and think that the bookkeeping software will just run smoothly and handle it all.
However, what follows is an absolute mess of records which require substantial amounts of precious time and accounting fees to fix things. Time and money which could have been better spent focusing on growing their business.
If you are a business owner seeking to earn $1 million plus in revenue, invariably there are many things in your accounting records that you need to maintain, consistently well. This could be:
- payroll matters
- debtor collections
- creditor obligations
- GST obligations
- …and many more.
The bigger your business, the greater the compliance burden. This makes the requisite skillset for bookkeeping more and more amplified.
Furthermore, as a business grows, the task of bookkeeping should be delegated, and to achieve success in delegating, one of the key things to do is to have a thoroughly working bookkeeping system.
As accountants and trusted business advisors, we are passionate about helping our business clients get to where they want to be. This includes helping you setup accurate accounting from the beginning, so you can save a lot of valuable time and money in the long run.
Talk to us today to find out how Munro’s can assist with your accounting and bookkeeping requirements.
Read Key Points & Transcript
Move Away from Tax Driven Accounting
Move Away from Tax Driven Accounting
video key points
- Understanding your business’s actual worth and making data-driven decisions are crucial for scaling.
- Traditional accounting often focuses on tax obligations, not the real financial state or potential of your business.
- Shifting from tax-driven to reality-driven accounting can unlock your business’s full potential, providing insights for informed decision-making.
- Real-time, accurate financial data is essential for quick, informed business decisions.
- Tools such as Strategic SWOT, KPI monitoring, Three-Way Forecasting, and ROI Tracking are instrumental in understanding your business better and planning for the future.
- To reshape your future with insightful accounting and experience success, engaging with our specialist advisors is the next step.
Presented by: Drew Pflaum
video transcript
As a business owner, have you been tracking your Return on Investment?
Do you know what your business is worth?
Are you making data driven decisions to propel your business forward?
Or, is your accounting just helping you satisfy your tax obligations?
These are very important questions and interestingly, many business owners don’t have the answers, and some have never even considered them.
As a business owner or leader wanting to scale your business, it is very important that you understand your numbers and make informed decisions.
Many businesses begin with an accounting system tailored for tax purposes. In other words, the accounts are prepared not on actual business reality, but based on tax rules. The trouble with this approach, especially when it comes to scaling your business, is that reality and what tax says may be widely different, and if your data is tax-driven, rather than reality-driven, the decisions you make may not lead to optimum results.
Your accounting system is meant to be there to provide insights, and be a tool that helps you unlock your full potential.
In the business world, informed decisions need to be made quickly by accessing real-time, accurate financial information.
So, as you embark on scaling your business, consider moving away from tax driven accounting.
Our specialist advisors have the knowledge and experience to help you understand your numbers and make the change to a data-driven future. You could soon be using various tools, metrics and techniques such as:
- Strategic SWOT
- KPI monitoring
- Three-Way Forecasting
- ROI Tracking
- …Just to name a few.
With powerful insights and access to information, you could be using benchmarking to compare your performance against competitors.
Or, you could use sensitivity analysis to see what the impact would be if say you increase your prices by 5%.
If you are keen to use accounting to help shape your future and Experience Success, please contact us – after working together, you will understand that accounting is more than reporting what has happened in the past.
Read Key Points & Transcript
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