Financial management is no child’s play, especially when your business is still taking baby steps in the volatile market. Inadequate cash flow and haphazard finances can cost you dearly, taking your business back to square one. That’s the reason why you need to iron out your finances early on to survive, thrive and flourish in a fiercely competitive business world.
Here are some tips to help you keep your business on track:
1. Use a bookkeeper, not just software
The market has a myriad of bookkeeping software; however, we would strongly advise you against completely relying on it. There’s nothing wrong in using the software, as they can make your work easier, however, it is beneficial to use a professional bookkeeper who can create your chart of accounts. Creating a chart of accounts give you a panoramic view of your accounts for effortless monitoring and tracking of crucial transactions.
2. Exclude ‘Petty Cash’ as an asset
Many offices keep petty cash for miscellaneous expenses. Albeit, it is essential to know that petty cash is not your assets, so never set up an account for it. Including the petty cash in your account might make the finances complicated. There are numerous effective ways to divert the funds spent out of your or your employee’s pocket rather than including it in your overall business expenditure.
3. Proper Payroll Management
Setting up proper and correct payroll plays a pivotal role in financial management. Therefore, make sure you include the smallest and even the most seemingly trivial employee detail like date of birth and TFN to ensure that you have got their penalty rates accurate. Moreover, you have to make sure that employees’ linked accounts like superannuation and tax are correct.
For bookkeeping and other financial advice, contact our team at Zimsen Partners today.