What I would like to share with you all first up is the importance of being prepared and up to date!
My business currently is in a state of growth and expansion, it is the most amazing experience and let me tell you SO FUN!! But what I have learnt is being unprepared in all areas can be a successful businesses down fall. This relates to many areas, but for today, let’s talk about your Accounts and bookkeeping, cos you know, that’s my area!!
Last week I had the potential opportunity to apply for some business finance, being a bookkeeper this process should have been a piece of cake. Well it was, as I knew what to prepare and how to do it but boy did it take time. I spent hours making sure our accounts were perfect and preparing the needed documents to get us over the line, and prove what I was doing was worth supporting. The interesting thing is, in the process of doing that it showed me, we don’t need finance. With a little effort, creativity and pushing through we can do this on our own without the stress of debt.
So here are my tips:
- To the outside world your profit and loss is the only thing that shows your businesses worth, so keeping an eye on it is crucial. More to the point for lots of business owners, do you understand how it works and what it means?
- Keeping your bank accounts reconciled means you always know what’s owed to you, you may think your owed $1000.00 and be panicking but really your owned $2500.00, keeping yourself reconciled and with your finger on the pulse is so important.
- Send your clients statements, there is a reason why big companies do it. In my previous before business life I worked in Credit Control and hated statement day, but now I understand the benefit.
- It’s ok to ask to be paid!!! This is a big one, so many of us are great at sending out the invoices but really when it comes to the phone call of hey your invoice was meant to be paid, we hate it. It’s the biggest fear I hear from my clients. It’s OK, your clients understand you have overheads to, I often find this bring more respect than just leaving it and hoping. Have the conversation.
- Most importantly: if this is not what your ace at, ask for help. There are people out there that LOVE reconciling accounts. I used to be one of them and I know I have a staff of seven ladies who love it to, ask for help and then let it go and move on to what your good at.
- I recently heard a wise business man say “cash flow is king” and yep I agree but I would like to add so is preparation and understanding your business, keeping your finger on the pulse. Doing so means you know when you’re running smooth and when you need to hustle a little and get things moving.
Until next time, hope this helps. Remember there is help out there, you just need to ask for it, and once you’re up to date and prepared it’s easy, you can jump at the opportunities that arise or know when you’re ok and can keep moving forward on your own.