While most business owners only attend to their bookkeeping requirements as an afterthought to keep the Tax Office happy (and most individuals do nothing), the right focus on bookkeeping is one of the building blocks upon which good financial management is built.
If you don’t know your numbers you can’t possibly manage them, or your business.
- You manage your business by gut feel.
- You manage your business’s cashflow by monitoring the bank balance daily.
- You prepare an annual budget and promptly file it in the bottom draw never to be seen again.
- You prepare an annual budget and compare the actual result and cash position to the budget.
We have found that the percentage of business owners who manage their business’ cash flow via one of the above methods to be frighteningly high. If you are one of them, you are selling yourself and your business’ performance short.
Virtual CFO Solutions
We’ve all heard the business wisdom that we should stop working “in” the business and start working “on” the business.
Of course, this sounds like a great idea…in theory. In our experience, this is just a pipe dream for most small to medium sized businesses, because:
- There just isn’t enough time to get everything done;
- What does working “on” the business mean anyway?
- The benefits of working “on” the business are unknown or misunderstood; and/or
- There is no accountability (i.e. “I’ll get to that next week when I have more time”).
Small to medium size business owners are generally very good at what they do, but can be lacking in financial understanding. Those that do have a good grasp of financial matters are often too close to things to make sound financial decisions for their business.
- Detailed Job Descriptions
- Complying and Functional Employment Agreements
- Legislation and Award Compliance
- Correct Employee Super Contribution Calculations
- HR Systems and Procedures
- Leave Compliance and Tracking
- Performance and Salary Reviews
- Workplace Health and Safety
- Problem and Complaint Resolution
- Staff Exit
The laws surrounding HR are a minefield which, if mismanaged, can cost you a fortune.
If you are in business you are at risk. Simple as that. You are at risk from:
- Your Customers
- Your Suppliers
- Your Employees
- The General Public
- The Tax Office
- Yourself (Poor Business Management)
Correctly structuring your affairs, both business and personal, ensures that, as much as possible, the effects of these potential risks are minimised
Sometimes, despite doing all the right things, or due to lack of good business management processes, things go wrong and action needs to be taken to salvage what’s possible.
If the right steps are taken early enough, quite often not all is lost.
The process of preparing a business valuation is quite standard however there is an art in calculating the correct value.
Self Managed Super Funds
Self Managed Super Funds are an increasingly popular option for people looking to play a more active role in building their retirement savings.
When buying a business, the first instinct is often to let excitement and enthusiasm take over and rush in to purchase, often with devastating results.
Our tailored business purchase process ensures that nothing is missed and that things are done properly and in the correct order