If you suspect your cash flow management isn’t great, then it might be time to hire professional bookkeeping services for your business. Good cash flow is important in a business for multiple reasons, and not all of them involve your bank account. Paying bills on time ensures good relationships with suppliers, and sending timely invoices allow payments to come in faster. Good bookkeepers in Melbourne can guide you toward practices that will not only keep your business afloat financially, but will keep you in the good books of all stakeholders, including suppliers and customers. In case you’re unsure of whether you need bookkeeping in Melbourne, we detail some tell-tale signs below that spell out the need for professional bookkeeping services.
Warning Sign 1 – You’re in Debt & Paying Huge Bank Fees
If you have a problem with cash flow, then you might be tempted to source funds through borrowing. While this tactic can work for some businesses in certain conditions, being indebted to banks can also be a liability. You might be paying so much in fees and interest that you’re jeopardising your available cash flow. Bookkeeping firms are very experienced at helping clients solve these kinds of common business problems, do don’t be afraid to ask for help if you need it.
Warning Sign 2 – Your Suppliers Aren’t Happy
If you’re constantly paying your bills late – or not at all – then your suppliers are not going to be happy with you. This is a dangerous situation, as you could lose the services of high-quality suppliers simply due to your cash flow problem and inability to pay on time. Keep your suppliers happy and your cash flow healthy by hiring bookkeepers in Melbourne.
Warning Sign 3 – Customers Aren’t Paying You On Time
Usually if you’re not on top of your cash flow, you might not be sending invoices out promptly, which in turn means your customers aren’t being prompted to pay you on time. Rather than getting frustrated, put clear processes in place to ensure timely payment from your end and their end. Invoice on time, send out reminder notices, and engage the help of debt collectors when customers fail to pay.
Need a Good Bookkeeper in Melbourne for your Business?
If you’re looking for a trusted bookkeeper in Melbourne to get your business cash flow healthy again, look no further than IZ Bookkeepers. We’ve got the knowledge and experience you need when it comes to keeping your books accurate and complaint. Call us today on (03) 9110 1455 to find out how we can help.
When it comes to business finance, you really need to know your numbers. But what exactly does that mean? When we talk about numbers, we’re talking about particular numbers that mean particular things − like the numbers in your profit and loss statement, the numbers in your balance sheet and the numbers in your cash flow statement. These numbers show the health of your business, and that’s why you need to know them.
This is where a good Melbourne bookkeeper can help put you ahead of the pack. Before you can grow your business, you need to know what kind of ground you’re currently standing on. Without knowledge of your numbers, you won’t know what is needed to turbo charge your business growth. If you’re really lost, a decent bookkeeper in Melbourne can help you find your feet. But for now, we’ll provide an overview of the numbers critical to business growth below.
Profit & Loss Statement
Any bookkeepers in Melbourne that are worth their salt can draw up a profit and loss statement for you. This is your monthly scorecard that shows how many wins and losses you’re getting. It outlines your expenses and income, and the resulting figure at the bottom of the statement tells you a lot about the health of your business. You want to be in a situation where you’re creating profit every month.
Balance Sheet
Your balance sheet provides you with today’s snapshot of your business. If you need help creating a balance sheet, ask one of the many bookkeeping firms for assistance. A balance sheet details your assets, your liabilities and your resulting equity. For example, assets include banked cash, petty cash, inventory you have on hand and any invoices your clients haven’t paid yet. Liabilities are the things you owe, including debts, unpaid taxes and invoices. When you add up all the assets and subtract all the liabilities, you’re left with a figure that represents the net worth of your business.
Cash Flow Statement
Your cash flow statement shows you where you’re heading and is perhaps the most important for business growth. Without forecasting cash flow, you won’t be able to plan where your cash is going, meaning you might be caught short of cash. This is a very real problem when you’ve got employees and invoices to pay. You can fix all this with a bit of preplanning and the use of up-to-date software and professional bookkeeping services. When you’re deliberate about your use of cash, you can plan for sustainable business growth.
For Exceptional Bookkeeping in Melbourne, Call IZ Bookkeepers
If you want to grow your business, you need to start with a solid foundation. At IZ Bookkeepers, we can provide a wide range of quality bookkeeping services to help you grow your business. Call our Melbourne bookkeeper today on (03) 9110 1455.
Think back to when you first decided to go into business for yourself. Was it because you wanted to provide a variety of products and services that you’re passionate about, or because you love recording numbers and watching the growth of a business through its sales figures and profit & loss statement? Most people would likely choose the former, with the business becoming an outlet to demonstrate their passion to an equally as passionate market. The financial side of running the business is something many people feel is an obligation; something you need to do to keep the business afloat. Well, just as you know your passions and strengths lie in the products and services you offer, bookkeeping is where our passions and strengths lie. Here are some benefits of hiring an external bookkeeper in Melbourne to oversee the finances of your business.
You Get More Time
By outsourcing to professional bookkeeping services like IZ Bookkeepers, you can have more time to focus on the elements of the business that matter most to you, whether it’s growing your customer base or expanding the variety of products and services that you offer. In short, you can enjoy more of the day-to-day duties that compelled you to start your own business in the first place.
You Save Money
Instead of hiring a part-time or full-time bookkeeper as an employee, outsourcing those duties allows you to save money that can otherwise be put into other areas of your business. You’ll also save on lost productivity by outsourcing your bookkeeping to experienced bookkeeping firms only when you need to.
Expertise On Your Side
While you might be able to get by with your bookkeeping with your own limited knowledge, or you might have a relative who’s willing to help out, outsourcing to professional Melbourne bookkeepers means you have qualified and experienced bookkeeping professionals on hand. They can provide you with the most comprehensive and detailed financial reports you need in order to make clear decisions and directions for your business.
You’ll Have a Team Working For You
When you outsource to one of the top bookkeeping firms in Melbourne, you don’t just get the expertise of a sole bookkeeper looking after your finances; you’ll have the benefit of a complete team working for you.
It’s time to return your focus back to the areas of the business you love. Delegate your bookkeeping in Melbourne to the team at IZ Bookkeeping today.
