STAYING ON TOP OF THE BOOKS

Written on the 27 June 2011

STAYING ON TOP OF THE BOOKS

AS shifting economic conditions drive the need for new business and operating strategies, Gold Coast SMEs are being warned to regularly update their financial records or risk making ‘poorly informed’ decisions.

Small Business Evolution managing director Michelle Carr, says too often bookkeeping is ‘at the bottom of the priority list’ and businesses should aim to start the new financial year with the current information.

“Not having timely records is a mistake that a lot of businesses allow to happen. It’s often overlooked, but not having up-to-date information at your disposal often leads to poorly-informed business decision making,” she says.

“This is often a catalyst for cash flow problems, as looking at your last profit and loss figures doesn’t necessarily demonstrate the cash that is flowing in and out of your company. The old term ‘cash
is king’ has never had more relevance than in this market, so regular and effective bookkeeping is something all businesses should make a priority.”

Carr says outsourcing bookkeeping services is a practice growing in popularity post GFC.

“It can be a major step for SMEs in losing some of that control, but outsourcing definitely has its advantages,” she says.

“The costs saved by reduced wages and more efficient operating procedures can be reinvested into the company, be it in marketing, new product development or infrastructure.

“Being able to draw on the expertise of specialist services provides greater support for business owners. Even those that keep all bookkeeping and accounting in-house can benefit from regular independent audits of their books. It maintains the accountability of their staff and ensures best practices are always in place.

“Getting on top of their finances will help business owners make informed and intelligent business decisions and take advantage of better economic conditions we’ll hopefully begin to see in the next six to 12 months.”


Latest News

WHY A JUNIOR MINER DECIDED TO JOIN THE RANKS OF THE HOT POT STOCKS

USUALLY, when a relatively unknown explorer experiences a sharp spike in its share price, it means they've fou...

1700 BRISBANE APARTMENTS NOW MANAGED BY FORTUNE 500 COMPANY JLL

MULTINATIONAL and Fortune 500 company JLL (NYSE: JLL) has expanded its Australian dominance in the property managemen...

HARVEY NORMAN HITS OUT AT 'FALSE NEWS' OF ASIC INVESTIGATION

RETAIL giant Harvey Norman (ASX: HVN) has vehemently rejected reports its accounts are under investigation by ASIC, s...

RARE GOOD NEWS FOR SLATER AND GORDON AS ASIC CLOSES INVESTIGATION

ASIC has cleared Slater and Gordon of deliberately falsifying its accounts after a three-month investigation.

It s...

Related News

RAY OF HOPE FOR SLATER AND GORDON AS LENDERS STEP IN

EMBATTLED law firm Slater and Gordon (ASX: SGH) has announced to the ASX that it has launched confidential discussion...

SPROUTX PROVIDES THE SEED FOR AGTECH STARTUPS

AGTECH innovation fund SproutX has opened applications for its first accelerator round, backed by $10 million from...

GAS PRICES MAY FORCE BRICKWORKS TO TAKE MANUFACTURING OVERSEAS

BRICKWORKS Limited (ASX:BKW) chairman Robert Millner says soaring energy prices may force the company to turn to offs...

CHINA CONTINUES TO COLLECT AUSSIE PROPERTY ASSETS

CHINESE coin continues to dominate Australia's offshore real estate investment market, accounting for almost h...

EVENTS COMING UP

 

Contact us

Email News Update Sign Up Contact Details
Subscriptions

PO Box 2087
Brisbane QLD 4001

LoginTell a FriendSign Up to Newsletter