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

SIXTH CONSECUTIVE RECORD PROFIT FOR AP EAGERS

AP EAGERS (ASX: APE) will beat guidance with its sixth-consecutive record profit when it reports its full year result...

WINDSCREEN COMPANY SMASHED WITH BIG FINE FOR UNDERPAYING WORKERS

AN Adelaide car windscreens company and its director have been penalised almost $85,000 after exploiting seven employ...

GROUPTOGETHER A GIFT FOR TIME-POOR PARENTS

JULIE Tylman and Ali Linz have taken the stress out of gift giving by creating GroupTogether, an online platform whic...

SIRTEX CEO DISMISSED FOLLOWING SHARE TRADING PROBE

SIRTEX Medical Ltd (ASX: SRX) has sacked its chief executive officer, Gilman Wong (pictured), following an investigat...

Related News

RISE OF STARTUP SUPPORT PROGRAMS NOT AS ROSY AT IT SEEMS

ENTREPRENEURIAL cultivation companies in Australia are appearing quickly, but questions have been raised about whe...

SMES TAKE RETAIL MARKET SHARE AS CONSUMERS CHOOSE PERSONALISATION

IN a battle for the hearts and wallets of Australian consumers, it appears that small and medium retail businesses...

KNOWLEDGE WORKERS AMONG MOST SOUGHT AFTER IN 2017

BUSINESSES searching for efficiencies and improved systems are in search of knowledge workers early this year, say...

FEMALE ENTREPRENEURS GET SPRINGBOARD TO GROWTH

DESPITE the fast-growing number of women studying STEM subjects at school and university, women continue to be und...

Contact us

Email News Update Sign Up Contact Details
Subscriptions

PO Box 2087
Brisbane QLD 4001

LoginTell a FriendSign Up to Newsletter