5 Awesome Ways a Dashboard Helps Kick Your Financial Goals

Studying financial reports or an excel spreadsheet can be a chore. It is, however, necessary for your business if you want to do more than just survive. To thrive in business, it’s important to understand your numbers.

Some of us are visual creatures and it’s true when they say a picture paints a thousand words. Our brain loves colours and tends to grasp concepts easily when we see the full picture.

If your eyes tend to glaze over numbers, you need a financial dashboard. Imagine if you could see a colourful visual representation of your financial numbers instead of trying to decipher a profit and loss report.

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The road in business is always bumpy but a dashboard helps you get there in one piece

What exactly does a financial dashboard do? It works just like your car’s dashboard, giving you vital information about your business. Is your business running low on fuel (cash)? Will you arrive at your target destination in record speed? Or will your business break down before that? Do you have a spare tyre (backup plan) handy?

At any point in time, you have these data at your fingertips so you can concentrate on driving the business to where it needs to go.

 

Kick your goals with a dashboard

You can set goals and monitor them closely with a financial dashboard, such as hitting your sales target or reducing costs to a certain level. You’re more likely to make the best decision once you have a full picture of what’s going on. You can also fix an issue before it gets worse or foresee a problem before it blows up.

Translate your company goals easily to your staff so everyone is on the same page. This also promotes accountability as everyone is responsible for a portion of the target.

Here are just a few awesome ways a dashboard helps you get kick your business goals.

  1. Keep an eye on your revenue, cost and profit – These are the lifeblood of any business. A dashboard will tell you exactly how you are faring. It can also forecast whether you will hit your target.
  1. Monitor cash flow and budget – Keep track of your cash in hand and see whether you are sticking to your budget. Monitor direct costs and overheads so you won’t run out of cash. Tracking your cash is equivalent to tracking the health of your business. After all, cash is king.
  1. Find out your average debtor days – Do you know how many days you have to wait for a payment on average? Revenue is vanity but cash flow is reality. I’ve seen too many good businesses go under because they fail to sustain a positive cash flow. Getting paid quickly is one way to take care of your business. Track bad debts so you can recoup your losses or write it off quickly.
  1. Stay ahead of creditors – Need I say more? You never want to get on the bad side of your creditors, especially banks. Monitor loan accounts and see how much interest you are paying or when they are due. Build a good credit score for your business, which will help in the future when you plan to expand.
  1. Compare your performance over time – It’s one thing to achieve your target. But how does your achievement compare to last year? Did you improve, decline or stagnate? These are key signs of the longevity of a business.

As you compare your performance over the years, you will get a rough idea whether your business needs help, a cash injection, extra resources or a product overhaul. You will see inflection points when your business started to lift off or when it started to slide and figure out what triggered them.

So, what will be your financial goals next year?

If you wish to find out more about how we can assist tracking these goals via a dashboard email me on jac@notchabove.com.au or book a “next actions” discussion with me now by clicking here.

 

Specialising in Xero bookkeeping, Notch Above is a Brisbane bookkeeper and BAS Agent located in Alderley that offers Xero setup, as well as training and ongoing support. Notch Above can take care of all the bookkeeping tasks you would rather not do, like bank reconciliations, supplier payments, payroll services, debtor control and BAS returns.

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The top 5 Benefits of Cloud Accounting with Xero

Have you heard the hype about cloud accounting and wondered “how is it going to help my business?”

Many business owners are making the switch to cloud accounting, at first it seems daunting and too hard, but with the right team on board to help you with the transition the long term benefits far outweigh the switch.

Here are the top 5 benefits of Cloud Accounting

1. On-Demand Access

With a Cloud-based system, you’re not restricted to desktop computers located in one physical location.

XERO allows you to access data via a web browser or mobile app. Use your smartphone and tablet devices. Your mobile devices become your business centre where you can access your financial data at anytime from anywhere with decent internet coverage.

 

2. Up-to-Date, Real-Time Reporting

Data in traditional desktop accounting systems is often not up to date. The problem with this is businesses are making decisions and allocating resources based on outdated information.

What’s more, it’s impossible to make accurate cash flow projections based on outdated data. XERO gives qualified users (those with the necessary access credentials) ready access to real-time data. A business owner doesn’t have to wait to the end of the month or the quarter for an actionable report on the business’s cash flow.

 

3. Software Is Always Up to Date

Another issue with traditional software applications is that the onus falls on the business to regularly download and install new versions of the software. Compatibility issues can arise when collaborators share data with each other using desktops and laptops installed with different versions of the software. With XERO, everyone accessing the application is accessing the latest version of the application, eliminating any compatibility issues.

 

4. Reduced Operating Costs

XERO eliminates many of the upfront and continuing IT costs associated with installing and maintaining a traditional accounting system.

XERO is a software as a service application. That is a business pays a monthly subscription fee to access the application. The business pays nothing extra to upgrade the software, maintain an onsite network, upgrade the server, or have an IT team on call. For a single monthly fee, the provider ensures uninterrupted, 24/7 access.

 

5. Enhanced Data Security

If you’re using a USB thumb drive to move data from one computer to another, then there is always the risk of losing the USB drive.

What if your laptop is stolen or misplaced and all your precious accounting records are stuck on that laptop’s hard drive?

You’ve not only lost access to all your essential financial data, but it could take weeks to rebuild that data again. With a Cloud-based application like XERO all your data exists in the Cloud, not on your hard drive and you can access it from anywhere using a secure login.

If you would like more information on how moving to Xero could benefit your business give our office a call today on 1300 015 130. Happy to have a chat.

 

Specialising in Xero bookkeeping, Notch Above is a Brisbane bookkeeper and BAS Agent located in Alderley that offers Xero setup, as well as training and ongoing support. Notch Above can take care of all the bookkeeping tasks you would rather not do, like bank reconciliations, supplier payments, payroll services, debtor control and BAS returns.

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woman cheering at desk

5 Quick Tips for Faster Customer Payments

  1.  Agree amounts upfront
  2.  Invoice immediately
  3.  Multiple payment options
  4.  Send reminders
  5.  Call in the debt collectors

According to ASIC, 40% of insolvencies are a direct result of inadequate cashflow.

Cashflow is the core of your business. Without cash your business will end up having to close the doors.

With these 5 Quick Tips, you’ll have your customers paying as soon as possible and you’ll stay in business.

  • Agree amounts and payment dates in advance of starting any work for your customers. Put an engagement letter or quote acceptance process in place. That way there are no nasty surprise bills. Your customer can approve the invoice through their accounting system immediately and get it paid by due date.
  • Invoice as soon as possible after the job is completed or in advance where possible. Better still, set up automatic recurring invoices in your accounting system if it is possible to invoice your customers this way. By doing this they get the invoices as soon as possible and their approval process can start immediately. Call us today if you are unsure how to prepare recurring, automatic invoices.
  • Ensure the payment options are displayed clearly on the invoices and include as many payment methods as possible. Make it easy for your customers to pay and be sure to include an online link which enables customers to pay via a credit card from their mobile device if that makes it easier for them. If you are not sure how to do this call our office today and we can help you.
  • Remind your customers a few days before the invoice is due and then again at periodic intervals after it is overdue. That way your customers know you are aware they have not paid and will not let it slip by. Some customers love the pre-reminder and it puts your invoice at the top of their mind. Your accounting system can automate this process.
  • Once 2 or 3 reminders have gone out pick up the phone and talk politely but firmly to your customers. You are not in the business to fund their business and if they persist in not paying or paying late you need to consider if it is time to send them to a debt collector and if you wish to keep them on as clients.

If you follow these quick and easy to implement tips you will see your cashflow increase. Call our office today on 1300 015 130 to find out how we can help improve your financials. Know of anyone who would benefit from this? Feel free to share.

Specialising in Xero bookkeeping, Notch Above is a Brisbane bookkeeper and BAS Agent located in Alderley that offers Xero setup, as well as training and ongoing support. Notch Above can take care of all the bookkeeping tasks you would rather not do, like bank reconciliations, supplier payments, payroll services, debtor control and BAS returns.

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3 Easy Steps To Identify Work Time Thieves

On average, Australian small business owners work considerably longer hours than employees. Is this you?

According to a study published by the Department of Innovation, Industry, Science, and Research,

  • 50% of Australian small business owners work longer than 40 hours a week
  • a quarter of small business owners averaging 50 hours or six-day work weeks
  • For 18% of small business owners, a 60-hour work week is not uncommon.

A 60-hour work week leaves just 55 hours a week, or a meagre seven hours a day to live and love. While reducing a life to hours might seem like a depressing exercise, it just goes to show how precious time is.

The good news is that if you can identify the time wasters in your life, you can either eliminate these tasks, automate them, or get someone else to do them, freeing you up to grow successful businesses, all while living enriching lives.

 

So how do you identify time wasters?

  1. Keep a diary for a week of all the daily tasks you perform and the duration of these tasks.
  2. Analysis the time diary and categorise the tasks. This will give you some insight into what tasks are eating up your day.
  3. Prioritise the tasks using the 80/20 rule. Work out which 20% of your tasks result in 80% of your results.

This will help you identify the tasks which are worthy of your time. These are the tasks that you should prioritise because they yield the most benefit to you personally and professionally.

Try putting these three simple steps into action and see how much time is freed up for value added work or work you actually enjoy doing. I would love to hear your feedback on how these steps benefit you? If you would like further information on this download our e-book here.

Specialising in Xero bookkeeping, Notch Above is a Brisbane bookkeeper and BAS Agent located in Alderley that offers Xero setup, as well as training and ongoing support. Notch Above can take care of all the bookkeeping tasks you would rather not do, like bank reconciliations, supplier payments, payroll services, debtor control and BAS returns.

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4 TIME SAVING TIPS FOR SAVVY BUSINESS OWNERS

Demystifying the BAS Myths

I get a 2-week extension to lodge my BAS return through my business portal, why should I use a BAS Agent?

Because with a BAS Agency you get FOUR WEEKS. That’s an additional two weeks that you could be making your money work for you, like reducing the interest charge on your overdraft.

 

What is the difference between cash and accruals for BAS?

For an accruals BAS you need to have received the invoice for expenses to be able to claim it. But you don’t have to have paid the invoice to include it in your BAS.

And this works in reverse also, sales made during that period are included whether the customer has paid you or not.

Cash method is when income and expenses are only included when the money is paid and received. If your business turnover is over $2 million you need to be on the accruals basis for BAS.

 

My BAS return always seems to be really high – how can I reduce this?

Money due on your BAS return is not your money. Most BAS returns have three types of tax GAST, PAYGW and PAYGI.

GST due is the difference between GST collected on sales and GST paid on purchases. This is purely a calculation so there is no way this can be reduced. In fact, often more is better, as this usually means you’ve made more profit. (subject to GST free income and expenses and wages paid)

PAYGW is the tax you have withheld from employee wages. Again this figure is a direct result of wages you have paid. The only way to reduce this is to pay less wages.

PAYGI is a calculated prepayment of income tax based on the last lodged income tax return. If your income is likely to be less in the current financial year this number can be reduced, however you do open yourself up to interest and penalties if this is underestimated. If you believe this to be the case we can discuss and revise along with advice from your tax agent.

For further clarification on any of these points please call our office today on 1300 015 130. Feel free to share if your feel others would benefit.

 

Specialising in Xero bookkeeping, Notch Above is a Brisbane bookkeeper and BAS Agent located in Alderley that offers Xero setup, as well as training and ongoing support. Notch Above can take care of all the bookkeeping tasks you would rather not do, like bank reconciliations, supplier payments, payroll services, debtor control and BAS returns.

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3 Easy steps To The First Holiday Dad Has Had In Years.

Does the prospect of going away on holiday away from your business fill you with dread?

Are you exhausted and teetering on the brink of burn out?

Are you feeling like you can’t take a break away as you are the only one who can do the key tasks in your business?

Give yourself a present this Father’s Day! By following these three simple steps you’ll be packing your bags in no time.

 

1. Identify your core business processes which are repeatable on many jobs.

If you can review what you do for customers, you will most likely find that there are core processes you perform over and over again in each job. Identify what these are so that you have a finite list of service offerings for your clients.

 

2. Break your business processes down into step by step tasks.

Next time you are doing a job in your business take some extra time and write down the step by step tasks associated with that job. The desired outcome here is a check list which can be followed and ticked off as each task is completed. The aim of this is to get the knowledge out of your head and documented, making it possible for another team member to do the job.

 

3. Collect knowledge using cloud base applications.

Capture the process of completing these key tasks via screen capture software such as Snag It. Set up a knowledge manage system and store videos for your team to refer to when they need to complete each task. Over time you will build a library of knowledge that team members can access at any given time.

By putting these three steps into place you truly can pack that suitcase. Start planning for your holiday now. If you would like further information on this download our e-book.

Specialising in Xero bookkeeping, Notch Above is a Brisbane bookkeeper and BAS Agent located in Alderley that offers Xero setup, as well as training and ongoing support. Notch Above can take care of all the bookkeeping tasks you would rather not do, like bank reconciliations, supplier payments, payroll services, debtor control and BAS returns.

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The Xero Dashboard

The Xero Dashboard displays all of your most important financial information – so you don’t need to trawl through all of your data to get a clear view of your business.

Stay on top of cashflow and see all your bank balances, invoices, bills and expense claims at a glance. Add new transactions with a click and see interactive graphs with money going in and out.

Having real-time financial data at your fingertips means you can respond quickly and make informed business decisions.

To learn more about the Xero Dashboard visit: xero.com/accounting-software/dashboard/

Small Business Marketing Pt2

The top 10 must-have tips for email marketing

Part I of this guide focused on small business marketing on a budget and the tools to do this. There are many different ways of marketing to your customers, ranging from direct mail to telephone calls, online banners to radio ads, Facebook to Twitter. But businesses often see high returns from email marketing.

As Constant Contact says, that’s because people regularly check their email and spend a lot of time in front of it. Sending email is cheap, too, but how do you get your message across effectively?

  1. Build relationships with your readers
    Not all of your readers are the same. Some may be lifelong customers, while others will be new to your business, so segmenting your email lists is very important. Have a goal in mind when you send an email, whether it’s attracting new customers to your store, driving traffic to your website or simply raising awareness. That goal should dictate how you craft your message. Take your time to think this through, so your customers feel connected to you.
  2. Start small
    Don’t send your first email newsletter to your entire mailing list. Start small, with perhaps a few dozen or a few hundred recipients. Then watch the response. If it’s good, send it to more people. If it’s not, tweak and test out a new version.
  3. Make it easy to opt in and opt out
    Email marketing is permission based. That mean customers have indicated (through a sign-up form on a website or a number of other ways) that they want to receive emails from you. But they might change their mind. As important as it as to make it easy for people to receive your emails, you must also make it easy for them to opt out or unsubscribe. Be sure to follow their wishes, or risk being labeled a spammer.
  4. Personalise your emails
    If half your customers are middle-aged women then there’s no point sending them emails offering cheap football boots. Or is there? If their children play sports at school, they could be just the customers you’re looking for. This is why business information is so important. Never make assumptions. Use the data to find out what you need to know, then send the right offers to the right customers.
  5. Use good content to keep your readers engaged
    Think of the recipients of your emails as more than customers. Think of them as readers too. Give them a narrative, a story about the products you’re selling. Help them to engage with your products, to find a way to weave them into their own lives. Your emails should not just be used as a sales vehicle but also as an opportunity to foster relationships. Be sure to include helpful hints and best practices that will bring value to your readers. Keep your content interesting and fresh, and always relevant. You will build an engaged audience of loyal customers this way.
  6. Strike a balance with length
    It’s important to find the sweet spot in terms of the length of your emails. You need to figure out what’s going to be most effective for the majority of people on your list. Keep in mind that a lot of emails are read on mobile devices, so you’re working with less real estate. On the other hand, an email can be too short. If there isn’t sufficient content to grab your readers’ interest, they’ll move on to the next email. It’s all about testing out different options to find a balance that works for you and your readers.
  7. Get the tone right
    There’s a fine line between marketing emails that add value and are welcomed by the recipient, and ‘spam’ or junk mail which will be deleted immediately. Don’t go over the top with exclamation marks and wild claims. Try to use a friendly, authoritative but not arrogant tone. Your goal is to get the customer on your side and keep them there.
  8. Offer something of value
    There’s nothing wrong with simply listing your products and their prices. That’s useful information for people who are already looking to buy. But you can go further, to convert those who are undecided. Offer discounts for people ordering in response to your email. Two-for-one deals, discounts on multiple purchases, free shipping for orders over a certain value – there are plenty of ways to add value and get your customers to spend more.
  9. Track email responses
    With the right software, email marketing lets you track the response of your campaigns, by embedding unique links into each message. Some of the response metrics might include:

    • Who opened your email.
    • Which links in the email were clicked.
    • Who forwarded your email to others.
    • Who shared your email on social media.
    • Which emails led to sales, online reviews, event registrations and other destinations.

    This will provide insight into the type of information your audience is most interested in, and will give you a benchmark to improve upon every time you hit ‘Send’.

  10. Don’t spam!
    Sending out email ‘blasts’ of generic, over-the-top sales text is a waste of time – for you and for your customers. You’ll lose existing subscribers faster than you can sign up new ones. Effective email marketing takes time, thought, and consideration. You must be focused on building relationships.

Email communication is a good way to hone your marketing skills. Once you’ve mastered it, you can move on to other outlets, such as social media and mobile marketing. Although the platforms might be different, many of the skills and tactics required are the same.