As a small business owner, you want to do what you love
However, managing your accounts might not be what you got into business for.
Use your time wisely to help give you the space to start analysing how your business is tracking and really focus on the growth opportunities available.
Completing financial tasks regularly will give you the ‘creative/thinking space’ to focus not only on growing your business but also take time away from your business to enjoy a holiday.
Are you registered for GST?
One way to set regular timeframes is if you report GST or Goods and Services Tax to the ATO.
GST is reported via a business activity statement or BAS, monthly, quarterly or annually. Use your GST period as your time frame to work towards.
Check with the ATO or speak to your bookkeeper to see if you need to report GST.
Not registered for GST?
You can still set regular time frames for your business to work towards and keep yourself accountable for.
TIP! A great period to work towards is quarterly, so you can start to compare business performance from one quarter to the next.
Complete the following day-to-day tasks for each time frame
- Record all sales
- Record all expenses, such as bills, wages and other business expenses
- Reconcile your bank accounts regularly
- Keep business documents stored within the file library in Xero
- Keep your payroll and superannuation up to date
What should you be doing at the end of each period?
Reports that help with comparing periods include:
- The Profit and loss report: to show your income and expenses for current and past periods
- The Balance sheet: to understand the financial position of your business
Also start to prepare or chat to your bookkeeper about preparing budgets for your business.
Check out what reporting tools are available in Xero, and how they can help you to track and manage your cash flow more effectively.
Having this knowledge is going to empower you to start making business growth decisions and have more meaningful conversations with your accountant or bookkeeper the next time you talk.
Setting yourself up for the new year
Financial year-end is the perfect time to do a check-up, celebrate your successes, and refocus on business goals.
For more Xero tips, advice and bookkeeping essentials for your business, visit How We Help You and get started today with Notch Above Bookkeeping, Australia-wide.