It’s no secret that running a business is becoming more challenging. With costs on the rise, keeping a close eye on your cash flow is more critical than ever. This is where your bookkeeper steps in, providing much-needed relief in managing these financial challenges.
What a Bookkeeper Can Do for You
Your bookkeeper isn’t just about managing numbers. They are a strategic partner who helps you prepare for and tackle financial challenges with proactive strategies.
Eye-Opening Statistics
Consider this: 43% of small businesses didn’t make a profit in the last tax year, and three-quarters of self-employed people earn less than the average weekly income. These numbers highlight the need for solid financial planning. With the right strategies, small businesses can weather financial storms and emerge stronger.
Adding Value with Year-End Analysis
Beyond standard financial reports, your bookkeeper provides in-depth year-end analysis. They identify trends and patterns in your data, pinpointing areas for growth, cost savings, and risk management.
Support with Budgeting and Forecasting
Setting realistic financial goals is crucial. Your bookkeeper helps you create forecasts based on past performance, regularly reviewing and adjusting them to keep your business on track.
Keeping You Compliant with Tax Regulations
Staying on top of tax laws and deadlines can take time and effort. Your bookkeeper develops effective tax compliance strategies, ensuring you’re always up-to-date with regulations and minimising tax liabilities.
Managing Payroll Obligations
Understanding the impact of wage increases and superannuation contributions is vital. Your bookkeeper provides insights into these changes, helping you manage payroll effectively and comply with employee entitlements.
Utilising Analytical Reports
Analytical reports are powerful tools. Your bookkeeper uses them to give you data-driven insights, comparing your current performance to previous periods or budgets and highlighting trends that inform better business decisions.
Insights from Finalised Accounts
Finalised accounts offer a clear picture of your business’s financial health. Your bookkeeper helps you understand performance changes in sales, expenses, profits, and wages, guiding strategic decisions that drive growth.
Grasping the Breakeven Point
Knowing your breakeven point is essential. Your bookkeeper explains this concept, empowering you with the knowledge of how much you need to sell to cover costs and avoid losses. This knowledge helps you set pricing, manage costs, and target revenues effectively.
Acting Fast When Problems Arise
If profits take a hit, quick action is necessary. Your bookkeeper will alert you and suggest consulting a financial expert if needed. This proactive approach can help diagnose problems and develop recovery plans, providing a sense of security that your business remains resilient.
By leveraging your bookkeeper’s skills and insights, you can navigate rising costs and secure a financially stable future for your business.
(Article sourced from the Institute of Certified Bookkeepers)
