Small business bookkeeping: end-to-end financial management

May 2, 2017

Financial management is incredibly important to all types of businesses, regardless of size or the products and services offered.

But most of the time, we find ourselves – as business owners or managers – continually bogged down by a variety of duties. More often than not, the duty of bookkeeping falls further down the to-do list as we prioritise other tasks over it.

Before you know it, months have passed and your accounts are in disarray. You’re risking fines as lodgements are turned in late and the thought of tax time haunts you.

As the end of June looms, you may be horrified, but we at Maximum Business Solutions are thrilled. It’s our busiest and best time of the year, but as we’ve mentioned time and time again, good bookkeeping is consistent and must be carried throughout the year.

Financial management

And that’s exactly what our end-to-end financial management comes into play. More that just support around tax time, our management plans are suited to your needs and budget, and lets you focus on other aspects of your business.

This week, we take a closer look at the great benefits of end-to-end financial management. First, though, we take a quick look at the importance of business bookkeeping.

Why is business bookkeeping important?

Business bookkeeping and account management are represented by a sort of domino effect, where a key influencer reflects directly on the next.

How does accurate bookkeeping help a business?

Have a read of the below list and try to see how each can be directly influenced or at least somewhat reliant on the others.

Great bookkeeping allows a business and business owner to:

  • Maintain cash flow
  • Create budgets
  • Generate forecasts
  • Accurately and quickly identify profit and loss by week, month, quarter, etc.
  • Enjoy financial clarity (particularly around tax time, but throughout the year, too)

Create realistic budgets and accurate forecasts

A budget is a benchmark that allows you to understand whether projected income will be sufficient for your predicted expenditure.

In layman’s terms: are you making enough money to cover your costs, with a little profit beyond that, too?

As your business develops, you will also have statements – that is, actual results from previous months – that can help you create more accurate and realistic forecasts.

Clarity come tax time

Throughout the year a business is subjected to BAS lodgements and then of course at the end of the financial tax year is the often-dreaded tax return. What’s commonly perceived as a laborious task becomes that little bit simpler when you’ve been working towards good bookkeeping for the long term.

And if you’ve enlisted Maximum Business Solutions to provide end-to-end financial management, you can rest easy knowing your business accounts are crystal clear – always.

Small business bookkeeping

The pathway to end-to-end financial management

Set up a bookkeeping system

Unsure what system is right for you? Without proper understanding, it can be hard to distinguish MYOB from Xero!

Fear not: Maximum Business Solutions will create a bookkeeping system that suits your exact business type and size as well as your specific needs.

Don’t mix business with personal

Much like oil and water, business and personal finances do not mix and should, in fact, be kept separate.

You might, particularly at business infancy, think you are being smart by streamlining all finances into the one account, but it won’t be long until this combined account will lead you to a confusing mess and most alarmingly, the risk of financial error.

Elevate your small or medium-sized business’ bookkeeping from good to great with the support of Maximum Business Solutions. We’re a group of qualified bookkeepers armed with the skills, knowledge, and passion for providing end-to-end accounts management.

Use bookkeeping to monitor the future of your business, not just the past

Of course, one of bookkeeping’s primary purposes is to accurately maintain records for financial purposes, but it can (and should!) be used as a tool to grow your business, too.

As mentioned above, forecasting is an important business goal to set, and as time goes on, information about your business as well as the economy, marketplace, and current trends help you to make accurate predictions and prepare for your business’s future.

Treat bookkeeping as a consistent and never-ending task

We understand that you as a busy business owner don’t have the time to allocate a portion of your week or month to various bookkeeping duties. In fact, you might hate the thought of it!

However, it is important that this is being taken care of by someone – and that’s where your bookkeeper steps in.

Maximum Business Solutions’ account management packages

We offer three standard account management packages for you to choose from. Have a scan of the table here for a better idea of inclusions. We can also tailor make a package akin to your specific needs – just give us a call!

Stop wasting time and start maximising in with financial management from Maximum Business Solutions. Call us today or book a consultation with our team!