How does understanding your finances lead to business growth?

December 23, 2020

Just like anyone who is building a house, you don’t automatically start with the roof. You begin by laying down the essential foundations before you put in your walls, flooring, and ceiling

The principle of building a house is the same as establishing your business – and it all starts with the right foundations, strategies, and processes.

Money management is one important foundation that small business owners must explore and determine right from the start.

Without prior knowledge and understanding on how your business finances should be budgeted, spent, saved and invested, chances are, you’ll have a weak foundation that can impact other aspects of business.

Whether you are a startup or a small business owner who is struggling with financial clarity, remember that the key to a successful business starts with understanding your financial standings.

And if you’re looking for a team of reliable bookkeepers in Melbourne who will help you untangle the mess that is your business’s finances, we invite you to get in touch with Maximum Business Solution today by calling (03) 9589 0128.

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Do you have true clarity of your business’s finances?

How understanding your finances can lead to business growth

Most business owners miss the point of gaining financial clarity before starting their business.

They usually get very excited to start, are blinded by beginner syndrome, and fail to organise their financial system.

Just as you have your product or service, along with your business operations and staff, understanding your business finances will help set you on the path to better business growth and success.

Here are just some of the reasons why you should invest the time into understanding your finances and gaining holistic clarity of your business.

Get familiar with basic financial terms to understand reports

Understanding your finances goes beyond basic math principles. Numbers and figures are just one part of your day-to-day business operations.

Understanding how your financial system works include knowing basic financial terms that will help you read, understand, and analyse financial reports – and plan accordingly.

Knowing these financial terms will give you a better grasp of the financial health of your business. Get familiar with terms including:

  • Assets
  • Liabilities
  • Gross margin
  • Capital expenditures
  • Profit and loss
  • Cashflow

For you to create achievable goals and smart plans for business growth and expansion, you will need to know how these terms are used and how they can be applied.

Understand your balance sheet to act accordingly

Your business balance sheet contains three critical pieces of financial information:

  • Assets (the things your business owns)
  • Liabilities (anything you owe to any external factor like a bank)
  • Equity (what’s left after liabilities are subtracted from your assets)

As the name suggestions, it provides a ‘balance’ of your business that incorporates spending and earnings.

Think of your balance sheet as your business’ scorecard. Knowing how to read and interpret your balance sheet means that you can gain better clarity of any debts, assets, and equity.

Maximum Business Solutions can help you prepare balance sheets monthly, quarterly, or twice per year.

Strive for success when your financial data is up-to-date

When you’re navigating your business, a financial road map can help you clearly see where you are, where you want to be, and how you can get there.

However having said this, you need to ensure that your financial data is always up-to-date.

Keeping track of all your financial transactions will help you to make necessary adjustments on your budget, spending, savings and investments.

Struggling to keep your financial data up to date? No worries – we take the stress away from financial record-keeping to ensure you can stay on target and continue to work towards your short- and long-term business goals.

We can also teach you how to use cloud-based accounting software – so you’ll be able to easily access, collaborate and even monitor financial transactions anytime and anywhere.

So how does a bookkeeper in Melbourne help you?

Complete bookkeeping support and services

If you need specialised bookkeeping solutions for your business, all you need to do is get in touch with a Melbourne bookkeeper for a tailored bookkeeping plan that meets your business’s unique needs.

Need help preparing quarterly BAS statements? Want to soar in the cloud with online bookkeeping? Need advanced solutions to deal with the complexities of business bookkeeping?

We can do it all – or rather, exactly as much as you need!

Use advanced bookkeeping tools

Monitor your business finances anytime and anywhere using faster, easier and time-saving bookkeeping solutions

Our bookkeepers in Melbourne are experts in cloud bookkeeping including popular software solutions from Xero, MYOB, and QuickBooks.

Enjoy simpler business bookkeeping and access important data and files whenever you have an internet connection.

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Our bookkeepers work to provide you with better business clarity.

Need help with your bookkeeping?

Call Maximum Business Solutions today!

Outsourcing your business bookkeeping not only saves you time but also saves you money.

Best of all, it keeps your business compliant with your tax obligations, and saves you the headache of managing your finances.

Maximum Business Solutions’ mission has always been to provide you with more than just bookkeeping services. Consider us your partner in business, helping you strive for greater success by arming you with the best and most reliable bookkeeping solutions that enable you to gain better control and understanding of where you stand.

We provide a complete suite of bookkeeping services including:

  • Account management provisioning
  • Superannuation
  • Payroll processing
  • Audit preparation
  • Consultation
  • Cloud software implementation
  • Ongoing management
  • Business Activity Statements (BAS) / Income Activity Statement (IAS)

Not sure what you need, or even where to begin? DIY bookkeeping leading to frustration and confusion? We’re here to help! Start with a consultation – we’ll meet up via teleconference or in person and you can share your pain points and struggles. Together, we’ll work out the best solution for you!

Call us now on (03) 9589 0128 or click here to contact us online.