3 Tips for Optimising Your Books
Written By: Bryn Harwood
One of the most important functions in your company is your accounts and bookkeeping. There are certain systems and processes which are vital to your accounting function if you want your business to scale and grow. It is common for business owners to hire part time bookkeepers to work these processes and functions but often they do not have the appropriate qualifications or sufficient experience to really make the most of them.
These are a few areas you should consider:
You need to have a process that allows you the ability to simply authorise payments and review your payables. As a business owner you should not be staying up late to enter payables, nor should you be paying a third party $70/hour to enter your payables. This process and function should be achieved for under $30/hour. If you achieve this, you will gain significant savings and you will be freeing up administration time as the business grows.
This area can be complex. Depending on how many employees you have, you should be able to systemize your payroll so you only need to authorise the bank or have a controller who will authorise each week or month. This will save your time in running the pay runs. Again, you should be aiming to have this function complete for under $30/hour.
Cashflow is the life blood of your business. You need to make sure your processes enable you to invoice and collect cash as soon as possible. The faster you can collect cash, the healthier your business will be. As a business owner you should be aiming to also keep this cost down to a minimum.
The three functions above can all be completed offsite as long as you use a cloud accounting product. At Growth Focus we use cloud products and can help you set up your accounts function, providing you with a fixed monthly fee which will save you time and money. Contact our office for more information.