Do you ever look at your business and wish that you could tell which areas were most profitable and which ones probably need a bit or work? Well with tracking categories in Xero you can do just that! Knowing exactly which areas of your business income is coming from, and just as importantly where you’re spending money, enables you to make proactive business decisions.
Blogs about Bookkeeping
Did you know that there’s a special day just for us micro business owners? Celebrating and supporting the community, #MicroBusinessMatters Day is the only day dedicated to businesses with 0-9 employees. Whether you’re a freelancer, sole trader, or run a company with a tiny team, the 12 tips below will help you succeed with your accounts.
Last month I attended a conference run by the Bookkeepers Alliance, where one of the questions posed to us was about the term “bookkeeper” and whether it’s still relevant. A lot of the discussion focussed on the observation that it’s often used prefaced with “just a”. Bookkeepers just record all of your expenses. We just use language that business owners can understand. We just provide accountants with high quality information in the format they need. We just tailor your information to help with any reporting you need. This prompted me to look at some other common bookkeeping myths.
I’m a big fan of cloud software and have a core set that I use to help make things as easy as possible for the businesses I work with, as well as freeing up my time to give them the attention they deserve. If you’re still using desktop accounts software, or no software at all (don’t worry, there’s no judgement here), join me as I take a look at the main benefits of moving to the cloud.
It’s important for all businesses to keep track of their finances, but if you’re a freelancer it’s vital that you have a good understanding of the figures that make up your accounts. It’s likely that you’ll be working with a number of different clients and it can be tricky keeping on top of what work you’ve completed, what has been invoiced, and which invoices have been paid. So what are the main things you need to know as a freelancer?
This is the second in a 2 part series that attempts to demystify the language of accounts. If you’re wondering what happened to A-H then hop over here to check it out and we’ll see you once you know your assets from your equity!
Do you know your accruals from your prepayments, or your assets from your liabilities? If you think that I’ve just dipped into a foreign language, then this short glossary of bookkeeping terms is for you. Running a business can be challenging enough, without having to also learn what feels like a whole new language. There’s a lot to cover, so we’ll look at A-H in this post, and I-Z in a future one.
Sadly there are always parts of running a business that aren’t quite as enjoyable as others, and for a lot of people the task at the top of that list is bookkeeping. It might not be your favourite way to spend a couple of hours, but good financial records are so important to creating a successful business. Here are 4 common mistakes a lot of business owners make, and how to avoid them.
Many businesses fail in the first few years, and the most common reason? Cash flow. You may be doing pretty well on the sales front, but are you being paid on time? Or you’re covering your monthly outgoings just fine, but what about that big IT purchase you’d like to make in 9 months? Don’t fall into the trap of making decisions based on the money you have in the bank - your balance is an illusion. It’s entirely possible for your business to be profitable and yet still run out of cash.
When you’re running a business, the finance side of things is often the one area that falls down the list of priorities as dealing with your accounts can be scary, even when things are going well! A good way of ensuring that you always have current financial knowledge, without taking your time away from what you do best, is to outsource your bookkeeping.
You’ve just started your own sole trader business and you’re full of excitement and keen to get on with doing what you love, and that’s probably not bookkeeping. Good financial records are the foundation of your business and could determine its success. Following these three simple steps will mean that bookkeeping is no longer a burden.