AS shifting economic conditions drive the need for new business and operating strategies, Gold Coast SMEs are being warned to regularly update their financial records or risk making ‘poorly informed’ decisions.
Small Business Evolution managing director Michelle Carr, says too often bookkeeping is ‘at the bottom of the priority list’ and businesses should aim to start the new financial year with the current information.
“Not having timely records is a mistake that a lot of businesses allow to happen. It’s often overlooked, but not having up-to-date information at your disposal often leads to poorly-informed business decision making,” she says.
“This is often a catalyst for cash flow problems, as looking at your last profit and loss figures doesn’t necessarily demonstrate the cash that is flowing in and out of your company. The old term ‘cash
is king’ has never had more relevance than in this market, so regular and effective bookkeeping is something all businesses should make a priority.”
Carr says outsourcing bookkeeping services is a practice growing in popularity post GFC.
“It can be a major step for SMEs in losing some of that control, but outsourcing definitely has its advantages,” she says.
“The costs saved by reduced wages and more efficient operating procedures can be reinvested into the company, be it in marketing, new product development or infrastructure.
“Being able to draw on the expertise of specialist services provides greater support for business owners. Even those that keep all bookkeeping and accounting in-house can benefit from regular independent audits of their books. It maintains the accountability of their staff and ensures best practices are always in place.
“Getting on top of their finances will help business owners make informed and intelligent business decisions and take advantage of better economic conditions we’ll hopefully begin to see in the next six to 12 months.”
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