Welcome to the 2015 Financial Year. Now is the perfect time to take a good hard look at how your numbers stack up, how you track them and setting up systems to make sure you hit all your financial goals this year. I love that we have a New Year and a New Financial Year, it’s like 2 opportunities for fixing F ups and moving on. In this post, I’m not going to be explaining the differences between accrual and cash accounting (you can learn all the accounting terms you need in The Academy , or making you set KPI’s for the year (I’ll do that another week). What I am going to do is give you a few questions to answer:- What financial reports are you going to look at? Who is going to prepare these reports and do the data entry? How often are you going to look at them? What software will you use for your accounting? How up to date will it be? How are you going to communicate with your bookkeeper / accountant? How much do you want to make this year? How is that broken up with your products and services? For the whole month of July, we’re going to be talking money. It’s so important, no matter how passionate you are about your business – the numbers matter more!!!! I encourage you to download my 2015 Finance Part 1 doc and get cracking on what you want to be achieving this year. REMEMBER Respect the numbers and they will respect you!!!!
Money Money Money We all want it. We all need it. Some people have lots. Some people are broke. Some people manage it well……but most people don’t. This is such a big hurdle for most entrepreneurs. Especially if they started as a one man / woman band. Even for me – who’s trained to manage business finances!!!! OK that was hard for me to admit. The thing is, once you understand basic financials, and respect the numbers – you’ll start to see changes in your money. The biggest change however happens, once you delegate the bookkeeping. The most common question I get asked from clients when we are talking about delegating the books – is ‘but how do I organise it all?’ So here are my Top 5 Tips for managing the organisational side of delegating your bookkeeping basics.
- Keep and add a note to everything (the rule is, if in doubt – keep it)
- Have an online filing system that works (Dropbox is a girls best friend)
- Ask for and look at reports at least fortnightly
- Keep your business and personal expenses separate
- Use online accounting software that you can access anywhere (Xero, MYOB etc)
- Profit and Loss
- Balance Sheet (although if you’re not doing some journals till the end of the year this may not mean much)
- Cash Flow
- Bank Reconciliation