The good news is we have simplified the small business approach to small business account management and book keeping! Firstly we need to look at what information you should be keeping and then we need to decide how to organise that information in the quickest way possible. We've answered some of the most common small business account keeping questions below to help you get started with organising your finances in the most time efficient way possible.
Smart small business book keeping will help you drive your business so it's extremely important that you spend a delegated amount of time each week organising your financial position.
We do not want a complicated system that is time consuming.
What we are after is a system that is simple to navigate even for a beginner, a system that can give us a birds eye view in an easy to understand way at all times so that we constantly have a handle on our situation and we also want a system that can integrate with our customer relationship management or our customer data base so that we do not have to double enter or double handle anybody's information.
Let's break down what we need to know...
►What information am I required to keep?
For a detailed list of information that the Australian Tax Office requires you to keep, visit them here. We advise that you keep EVERYTHING and then ask your accountant or book keeper to evaluate what you can and can't claim.
►Do I need an accountant or can I do it myself?
We recommend that you have a good accountant that is working hard for you. You will still be required to enter all of your own data (or have someone do it for you) but having a great accountant that is working hard on minimising your tax can make or break a business. Ask as many questions as you can and inform yourself of your tax rights and obligations so that you are working closely with your accountant.
►How often should I be entering my data?
The truth is every business is different. In the beginning you should attempt to enter your data as often as possible. At a minimum you should be setting aside time each week to work on your profit and loss and evaluate this against your budget. This way you have complete control over your financial situation. Sounds boring but reality is as a business owner; it has to be done!Make a specific time each week for your accounting and stick to it. Once it becomes a habit, you will find yourself more organised and more comfortable with the process learning more and more as time goes by. Good book keeping will allow you to have complete control, offer you more spare time and give you the room to grow your business.
►How do I organise my paperwork?
Allow a specific space to work in and make good use of white boards and pin up boards so that you can visually see what accounts you are dealing with. You can even stick your budget on the wall in front of you so that you are constantly aware of what your financial goals are. You will need an organised filing system and an 'IN' and 'OUT' tray.
►What type of system should I use?
To start with a simple collection of spreadsheets may be sufficient for you (we have recommended some below) but we really recommend that you choose one system that will be sufficient regardless of growth and stick to it. Learning new systems can be time consuming so it pays in the long run to grab something that will suit your needs regardless of how you grow and change.
As we have already mentioned, it's important to choose a system that can do a number of things. These are some for the features to look out for:
- Easy to navigate and ease of data entry
- Big Picture view of overall status of financial situation (dashboard, graphs or charts)
- Real time configuration with business banking accounts
- Budgets versus real figures for comparison
- Customer Relationship Management or the ability to link to your customer relationship management system for marketing reasons
- Usable templates for quoting and invoicing
- Upgrades for free
- Value for Money!!
►When should I outsource my book keeping?
Immediatley if you can afford to. This is one of those jobs that a professional can do far better and faster than you can. And let's admit it, who wants to spend their time on bookwork? There are many other important jobs that can be done by you rather than waisting precious time on book keeping and paper work. As a friend or colleague to refer you to a reputable book keeping company in your area. You may then find an accountant that can work with the book keeper you have chosen.
Note: If you do decide to outsource your book keeping; ensure that you are still over seeing what is being accomplished. This is one area of your business that you must retain some control over.
►What type of systems do you recommend?
Spreadsheets/Planners
If you are just starting out and you are happy with running everything separately (eg. you will be invoicing, budgeting, entering your accounts, retaining supplier and customer data etc separately) then these spreadsheets are easy to use and all you will need if that is your aim in the beginning. They simply include a profit and loss statement, a budget planner, a calender planner and an overall net worth view chart. Check them out here.
If you would like some simple invoice and quote templates try downloading some for free from Microsoft Office Templates. Keep in mind that by using this type of system you will need to be storing your customer data seperately in some kind of mail program like Microsoft Outlook.
B-Free
If you are looking for an online system that allows you or your accountant to access your data at anytime, link your accounts to your bank statements, submit your BAS or tax online and store your client and suppliers details and contact them through the system for quoting and invoicing then this is a great system. The only let down is the inability to export your customer data so some double entry will be required if you wish to market to your clients using another system.
Quickbooks Pro (Quicken)
With this system you have ease of navigation, all of your customer and financial data in one easy place including budgets and charts to help you gain an overall perspective of your business at all times. You can link to your bank accounts and your accountant can access your information if required. You can now grab a one year subscription which allows you to receive upgrades each year which is extremely important. All of your customer data can be exported into microsoft programs for marketing purposes. We highly reccommend this system.
NetSuite
By far the savviest program on the market! It does absolutely everything that you require and gives you a 24/7 view of your business including accounts, customer data, sales, staff, leads, emails, marketing and more.
We would highly reccomend this program if you have 10 or more employees and you are looking to grow. It's also a fantastic system if your employees are remote as you can constantly check their progress. Netsuite also offer excellent support and training. Check it out here and if you like what you see click here to be contacted by a Netsuite Consultant and let them know we sent you.
