02/12/2015

Seasonal Cash Flow Tips for Business

 

 

 

Cash flow roller coaster, saving for a rainy day – chances are you’ve heard of these phrases in relation to business at one point or another. Throughout the year, your business could go through really good times where the cash is flowing in more than you ever thought possible, but then out of nowhere that flow could dry up, leaving you feeling anxious about where the cash is going to come from next.

seasonal cash flow

As stressful as it is to ride the seasonal cash flow roller coaster, it is a part of business – the way to manage it is to be smart when thing are running perfectly so that you’re ready and prepared in leaner times. Seasonal cash flow is a real thing in pretty much every business! Whether you’re a retail shop doing the best business around the holidays or you’re a financial analyst working with businesses around the fiscal calendar, seasonal cash flow affects nearly everyone. Here are some cash flow tips to implement into your business so you can weather any type of storm that comes your way throughout slower periods:

  • Look forward – Tracking your business is vital for growth and it could also help you start to determine when the slow periods are – for example, maybe you have a high volume of sales during the holidays, but experience a drop in business throughout January and February. Planning for those slow periods will help you navigate them more successfully.
  • Save – When the cash flow is coming in, stash some of it away for later. Don’t get caught in a slow period and find you have expenses to pay, such as GST or other business-related expenses. When cash flow is good, spending should still be lean.
  • Take advantage – During the peak seasons, take the cash flow to your advantage and boost customer service or staff levels to accommodate the additional volume. Spending a little more on hiring staff could potentially bring you more profit to save for a rainy day.

Every business goes through cycles – always prepare for them by staying focused and conservative with spending, even if the cash flow is high.

Contact Galaxi Bookkeeping for a consultation and be sure to visit us on Facebook!

 

22/10/2015

3 Cash Flow Goals You Need to Have

For any business, cash flow is very important – it’s also one of the things that new or small businesses stress about most often and for good reason! A good cash flow means you have funds when things are slow at the office or when you’ve hit a lull during a certain season.

cash flow goals

As a new or small business, it’s real easy to get caught up in the day-to-day operations, which include spending money and earning profit, but it’s even more important to look ahead and track cash flow goals so there’s always a steady stream of funds coming into the business.

Here are three cash flow goals you need to have for your business, starting now:

  • Limit debt – As if experiencing a slowed cash flow isn’t stressful enough, paying debt off while funds are slow is even worse. Having a high amount of debt also counteracts any amount of cash flow you do have – pay it off as quickly as you can so you have more money to stash away when you need it most.
  • Look forward to growth – When you’re starting out with a new business, there are countless expenses to incorporate into the operations. Be frugal with your costs early on as you’ll need money as you begin to expand – using up your surplus at the beginning means you have to work even harder when you need to expand or grow with operations and staff.
  • Analyze profit – Making a profit is awesome as a business owner, but don’t forget you need to accommodate the cost of running your business. If you find that you don’t have much left after paying business expenses, you’re still cash poor. Track the gross margin and net profits carefully to get an ideal how you’re doing and use it to guide you forward.

Creating a cash flow doesn’t happen overnight, but takes careful planning and saving to make it happen. Use these tips to help guide you into positive cash flow!

Contact Galaxi Bookkeeping for a consultation and be sure to visit us on Facebook!

22/09/2015

The Importance of Cash Flow

cash flow importance

If you own a business or are in the process of launching a startup, the idea of making a profit is an enticing one – but is it enough to sustain your business over a long period of time? In a word, no.

Sure, profit is something all businesses strive to have and it’s a crucial aspect of any startup, but there’s something many experts would venture to say is even more important to have: cash. Have you ever heard the term cash is king? Well, having money in the bank is one of the best signs of a thriving business – it’s vital that you know the difference between profit and cash if you want to ensure a successful launch of a startup or longevity in your business.

Profit comes in various forms through sales, but that form of money is often tied up with other aspects of the business such as assets, liabilities or even outgoing payments. So is that money truly cash? Not really. Cash in the bank gives you the freedom and peace of mind to grow your business; after all, a profitable business still has the potential to go broke when money is tied up.

Monitor cash flow and make any necessary adjustments as soon as possible in order to begin creating a cushion should you need one – you can easily do this by learning where the money comes and goes in your business. Things to look at include fixed or variable costs, startup or first-time expenses – once you have this you could determine how much you’ll have left over to put away as actual cash in the bank.

Having cash flow means that when your credit is tied up or you have unforeseen expenses, you don’t have to worry as much about closing the doors to your hard-earned business. Managing your money and cutting expenses is one way to start saving that cash for when you need it most!

Contact Galaxi Bookkeeping for a consultation and be sure to visit us on Facebook!

19/08/2015

Finding a Good Bookkeeper

good bookkeeper

 

When you’re searching for a person or service to help out your business, chances are you’re not going to willingly pick someone who’s ‘bad’ at their job – right?

Unfortunately, there’s a lot more to choosing a service or individual than just qualifications and accolades – in some cases, even the most experienced and trained people are just not a good fit with you or your business. Attitude is another key component in finding a positive experience, especially when it comes to a bookkeeper.

How do you know the difference between a ‘good bookkeeper’ and a bad one? When you’re running a business and hire a bookkeeper to manage accounts, you want to rest assured that they are doing the job right! The purpose of hiring a bookkeeper is to help you manage and organise your books – you want your bookkeeper to take control of those financial things you can’t handle or deal with on your own.

A good bookkeeper is one who:

  • Wants your accounts to balance. Good bookkeepers want to stay organised and thrive on accounts staying current and properly balanced. A good bookkeeper knows how important it is for your business that invoices are paid and the ledger is completely accurate.
  • Understands the responsibility they have to your business. As a business owner, you look for qualified individuals to add to your team – you want a seamless operation and a good bookkeeper is one who understands this and works hard to make sure customers pay you on time so you can spend more time focusing on the business than tracking down invoice payments.

Choosing a good bookkeeper is valuable for your business and can really make a transformation in how you track finances. There’s a major difference between a bookkeeper who’s doing the minimum to balance your accounts and a good bookkeeper who truly understands the impact they have on your operations.

Contact Galaxi Bookkeeping for a consultation and be sure to visit us on Facebook!

29/07/2015

Essential Startup Tips for Your Business

Essential Startup Tips for Your Business

 

You’ve heard the saying “time is money” and for a new business owner this couldn’t be a truer phrase.

While there are always trial and error situations in starting any business, it’s pretty helpful when those who’ve been through the experience before provide a good amount of insight into what works…and what doesn’t. Why waste precious time and resources when you could start out on the right foot? Sure, there are always things that come up that you need to manage, but here are some of the essential startup tips for your business you’re going to want to implement:

  • Time management – When you try to go in and accomplish many things at once you’re left frazzled and stressed, not to mention things still don’t get done. Instead of trying to handle tasks as they come, implement a process that allows you to stay on schedule throughout the day. Use productivity tools found on tablets or smartphones to stay focused or set up blocks of time to accomplish certain tasks.
  • Implement cloud services – As a new business owner, you want to have access to your business at all times. Through cloud software, this is possible and easy for the entire team to use. Use online accounting software to organise and track invoices or receipts – this will make things so much easier when you need to collect debts or work with your accountant. Also, don’t try to skimp on paying for licensed software – in the end, that little amount of savings isn’t worth the headache or possible legal action taken against you!
  • Think ahead – Just because your team is small (or just yourself) doesn’t mean there’s no potential for growth. Implementing a procedures manual at the start allows you to stay focused and gives your potential team a road map – waiting until there are multiple employees before creating a procedures manual is just leaving you open for stress and confusion.

Overall, one of the most important tips is to take advantage of technology and software when you can – it saves time, money and your sanity!

Contact Galaxi Bookkeeping for a consultation and be sure to visit us on Facebook!

20/07/2015

Benefits of Using Online Accounting

using online accounting

New technology is around us all the time – from doing banking on a smartphone to checking email on a watch, but have you ever thought to integrate new technology into your business? Taking that leap from the traditional way of doing things can be a little scary at first, but in the long run it’s often easier and more helpful for managing a business efficiently. There are plenty of benefits of using online accounting, let’s take a look at some of them now:

  • Increased security – Think about all that paper floating around the office – private information and data that someone can access if it falls into the wrong hands. Suppose there’s a natural disaster or a break-in at the business? That information isn’t safe and there’s no way to get it back once the files are damaged. Using online accounting means you can access those important files anytime, anywhere.
  • Savings is increased – Imagine if you didn’t have to buy massive amounts of paper, printer ink or deal with storage costs when it comes to holding onto files. Saves a tidy bundle, right? Online accounting software if very affordable and streamlines the entire process for you. What could you possibly do with that savings and extra office space?
  • Very convenient – When you’re running a business, the last thing you want to do is spend time looking for invoices or receipts when the accountant needs them. Using a cloud-based online accounting program like Xero means your accountant can access the files he or she needs at any time – allowing both of you to do your job efficiently.

Cloud-based accounting software offers so many benefits and really makes owning a business a little less stressful. Software options such as Xero imports bank information directly, making it even more accurate and easy to use!

Contact Galaxi Bookkeeping for a consultation and be sure to visit us on Facebook!

30/06/2015

Get Your Business Ready for Tax Time

Tax time.

Just the phrase alone is enough to make business owners cringe – but with some simple preparation and organisation of your records and documents throughout the year, tax time doesn’t have to be so stressful.

tax time

Whether you’re doing your bookkeeping by yourself or you have hired an experienced bookkeeper to monitor your accounts, there are a few things you can do to make tax time a little bit easier to manage.

Keep thorough records throughout the year – Don’t make the mistake of throwing receipts, invoices or any other business-related documents out throughout the year. You might need them come tax time! If you don’t, better to be prepared rather than stressing out once tax time rolls around. Not sure what to keep and what you can toss? Ask your bookkeeper for some tips (or just play it safe and keep it).

Know when to call in the professionalsDid you start a business this year or has your business grown? Sometimes it’s best to just let the professionals take over – bookkeepers are a valuable asset for any business as they manage your finances and keep you on track (and organised) throughout the year. That in itself is worth every penny to a busy business owner.

Don’t wait until the last minute – You know when tax time is every year, so don’t wait until the last minute to start preparing. Throughout the year, your bookkeeper can offer tips and suggestions that will make tax time less stressful, not to mention half the work will be done when tax time approaches if you keep your documents, invoices and receipts organised all year long.

Peace of mind – Cut down on clutter around the office and make it easier to communicate with your bookkeeper by implementing cloud-based accounting software into your daily routine. Through cloud-based software, your bookkeeper will have direct access to your accounting program from a remote area, making it easier for both of you to do your job as it grows.

For many, tax time is stressful, but it doesn’t always have to be dreadful. Stay up to date and organised with your files and look to a professional bookkeeper to help you stay focused and prepared at all time!

Contact Galaxi Bookkeeping for a consultation and be sure to visit us on Facebook!

25/05/2015

Essential Bookkeeping Tips for Small Business

bookkeeping tips for small business

Bookkeeping in any business is important – but even more so for a small business. Startups and small businesses rely on thorough record keeping early on to ensure there’s enough money to pay staff and provide the necessary inventory to get cash flow moving.  Another important factor of learning good bookkeeping at the start? Those habits will continue with you and create a firm foundation to build the rest of the business. Here are essential bookkeeping tips for small business – implement them from the start to increase your chance for success:

  • Just as you would devote a dedicated amount of time to scheduling your business meetings, you need to set aside time every week to go over your books. This helps you stay on top of your cash flow and ensure you’re getting invoices paid on time.
  • Always separate your personal bank account from your business one. When a business is just starting out, it’s easy to just use your own money to fund the business – but as it grows, it’s that much harder to separate things later. From the start, open a business bank account to manage earnings and expenses.
  • Not every business owner is comfortable or capable of learning everything there is to know about accounting – tax laws, employee deductions, etc. Startup life is stressful enough, don’t add finances to the mix. Look for accounting software that fits your business needs – cloud software is best because it allows you to manage your finances on any device, anywhere. Accounting software is easy to use, but you can always look for a bookkeeping business to do the work for you.
  • Get in the habit of saving receipts and records related to your business – the Australian Taxation Office requires you to keep at least five years of records. Since that’s a lot of paper and information, streamline your filing system by uploading your documents to a digital file on an external hard drive.

These essential bookkeeping tips for small business or startups will help you start out on the right track. Still don’t want to bother with the work yourself? Hire a bookkeeper to maintain your books so you can focus on the important things – running your business!

Contact Galaxi Bookkeeping for a consultation and be sure to visit us on Facebook!

27/04/2015

Need Help Managing Cash Flow?

Just starting out with your business? There’s one thing you need to know now to increase your chance of survival over time: managing cash flow.

managing cash flow

Cash – and the availability of it – is crucial to any business, but even more so when you’re lifting off and getting the wheels turning. You need to have access to a steady flow of money to have purchasing power or to give yourself some room in the event of an unforeseen situation – things come up all the time when starting a business and you want to be prepared. Here are some essential tips for starting a business off on the right foot and properly managing cash flow:

  • Keep track of records – The only way to make accurate business decisions is to know exactly where you stand financially. Using cloud-based accounting software means you have access to your records anytime, anywhere. Track invoices, payroll and all other financial aspects consistently to ensure you’re managing cash flow correctly.
  • Budget – Budgeting isn’t just something you do with your personal money, it’s very important to do for any business starting out. While you have a desire to purchase anything and everything you think you’ll need, it’s a dangerous way to run out of money early on — keep track of spending and only spend what you need.
  • Make sure you get paid – Managing cash flow means getting paid on time through invoices from clients. Collect outstanding debt quickly and use accounting software to help create, track and close invoices efficiently.

Always monitor expenses and profits as you go – tracking it will help you see patterns or changes with cash flow so you can make adjustments. Managing cash flow is about knowing where you stand with your money and making changes proactively so you don’t end up sinking those first few years of running a business.

Contact Galaxi Bookkeeping for a consultation and be sure to visit us on Facebook!

 

25/03/2015

Improve Inventory Management with Xero

Any business that deals with inventory is going to love the new update in Xero – inventory management! No more trying to track what you have in stock manually or waiting until the end of the month to see where you stand in terms of goods, the new update in Xero gives you a real-time look at what products are selling…and which ones aren’t. The easy to use program also provides business owners with a variety of customising options to suit the needs of any industry.

Inventory Management

What else can you look forward to with the new inventory management update in Xero? Let’s take a look:

  • Quickly track the quantities of your goods – There’s no more guesswork involved with tracking how much inventory you have in stock or the value that inventory has – the new update makes it easy to track these numbers using the cloud software, so you can see data on any device anywhere you’re located. This feature allows you to have even more control over what or how much you purchases for your business.
  • Easily track your inventory’s profitability – No one wants to have an inventory that’s not making any money. With Xero’s feature, you can now see which of your products are selling and the amount of profit you are making – a priceless feature when you’re trying to maximize your profit margin. The new update also tracks the value of your inventory in real-time, giving you the most up-to-date assessment possible.
  • Manage inventory efficiently – In addition to tracking inventory purchases and sales, the newest Xero update allows businesses to quickly input the current inventory into a database, which in turn speeds up the invoice and quote process from the beginning.

Any business working with an ever-changing inventory will thoroughly appreciate the newest update in Xero. The inventory management feature in Xero provides essential tools to any business owner – tracking profitability and quantity is sure to speed up how you do business! Take a look at this video to find out more about this innovative programme:

Contact Galaxi Bookkeeping for a consultation and be sure to visit us on Facebook!