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:
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!
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.
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:
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.
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.
What else can you look forward to with the new inventory management update in Xero? Let’s take a look:
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:
Did you know that one of the best (and most efficient) ways to increase the amount of business you do is to provide sales quotes? Sales quotes – also referred to as price quotes – often mean the difference between landing a contract and not. Many small businesses make the mistake of not preparing or sending sales quotes quick enough, and in the world of business, timing is everything!
Increasing cash flow and getting invoices paid are two of the most common areas of difficulty for small businesses. Staying on track with clients from the start – such as with the sales quote – is a good way to increase your business and get paid when the job is done. Here are a few ways to increase your business with sales quotes:
Use cloud-based software to your advantage! Software programs, such as Xero, are designed to make a positive impact on your business by organising your data and providing you access to your spreadsheets and sales quotes from start to finish. Increase your business with sales quotes and see what a difference it makes!
Whether you’re a small business owner or the leader of a non-profit, your bookkeeping goals are important no matter where you work. Non-profits have a unique challenge of needing to be diligent with spending and need to keep focus on providing an adequate amount of funding to a cause! In many respects, non-profits run just like businesses, so it makes perfect sense that non-profits would use the same effective record-keeping software and tools. Since you want to ensure you make the best financial decisions, here are some bookkeeping tips for non-profits you can easily implement into any process:
Start with Bookkeeping – This first step is also one of the most important. In order to understand how to track your business expenses and monitor money or donations, you need to create a system for bookkeeping. Unlike a traditional business, non-profits are generally run on donations or private funding, in addition to using volunteers to run a good portion of the non-profit. Cloud-based bookkeeping software makes tracking cash donations, invoices and cheques easy to monitor no matter where you are.
Prepare for the Annual Audit – Every year, it’s the same stressful story, looking for last minute documents, receipts and financial statements. Using cloud-based bookkeeping software means you can quickly and simply upload images of any documents into the software for future reference. This makes it easy for you to go back and look at invoices or receipts throughout the year and makes the annual audit relatively stress-free. All you need to do is provide an auditor log-in access on read-only files and it’s more efficient for everyone.
Streamline the Process – Through non-profits, volunteers come and go on a frequent basis. Creating a streamlined bookkeeping process makes it easy for people to learn as soon as they come in and keeps the machine well-oiled and running smoothly. Create a guide for new volunteers to follow and be sure to review documents twice a year to ensure the bookkeeping is clear and concise.
These bookkeeping tips for non-profits are crucial in making sure the finances are in order at all times. Staying organised and simplifying the process are just two important components in the success of any non-profit.
Sales quotes are often one of the most valuable parts of doing business – quotes potentially increase sales, which in turn drives up the revenue and builds a relationship between your business and new or existing customers. One of the leading accounting software tools, Xero, has introduced a new feature that will streamline the sales quote process and keep your business competitive and moving forward! Xero Quotes makes it easier than ever to manage quotes from start to finish.
Once inside the user-friendly dashboard, Xero Quotes allows businesses to create a quote and respond to it from anywhere and anytime, thanks to cloud capabilities. Another advantage of using Quotes is they can also be turned into invoices, eliminating additional steps between quoting, completing the project and invoicing.
Xero Quotes are saved in the dashboard for future reference, making it simple to browse through a summary of quotes, such as those in draft, sent, accepted by a client and expired. Do you have a hard time keeping track of correspondence between you and a client? Xero Quotes makes it easier for businesses to track quotes that have been sent to clients, but still need to be accepted. This feature means there’s one less thing for you to manage when you’re busy keeping the business moving forward.
Many businesses love the customization provided through Xero — and for good reason. Just like many other features of Xero, Quotes has the ability to be tailored to any business’ specific need. Use branded themes or email templates to give your quotes a unique, professional appearance. While this new feature is sure to make business much easier to manage, Xero is hard at work creating even more benefits to Quotes, including:
Learn more about Xero Quotes here:
In any situation dealing with finances, budgeting is very important. It keeps spending in control and helps business owners allot a certain amount of money for necessities and expanding the business through hiring, services or supplies. Budgeting with Xero – or any number of accounting software programs – will help you stay on track and organized when it comes to your sales, spending and profits.
Budgets don’t have to be overly complicated, either. They can be as simple as you need them to be – such as managing income, cost of sales or goods and gross profit. Xero is a powerful tool when it comes to budgeting and can provide business owners with various tools and reports that keep the entire team aware of financial standing. Xero, for example, makes budgeting even easier. Business owners can choose to input financial information into Xero directly or choose to export Xero reports onto an alternative template, such as through Google Docs or Excel. This versatility allows business owners to create and manage budgets on any platform that makes them feel most comfortable.
There are also advanced settings to utilize when budgeting with Xero. Options allow you to create a range of budget scenarios so you can see how your budget is affected should you decide to be a bit tighter with spending or want to see where your budget will be in an optimistic setting. Creating different style budgets will help you see business performances easier and allow you to make adjustments accordingly.
A business can’t survive without some type of budget in place – whether you do it the old fashioned way on a piece of paper or look toward a quality accounting software program like Xero. Budgeting with Xero brings all the information to your fingertips so you can see exactly where your money is going!
Small and medium-sized businesses always need to keep track of invoicing and expenses, but doing it the old fashioned way is often time consuming and leaves room for error. Xero’s cloud-based accounting software makes bookkeeping and bank reconciliation easy to manage; however, there are a few tips for using Xero that are always recommended to create an ideal experience.
Xero offers such features as:
Here are some crucial tips for using Xero that you will want to do before getting started, such as:
Xero is designed to make life a bit easier when it comes to managing the finances and books for a small or medium-sized business. Implement these tips for using Xero into your routine so you have a great initial experience with the program. Need additional help setting up? Galaxi Bookkeeping can ensure a stress-free transition into the new program.
There are plenty of things to consider when getting a business off and running – bookkeeping being one of the most important, and often neglected, aspects of any startup. Creating a business takes so many components it can be difficult to keep records of spending, invoices and other financial considerations. These bookkeeping tips for startups will help you create effective and useful habits from the start!
Keep personal banking separate from business – During the early days of a business, it’s easy to get caught up in spending personal money for business-related expenses and supplies. Before getting started, open up a banking account to manage these expenditures! Whether you do bookkeeping yourself or hire a professional, separating the two accounts early on will keep things organized and easy to manage.
Devote time to reconciling your books – As a startup, you need to know where every bit of money is coming and going. Create efficient habits by devoting a specific time of day or week to managing invoices, paying debits or monitoring cash flow and spending. Getting into this habit from the start will help you stay sane when the business – and bookkeeping – becomes more in depth. Of course, you can always turn to a professional bookkeeper to take the hassle away!
Look for accounting software – One of the most effective bookkeeping tips for startups is to look for accounting software to help you easily keep track of your finances. Cloud-based accounting software, such as Xero, makes a number of bookkeeping aspects easy to manage no matter how experienced you are at accounting or finance. Accounting software easily allows you to send and receive invoices, create reports and a plethora of other valuable services for any startup.
These bookkeeping tips for startups are some of the simplest options to implement into any business – start with good habits early on and build upon them to stay efficient and organized as the business grows!
The Christmas season often passes by in a blur, but bookkeeping doesn’t stop! For some industries, the holiday season is a time to slow down and catch up before the New Year rolls around; however, some bookkeepers experience long hours and an extensive workload. Don’t let the extra work increase stress – these Christmas bookkeeping tips will keep you sane and on top of things.
Work in advance – Now is the time to create a to-do list and start working on it. The more you get done before the holiday rush, the more time you have to spend on the in-depth projects. Set up staff pays before leaving the office so you don’t have to worry about it during the rush of the holiday season. Scheduling payments in advance is convenient and the staff will be happy to receive payments on time – though it’s important to make sure none of the scheduled payments fall on a public holiday.
Stay focused – One of the best Christmas bookkeeping tips is to reconcile all of the accounts before you leave the office for the holiday. No one likes to come back to work and wade through a pile of invoices or payments on the first day back – additionally, reconciling accounts as you get them prior to Christmas means the transactions are fresh in your mind and create less room for error.
Set up invoicing – Just because you’re out of the office doesn’t mean invoices should remain unpaid by clients or customers. Send out invoices prior to Christmas so you continue to get paid even when you’ve closed up for the holiday. It’s never good when you forget to invoice a client, and since the Christmas season is busy, there’s always the chance that it could happen. Setting invoices up before the holiday rush keeps things running smoothly.
These Christmas bookkeeping tips are important, but there’s still one more thing to do – relax. Enjoy the holiday season with friends and family, a most joyous time of year!