Keeping track of finances is a struggle for many small businesses, but the hustle and bustle of a busy café or restaurant can be even more overwhelming for managers and owners. Constant challenges of juggling staff and their shifts and rosters, suppliers, cashflow and produce requires great time and task management not to mention the fine art of multi-tasking. Often items are taken care of in the spur of the moment, based on what is critical at that moment; a supplier who won’t supply any more products, an employee who needs to change availability and so it goes on….. While bookkeeping for cafes may take a bit more attention, that doesn’t mean it has to be harder!
Let’s not forget, unfortunately businesses in hospitality have the highest percentage of failure, due to poor record keeping. Without timely information, this does not give owners valuable insights to make the right decisions. As a result, with little to no data, decisions are made on emotions.
Choosing the right software is a crucial first step to making bookkeeping for cafes and restaurants easier to handle and helps you stay on track each day. Xero ticks many of the boxes we see that owners of cafés and restaurants require. Everything from managing their daily cashflow, supplier payments to integration of key third party applications to manage shifts and rosters.
Managing of Supplier Invoices
With latest third-party integrated applications you can send or take photos of invoices and receipts which integrate directly into your accounting application. This information is digitised allowing for owners to quickly understand what they owe and when it is due. This removes the embarrassing situation when suppliers won’t supply more stock due to unpaid invoices. We all know, no stock means no sales.
Statutory reporting for cafés and restaurants can also become an issue with many supplier invoices being GST taxable, free or a combination. Introduction of key third party applications which read and interpret invoices, ensures you don’t overstate your GST obligations and remove potential duplicates. Too often we have seen owners overstate their GST due to manual capturing of information.
Paper was so 2019!
Managing staff in any business can be challenging, however add the issues of shifts, rosters and awards and this adds a whole lot of complexity. Most accounting applications such as Xero provide payroll components which are suitable to manage staff, however where this does not suffice, third party applications exist which allow owners to manage rosters, capture hours worked (including time of the day) which is then subsequently compared to awards, making the paying of employees a whole lot easier.
It’s important to stay organised for the sake of your business and your employees – you don’t want to spend unnecessary money overbooking your staff or being short on hands during peak hours.
Selling to Customers
Once you have managed your supplier invoices and rostering of employees you need to remember the main objective as to why you got into business; selling to customers. Having the right tools to capture customer orders and sales is pivotal in understanding the success of a menu and customer satisfaction.
Add to this the different ways of selling a meal from client facing to delivery via Uber or Deliveroo, it is important to segment how sales are made. Point-Of-Sale (POS) applications take the hassle out of managing menus and pricing, orders and segmentation. With easy setup and user interaction it allows for business owners to understand what works, what makes money, and more importantly, what makes the customer happy.
Time is precious when running a busy business – don’t waste time by tracking all of these features manually!
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.
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:
Every business goes through cycles – always prepare for them by staying focused and conservative with spending, even if the cash flow is high.
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.
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:
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!
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!
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.
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 professionals – Did 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!
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.
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 http://findviagra.com/generic-viagra-advantages/ 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!
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!