If you are a business that wants to increase your profits or boost your cash flow, it’s imperative that you choose the right bookkeeper for your business. By ensuring that your books are kept up to date, you can better track and manage your revenue and expenses. This allows you to identify your current profitability and this allows you to make better projections for the future success of your business.
Budgeting – How Does it Work When Collaborating with Your Bookkeeper?
Through an extensive process we work with you to set your budget priorities. We go through a review of your current financial position. This allows us to identify potential issues as well as potential opportunities. This allows you to develop different strategies.
Here are some of the things that we look at:
Long Term Goals
The first thing we do is look at the long term plans for your business and your long term financial goals. This helps to give a broad understanding of where you want to be and what needs to happen in order to get there. Setting long term goals allows you to set short term goals and benchmarks
Short Term Goals & KPIs
Once you know where you want to get to, it’s easier to set short term goals. These benchmarks and KPIs are short term actions you can take, and measure, in order to track how you are tracking towards your business goals. The short term goals include things like increase in sales, increase in revenue and increase in profits.
Compare Against Past Figures and Industry Benchmarks
One you know your current figures you will be able to compare them against your own previous figures. This will allow you to better ascertain whether or not the goals that you have set are realistic and achievable for your business. You can also compare your own figures against industry benchmarks to see how you are performing compared with others in your industry.
Identify Ways to Reduce Costs
Another, often overlooked, area where a bookkeeper can help your business is through assessing your costs and looking at ways that you can reduce these costs. A proactive bookkeeper will help you identify areas where you can reduce fixed and variable costs.
Regular Reporting and Immediate Access to Data
The right bookkeeper will help get you set up with the latest cloud based bookkeeping software, meaning you have up to date access to your data, no matter where you are – all you need is an internet connection. They will help ensure your software is set up correctly so you can access your data immediately.
Many business owners prefer to keep their head in the sand with respect to setting a budget. They find the process too difficult and are afraid of what success might look like. It can be daunting and they don’t know where to start. It’s not something to be afraid of.
The right bookkeeper, with decades of experience, can help you get this set up correctly and have more confidence in the future success of your business.
If you would like to speak to a proactive bookkeeper that will help you get set up with the right software, one that will help you set a budget for your business, get in touch today for a no obligation quote.