3 Red Flags and 3 Accounting Solutions For Business Owners
Working with business owners, accountants see it all. We’ve seen every financial high and low you could imagine and almost nothing shocks us. What might seem like a huge stressor for you, may not be quite as terminal as you think - almost everything is fixable.
So what are the things that jump out to us as red flags? Here’s 3 big concerns we wish every business owner would avoid (& 3 ways we can fix them for you).
Red Flag 1. Your Tax Bill Comes as a Surprise
If your tax bill comes as a surprise, you’re not in control of your business.
As accountants we’re passionate about the relationship between business owner and accountant. Good communication and up to date bookkeeping and accounts should mean you understand what is happening in your numbers and what they are telling you.
If you can see what your numbers are telling you, your tax bill should be well and truly expected.
Tax planning is something we’re passionate about and this is done BEFORE tax time. An accountant for business owners specifically plans with you for your tax obligations so that we can get it right together. We can minimise the tax you pay, or ensure you’re paying enough to satisfy any bank requirements for loans etc. It’s a delicate balancing act, paying the right amount of tax for your business goals, so ensuring your communication with your accountant is crystal clear is critical.
Red Flag 2. Not Invoicing Regularly
Actually being paid for the work you’ve done might seem like an impossible task at times, but it actually is pretty dang near impossible if you haven’t even sent out the invoice. Chasing payments isn’t on the top of the favourite jobs list for many people but if you haven’t even given people the chance to pay in the first place? Well that’s a huge problem.
You work hard, and anyone who values the work you do for them will want to pay you for the results/services you’ve provided. Make sure you’re giving your clients the chance to do just that.
Send your invoices promptly, and you’ll likely increase the turn around time on getting paid significantly - who doesn’t want that!?
Red Flag 3. Your Business is Running at a Loss With No Clear Plan For Recovery
Business is tough. Getting your pricing right can be tough. Keeping up to date with your bookkeeping can be tough. There’s a lot to balance in order to make sure the numbers stack up.
The truth is though, if your bookkeeping lags behind, you’ll likely be missing the story the accurate numbers will want to tell you. Quoting loosely, inaccurate budgeting, going overtime on a job, if prices increase on your supplies before a job is complete - you’re going to slip into a hole, fast.
Up to date bookkeeping and accounting with a qualified and forward thinking accountant will sound any alarms before they’re a problem, and there’s likely a strategy that can be implemented that can help you before there’s a long term problem. Facing a loss can be confronting and can often mean facing some hard truths, but the longer a problem is ignored, the deeper the hole gets.
Prioritise your mental health and make sure you’re clear on how your business is performing before it feels too big to manage.
Solution 1. Cashflow Forecasting - Like a Boss
Partnering with business owners day in day out, one of our favourite strategies involves cashflow forecasting. Providing detailed projections of your inflows and outflows, following real time numbers we can project how your business is and will perform. Having this data allows us to plan proactively for whats to come, so nothing catches you by surprise.
Solution 2. Financial Forecasting
Our Financial Forecasting goes hand in hand with our tax planning service. While Tax Planning is something we make every business owner do, Financial Forecasting takes things a step further and allows you to project and plan for any future payments you’ll need to make after the tax stuff is done. Going to need to pay tax? Great, business must be doing well - let’s plan out when the best times are to pay it out and make sure your business is well positioned every step of the way.
Solution 3. System & Process, Designed to Work
Maybe your systems are too complicated. Businesses evolve. A side hustle turned business with multiple employees? Maybe you started your business on the cheap and it turned out to be more successful than you’d even hoped. These problems are good, but they need to be corrected.
As accountants who partner specifically with business owners, we’re passionate about helping you to do what you do, efficiently. Work smarter, not harder.
We love working with your business to find the most efficient strategies so you can run your business confidently, and simply. Let us take a look under the hood so we can make sure you’re not wasting time with unnecessary leg work and drama. Our system & process design strategies are no joke - let’s make your life easier.
Accountants Who Actually Give a Crap About Your Business.
We solve all your money stress.
Make sure you have the right people in your corner, before things get desperate. Us.
We love partnering with driven and ambitious business owners, to package up all your business needs.
