Taking care of business

Katrina Spinazzola • March 14, 2021

So the new year is a distant memory and the kids are back at school.... time to... 'take care of business' and ensure the foundations are set in stone.

Time to tick off what you have 'nailed' and what needs some work - here is our guide to the basics.

Get the core bookkeeping under control

Day to day data entry - if you need training - book it !
Is your Xero file set up correctly - do you need a Welfare check by KRS ?
BAS compliance - lodge on TIME - engage a professional if it is all too much - this deadline becomes their responsibility.
Pay your self and your employees - no one should work for free - ensure the business is paying it's way.

Consider the extensions to the basics

Accounts Receivable management - do you need assistance to get paid by your customers ?
Accounts Payable management - are the bills being paid on time - can you get better terms and discounts ?
Payroll liabilities - is the super up to date ? (use Xero Auto super to get this done!) Do you have a current work cover policy ?
Wages rates - are they correct ?
Provisioning - do you set aside the money for tax and GST each week/month ? Do you need advice on how much?

Review and reconcile

Have a budget for the business or at least some earnings targets - enter this into Xero and review to your actuals.
Check the bank is balancing (KRS does this for our clients at end of quarter).
Check the coding of GST items to ensure you are NOT over or under claiming (KRS does this for our clients at end of quarter).

Once you have nailed the basics - Strategic planning need not be scary.

It keeps you accountable, motivates and documents your progress. It allows you to evaluate results and make decisions on FACT not assumptions.

To truly assist you in cashflow and planning - we need the basics nailed.

If the 'bubbacino' of bookkeeping has no froth then we can never make a double shot latte successfully !

No two businesses are the same and hiring a professional to assist you, gives you freedom to concentrate on your business.

A little story ....meet Mike .....he has been in a few successful businesses but ......

he recently wanted to 'go the next level' and get a budget put in Xero. After a great consult - we were able to set and enter a budget in Xero and also re design his reports so all his common accounts were grouped so he could easily compare month to month where the money was coming IN and going OUT.

Now he will measure his progress regularly and be able to take action if the numbers indicate changes.

If there is one thing we all learnt from navigating Co Vid 19 - it was the need to pivot quickly and with little pain.

So