Our second cash flow topic this week is about Budgeting and Record Keeping. A lot of people are using accounting software like Xero and MYOB and the assume that everything's done for them, but it's not. Xero and MYOB Market their new accounting software as if it does everything for you, this is not the case. The bank reconciliation still needs to be done. It's really important that the entries in the software are matched with the bank statement. Manual bank reconciliations still need to be done as it is important to check if the entries in your accounting software match the bank statements.
For example: I've had one client whose bookkeeper was processing the entries and he was getting charged thirty dollars every transaction. Nobody took any notice of it and it added up to over thirty thousand dollars over the last couple of years, so it's really important to understand what's being processed through your system. Owning a small business is an exciting challenge. However, it is easy to get sucked into living day to day and lose direction. By focusing on the 5 main areas of business growth you can grow a business that will allow you to live the life you want. So if you feel like your business is growing faster than you can keep up, email [email protected] to organise a free chat.
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AuthorLynne Spalding, founder of FCS, spent more than 20 years working in an Accounting practice before founding Financial Controlling Services in 2002. She brings more than 35 years of experience in accounting to each client. Categories |