Maximizing Your Business Profits Through Accountability in Financial Information
This topic is accountability. Now, accountability is so important. In today's busy world, though, we are often letting ourselves down, letting other people down. Our staff might be letting us down. Working out who's accountable for what, in your business and how often, is really, really important. So, I'll stay on the topic of accounting. Even though there are so many other accountabilities in your business, the bookkeeping and the accounting, the preparation of financial information, that is all really important. And we tend to leave it till last, especially if it's our job, we just don't get around to it. It doesn't feel important. It's not as important as looking after the customer. It's not as important as getting home for dinner on time or it's not as important as the glass of wine after dinner, maybe. But by setting up some accountability around all of your financial information, you will have it more accurate, more often, and that will enable you to see what opportunities there are in your business to improve. It will also help you to feel on top and it will just make your life so much easier. Because, from personal experience, among other things, the more you get behind, the harder it is to get in front. The more unfinished business that you have, the more likely you are going to miss something, or someone is going to take advantage of you. So, I would suggest you have some accountability in your business. How often is the processing going to be done on your business records? The more often the better, because if you've got a bookkeeper doing your things and they perhaps do it quarterly, and there's a bit of complexity in your business, you're not going to remember when they finally get to doing the BAS. What happened on this day or that day, what this might've been. By having it done regularly, in some kind of accountability matrix that you set up for your bookkeeping and your accounting, then you'll stay on top. They'll stay on top. Their bills will be cheaper. They'll be happier. And you'll be also, well set to ask more questions about your financial information. The other thing about having everything up-to-date is that you're ready when it's time to have the tax done. You can jump in before other clients, after the 30th of June, get your taxes sorted early. The earlier you get it done- in fact, the more your accountant will like you as a client. You'll become one of the “A"clients. The ones they've got time to look after. The ones they've got time to chat to. If you're completely up to date, when tax planning time comes around in March, especially if you're making lots of money and you want to minimise your tax, your three quarters of the year information will be ready at the fingertips of them - will be ready for you to have a conversation with them about what's best for you. So, the accountability within getting your stuff done and keeping on top of it, keeping your bookkeeper accountable to actually do reconciliations, reading the financial statements, when they're ready. You could have them printed out for you. It's nothing to be ashamed of. Paper is good for reviewing financial information. Have that accountability. I want this by this day of the month. I want that by done by the quarter. I don't want my BAS lodged late. I want my tax done on time. Hold your team or yourself, if it has to be you, accountable, for getting that done, keeping you on top. So, you're well-informed and you are in control of your business profitability. Hope that helps. Stay accountable. Most people need help to stay accountable. It surprises me in all of these books that we read, even very, very successful people sometimes need an accountability, buddy. I'd be happy to be yours, too. Have a good day. Reach out if you've got any questions, I'll be happy to help. Take care.
For small business owners, understanding who's accountable for what tasks and outcomes in producing timely and accurate financial information is key to maximising your profits. That financial information tells the story of what's going on in your business. It's no good to you if it's incomplete, not read or just plain wrong. To help you, I share some insight into how to start to take control of this area so you don't miss opportunities to have a better business life. Reach for a free strategy session and I can look over it with you.
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