Right now, many business owners are feeling the squeeze. Whether it’s declining sales, rising costs, or the uncertainty of the economic climate, it’s tough out there. It can feel a lot like drowning—no matter how hard you try to stay afloat, the current keeps pulling you under.
The stress, anxiety, and sense of panic can be overwhelming. But just like in the ocean, the way you respond can mean the difference between sinking and swimming.
We Aussies have a deep-rooted love for the water—beaches, pools, rivers, you name it. And with that love comes a healthy respect for the ocean’s power, especially the sneaky, dangerous rip currents that can pull even the strongest swimmers out to sea. As we’re all too aware, the economic tides can also shift suddenly. And just like in the ocean, it’s easy to feel helpless and overwhelmed when caught in the financial equivalent of a rip. But here’s the thing: the right approach and a trusted advisor can be your lifeline.
When you’re caught in a rip, the first rule is simple—don’t panic. (Easier said than done, right?)
The same goes for your business when the pressure is on. Economic downturns can create a sense of urgency that makes rash decisions feel like the only option. It’s in these moments that poor advice or a knee-jerk reaction can make a tough situation even worse.
A trusted financial mentor can help you keep your cool. With over 35 years of experience in the trenches of tax accounting and small business, I’ve seen it all. My job is to bring perspective, helping you to pause, breathe, and look at the bigger picture before making any decisions.
When caught in a rip, fighting against the current is the quickest way to exhaust yourself. Similarly, in business, pushing against the financial challenges without a clear strategy can drain your resources and leave you worse off.
Instead, it’s about conserving your energy and seeking the right direction. I often hear business owners worry about late BAS lodgements or overdue payments. While these are important, it’s crucial to know that penalties can often be negotiated - there’s a difference between lodging late and paying late. The situation isn’t always as dire as it seems, and with the right guidance, you can navigate these challenges more effectively.
When it comes to your BAS, an imperfect yet timely lodgement is better than a late lodgement.
One of the best pieces of advice for escaping a rip is to get out of the current before trying to make your way back. This is much like finding a new approach in your business strategy. When you’re stuck in a financial rip, you might need to change direction before you can move forward.
This is where a financial mentor can make all the difference. With my background as a chartered accountant and small business owner, I understand the intricacies of both worlds. Whether it’s negotiating terms with creditors or finding tax efficiencies, I’m here to guide you toward calmer waters.
In the ocean, if you can’t make it back to shore on your own, the best thing to do is signal for help. Lifeguards are trained to spot those in distress and can get you back to safety. In business, asking for help isn’t a sign of weakness—it’s a smart move.
Turning to Google might give you quick answers, but be wary of content designed to convert you into a service rather than fully educate you. With so much noise out there, it’s easy to get swept up in solutions that don’t actually address your core issues. That’s where I come in—I’m here to cut through the noise and offer suggestions tailored to your unique situation.
The safest place to swim is between the red and yellow flags at a patrolled beach, where lifeguards are on duty. In business, surrounding yourself with the right professionals—an accountant, a bookkeeper AND a financial mentor—gives you that same level of security.
Having someone like me on your team isn’t a luxury; it’s a necessity. I bring not just experience, but a deep understanding of the story your business numbers are telling. I’m here to ensure you have the foundation you need to weather any storm, whilst ensuring that your business is serving you as you originally intended.
In tough times, it’s easy to see advice and support as something nice to have, but not essential. Yet, just like knowing how to escape a rip can save your life, having the right financial mentorship can be the difference between sinking and swimming in your business.
Don’t wait until you’re too far out to sea—reach out for that helping hand. Whether it’s negotiating with creditors or gaining clarity on your financial data, I’m here to guide you back to shore.
Remember, you’re not alone in this. Together, we can navigate the rough waters and set you on a course for calmer seas.
| Disclaimer: These are yuck and boring but unfortunately a legal requirement for professionals in my industry. So just a reminder, the information contained here is general in nature and you should seek financial and business advice tailored to your own personal circumstances. Which, by no small coincidence, I can help you out with. Head over to my website and book a free 15 minute chat with me: https://betterbusinessdecisions.com.au/ |
As a business owner, you’ve likely assembled a team to help keep your finances in order—a bookkeeper, an accountant, maybe even a tax advisor. You might think your bases are covered. But here’s the hard truth: unless someone on your team is focused on your best interests—not just ATO compliance or their own firm’s objectives—your business could be missing critical opportunities or red flags.
From 1 July 2024, new protections for whistleblowers to the Tax Practitioner Board (TPB) are coming into play. While these changes aim to catch tax dodgers, they also add another layer of stress for those already playing by the rules. Accountants, under increasing pressure to toe the ATO’s line, are often more concerned about avoiding penalties than finding ways to boost your profitability.
The added pressure on accountants to stay on the right side of the ATO often leads to an overemphasis on compliance. Accountants, under increasing scrutiny, may prioritise avoiding penalties over identifying financial strategies that could benefit your business. The compliance mindset - while necessary - can sometimes act as a barrier to claiming relevant expenses, proactive tax planning and further education on all these matters.
What does this mean for you? Your accounting team is likely spending more time ensuring the taxman’s boxes are thoroughly checked than they are strategising on how to grow your profit. This continued shift in focus might mean missed opportunities, unexplored tax benefits, and a lack of attention to the bigger financial picture. The ATO’s interests should be few and far between in your business activities, yet they often take centre stage, pushing your own goals to the sidelines.
It’s easy to assume that your accountant is your advocate. After all, they manage your taxes, help you stay compliant, and are meant to keep your financial records in check. But the reality is more complex. Accountants are often overwhelmed with the sheer volume of compliance tasks, leaving them with little time or energy to focus on the strategic aspects of your business.
Business owners expect that their tax accountant will be letting them know, at regular intervals, what they can do to improve. But very few accountants actually see that as part of their role. The exponentially increasing pressure from the ATO distracts them from what should be their primary focus (their business-owning clients) BEFORE attending to the intricacies of tax reporting.
Your needs are important, and your questions demand answers. I would argue that the actions of businesses just like yours are the very engine room of a prosperous economy. Taxation and regulation should act as a counterbalance to doing business, not an outright barrier.
If your accountant is preoccupied with compliance, ask yourself:
🤔 Who’s there to help you understand new tax thresholds as your business grows?
🤔 As you cross into higher revenue brackets, do you know how this impacts your tax obligations, like payroll tax or GST?
🤔 Who’s guiding you in setting realistic financial KPIs that align with your long-term goals?
🤔 Who’s helping you figure out if you’re charging enough for your services, not just to cover costs but to truly profit and grow?
If the answer is “no one,” you’re not alone—but you’re also not in a good spot. Your accountant may be great at keeping you compliant, but that doesn’t necessarily translate to helping you thrive.
You don’t know what you don’t know. This saying rings especially true when it comes to your financials. Many business owners discover too late that their financial records have been handled with a bare minimum attitude. At best, this results in inaccurate data that leads to poor decision-making. At worst, your team could be stealing from you and hiding it in your loan account.
Consider the concept of Hanlon’s Razor, which suggests, “Never attribute to malice that which is adequately explained by neglect, ignorance or incompetence.” It’s a reminder that errors often arise from ignorance or neglect rather than intentional wrongdoing. However, in the world of business, the consequences of such errors can be devastating, regardless of the intent behind them.
Imagine finding out that due to inaccurate bookkeeping, you’ve been undercharging clients for years, missing out on significant revenue. Or worse, you’re audited by the ATO and discover the actions of your team don’t hold up under scrutiny, leading to penalties. These scenarios aren’t just theoretical—they happen more often than you’d think, especially in high-growth businesses where their owners don’t know how to ‘check the work’ of their accounting team.
Unfortunately, I’ve seen too many cases where neglect or outright self-serving behaviour has led to disaster. Disengaged business owners are paying the price. The truth is, if you’re not actively involved in your financials, no one else may be looking out for you. Even the most well-intentioned accountant can miss critical details and deadlines if their focus is divided between compliance and the countless other tasks on their plate.
It is essential to communicate clearly with your accounting professionals. Although they are your ‘agent’ with the ATO, ultimately YOU are responsible for record keeping, paying liabilities and lodgements.
More than ever in business today, you need someone who has your back—someone who’s focused on your vision, your goals, and your profitability. This doesn’t necessarily mean hiring a full-time CFO or adding another part-time role to your team. It could be as simple as engaging a mentor who regularly checks in to ensure everything is on track.
This is where I come in. As a financial mentor, I’m here for more than understanding compliance; I’m here to help you make better business decisions by empowering you with the knowledge and tools to understand your financial story. My role is to ensure that your business serves you—not just the ATO or your accountant’s objectives. AND that you don’t inadvertently overlook your responsibilities.
By working together, we can:
You deserve to have someone in your corner who is as invested in your success as you are. Whether it’s through regular mentoring sessions, a one-off strategy session, or ongoing business guidance, I’m here to ensure that your business not only survives but thrives.
Your financial health is the backbone of your business. Don’t leave it in the hands of those who may not have the time or the inclination to look out for your best interests. You need a financial advocate—someone who sees the bigger picture and ensures that every decision made is in line with your goals.
| Disclaimer: These are yuck and boring but unfortunately a legal requirement for professionals in my industry. So just a reminder, the information contained here is general in nature and you should seek financial and business advice tailored to your own personal circumstances. Which, by no small coincidence, I can help you out with. Head over to my website and book a free 15 minute chat with me: https://betterbusinessdecisions.com.au/ |
"Knowing your numbers" can sound intimidating, and you're not alone if it makes you anxious. Many business owners feel the same way. But I'm here to tell you that it doesn’t have to be overwhelming (and if you can’t rattle them off the top of your head at the next networking event, don’t lose any sleep over it).
Because it's less about 'knowing your numbers' and more about 'getting to know your numbers'—building a relationship with your financial data through regular reflection and engagement.
Think of your financial data like a trusted member of your management team. You wouldn't expect to know everything about them overnight; instead, you get comfortable and more confident through regular interactions. The real value lies in understanding the story behind your numbers, not just memorising figures. This isn’t about impressing others with slick-sounding percentages but making informed decisions that drive your business forward.
I want you to be mentally prepared for developing a relationship with your financial data. Similar to the idea of teaching a man to fish, I don’t want you to focus on ‘what numbers to consider’ but rather ‘how you might consider them’.
Often, the reality is not as daunting as we imagine. We tend to catastrophize and fear the unknown. Facing these fears in a safe space can transform your outlook. That's where I come in, to guide you through this process with support and clarity.
Just so we’re on the same page, let’s dive into the top five numbers you should get familiar with in your business. These are the key figures that will help you keep your finger on the pulse and make informed decisions:
1. Revenue: This is the total income your business generates before any expenses are deducted. It's the lifeblood of your business. Keeping track of your revenue helps you understand your sales performance and growth over time.
2. Profit and Loss (P&L): Your P&L statement gives you a snapshot of your business's financial performance. It shows your total revenue, costs, and expenses over a specific period. The bottom line here is your net profit or loss. Regularly reviewing your P&L helps you spot trends and identify areas where you can cut costs or increase income.
3. Cash Flow: Cash flow is the money moving in and out of your business. Positive cash flow means you have more money coming in than going out, which is crucial for day-to-day operations. Negative cash flow can signal potential problems. By monitoring cash flow, you ensure you have enough liquidity to meet your obligations.
4. Gross Profit: This is your revenue minus the cost of goods sold (COGS), divided by revenue. It tells you how much profit you’re making on your products or services before other expenses. A healthy gross profit is vital for covering operating expenses and achieving profitability.
5. Expenses: Keeping an eye on your expenses is just as important as tracking your revenue. This includes fixed costs like rent and salaries, as well as variable costs like utilities and supplies. Understanding where your money goes helps you manage your budget effectively and avoid unnecessary spending.
So where can you keep a diligent eye on these digits? This article I wrote recently covers the key reports you should be reviewing regularly to keep in the loop.
Ok, so daily reviews might be overkill, but you get the idea. Once your financial data is in order, regular check-ins are essential. It’s like logbook servicing for your car, where your financial data is the engine of your business. Just as you wouldn’t neglect to service your car, you shouldn’t ignore your financials. Regularly reviewing your numbers helps you identify minor issues before they become major problems. This proactive approach saves you from costly mistakes and keeps your business running smoothly.
These check-ins don’t have to be daunting. Set aside time each week to review your key metrics. Look at your revenue, expenses, cash flow, and gross profit. Are there any unexpected changes? Are you hitting your targets? This consistent attention to your numbers allows you to spot trends, adjust strategies, and stay ahead of potential pitfalls.
Small adjustments made regularly can have a significant impact. Maybe you’ll notice an increase in a particular expense and decide to renegotiate with a supplier. Or perhaps you’ll see a dip in revenue from a specific product line and choose to shift your marketing efforts. These incremental changes can lead to substantial improvements over time.
Regular check-ins also keep you engaged with your business. They reinforce your understanding of your financial health and empower you to make informed decisions. It’s all about maintaining control and ensuring your business is operating at its best.
It’s a common struggle. You might always find something more urgent to do, and the temptation to avoid your numbers can grow as your business expands. But let’s be honest: why are you really avoiding them?
Deep down, is there a small part of you that knows you can’t ‘unsee’ it once you see it, and that you might be required to take some uncomfortable actions?
Facing your financial data takes bravery. It’s about being honest with yourself. The fear of what you might uncover can be paralysing. We often catastrophise, imagining worst-case scenarios that may never come to pass. But here’s the thing: it’s often nowhere near as bad as you think.
I understand this fear, and I’m here to help you overcome it in a safe, supportive space. That’s exactly what my Financial Power Hour sessions are designed for. During these one-on-one strategy sessions, we’ll tackle your financial data head-on. You’ll have the time and space to unpack any issues and get to the root of your concerns.
Think of it like turning on the light in a dark room. Once you see what’s there, you can navigate it confidently. Your numbers tell a story, and getting to know them helps you take charge of that narrative. With the Financial Power Hour, you’ll transform confusion into clarity, and fear into empowerment.So, let’s tackle this together. No more avoiding. Let’s face your financial data head-on and unlock the potential it holds for your business. Book a Financial Power Hour with me, and let’s start this journey towards clarity and confidence.
| Disclaimer: These are yuck and boring but unfortunately a legal requirement for professionals in my industry. So just a reminder, the information contained here is general in nature and you should seek financial and business advice tailored to your own personal circumstances. Which, by no small coincidence, I can help you out with. Head over to my website and book a free 15 minute chat with me: https://betterbusinessdecisions.com.au/ |
If you’ve ever found yourself wondering, "Have I actually delegated too much of my business finances?" you’re not alone. Many business owners, particularly women who manage the delicate balance of family and professional life, grapple with this question. It’s completely natural to feel this way, and I want you to know that your concerns are valid and shared by many.
Delegating tasks is a hallmark of effective leadership. It shows that you trust your team and recognise the importance of focusing on your zone of genius.
But there’s a crucial distinction between delegation and abdication.
When you’ve entrusted your accountant and bookkeeper with your financial data, it’s easy to step back and let them take the reins. However, if you start feeling uneasy or disconnected from the financial health of your business, it’s a sign that you need to get more involved. This doesn’t mean taking back every financial task; rather, it means understanding and overseeing the key financial aspects that influence your business decisions.
Here’s the thing: your instincts are crucial. If you sense that the information you’re getting isn’t painting the full picture, then it’s time to dive in a bit deeper. This doesn’t mean you’ve failed at delegation; rather, it means you’re taking proactive steps to ensure your business thrives.
Still kind of wincing at the idea of taking on the ‘work’ you struggled to offload in the first place? Let me share a story about my dad that beautifully illustrates the power of getting back to basics and taking control of your life.
My dad was diagnosed with diabetes well over 10 years ago. Like many people in his situation, he was prescribed medication and told to accept this as his new normal. My dad, who has always loved the experience of sharing a meal and the joy that good food brings, felt disheartened. He didn’t think to explore radical changes in his lifestyle or diet; after all, the doctor’s advice seemed final.
Then, just last year my dad remarried a wonderful Lebanese woman whose love language was also food, but in a way that provided for, nourished, and nurtured her loved ones. She began to cook him an array of traditional, wholesome meals from scratch. It wasn’t long before we all noticed a significant change, and his symptoms started to disappear. After being loved to bits through good food my dad is no longer having diabetes injections at 86 years young - his endocrinologist was amazed! He’s happier, healthier, and has more vitality than ever.
Note: This isn’t about giving medical advice – it’s about illustrating the profound impact of taking control and making informed, deliberate changes on the most basic, fundamental level.
This story resonates with many of us who have been told to simply accept things as unchangeable, despite our discomfort and lack of control. It’s a powerful reminder that we can often reclaim our power and make transformative changes, even in situations that seem out of our hands.
Just like my dad’s journey to better health through understanding and changing his relationship with food, you can transform your relationship with your business finances. By getting back to basics, understanding the core aspects of your financial health, and being actively involved, you can regain control and steer your business towards a more prosperous future.
The big thing to keep in mind: It’s not about taking on every financial task yourself. Instead, it’s about understanding the key aspects that drive your business. Here are three crucial areas where reclaiming control can make a significant difference:
Start by familiarising yourself with your balance sheet. This document provides a snapshot of your business’s financial position at a given time. Question anything that doesn’t feel right, especially if you may have had years of poorly organised transactions. Don’t hesitate to dig deep – it’s your right and responsibility to understand this incredibly important 1000ft view of your business. Once you’re comfortable with your balance sheet, move on to your Profit and Loss (P&L) statement. This will give you a clear picture of your revenues, costs, and how profitable your business truly is.
Your Business Activity Statement (BAS) is a crucial document that summarises your business’s tax obligations. It’s not just about pressing "lodge" to satisfy the ATO; it’s about understanding your business activity. The ATO wants to know about your business activity, so why shouldn’t you? Take the time to review your BAS before lodging it, being intentionally mindful of the actual GST collected and paid. This process not only keeps you compliant but also keeps you connected.
Regularly contemplating business with your financial data is essential. Your bookkeeper may be excellent at allocating and organising data, but that’s not the same as reflecting and analysing it.
Organising your data into meaningful labels via your Chart of Accounts, is critical. This article I wrote about this will give you more detail here. Remember, bookkeepers can make mistakes, and their best guesses often err on the side of caution. It’s your job to ensure these mistakes don’t go undetected for too long.
Regularly reviewing and analysing your financial reports allows you to catch these errors and make informed decisions. Reflect on the data, understand the trends, and use this information to drive your business forward.
By getting more involved in reviewing your financial reports, understanding your profit and loss statements, and scrutinising how your data is managed, you empower yourself. This knowledge not only boosts your confidence but also allows you to have more meaningful conversations with your financial team. You can ask the right questions, challenge assumptions, and ensure the financial strategies align with your business goals.
In my experience, when business owners, particularly women, take this step, they often have those 'aha!' moments where everything starts to click. They move from feeling uncertain to being confident decision-makers.
So, should you take some tasks back? Possibly, but more importantly, you should take back the oversight and understanding. Your role isn’t to replace your accountant or bookkeeper but to enhance the collaboration with them. By doing this, you’ll not only get a clearer picture of your business but also steer it towards greater success with confidence and clarity.
If you’re ready to take the next step and truly understand your business’s financial health, I invite you to book a Financial Power Hour with me. In this one-on-one session, we’ll dive into your financial data, address any concerns, and develop strategies tailored to your business’s unique needs. This is your opportunity to regain control and start making better business decisions.
Click here to schedule your Financial Power Hour. You’ll be amazed at how much ground we can cover in a single hour! Let’s work together to transform your financial uncertainty into clarity and confidence. Your business deserves the best, and it starts with understanding your numbers.
| Disclaimer: These are yuck and boring but unfortunately a legal requirement for professionals in my industry. So just a reminder, the information contained here is general in nature and you should seek financial and business advice tailored to your own personal circumstances. Which, by no small coincidence, I can help you out with. Head over to my website and book a free 15 minute chat with me: https://betterbusinessdecisions.com.au/ |
Tax time. Just the mention of those two words is enough to send a shiver down the spine of even the most seasoned entrepreneur. But what if I told you that there's a different way to approach the tangled web of taxes?
What if I told you that - contrary to popular belief - there is no 'tax time'?
That's right – I'm here to challenge the notion that tax is something we only think about once a year. Instead, I invite you to shift your perspective and embrace tax as a lifelong aspect of your business journey. Because when we do, we open ourselves up to a world of opportunities and strategic advantages that can have a profound impact on our bottom line.
If you've ever found yourself feeling overwhelmed or daunted by the prospect of ‘tax time’, have no fear coz Liz is here! 🎺 I'm here to guide you through the maze and show you that there's a better way forward.
This isn't just another article about taxes. No, this is your roadmap to unlocking the full potential of your business by embracing tax as a lifelong companion. Because when you do, you'll discover a world of possibilities waiting to be explored.
Tax isn't just a once-a-year affair; it's a constant companion on your business journey. Like the steady rhythm of a drumbeat, it plays an integral role in shaping your financial decisions every step of the way.
That's why it's essential to maintain a vigilant awareness of your tax situation at all times. Whether you're brainstorming new business ideas or strategising for growth, tax considerations should always be top of mind.
It's also about seizing opportunities to leverage things like the legal, on-shore tax haven that is superannuation. These resources can be powerful tools for minimising tax liabilities and maximising financial security over the long term.
By staying ahead of the curve, you can turn tax from a headache into something you are confident in minimising in your business.
When it comes to tax, the entity structure of your business can make a world of difference. Why? Because company tax rates are often lower than individual tax rates, making it an astute option for many business owners.
Being in the appropriate entity structure is key. Are you a sole trader, or should you be operating as a company? It's a question that deserves careful consideration and a deep understanding of your unique circumstances.
For some, operating as a sole trader may be the right choice, offering simplicity and flexibility in their business affairs. But for others, transitioning to a company structure could unlock significant tax savings and provide added legal protection.
Your structure should not only be influenced by how you’re trading now but where you envisage your business in the future, even going so far as to imagine what it should look like when you’re ready to step away (and on to the next adventure!).
Knowing in which year to declare your income (or even knowing that is a thing in the first place!) can have a significant impact on your financial picture. But how do you know when the timing is right?
For example, if you anticipate a higher tax rate in the coming year, it may be advantageous to declare income in the current year to adjust your tax bracket. Conversely, if you expect a drop in income or tax rates in the near future, it may be wise to defer declaring income until later to capitalise on those savings.
But here's the thing – there's no one-size-fits-all answer. The best timing for declaring personal income will depend on a variety of factors, including your income level, tax bracket, and long-term financial goals. Also how you draw money from the business, and the kind of ‘labels’ you can apply to it, is a deep dive worth taking.
This is where that 1000ft view I talk about all the time starts to come in REAL handy!
Ever notice how tempting it can be to splash some cash when the end-of-financial-year (EOFY) sale ads start appearing? Sure, an EOFY bargain may sound enticing, but is it really in your best interest?
When you focus solely on tax implications at year-end, you run the risk of making decisions based on short-term gains rather than long-term strategy. Those flashy discounts and deductions may seem like a no brainer, but will they really improve your bottom line? Are they truly aligned with your business objectives?
Take a step back and consider the bigger picture. Is that EOFY purchase really necessary, or are you just being swayed by clever marketing tactics? Will it truly benefit your business in the long run, or could those funds be better allocated elsewhere?
By adopting a more holistic approach to tax planning – one that considers your overall financial goals and objectives – you can avoid falling prey to EOFY sales jargon. Instead of chasing short-term tax savings, focus on making decisions that support your business's growth and sustainability over the long term.
BONUS: by letting EOFY pass you by, you may actually pick up a better deal in a stocktake sale in the following months.
‘Tax’ is top of mind for more reasons than EOFY. On the one hand, new rates are being introduced to meet the rising cost of living. On the other hand, advocacy groups representing Aussie businesses are calling for reforms to mitigate the similarly rising costs of doing business.
Suffice to say, it's easy to get lost in the shuffle of new laws coming in and changes to old ones. But here's the thing: understanding the intended outcome behind tax legislation is key to staying ahead of the game.
Many business owners get fixated on the dollar figure without fully grasping the underlying concepts and how they apply to their business. It's like focusing on the tip of the iceberg while ignoring the vast expanse beneath the surface.
The kicker: tax law is a highly fluid space. What works/applies to you one year may not necessarily the next. That's why regular reviews and tweaks are essential.
Think of it like fine-tuning a musical instrument. With each adjustment, we ensure that your tax strategy remains in harmony with the ever-changing landscape of tax legislation.
It's time to stop feeling overwhelmed by the complexities of tax planning. NOW is the time instead to start making a game plan that lays the foundation for highly informed decisions and long-term success.
But I can hear you already: HOW in the HECK am I supposed to get my accountant to sit with me long enough to talk about all this?!
Glad you asked. 😉
This is one of the main reasons why I am an Accountant-turned-Financial-Mentor: there often isn’t the space to take these deep dives that could shape the future of your business in the best possible way. With my expertise and guidance, we can develop a holistic strategy that keeps your tax agent in the loop, whilst also being tailored to your unique business and vision (I can almost guarantee any accountant worth their salt will be thrilled to see you bring this to the table).
A Financial Power Hour would be the perfect way to get the ball rolling – your opportunity to delve into your financial data and uncover hidden opportunities for tax minimisation that can be implemented (in collaboration with your tax agent). Together, we can untangle the complexities of tax law, develop a long-term approach and ensure that your business is poised for success, year after year.
Don't let tax time dictate the fate of your business. Take control of your financial future and book your Financial Power Hour today. Your business - and your future self - will thank you for it.
| Disclaimer: These are yuck and boring but unfortunately a legal requirement for professionals in my industry. So just a reminder, the information contained here is general in nature and you should seek financial and business advice tailored to your own personal circumstances. Which, by no small coincidence, I can help you out with. Head over to my website and book a free 15 minute chat with me: https://betterbusinessdecisions.com.au/ |
Have you ever felt like you're drowning in a sea of numbers, struggling to make sense of your business's financial reports? Do you wish your accountant had more time to guide you through the basics of understanding your own financial data (but there never seems to be the space in your meetings)?
You're not alone.
I've heard this frustration time and time again from business owners like you. But have no fear, Liz is here! 😉
Business ownership is one of those funny things - much like parenting - like we’re waiting on some universal ‘download’ of all the things we need to know to be successful. When in reality there’s a lot of trial, A LOT of error and the feeling of fumbling around in the dark.
It doesn’t have to be this way.
I want to walk you through the back-to-basics, 101-level reports I want you to get super comfy and super familiar with. Once you can wrap your head around them (which is easier than you think) this process will allow you to review your finances in a clear, concise and confident manner.
Keep in mind as we go: accounting doesn’t HAVE to be complicated. The numbers you’re about to dive into are simply a reflection of a business you know like the back of your hand.
Not to cause you to stumble at the first hurdle, but as you read through the following points I need you to keep one thing in mind: there is a very good chance your financial data is wrong. Which completely destabilises everything I cover in this article.
That is ABSOLUTELY NOT to say that you are a failure, that your bookkeeper is a slacker or that your accountant is deceiving you. It is more the case that the three of you are all equally suffering from:
👉 Lack of time
👉 Overwhelm and confusion
👉 Isn’t-that-supposed-to-be-your-job-itis
Between an over-regulated accounting space and misplaced priorities (i.e. ATO often eats first now), it’s not the players who should be blamed, it’s the game. Which inevitably leads to incorrect data and poorly organised transactions that pushes your priorities to the back of the line.
But here’s the silver lining: you’re about to find out all the rich information that could be at your fingertips once you get your house in order (which, by no coincidence, I can also help you with - read on!)
The Profit and Loss Statement (P&L) serves as your business's financial compass, offering crucial insights into its performance over a specific period:
Yet, the P&L is more than numbers; it's a narrative of your business's journey.
It uncovers operational insights, customer behaviors, and market trends. With this knowledge, informed decisions drive growth and maximize profitability. So, when you review your P&L, recognize it as more than a report – it's a powerful tool guiding you toward financial success.
The Chart of Accounts is like the DNA of your business's financial system – it's the blueprint that organizes and categorizes every financial transaction.
In simple terms, it's a comprehensive list of accounts, each with its own unique code or number for easy identification. These accounts cover everything from assets and liabilities to equity, revenue, and expenses.
But here's the kicker – the Chart of Accounts is completely customizable to your business's needs. If something feels off or incorrect, don't fret! You have the power to tweak and tailor it to fit your unique circumstances.
An important side note here: Sometimes, you might notice discrepancies in your financial reports. This could be due to your bookkeeper incorrectly categorizing transactions. Perhaps they're unsure about 'what goes where' or lack clarity on your business's specific needs.
In such cases, clear communication is key. Provide your bookkeeper with guidance and instructions to ensure accurate categorization and reporting. By fostering open communication and clarity, you'll maintain the integrity of your financial records and keep your business on the path to success.
It's your business's financial snapshot, frozen in time. This report offers a concise overview of your assets, liabilities, and equity at a specific moment, providing essential insights into your financial health and solvency. Like a photograph of your business on any given day.
Why is it crucial? Well, it's like a financial check-up. If your assets exceed your liabilities, it indicates a healthy financial position. Conversely, if liabilities outweigh assets, it signals potential financial strain.
So, when you review your Balance Sheet, focus on these key elements to understand your business's financial standing and make informed decisions for future growth and stability.
These provide valuable insights into your business's performance, allowing you to identify strengths, weaknesses, and areas for improvement. By tracking these metrics regularly, you can make informed decisions and steer your business towards greater success:
So, take the time to identify and track KPIs that are relevant to your business. Whether it's monitoring your gross profit margin, ROI, or CAC, these metrics will serve as your guiding light on the path to business success.
Now that you have a better understanding of the theory, how do you put it into practice?
This will look different to every business owner, whether you’re a seasoned entrepreneur or just starting out. And I know I’m preaching to the converted when I say that sometimes, you just need someone in the trenches with you, making sure you put one foot in front of the other.
That’s where I come in.
Book a Financial Power Hour with me, and let's dive deep into your business's unique financial landscape. During our one-on-one session, we'll unpack your financial reports, discuss key metrics, and identify opportunities for growth and optimization. From understanding your profit and loss statement to deciphering your balance sheet, I'll provide clarity and guidance every step of the way.
Remember, every business is unique, and your financial data will look different from others. That's why a tailored approach is essential. Together, we'll create a roadmap for financial success that aligns with your goals and aspirations.
So, don't let uncertainty hold you back. Take the first step towards financial empowerment by booking your Financial Power Hour today 👉 Book Now
Let's unlock the potential of your business's financial future – together.
| Disclaimer: These are yuck and boring but unfortunately a legal requirement for professionals in my industry. So just a reminder, the information contained here is general in nature and you should seek financial and business advice tailored to your own personal circumstances. Which, by no small coincidence, I can help you out with. Head over to my website and book a free 15 minute chat with me: https://betterbusinessdecisions.com.au/ |
Through my work originally as a Chartered Accountant - and now as a Financial Mentor - growth and expansion are common goals for my visionary clients.
But before we consider more - more stock, more sales, more products, more services, more marketing - it’s important to check in with yourself NOW. This is about assessing the systems supporting your current financial and energetic outlay before we go filling the pipeline up. And the systems I’m talking about are both external to you (this financial data management, ordering, inventory) and internal to you (the mental roadblocks you may be creating for yourself).
C’mon, you didn’t think you’d get outta here without some woo-woo first, did you? 😏
If you don’t address the systems, structures and data management at THIS size, you may be creating a bigger knot - that requires more painful detangling - if you dive in headfirst.
Expansion can be both exhilarating and terrifying. Now is the time to take a deep breath because Liz has got your back! I’m going to walk you through the key points to consider so you can sustainably scale towards that big, hairy, audacious goal of yours.
Depending on what it is you are selling (physical goods vs provision of a service) your challenges are going to look a little different:
Every individual is different - some have savings or a redundancy to invest - others have nothing saved but “ boot-strap” it anyway. In either case, it’s clear that knowing both your numbers and your systems from start to finish is going to give you the confidence you need to move forward. Vague anxiety can trip you up; coming back to the hard facts is the best way to dispel it. There are many unexpected landmines that “content media” forgets to mention in the growing of your business.
Best first steps:
Amidst the chaos, there are opportunities. You've got more chances to iterate and course-correct than you realise.
Knowing your systems is one thing: testing them from the front end, from start to finish, is a whole other ball game.
I saw this recently in my own marketing manager. She has proposal software set up to automate the flow of putting together a tailored proposal, creating a contract, gathering signatures, generating invoices and collecting payment. Pretty cool right?
Well, that is until the length of the contract changed, which didn’t flow through to the payment plan assigned to the contract template. Which meant the monthly fee didn’t quite make sense, and then the invoices didn’t line up.
Thankfully, we’ve been working together for many years, and we had a good chuckle together about how this would make for great content later (and here we are!) But imagine if she was counting on that workflow to land a NEW client? What if all that confusion had made a new client throw the whole thing into the too-hard basket?
I talk a lot about blind delegation to both people AND systems in our businesses (which you can read more about here and here). Delegation should be a mindful process of handing over a workflow or responsibility that you are already familiar with. It should also be handed over in ‘good working order’.
Before pressing go on your masterplan, you need to be confident that whatever automations you are relying on are in fact structurally sound.
Side note: going through your subscriptions on a top-level, what-stuff-have-I-signed-up-to-anyway perspective is a great way to clean up some financial clutter! Many platforms rely on your signing up for a small enough monthly fee that, even if you don’t end up using it or forget about it, the cost is so small it slides under your radar anyway. Drilling down into the detail of your subscriptions line in your profit and loss statement could be a quick win towards monthly savings.
The most powerful voice in the story of our success is our own. And it’s not always our biggest cheerleader.
This topic is one of the key reasons why I left the accounting space - no one was willing to speak to the big feelings that can hold us back from our own brilliance.
The issues here can be two-fold:
In both of these instances knowledge of, and confidence in your financial data is an essential foundation. Anxiety is obscure, numbers are reality. When organised accurately and practically, they simply are. Anxiety can often be overcome by information that has been at your fingertips all along.
You've built something amazing, and you’ve decided that now IS the time to take it to the next level. But staring down the barrel of tough decisions about stock, cash flow, and scalability is enough to make anyone break out in a cold sweat.
This is the time to step back and question whether it’s the fear of the unknown that is holding you back.
So your mission, should you choose to accept it:
And sometimes, you just need someone to hold space for you and guide the way.
We’ve all made apologies for our messy houses. We claim our busy lives, our kids or just a lack of time have impacted on the state of our house. I’ve dealt with enough business owners to know we make the same apologies for our business. As someone who’s seen a lot of “messy” businesses, nothing shocks me at this point. Your financial mess? Child's play. I’ve seen it all, and I can help you find your way through the chaos.
And the best bit? Getting started is ridiculously simple. If you're ready to take the leap (or even if you're not), book a Financial Power Hour with me. I'll help you find the reasons and the courage to go for it anyway. Go big AND go home—with a smile on your face and a spring in your step. You've got this!
| Disclaimer: These are yuck and boring but unfortunately a legal requirement for professionals in my industry. So just a reminder, the information contained here is general in nature and you should seek financial and business advice tailored to your own personal circumstances. Which, by no small coincidence, I can help you out with. Head over to my website and book a free 15 minute chat with me: https://betterbusinessdecisions.com.au/ |
Finally - a New Year’s resolution you can actually do!
After working with tonnes of business owners - and being one myself - I know that the thing top of mind for all of us really boils down to the same thing:
This year I have GOT to get my sh*t sorted.
(“Sh*t” referring loosely to all the things that still managed to spin out of control by the end of last year).
Whether it’s staff, stock, sales, a Xero clean out or all of the above, getting whatever it is sorted once and for all is where you find yourself each and every January.
But then the daily grind takes over:
😟 The space required to contemplate and organise vanishes.
😧 The time to step back, restructure and reset evaporates.
😩 The doing never gets done.
BUT what if there was a way to change the course of these events?
What if a small tweak now could nudge your trajectory ever so slightly, pointing you towards a year that could look radically different?
I have 3 subtle tweaks that will allow you to mess with the space-time continuum in your business - for the better.
Let’s start with the simplest of simple tweaks - you have GOT to stop putting personal expenses on your work card.
Now before you slump your shoulders, give me a good old fashioned eye-roll and a ‘yes, I know, I know…’ let’s unpack how much of a problem this really is:
There’s the obvious issue of messy financial data. Much like letting the weeds grow unchecked in your garden, it’s so unnecessarily hard to get the lay of the land inside your business when there is ‘clutter’. You want your software to show you your state of affairs at a quick glance (not a long, blank stare).
But there’s another layer to this that makes this bad habit even more important to kick.
By muddying the water between business expenses and personal, you’re only creating more instances for your bookkeeper to make the call as to what-goes-where.
And that means more opportunity for human error and backtracking later.
Think about it: it’s highly unlikely your bookkeeper knows the details of the big picture game plan for your business. They may not know all the subtle nuances as to what can be a deduction in your specific business. They probably weren’t there for your latest chat with your accountant where you developed a smart tax minimisation strategy (more on this one later).
The best bookkeepers are the ones that can work largely unsupervised whilst still being able to categorise your financial data in a way that serves your interests. BUT if you leave them hanging with transactions that live in that murky grey area, their motivations switch gears from confident categorisation into ‘where’s the safest place to allocate this?’
And that ‘safe’ place is usually in the personal, non-deductible laundry pile in the corner.
Side note to this one: by not having at least two distinct cards for business vs. personal, you could also be missing out on the benefits that can apply to each. Bonus points, frequent flyer miles, offsets and more - making sure expenses are stacked in the correct piles can open up even greater opportunities to cash in.
Put simply: be sure the next transaction you make (and every payment thereafter) is on the the most appropriate account so it can be easily allocated to the most beneficial spot.
You spend far too many years of your business life thinking about tax in 12 month cycles, made up of 3 month sprints.
Mistakenly, your sole focus is to pay as little tax as possible this financial year. The problem is, when your focus is this narrow you easily miss the opportunity to pay as little tax as possible this decade, if not this lifetime.
By taking a longer view of your income and expenses (beyond the next June 30 milestone) you can kick liabilities and deductible expenses further down the road in a much more strategic way.
Not only that, when you have a multi-year, long term tax minimisation strategy in place, you are far less likely to fall victim to EOFY marketing.
Any business that offers tax deductible goods and services - cars, software, hardware, office supplies - will prey ferociously on your misplaced anxiety around the end of the financial year. They deliberately trigger your need to ‘panic spend’ your way out of a tax bill, without first stopping to consider if the purchase aligns with a broader tax minimisation plan. Flipside, you might just bag a bargain later in the year as dealerships and other businesses look to move old stock.
Again, the action item here is ludicrously easy: consider what the long term plan looks like, and talk to your accountant about a tax strategy that aligns with it. It can evolve and adapt as needed; the key here is that this way of thinking pulls you out of knee-jerk decisions and keeps the 1000 ft view firmly in mind.
Ever feel like you don’t have time to finish a thought? That could be having an impact that reaches further than just a busy, stressful day.
Over the recent years we have come to idolise ‘busy-ness’ in business. We don’t allow ourselves the grace to stop and ruminate, conflating it too much with idleness and lack of productivity.
Maybe it’s the leftover stain of the hustle and grind culture; we’ve realised too late that all we did was burn out, assigning too much status to simply not being able to stop.
(Not preaching from the hilltops here either - raging over achiever right here!)
Well, I’m here to officially give your permission to ponder.
This time and space is so important in envisioning the future of your business. If we don’t make time to zoom out from the daily ‘doing’ and consider what’s possible, we’ll lose our spark and fall into the habit of just getting to the finish line.
Cast your mind back to the days just before you started your business. Perhaps you were a corporate escapee, maybe you were a stay-at-home parent with ambitions after the baby years, or perhaps you stepped into the family business. Somewhere along the way, you would have found yourself daydreaming about what might be.
It’s those moments of fantasy where one day, your imagination settles on something that might just be possible. It’s just out of reach, just on the other side of our current reality that you start reaching out towards it. And with that, you launch yourself into entrepreneurship.
Those dreams were critical in bringing you to this moment. For without the dream, you would never have started moving in this direction. You must allow yourself to contemplate what is now and what could possibly be. Wrestle with problems, search for solutions, reconnect back to your big, hairy goals often.
Because the harsh reality is: if not now, when?
If you’re looking for an accountability buddy to help you actually stick to these 3 easy steps, you’re in the right place. As an accountant-turned-financial-mentor, I’m in the sweet spot of facts, figures and warm fuzzies that most business owners need when getting their sh*t sorted.
Because often, getting out of your own way isn’t about what software to use, what strategy to take, or what system to implement. It really begins on the deepest level of mindset first, before those atomic habits can be stacked productively on top.
Your accountant will never address your fears with you. They’ll never explore your self-limiting beliefs, the mental roadblocks standing between you and taking this action (Let’s be real: there’s only so much ground you can cover in 6 minute increments).
That’s where I come in.
If you’re ready to take the simplest, most easiest of actions and change the trajectory of your future, it starts with a free chat with me, which you can book right here: https://lizjarvis.youcanbook.me/
| Disclaimer: These are yuck and boring but unfortunately a legal requirement for professionals in my industry. So just a reminder, the information contained here is general in nature and you should seek financial and business advice tailored to your own personal circumstances. Which, by no small coincidence, I can help you out with. Head over to my website and book a free 15 minute chat with me: https://betterbusinessdecisions.com.au/ |
Think about getting stuck into your financial data for a moment. Imagine diving into Xero or MYOB to get a true sense of what’s going on in your business - how do you feel?
Does the idea make you feel:
(Psst. This is a safe space with your business buddy Liz here, so honest answers only! 😉)
Words like this might go some way to articulating how you feel, but they don’t give you any hope for a solution in and of themselves, do they?
What if you changed up your language, as a way of navigating out of this whirlpool of worry you’re caught in?
I would argue that, at the heart of all these feelings is a sense that you have lost control over your situation, and the direction you are heading in.
What you’re actually feeling is powerless.
So what’s the opposite of that, the direction you should be heading instead?
The answer: Power. 💪🏼
This is much simpler to conceptualise and pursue, rather than the opposite of ‘anxious’ or ‘confused’. I mean, the ideal scenario is of course to feel calm and clear, but where the heck do you find that?
On the other hand, ‘power’ is much easier to track down and take back - once you understand where you are losing it (or worse, GIVING IT AWAY) in the first place.
After working with tonnes of business clients in getting to the heart of their businesses - their financial data, and their single source of truth - I’ve identified seven places that entrepreneurs are consistently surrendering control.
Even without realising they’re doing it in the first place.
I hope that by sharing my first-hand experiences with you, you might see all the subtle ways you’re allowing control to be taken from you, and determine how you can begin to rebel against these forces to reclaim your own power once more.
Let’s get stuck into the prickliest one early! This can be a really hard truth to face, but your spouse could be one of the biggest entities you’re losing power to. What makes this even more complicated is that this can take many forms, and it’s not always your spouse who is initiating it.
You’d be familiar with the overtly controlling relationship we’ve all been warned of, when financial decisions are completely taken out of one partner’s hands by the other. Unfortunately, this can happen in a more subtle way:
👉 “I’ll handle it, don’t you worry about it.”
👉 “Don’t you trust me? I’ve only got our best interests at heart.”
👉 “You’ve got so much on your plate, and let’s be honest, this isn’t your strength.”
Whilst many of these sound well intended, the key difference would be their willingness to show you their work (remember high school maths, anyone?) If you believe your situation is too much of a grey area here, here are a couple of questions to ask:
👉 How easy is it for you to access the information should you need it?
👉 Do they have an ‘open door policy’ for your questions?
👉 Are they willing to explain certain aspects to you? (Even if you really do struggle to focus the whole time)
If they do in fact welcome your questions and input, this might be your opportunity to reflect on your confidence in your own abilities. Are you abdicating to them out of insecurity or self-doubt? Do you question your own capacity to understand? You may find you’re actually giving your power away willingly out of fear that it’s better off in someone else’s hands.
Closely related (pun intended) to number one, family businesses can become complicated and tense when you have multiple generations at the proverbial table. Whilst these kinds of businesses can be impressive and hugely impactful, working within them can sometimes bring out your deepest insecurities as big personalities face off in a corporate environment (I mean, trying telling your mum or dad that their data management is a little sloppy after 50 years in business!)
This can be just as tough as confronting a spouse, but it won’t take long for the cracks to show in the silence. The same rules apply: there should always be an open-door policy on any and all information ESPECIALLY if you will be answerable for the business operations one day.
This also shows up in Trust situations when businesses are involved, more so when key family members pass away and suddenly all those unanswered questions get addressed at the worst possible time. It’s a sad situation made unnecessarily worse, when a prosperous estate is lost to legal fees settling disputes in the wake of a loved one’s passing.
The moral to the story: ask tough questions early. Trust me when I say you would rather know now, as this rarely gets easier as time goes on.
This is a topic I touch on quite frequently. I see many business owners completely abdicate their financial data management to their accountants, effectively putting it in the ‘too-hard’ basket or the ‘not my problem’ box.
The trouble with this approach is that your accountant will then structure your financial data as best suits them, not you (and I mean, why not? If they’re using it more than you are).
What does this mean?
✅ A tax return so safe it may as well be bubble wrapped (which means no audits for them, but very little tax minimisation for you).
✅ ‘Vanilla-ised’ information that looks like all their other clients’ (and means nothing to you)
✅ Sloppy data entry on your end (theirs is up to date, yours however…)
If you don’t make your financial data about YOU, someone else (i.e. your accountant) will make it about them. Reclaiming power here starts with understanding your financial data is about YOU.
🫵 YOU need to know what’s going on.
🫵 YOU need to make informed decisions.
🫵 YOU are the one who this data should serve first.
I’ve covered some of the scenarios where giving too much power to your accountant can have disastrous consequences in this article. But suffice to say, this is another situation where a proactive approach could save you time, money and heartache in the long run.
How often do you find yourself chasing invoices or payments? If the answer is any more than ‘rarely’, you may be allowing your customers to take your power from you.
Talking about money, especially money owed, is tricky for most people. This is made doubly hard when you have a close relationship with those you serve, when you know they’re going through a hard time, or when confrontation is just not your strength.
I have some tough love for both you and them in this instance:
Now that isn’t to say that invoices don’t get sent to spam by mistake, due dates get accidentally missed, or good people don’t end up in bad situations. I’m not telling you to lose your humanity here. You are well within your rights to extend grace and understanding to those who are truly deserving of it.
The key here is a pattern of behaviour. There is a difference between a long-term customer who proactively approaches you and asks for an extension, versus one who seems to swing from one drama to the next month-on-month.
Getting woo-woo for a moment: often the hard ‘no’s we have to give is the universe helping us create space for the fantastic ‘yes’ that’s right around the corner. Don’t tolerate ‘clutter clients’, trust that your ideal customer is waiting for a spot to open in your calendar.
This is closely linked to 4, affecting many service-based businesses I work with. For those unfamiliar with the term, this is when a project starts to outgrow the original quote (and you have an uneasy feeling that you might be averaging $2 an hour by the end of it).
Brace for some tough love from Liz again: this one starts with YOU.
Scope creep is the result of unestablished, undefended boundaries. Knocking it on the head involves clear lines around inclusions vs add-ons. It can take time to find your way with this, often involving some deep inner work around the value you personally place on what you do, before passing that on in a dollar amount to your clients.
I’ve worked with a number of business owners in establishing these parameters; the relief and prosperity that follows can’t be understated. But the biggest, hardest truth is this:
No one will pay you what you’re worth until you start charging them for it.
Trust me when I say I completely get it: business often gets consumed by busy-ness. When you’ve had a massive week and you crash into the weekend, the last thing you feel like doing is:
🥱 Researching that project management tool that could be streamlining your projects OR
🥱 Starting that free trial for that new inventory software everyone in the industry is raving about OR
🥱 Putting some training videos together so each new employee doesn’t have to start from scratch.
But if not now, when? How many more times do you want to collapse into a heap before you use systems like this to reclaim time, money and power?
Entrepreneurship is meant to be your ticket to greater prosperity and control over your future. Lack of time is a lack of priorities. Make investing in better systems a higher priority for the long-term success of you AND your organisation.
That all-encompassing fear and frazzlement that affects us all. Drowning in your own to-do list is the fastest way for the financial wheels to fall off. This one really captures the end result of power-suckers 1-6:
😫 A spouse who hoards knowledge.
😫 A family business suffering from multi-generational confusion.
😫 An accountant left unsupervised for too long.
😫 Clients and customers with sloppy payment habits.
😫 Your sloppy boundaries (sorry-not-sorry)
😫 Your sloppy systems (again, tough love from Liz!)
If you’ve ever described yourself as feeling ‘stuck’ I can almost guarantee it stems from something I’ve listed here. The more you can dissect the origins of that feeling and put language to your unease, the sooner you can chart your course outta there to a place of greater clarity and control.
If this is hitting you right in the feels, I want you to know I’ve created a safe space just for you. As an accountant-turned-financial-mentor, I truly understand what it’s like to sit on both sides of the desk. I can apply my wealth of accounting knowledge to your unique business, and together we can map out a path from confusion to clarity.
I’m here for all the ‘hang on!’ and ‘aha’s you’re about to have, but I realise every business is different you you likely have some questions. Why not jump into a free discovery call with me? 30 mins, no obligations or pressure.
Only possibilities.
The biggest aspect of financial empowerment my business clients struggle with is simply getting started.
That is: logging into their accounting software (Xero, MYOB, etc.) and leaning into the idea of owning the data that’s right there in front of them.
(And when I say ‘owning’, this means owning the organisation of it as well as the story that’s hidden in plain sight: income, expenses, opportunities, risks, the whole kit and kaboodle.)
Whether we realise it or not, many have the view that these platforms are there just to make it easier to communicate with their accountant (and subsequently, the ATO).
Well reality check: YOU are the one paying the subscription to store the data - as well as paying your accountant and bookkeeper to maintain and access the data - so don’t you think it should be serving YOU first?
BUT I think I see the problem here. And this may sting a little.
If you believe that these systems are for someone else’s benefit, it’s easier to tell yourself that keeping them organised and simple is someone else’s problem. Not yours.
And I say that with a heck of a lot of love.
What I want business owners to realise is the enormous potential hidden in this software. Having this information structured in a way that is elegantly simple TO YOU puts a wealth of knowledge at your fingertips. When it comes time to consider whether to save, spend, invest, diversify or grow, the data to support that decision making is ready and waiting to guide the way forward.
Which brings us back to that original hurdle: diving in and getting that ball rolling.
As an accountant-turned-financial-mentor, I’ve created the space to talk about all the uncomfortable feelings that can come up around finances (the ones you don’t feel confident airing in front of your accountant).
Whatever your feelings are - shame, fear, inadequacy - you’re in the safest space possible here to step back and see them for what they are. Acknowledge the gaps in your confidence rather than ignoring them.
Now that you’ve been honest with yourself, I’d invite you to come at this whole financial data thing from a completely different angle, one that we all can relate to - and more importantly, make progress from as a starting point.
We’ve all had those days where some part of our home environment - the kitchen, the shed, heck the whole dang house - can feel like it’s completely exploded out of control:
(Psst. feels the same kinda frustrating when you log in to Xero, right?)
So you set aside an hour - or a day - to pull everything out, lie it out on the floor and start putting things back together again with a clear goal in mind: to reset this space so it’s tidy, functional and easy to work in. Music’s on in the background, the coffee machine is warmed up, and you commit yourself to the process.
You don’t need a degree. It’s not rocket science. You just need to be left alone for long enough to pull it all apart and put it back together again properly. With that in mind you get stuck in. You’re already imagining how much relief you’ll feel once you can fully utilise this space with ease once more.
Newsflash: getting your finances in order can happen in the EXACT same way.
You don’t need to be an accountant or a bookkeeper to get your financial data in order.
What you do need is:
The easiest way to start is to log in and see what triggers your ‘that can’t be right’ alarm (trust me: the amount of clients I’ve worked with who’ve made this EXACT comment during a session is mindblowing). Start exploring your latest Profit & Loss Statement or your Balance Sheet. This is the best way to get the lay of the land today OR see if there’s a mismatch between your data and your business in real life.
Tech Tip: most things inside these reports are clickable - if you see something that looks like a red flag, you can usually click into it and dive deeper.
This initial detective work will inevitably guide you to the first corner of your financial data that needs a good clean out. You may find yourself jumping back and forth between a few different sections, so it may also be beneficial to have these different areas open in separate tabs in your browser (i.e. having your Chart of Accounts, Profit & Loss and Balance Sheet all open in separate tabs). Just be sure to save and refresh as you move between them.
Tech Tip: open links in a new tab if this stops you from feeling like you’ve fallen down a rabbit hole. For Macs, hold Command and click the link. For Windows PC, hold Ctrl and click the link.
It may also help to have a spreadsheet or Google Sheet open too, for jotting down notes like categories and subcategories you’d ideally like to create.
If you have left Xero or MYOB unattended for a while, you may not get everything ‘done’ in the time you allow. BUT you will have overcome that initial desire to slam the laptop shut and run a mile. AND you’ll no doubt have a bunch of questions for your bookkeeper.
I would highly recommend sitting with them for a debrief once you’ve explored the current state of your financial data. To their credit, they use this software daily so it’s highly likely they may be able to make tweaks and implement bulk changes faster than you (side note: I can almost guarantee they’ll be relieved to get some direction and input from you, as this conversation may uncover some aspects they may not have been 100% certain of themselves).
Anything they can’t answer would be best sent off to your accountant for clarity. If they respond to anything you ask with a ‘oh you don’t need to worry about that’...
… friend, you should probably schedule a meeting.
I can’t tell you how many ‘financial fires’ I’ve had to put out over the years. And soooo many of them could have been minimised - if not completely prevented - if the pile of ‘things you don’t need to worry about’ wasn’t left to smoulder away. Address these things early with your accountant. At the very least, you want a clear and coherent reason as to why there is an aspect of your financial record keeping that does not warrant your attention.
It’s 100% completely 👏 totally 👏 understandably 👏 fine if you don’t want to start this task alone.
In fact, I have a Financial Hour of Power that you can book which is perfect for THIS exact situation. Rather than cramming all your concerns into a brief chat with your accountant (and feeling like lightning round on a game show) we can spend a full hour together, creating the space you need to raise the questions YOU want answered.
All you need to do is book a Discovery Call first, just to check I’m a good fit for what you need, as well as set an agenda for our Power Hour. Click here to get started - I can’t wait to see you there! https://lizjarvis.youcanbook.me/)
| Disclaimer: These are yuck and boring but unfortunately a legal requirement for professionals in my industry. So just a reminder, the information contained here is general in nature and you should seek financial and business advice tailored to your own personal circumstances. Which, by no small coincidence, I can help you out with. Head over to my website and book a free 30 minute chat with me: https://betterbusinessdecisions.com.au/ |
