MAS the Small Business Accountant in Sydney 2015 Year in review Part 2
Following on from part one of our year in review, where we looked at the number service new clients were after in 2015, the next most frequent topic that clients required help from m.a.s accountants the small business accountant in Sydney with were the setting up of key procedures for managing finances and paperwork. Unless it was a new tax / bookkeeping firm itself, most clients were not looking forward to all the paperwork and administration involved with new business. We suggested staying regularly in touch with us so that all key lodgements (BAS’s / tax returns / superannuation) were prepared on time and any obligations were not missed with the ATO. We found that clients who developed regular routines to manage the administrative side of things were the ones who were most successful with staying on top of their obligations.
Once their business had been setup and was up and running with routine procedures in place, clients then enquired about the growth phase and how to develop their existing practice into a bigger enterprise. The most critical aspect of a new growing business is its cash flow, even more so than its profit. Your business may be profitable and have a few contracts lined up, but unless this translates to physical cash in the bank, your efforts ultimately will not be fruitful. Speak with your accountant to practice and fine tune the art of cash flow management, so all your suppliers and employees are paid on time and all your customers are paying your business within their due terms. Preparing a well thought out budget for the year ahead can also allow you to manage expectations on the outward flow of money from your business.
A positive side effect of the growth phase can often come about where potential third party investors come along and want to add to and share your journey in business. This can be a great boost for those businesses in the growth phase who have the correct legal structure in place to facilitate such opportunities. Fresh ideas can be as beneficial as the extra cash these investor bring to the table, just be certain that their goals are aligned with your own. If you didn’t see it before, hopefully this point clarifies just how critical it is to create the legal structure that allows for long terms goals such as allowing new investors to become stakeholders in your business.
This concludes our year in review and we hope 2015 has been a year full of growth and learning for yourselves. If you need help with your small business accounting in Sydney, especially in Surry Hills or Zetland, we look forward to hearing you soon in 2016! Otherwise, we wish you a safe and happy holiday period and all the best for 2016!