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Tips And Tricks For Small Businesses From Business Accountants

Becoming a small business owner? Check. You have dreamt about becoming an entrepreneur and owning a business, congratulations! You’ve turned that dream into a reality. But where do you go from here? Here are a few tips and tricks we have curated to keep your business afloat from Australia’s original accounting firm for small businesses, M.A.S Partners.

1. Payment methods
Establishing a payment period cycle for your employees is a great start as it means you are creating a routine. Routines are effective especially if expenses like employment payments are fairly fixed as it allows you to draw up a loose forecast of your employment expenses. This will come in handy when it comes to financial allocations and when you are completing your financial statements.

2. Is it time to change the direction of your ship? Keep your Profit and Loss Statements up to date!
An effective way to see your business's financial performance is by using Profit and Loss Statements (P&L). Having these statements created periodically allows comparison of the last statement which will help determine whether your business is heading in a favourable direction or not. In instances where the statements show you are at a loss, you will be able to change the gears and pinpoint the contributions to the loss; in the long term, this will improve your performance.

3. What’s the difference between invoice and receipt?
Invoice and receipts are the most basic terms you will come across. But do you really know the difference between the two? An invoice is a request of payment generally sent once the task is completed. A receipt, however, is given to you when the transaction is done. Simply put, an invoice is what you have to pay and a receipt is for something you have paid.

4. Set a realistic budget
More times than none, businesses will find themselves going over the budget. Sure, once or twice may not hurt but going over many times may put your business’ performance at risk. Especially for small businesses where there is not a lot of money to be thrown around, budgeting will help you prioritise and allocate expenditure efficiently. That’s why setting a realistic budget is important to make sure the costs and the tasks are aligned and feasible.

5. Don’t be scared to ask for help!
Just because you own a small business does not mean you should juggle everything on your own. In fact, hiring an accountant to handle your financial tasks is a wise investment as it means you can focus on running your business to the best of your ability. M.A.S Partners is a specific accounting firm for small businesses in Zetland dedicated to helping you and your business. So if you are a local business and would like to speak with our team of small business accountants in Sydney about the services we offer and what we can do for you, call us on (02) 9211 5000 or visit our website at https://www.masaccountants.com.au/