Managing your small business hand in hand with your accountant
We’re living in a fast-evolving economy where technology is moving at the speed of light, and if you don’t stay on the wagon and capitalise on your resources, your business may not grow and reach its full potential.
Building a relationship with your accountant and becoming involved in and understanding your business’ accounting figures and reporting, are one of those resources.
Long gone are the days when a box of invoices was delivered to our office, punched manually, and your VAT return submitted with a quick call from us telling you if it’s a payment or a refund.
At BVSA, we use the latest advanced accounting software, with great reporting capabilities, which can help you manage your business more effectively, staying on top of your game while still finding time to attend to all the other aspects of your small business.
Here are a few examples of how accounting software can help manage your business:
- By comparing year-to-date figures with the previous year, you can quickly identify expenses or income that are not in line with the previous year. Investigate these differences and make sure there is a reasonable explanation for the variance.
- Categorise your business into different subcategories to identify the profitability of different divisions in your firm.
- Use your debtors’ age analysis to identify long outstanding debtors and follow up where necessary.
- Monitor creditors outstanding and ensure that you use the interest free period granted, while still paying creditors on time to avoid paying interest.
- Stay up to date with your business’ profit and potential tax liability and be tax-wise.
- Make use of the various financial reports available to help you manage your business.
- Monitor your inventory levels and identify slow moving items. Remember your cash is locked up in your inventory until it’s sold.
- Use monthly trial balances to ensure sure that your business is liquid and that the debtors, cash and inventory on hand is sufficient to cover your short-term liabilities.
- Keep track of the ratio of debt versus assets to identify any potential business crisis before it’s too late.
Every business owner must have a bookkeeping system. Whether you’re in the financial, tourism, farming or retail industry – it is inevitable.
You might as well make it count.
Contact your nearest BVSA branch to help you to develop a bookkeeping system that best fits your needs, saving you time and ensuring that you can still attend to your core business without becoming caught up in administration. Remember, technology is your friend and we’re here to guide you all the way.
Written by: Anene de Beer CA(SA) | BVSA Director
