With the financial year ending, it’s the perfect time to do a business check-up, celebrate the highs and lows of the year and refocus on business goals.
As a small business owner, you want to do what you love and managing your accounts might not be what you got into business for.
Use your time wisely to help give you the space to start analysing how your business is tracking and really focus on the growth opportunities available
Completing financial tasks regularly will give you the ‘creative/thinking space’ to focus not only on marketing and growing your business but also take time away from your business to enjoy a holiday.
Are you registered for GST?
One way to set regular timeframes is if you report GST or Goods and Services Tax to the ATO.GST is reported via a business activity statement or BAS, monthly, quarterly or annually. Use your GST period as your time frame to work towards.
Check the ATO or speak to your accountant/bookkeeper to see if you need to report GST. You can also find the ATO lodgement and payment dates for BAS’s here.
Not registered for GST?
You can still set regular time frames for your business to work towards and keep yourself accountable for.
Complete the following day to day tasks for each time frame
- Record all sales
- Record all expenses, such as bills, wages and other business expenses
- Reconcile your bank accounts regularly
- Keep business documents stored within the file library in Xero
- Keep your payroll and superannuation up to date
What should you be doing at the end of each period?
Reports that help with comparing periods include:
The Profit and loss report: to show your income and expenses for current and past periods
The Balance sheet: to understand the financial position of your business
Also start to prepare or chat to your accountant or bookkeeper about preparing budgets for your business.
Check out the Report on cash flow course for an in-depth understanding on what reporting tools are available in Xero, and how they can help you to track and manage your cash flow more effectively.
Having this knowledge is going to empower you to start making business growth decisions and have more meaningful conversations with your accountant or bookkeeper the next time you talk.