The key to remember in business is that action builds momentum, and momentum fuels further…
The accounting software that is always our first choice here at Kountable is XERO. It really it such an excellent program with an easy to use interface and plenty of fantastic features.
It has been extremely quiet on the Kountable blog. My last entry was in March – eeeks was that really 9 months ago? Now I have come to life on here, just 2 days prior to Christmas! 2015 has been a wonderful year for myself and the team at Kountable. We have enjoyed working with great clients and have certainly made our way through lots of business bookwork. Our focus is always on assisting our clients in taking away the stress and responsibility of the business bookwork. We will shut down over the Festive Season through to 4 January 2016; but please note we are available to help with your relief payroll services over January (and beyond if needed).
The accounting software that is always our first choice here at Kountable is XERO.It really it such an excellent program with an easy to use interface and plenty of features such as invoicing, bank reconciliation and so on. We are always raving about how much it helps take the stress off the small business owner in managing the financial resources of their business.
With Xero there a range of reports that the business owner can use to analyse and manage the business finances. Xero has recently released a Statement of Cashflow Report. This report looks at all cash receipts and cash payments, grouping money going in and out of the business into useful categories. You will be familiar with the saying Cash is King! Now this feature in Xero will enable you to quickly see where your cashflow is at. For example, is the business generating a cash surplus or is there a cash drop due to unexpected expenses or the need to spend money on equipment?
One of the key principles I explain to business owners is that to be in business you need to make money. Yes there are other reasons as well and they are just as valid; but if you are not generating revenue then you may need to consider other options, The profit for a business is their revenue less their expenses. Profit is not the same as turnover, nor is it the same as cashflow.
Turnover is the sales a business has each year. A business could have high sales but if the expenses are disproportionately high to those sales or the cash is managed poorly, then a business will find itself in financial strife. Further, a business could have an excellent profit – but if half the clients are debtors and invoices are not managed well, then there is going to be minimal cash sitting in the bank account.
By now, your eyes may have glazed over slightly, especially since it is near Christmas and any cash on hand seems to quickly be eaten up with all things involving festivities. But I do encourage to think about the importance of cashflow for your business and the impact it can have on your stress level and the financial well-being of your business, if it is not managed well.
The team and I at Kountable wish you a lovely Christmas and New Year. Please look out for another blog post again in a couple of weeks as January 2016 begins. We plan on bringing you lots of informative tips and updates as 2016 progresses; all adding to our service our making your bookkeeping a breeze.