Building a Better Business in 10 Steps

What are you doing to build yourself a more successful business? There’s no magic bullet; it’s about taking small steps every day to get a bit better than the day before - it all adds up.

You're in Business

Congratulations! Running a business takes courage and commitment. It’s not easy, and at times you might find yourself questioning why you’re even doing it, but you’re here because you had a vision. You decided that being in business was a better way to achieve that vision than working for someone else. And you’re right; you just have to work on it. Good things come to people who hustle.

Starting a business is an achievement in itself. You’ve taken the leap, faced the uncertainty, and now you’re here. This is a significant step that many people don’t dare to take. It’s essential to remember why you started in the first place. Your business is not just a source of income; it's your legacy and your opportunity to make a difference. The road may be challenging, but it's also rewarding.

Continuous Development

You’re likely an expert in what you do. Maybe you’re a mechanic who knows the inside of a car engine like the back of your hand, or perhaps you’re a fashion retailer who can style anyone. This doesn’t mean you’re an expert at running your business, though. It’s hard taking time out of working in your business to work on it. But doing this is essential for its success.

Continuous learning and development are crucial. The business landscape is constantly changing, and staying updated with the latest trends, technologies, and practices is vital. Attend workshops, read industry publications, and seek out mentors who can guide you. Investing in your growth is an investment in your business's future.

There’s no magical overnight solution to building a more successful business. It’s about taking small steps every day to get a bit better than the day before.

So, What Should You Do to Build Yourself a More Successful Business?

We’ve broken it down into ten essential steps:

1. Get Clear on Exactly What You Want

Understanding your goals is the first step in building a better business. Ask yourself what success looks like for you. Is it about financial freedom, providing excellent service, or making a difference in your community? Write down your goals and make them specific and measurable. Clarity is power.

Getting clear on what you want is essential for setting a direction for your business. Take time to reflect on your short-term and long-term goals. Are you aiming to expand your customer base, increase revenue, or launch new products? Whatever your goals, make sure they align with your values and vision. Break them down into actionable steps, and remember, the clearer your goals, the easier it will be to achieve them.

Key actions:

• Identify your long-term vision and mission.
• Break down your goals into specific, measurable, achievable, relevant, and time-bound (SMART) objectives.
• Regularly review and adjust your goals as needed.

2. Be Open to Change and New Learning

The business world is always evolving, and being adaptable is vital. Embrace change and be open to learning new skills or adopting new technologies. This mindset will keep your business competitive and resilient. Remember, change is not a threat; it's an opportunity.

Being open to change is vital in today’s world. Technology, customer preferences, and market dynamics are constantly evolving. Embrace change by staying informed and willing to experiment with new ideas and strategies. Adaptability is a strength that can set your business apart from the competition.

Key actions:

• Encourage a culture of innovation within your team.
• Stay updated with industry trends and technological advancements.
• Be willing to pivot your business strategy if needed.

3. Define Where You Are Now (Warts and All)

Honesty is crucial. Evaluate your current situation, including your strengths, weaknesses, opportunities, and threats (SWOT analysis). This realistic assessment will help you identify areas for improvement and growth. Understanding where you stand will guide your future steps.

Defining your current position requires a candid assessment of your business. Conduct a SWOT analysis to understand your strengths, weaknesses, opportunities, and threats. Identify areas where you excel and aspects that need improvement. This awareness will help you make informed decisions and allocate resources effectively.

Key actions:

• Conduct a SWOT analysis to assess your current situation.
• Gather feedback from customers and employees to gain different perspectives.
• Identify key performance indicators (KPIs) to measure your progress.

4. Make a Plan

A well-thought-out plan is your roadmap to success. Outline the steps you need to take to achieve your goals, including resources, timelines, and responsibilities. Remember, a plan is not set in stone. Be flexible and willing to adjust it as needed.

Planning is the foundation of any successful business. Develop a detailed business plan that outlines your strategies, objectives, and action steps. Include financial projections, marketing strategies, and operational plans. A clear plan provides direction and helps you stay focused on your goals.

Key actions:

• Create a comprehensive business plan that outlines your strategies and objectives.
• Set realistic timelines and allocate resources accordingly.
• Regularly review and update your plan as circumstances change.

5. Get Your Organisational Structure Right

Your organisational structure impacts how your business operates and grows. Ensure that your team members understand their roles and responsibilities. Streamline processes to improve efficiency and communication. A strong structure supports your business's foundation and scalability.

The organisational structure is the backbone of your business. Ensure that your team understands their roles and responsibilities. Foster a collaborative environment where communication flows freely. Streamline processes to improve efficiency and productivity. A well-organised team is essential for executing your business plan.

Key actions:

• Define roles and responsibilities clearly within your organisation.
• Foster a culture of collaboration and open communication.
• Implement efficient processes to enhance productivity.

6. Be a Better Leader

Leadership is not about authority; it's about inspiration and influence. Lead by example, and empower your team to excel. Communicate your vision clearly and motivate your team to achieve it. Being a better leader positively impacts your business culture and results.

Effective leadership is about inspiring and guiding your team toward success. Lead by example, set high standards, and communicate your vision clearly. Encourage open communication and provide support and guidance to your team members. Being a better leader will inspire your team to reach their full potential.

Key actions:

• Lead by example and demonstrate the behaviours you expect from your team.
• Provide regular feedback and recognition to motivate your employees.
• Invest in leadership training and development for yourself and your team.

7. Be Held Accountable by Someone Independent

Accountability drives results. Partner with a mentor, coach, or accountability group that can provide guidance and hold you accountable for your goals. Having someone outside your business to offer perspective can lead to valuable insights and improvements.

Accountability is a powerful tool for achieving your goals. Consider working with a mentor, coach, or accountability partner who can provide objective feedback and hold you accountable for your progress. Regular check-ins and assessments can help you stay on track and make necessary adjustments.

Key actions:

• Find a mentor or coach who can provide guidance and support.
• Join a business accountability group to share experiences and insights.
• Set regular check-ins to assess your progress and make necessary adjustments.

8. Build Strong Networks

Networking is essential for business growth. Connect with other professionals in your industry, attend events, and join online communities. Building strong relationships can lead to collaborations, referrals, and valuable opportunities that contribute to your business's success.

Networking is an essential part of business growth. Build strong relationships with other business owners, industry professionals, and potential clients. Attend networking events, join industry associations, and engage in online communities. Networking opens doors to new opportunities and collaborations.

Key actions:

• Attend industry events and networking functions to expand your connections.
• Engage in online communities and forums related to your industry.
• Foster mutually beneficial relationships with other business owners.

9. Monitor Your Progress

Regularly review your progress against your goals. Use key performance indicators (KPIs) to measure your success and identify areas for improvement. Tracking your progress allows you to celebrate achievements and make informed decisions for the future.

Monitoring your progress is crucial for staying on track. Set key performance indicators (KPIs) and regularly evaluate your business's performance. Celebrate successes and identify areas for improvement. Monitoring your progress helps you make informed decisions and adjust your strategies as needed.

Key actions:

• Set clear KPIs to measure your business's performance.
• Conduct regular performance reviews and adjust your strategies as needed.
• Celebrate milestones and achievements with your team.

10. Keep Your Well of Happiness Full

Running a business is demanding, but taking care of your well-being is essential. Prioritise self-care and maintain a healthy work-life balance. A happy and fulfilled entrepreneur is more likely to lead a successful business. Remember, your happiness fuels your motivation and creativity.

Maintaining a positive mindset and overall well-being is essential for long-term success. Take time to care for yourself and recharge your energy. A healthy work-life balance is crucial for avoiding burnout and staying motivated. Remember, your business will thrive when you’re at your best.

Key actions:

• Prioritise self-care and well-being to prevent burnout.
• Set boundaries to maintain a healthy work-life balance.
• Engage in activities that bring you joy and relaxation.

Building a Business: The Ongoing Journey

Building a better business is not a one-time event; it's an ongoing journey. Success is not achieved overnight but through consistent effort and dedication. By implementing these ten steps, you can create a solid foundation for your business and set yourself up for long-term success. Remember, small, incremental changes can have a massive effect on your success.

Every step you take, every goal you achieve, brings you closer to the vision you set out to accomplish. Stay focused, stay motivated, and keep pushing forward. The journey may be challenging, but the rewards are well worth the effort.

“Success isn’t overnight. It’s when every day you get a little better than the day before. It all adds up.” - Dwayne ‘The Rock’ Johnson.

We’re here to help you, every step along the way. Get in touch!

Supercharge Your Business: Proven Strategies for Success

Maintaining momentum and driving growth can be challenging. However, with the right strategies in place, you can supercharge your business and achieve remarkable results. 

Here are ten practical tips to help you navigate each business quarter with purpose, vision, and the courage to elevate your business to new heights.

1. Use Technology

Embrace technology to streamline administrative tasks, enhance communication, and improve reporting and accountability. Utilise the best apps to reduce paperwork and automate processes where possible.

Research and implement software solutions that cater to your specific business needs, such as project management tools, CRM systems, and accounting software. Stay updated with technological advancements and continually seek ways to integrate them into your operations.

At First Class Accounts Ovens & Murray and Busy01 Consulting, we can help your business by integrating the most effective apps tailored to your needs. 

2. Eliminate Distractions

Time is the most precious resource for any business. Many owners find themselves bogged down by distractions and focusing on non-essential tasks. To combat this, be decisive. Reduce standard meeting times, cut down on unnecessary administrative tasks, and delegate whenever possible. By doing so, you'll create more time to focus on what truly matters.

Implementing productivity tools like time-tracking apps can help you identify and eliminate time-wasting activities. Additionally, consider setting specific times for checking emails and notifications to avoid constant interruptions. Creating a daily or weekly priority list can also keep you on track and ensure that you're focusing on high-impact tasks.

3. Say Goodbye to Bad Customers

Some customers may drain your resources without providing significant value in return. If feasible, identify and phase out ten time-wasters, late payers, or troublesome clients. This will not only relieve stress but also allow you to allocate your resources more effectively.

Conduct a customer analysis to identify which clients are profitable and which ones are not. Use metrics such as customer lifetime value (CLV) and customer acquisition cost (CAC) to make informed decisions. By focusing on high-value customers, you can improve your overall profitability and customer satisfaction.

4. Invest More

With the time and mental space gained from the first two steps, allocate resources—time, key personnel, and money—toward strategic initiatives. Passionately redeploy these resources to drive significant improvements in your business.

Consider investing in employee training and development programs to enhance their skills and productivity. Explore opportunities for upgrading your equipment or expanding your product line to meet market demands. These investments can lead to long-term growth and a competitive edge.

5. Get a Plan

Operating without a plan is like embarking on a journey without a map. Develop a robust planning process, create a comprehensive business plan, and ensure its execution.

Include measurable goals and timelines in your plan to track progress effectively. Regularly review and adjust your plan based on market changes and business performance. Incorporate contingency plans to address potential risks and uncertainties.

6. Reconfigure

Don’t let unmotivated or incompatible employees hold you back. If someone isn't a good fit, consider parting ways to free up their future and make room for someone who aligns better with your business goals.

Implement regular performance reviews and provide constructive feedback to help employees improve. Offer opportunities for skill development and career advancement to retain top talent. A positive and motivated team can significantly impact your business success.

7. Value Add

Avoid stagnation by focusing on activities that add value. Aim to make a meaningful impact through your work, ensuring that it brings real value and significance to your clients.

Engage with your customers to understand their needs and preferences. Develop new products or services that address their pain points and exceed their expectations. Consistently delivering value can lead to increased customer loyalty and referrals.

8. Be Different

Stand out from the competition by positioning yourself as unique. Attract ambitious, growing, and engaged clients and employees by breaking the mould.

Identify your unique selling propositions (USPs) and highlight them in your marketing efforts. Foster a culture of innovation and encourage your team to think creatively. Differentiate yourself through exceptional customer service and a strong brand identity.

9. Deploy Marketing

Develop a straightforward marketing plan to enhance your reach and market penetration. Dedicate a percentage of your revenue to marketing efforts and ensure online engagement is a core component.

Leverage digital marketing strategies such as SEO, social media marketing, and email campaigns to reach a broader audience. Monitor and analyse your marketing performance to identify areas for improvement and maximise your return on investment.

10. Ask for Referrals

Actively seek out referral relationships to attract high-quality customers. Networking and word-of-mouth can be powerful tools in driving business growth.

Establish a referral program that rewards customers for referring new clients. Build strong relationships with complementary businesses and explore partnership opportunities. Regularly request feedback from your clients to ensure their satisfaction and encourage referrals.

Supercharge your business

By implementing these ten tips, you can supercharge your business and achieve sustainable growth. Stay focused, be proactive, and continuously seek ways to improve and innovate.

Ready to take your business to the next level? 

At First Class Accounts Ovens & Murray, we provide tailored bookkeeping, payroll and advisory services to help you implement these strategies effectively. Contact us today to learn how we can support your journey to success and supercharge your business!

How Much Should You Charge?

Getting your pricing right is one of the best ways to plan for business success, but how do you know how much you should charge?

First, don’t make a rushed decision; take the time to properly understand the market, your total costs, and how to position your products or services.

Figuring out how much to charge is a big learning curve for any business owner. The answer to how to approach it will fluctuate as circumstances and markets change. It is important to revisit the question throughout the lifecycle of your business.

There is No Magic Formula

All businesses are unique, with an individual offering of products and services. Before you set your pricing, it’s important to look at the whole picture. This will help to ensure you are being strategic and not just following trends.

Gather the Data

To get started, you need to gather as much information as possible. Block out some time to sit down with your business data and strategies. Pricing is essentially figuring out where your products and services are positioned in the market. So keep your business strategies top of mind. It doesn’t have to be a confusing exercise. Just grab a coffee and get started.

Here Are the First Steps to Consider:

1. Record All the Costs Involved in Production

Start by listing all direct and indirect costs associated with your product or service. Direct costs include materials, labour, and production expenses. Indirect costs encompass assets, insurance, licences, and legal fees. This comprehensive list ensures you don't overlook any expenses that could affect your pricing strategy.

2. Consider Your Current Profit Margin or Required Margin

Once you have your total costs, think about your profit margin. Understand the difference between net and gross profit margins. Gross profit margin is the difference between sales and the cost of goods sold, while net profit margin accounts for all operating expenses. Decide what margin is necessary for your business to be sustainable and profitable.

3. Conduct Thorough Competitor Research

Research your competitors thoroughly. Understand the market landscape and what others are charging for similar products or services. Identify your unique selling points (USPs) that allow you to differentiate your pricing. This research helps you position your offerings competitively without underpricing or overpricing.

4. Evaluate Your Offerings

Assess the value-added aspects of your products or services. Consider where your offerings fall on the spectrum from cheap and no-frills to high-end premium. Can you create a range of products at different price points to cater to various segments of the market? This strategy can help you attract a broader customer base.

Revisit and Adjust Your Pricing Regularly

Market conditions and business circumstances are always changing. Regularly reviewing and adjusting your pricing ensures that you stay competitive and meet your customers' expectations. This proactive approach helps you maintain profitability and growth.

Additional Considerations

Understanding Customer Perception

How customers perceive your pricing can significantly impact your sales. If your prices are too low, customers might question the quality of your products. Conversely, if your prices are too high without justifiable reasons, you might drive potential customers away. Balancing perception with reality is key to effective pricing.

Value-Based Pricing

Value-based pricing involves setting prices based on the perceived value to the customer rather than the cost of production. This method requires a deep understanding of your customers' needs and how much they are willing to pay for the benefits your product or service provides. Value-based pricing can often lead to higher profit margins.

Psychological Pricing

Psychological pricing strategies, such as setting prices just below a round number (e.g., $9.99 instead of $10), can influence customers' buying decisions. This tactic can make prices seem lower than they actually are, potentially increasing sales.

Discounts and Promotions

Strategically use discounts and promotions to attract customers and boost sales. However, be careful not to rely too heavily on these tactics, as they can devalue your product and create an expectation for lower prices. Use them sparingly and strategically to drive short-term sales and customer acquisition.

Stay Ahead of the Game

Determining how much to charge for your products or services is a crucial aspect of running a successful business. By thoroughly understanding your costs, profit margins, market conditions, and customer perceptions, you can develop a pricing strategy that supports your business goals. Remember, pricing is not a one-time decision but an ongoing process that requires regular review and adjustment.

For more personalised assistance in developing a pricing strategy tailored to your business needs, contact us at First Class Accounts Ovens & Murray and Busy01 Consulting. We're here to help you navigate the complexities of pricing and achieve long-term business success.

Get strategy at the heart of your successful business

Putting strategy at the heart of your business activity should give you greater direction and focus and lead to stimulating, profitable opportunities. A well-thought-out strategy is crucial for navigating challenges and capitalising on opportunities.

Businesses that have clear objectives or goals, robust accountability, and a shared sense of purpose should always outperform those that just show up and go through the motions. This focused approach ensures that all efforts are aligned towards achieving common goals, thereby maximising efficiency and effectiveness.

The Importance of a Strategic Plan

Strategy lies at the heart of most successful businesses. 

To achieve this, you need to resource and execute with purpose. Unfortunately, few businesses have a strategic plan or a robust planning process. 

Changing this situation should be a top priority. A strategic plan not only provides a roadmap for your business but also helps in anticipating challenges and preparing for them.

Business Strategy Tips for Business Owners

To help you get started, here are two top tips for putting strategy at the heart of your business success.

1. Process Creates the Plan

Getting strategy at the heart of your success will require you to carve out some time, get a process started, and shake things up. There’s no better time to review and tweak your business model, future-proof compelling services, and get your strategic building blocks in place.

Just as every good strategy has key elements, every good plan needs a step-by-step process. In fact, the process is often just as important as the plan itself. 

A strategic planning retreat with your core team is a great way to start the process – find a spot offsite to get the creative juices flowing such as a beach, a park, or a vineyard, and set an agenda.

2. Key Elements of an Effective Strategy

The key elements in a good strategy normally incorporate:

• Vision: This is a statement that identifies what a company would like to achieve or accomplish. A clear vision provides direction and inspiration, helping to align all members of the organisation towards common goals.

• Values: These are the fundamental beliefs upon which your business and its behaviour are based. They are the guiding principles that your business uses to manage its internal affairs as well as its relationship with customers. Strong values build a solid foundation for organisational culture and decision-making.

• Objectives: These should be SMART (specific, measurable, achievable, realistic, and timebound). Having both short-term and long-term objectives ensures that your business stays on track and can measure its progress effectively.

• KPIs: Key Performance Indicators are measurable values that demonstrate how effectively a company is achieving key business objectives. KPIs help in monitoring performance and making informed decisions.

• Actions: These outline what needs to be done to meet the objectives. Make this simple and clear to ensure that all team members understand their roles and responsibilities.

• Owners: Delegating tasks to specific owners ensures follow-through and accountability. Assigning ownership of tasks helps in tracking progress and maintaining responsibility.

• Deadlines: Setting deadlines for when your actions will be complete ensures you make progress. Deadlines provide a sense of urgency and help in prioritising tasks.

It doesn’t need to be much more complicated than that, but do invest the time and effort in doing this right. 

A proactive, value-add strategic model will need fresh thinking, debate, research, and open conversations. Enjoy and embrace the process, and you should end up with a good outcome.

Implementing Your Strategy

Implementing a strategic plan requires commitment and consistent effort. Here are some additional steps to ensure successful implementation:

• Communication: Clearly communicate the strategy to all members of the organisation. Ensure everyone understands their role in achieving the strategic objectives.

• Monitoring and Evaluation: Regularly monitor progress against the set objectives and KPIs. Evaluate the effectiveness of your strategy and make adjustments as necessary.

• Flexibility: Be prepared to adapt your strategy in response to changes in the business environment. Flexibility is key to maintaining relevance and achieving long-term success.

• Continuous Improvement: Foster a culture of continuous improvement within your organisation. Encourage feedback and use it to refine your strategy and processes.

Seeking Professional Guidance

Great planning requires a guide, facilitator, and/or professional expertise to be as robust as possible. We can help your business and guide you through the steps. Professional guidance can provide valuable insights and ensure that your strategic plan is comprehensive and effective.

Putting strategy at the heart of your business activity should not only give your business greater direction and focus but also lead to stimulating, profitable opportunities. 

It’s time to get started on creating a strategic plan that will drive your business towards long-term success. By following these steps and seeking professional assistance when needed, you can build a solid foundation for your business and achieve your strategic goals.

Talk to us about how we can support your business strategy and help you achieve your objectives. 

Getting ready to exit your business

Selling your business is a significant milestone that requires careful planning and strategic preparation. 

To ensure you get the best possible return on your investment, it's crucial to have a solid exit strategy in place. At First Class Accounts Ovens & Murray and Busy01 Consulting, we specialise in helping business owners develop and implement effective exit plans.

When you sell up, you want your business to have as much inherent value as possible – so you get a good price, a great return on your investment and the best possible payout.

So, how do you take yourself ‘out of the business’ as the founder, add the best value and set up an effective and financially beneficial exit strategy?

Exit your business - add value to your company

Whether the goal of your five-year plan is an acquisition by a larger corporate, or selling your share of the company to a chosen successor, it’s critically important to focus on adding value.

The more attractive the business looks in the market, the better the price you’ll achieve, or the better the yield you’ll see on selling your company shares.

To drive that value:

Work on the business, not in it

Working on the business means you’re no longer a fundamental part of the day-to-day operations and can focus on the higher-level strategic elements. 

This means building a strong management team and delegating responsibilities effectively. It also involves creating systems and processes that allow the business to run smoothly without your constant involvement. 

By doing this, you enhance the business's attractiveness to potential buyers, who will see a well-organised, self-sufficient operation.

Invest in adding value

Keep profits in the business, reduce your personal drawings, and plough that money back into growth and investment. This might include upgrading equipment, expanding your product line, improving your online presence, or enhancing customer service. 

By continuously reinvesting in your business, you not only boost its current value but also make it more attractive to potential buyers.

Improve your financial health

By taking control of your finances and building a strong balance sheet, positive cash flow, and attractive profit forecasts, you make your business more appealing to buyers. 

This includes maintaining accurate and up-to-date financial records, managing debt effectively, and ensuring that your financial statements reflect the true value of your business. 

A business with healthy finances is more likely to attract serious buyers and command a higher sale price.

Have a proper exit strategy

Develop a plan that has agreed targets, so you can track and measure whether goals are hit, and a strategy your team can get behind. 

Your exit strategy should include identifying potential buyers, understanding the market value of your business, and setting a timeline for the sale. It’s also crucial to consider the tax implications of selling your business and to plan accordingly to maximise your post-sale benefits. 

Make sure your team is aligned with this plan to ensure a smooth transition.

Talk to us about exiting your business

If you’re looking to sell up, you need a plan. Come and talk to us about creating a workable exit strategy, with a clear focus on driving value and delivering a solid return on your investment.

Get in touch to build your exit strategy.

Selling your business is a major decision that requires careful planning and expert advice. At First Class Accounts Ovens & Murray and Busy01 Consulting, we are here to help you every step of the way. Contact us today to discuss how we can assist you in creating a comprehensive exit strategy that ensures you get the best possible return on your investment.

Top 8 things to outsource in your business

Scaling your business requires a strategic shift from being deeply involved in every task to focusing on high-level planning and growth. To achieve this, you need to spend more time working on your business rather than in it.

This means dedicating your energy to strategic initiatives that drive growth, innovation, and long-term success. However, the day-to-day operational tasks can often consume a significant portion of your time, making it challenging to focus on bigger goals.

Finding ways to leverage your time effectively is critical, and one of the best strategies to achieve this is through outsourcing. Outsourcing allows you to delegate tasks that are either not within your core skill set or those that you simply do not enjoy. By doing so, you free up valuable time to concentrate on areas where you can add the most value.

Outsourcing these tasks to professionals can enhance the quality and efficiency of your operations, ensuring that critical functions are handled expertly.

Things you should consider outsourcing in your business:

1. Payroll

Managing payroll involves complex calculations, tax withholdings, and compliance with regulations. Mistakes can lead to hefty fines and unhappy employees.

Outsourcing payroll ensures accuracy, saves you time, and can even reduce costs. While utilising a payroll product is a great option, a professional payroll service will handle everything from wage calculations to tax filings, allowing you to focus on your core business activities.

First Class Accounts Ovens & Murray can help: We offer comprehensive payroll services that ensure your payroll is handled accurately and efficiently. 

2. Bookkeeping

Do bookkeeping tasks often infiltrate your evenings or weekends? Does the stress of these tasks piling up occupy your mind?

Bookkeeping is essential but can be time-consuming and stressful, especially if it spills into your personal time. By outsourcing your bookkeeping, you not only save time but also gain peace of mind knowing that your financial records are up-to-date and accurate.

At First Class Accounts Ovens & Murray, our bookkeeping services are designed to take the load off your shoulders, providing you with accurate and timely financial information. Let us handle your bookkeeping so you can focus on growing your business. Get in touch with us today to find out more.

3. Virtual CFO

Budgeting and forecasting are crucial for any business but can be challenging without the right expertise. A virtual CFO specialises in these areas, providing detailed budget analysis and accurate financial forecasts that help you plan for the future. They offer strategic insights, monitor your financial health, and identify opportunities for growth, ensuring you make informed decisions.

At First Class Accounts Ovens & Murray we offer comprehensive budgeting and forecasting services to help you plan effectively and make strategic decisions. We use cutting-edge software like Futrli to provide you with clear, actionable financial insights. Contact us today to learn how we can support your business growth.

4. Digital Marketing

From your content strategy to your social media accounts, if this is not a strength of yours, outsource it! There are many freelancers who have multiple clients at this level, who’ll likely be more knowledgeable regarding SEO and much more effective and efficient in general.

5. Graphic Design

Your brand is a key reflection of your product offering. If you don’t have the skill, software and time to do this well, you’ll potentially damage your brand.

6. Scheduling and administrative tasks

A Virtual Assistant can help you manage anything from your appointments to flights, emails and beyond (virtually anything admin). At a lower level, consider adopting software that’ll automate or minimise processes, such as self-booking appointment apps where your clients can schedule a meeting with you, e.g. Calendly.

7. Customer feedback

Many businesses miss this valuable opportunity to connect with customers and improve their experience. A Virtual Assistant can help, but there are also apps (such as Ask Nicely) that automate the process of asking for feedback; directing happy responses to leave you Google reviews and negative responses back to you to quickly resolve!

8. Inventory management

Too much stock can cause cashflow issues and affect sales price (due to resulting discounting), but not enough equals lost sales. Outsourcing inventory management can help you minimise stock-carrying costs and allow you to focus on more important things.

While outsourcing takes a little bit of setting up, it’s worth the short-lived pain for massive gain. We don’t have to be jacks of all trades. In fact, this thinking often leads to begrudgingly doing many things poorly rather than doing a few things really well – and enjoying doing them.

Tempted to start outsourcing some of your tasks to free up your time? We can help by taking the first three roles off your hands! We work with a number of our clients in this way, allowing them to focus on what they do best.

Work to your strengths, outsource the rest! Need help? Get in touch.

Getting your business records ready for the End of Financial Year.

The end of the financial year can be a hectic time for business owners. Ensuring your records are in order not only helps you comply with legal requirements but also provides a clear picture of your financial health.

Preparing your 2023/2024 business records ahead of time can make the process smoother and less stressful.

This guide will help you understand what records you need to have ready and why it's essential to be organised.

What records do you need to have ready?

Asset Acquisitions and Disposals

Have you bought or sold any assets? Ensure you have full details of all acquisitions and disposals. This includes dates, values, and any associated costs. Proper documentation helps in calculating depreciation and capital gains tax.

Loan and Finance Arrangements

If you have taken out any new loans or other finance, you must have detailed records of these arrangements. This includes the terms of the loans and statements of monies owing as of 30 June. Clear records can prevent any discrepancies and help in financial planning.

Bonds and Deposits

Check that any bonds or deposits paid or received have been allocated correctly. Misallocations can lead to errors in your financial statements.

Prepaid Expenses

Have you prepaid for insurance or other large business expenses? Make sure to apportion these expenses correctly to the financial year they belong to. This helps in accurate expense tracking and budgeting.

Stocktake

If you carry stock, ensure you perform a full stocktake at 30 June unless you qualify for the simplified trading stock rules. Accurate stock records are crucial for determining your cost of goods sold and overall profitability.

Bad Debts

List any bad debts to be written off or pursued. Keeping track of bad debts helps in managing your receivables and can also have tax implications.

Loans with Related Entities

If you have loans with related entities, reconcile the loans to and from each entity to ensure the same value is reported in the accounts of both entities. Consistency in reporting helps maintain accurate financial records.

Payments to Company Directors

Ensure that all payments to company directors have been correctly captured. Accurate recording of these payments is essential for compliance and transparency.

Review Debtors and Creditors

Review your debtors and creditors (accounts payable and receivable). Ensure the list is current and accurate. Keeping this information up-to-date helps in managing your cash flow effectively.

Contact Information

If the contact details of business owners and key personnel have changed, let us and your accountants know. Accurate contact information ensures smooth communication and avoids any delays in the accounting process.

Other Considerations

There may be other matters to discuss such as capital gains, vehicle usage, private usage apportionment, or superannuation. Ensure these are also considered and documented accurately.

Importance of Record-Keeping

Remember, you need to keep all your business records for seven years. Store everything securely and, where possible, electronically for safety and ease. Proper record-keeping not only helps in compliance but also aids in financial planning and decision-making.

Final steps for Financial Year-End Preparedness

Getting your business records ready is not just about compliance; it's about having a clear understanding of your business's financial health. Proper preparation can save you time and stress, allowing you to focus on growing your business.

Talk to us today about how we can help you get your records ready for your accountant. Our expert bookkeeping services ensure your records are accurate, up-to-date, and compliant with all regulations. 

Keeping your receipts

Source document management

When it comes to small business compliance, source documents – bills, receipts, checks, or anything substantiating a transaction – are critical.

Collecting and managing source documents can mean a lot of administrative effort and time. Plus you have to store all the documents too. Historically, source documents have been paper based, so that means a lot of office space just dedicated to paper document storage!

The good news is that bookkeepers, like First Class Accounts Ovens & Murray, can help small businesses to better manage source documents.

Here are a few frequently asked questions to better understand why and how bookkeepers can help. 

Who should manage source documents: the business, or the bookkeeper?

Allocating source document management to your bookkeeper means you can better manage your source documents for compliance-related reasons. This is because your bookkeeper is able to provide more accurate reconciliation. The added bonus is that this can lead to meaningful business insights.

Why are source documents important for bookkeeping?

Source documents are vital for business compliance and audit preparation. Bookkeepers keep up to date with compliance requirements and understand the types of documentation that small businesses are required to keep compliant.

Source documents are also important for improving bookkeeping quality. Having source documents readily available will not only make the reconciliation process faster, easier, and more accurate, it will also help to gather clean data. Again, that data can then be translated into business insights.

What’s the best way to collect and manage source documents?

One of the best ways to collect and manage source documents is to do so digitally. This means implementing a process and using technology to automate and digitise document management.

Using a single system and process for collecting source documents gives you a centralised document storage solution, and all your documents are readily available when you need them.

There are a number of apps and tools, such as Dext, that can make it easy for both bookkeepers and business owners to collect and digitise documents. Most of these will integrates with cloud storage platforms and integrate with cloud accounting packages.

Are digital documents acceptable in the event of an audit?

Yes! Many governments accept digital files as source documents in the event of an audit, including the Australia.

In the event of an audit, having all documents readily available in one place will help to make sure the audit process goes smoothly.

Talk to us about improving your source document management

If you are interested in digitising your source document management, contact us today to discuss the apps and tools available, and how we can help, 

Collect your debtors faster

Managing cash flow effectively is crucial for the sustainability of any business. A significant component of this involves managing debtors efficiently to ensure that cash inflows occur on time. However, it's important to remember that even uncollected sales impact your financial obligations.

Did you know that you still have to pay tax on your debtors, even if you haven’t collected them yet? This happens because your tax obligations are calculated based on your sales figures, not just the cash you have received.

Why It's Critical to Collect Debtors Promptly

When your cash is tied up in uncollected invoices, it restricts your ability to reinvest in your business, pay your bills on time, or even meet your payroll obligations. This can hamper your business's growth and potentially lead to financial difficulties.

Therefore, collecting debtors promptly should be a top priority.

How to collect your debtors faster

Agree on Payment Terms at the Time of Sale

Clear communication about payment terms sets the stage for all future interactions with your customers regarding payments.

Ensure Your Customer Signs Your Terms of Trade Before You Start the Job

This formal agreement protects you legally and ensures that both parties understand the financial obligations involved.

Include a Guarantee in Your Payment Terms

This adds an extra layer of assurance that you will be paid, encouraging prompt payment.

Invoice as Quickly as You Can

The sooner you send out an invoice, the sooner you can expect to be paid.

Ask for a Deposit Prior to Starting the Job

This not only secures a portion of your payment upfront but also commits the customer financially to the project.

Change Your Payment Terms to Within 7 Days of Invoice or On Delivery

Shortening the payment period accelerates your cash inflows.

Send Statements Religiously at the Start of the Month

Regular updates remind your customers of their dues and prevent overdue payments from being overlooked. Implementing automated reminders through your cloud accounting system, such as Xero, can encourage late payers to pay on time. 

Have Someone Other Than the Owner Be Responsible for Collection of Debtors

This can often lead to more systematic follow-up and less personal conflict.

Document Any Changes to Your Standard Payment Terms in Writing

Keeping a written record of all terms and agreements avoids misunderstandings and provides legal backing.

Use an Integrated Payment Gateway App

This technology simplifies the payment process for your customers, making it easier and faster for you to collect your money.

Don’t Provide Credit to Customers Who’ve Been Late Payers in the Past, and Don’t Offer More Credit to Customers with Outstanding Payments

This policy helps mitigate risk and improve your cash flow.

Proactive management is key

Don’t procrastinate on your debtors. Establishing clear, firm payment terms and ensuring you stick to them is vital. Remember, it’s often the proactive, attentive businesses that manage their cash flow most effectively.

"It’s the squeaky wheel that gets the oil." – Anon

Don’t let your business be slowed down by late payments. Be the squeaky wheel, take action today. We can help.