Good bookkeeping adds value to every business:
1. Saving time by:
- Clearing out the paperwork clutter and filing the important documents in one, easy to access, easy to understand and secure filing system.
- Chasing up queries and late payments.
2. Saving money by:
- Avoiding late payment fees / penalties, ensuring compliance to deadlines (BAS, tax etc.).
- Optimizing your accountant fees by submitting accurate records and working with your accountant to ensure your accountant’s confidence in your business records.
- Avoiding double-payments of supplier invoices due to lack of control / process
3. Generating the business money by:
- Ensuring that customers pay their accounts on time
- Optimized cash management: Ensure that excess cash on hand is in an interest earning account until needed.
- Help business owners to negotiate a better deal or terms with their suppliers.
4. Ensuring the business is kept compliant in terms of:
- Record keeping requirements; secure filing of sensitive records and information such as medical records and employment records meeting the privacy and IR laws
- Keeping the business systems updated according to the ever changing rules and regulations.
5. Keeping the operations of the business systems easy, clear and with clearly defined lines of accountability. Creating operations manuals where needed, making succession and staff turnover easier.
Efficient Systems create value to the business in the following ways:
- Having a defined place for everything and everything in its place means that everyone knows exactly where to find / place things. This builds confidence and good morale, reduces frustration and panic. It also saves time.
- Having your business processes documented allows the business operators to take leave and ensure that the business continues to run, no longer reliant on the knowledge of processes in one person’s head, but rather having a documented set of steps to follow. This is crucial for further growth or for attracting investment / facilitating an exit
- The reason that franchises can grow like they do is because of efficient, well-documented systems and procedures. You don’t have to be a franchise to enjoy the benefits of this approach, but it does lower your ongoing operational costs & risk, adding significantly to the intellectual property of any business and therefore the goodwill value.