The most important function in your trade business is your accounts and bookkeeping function. To enable you to focus on managing your business, you need to have adequate systems in place for bookkeeping. Too many business owners hire part time bookkeepers that do not have the sufficient experience or qualification to correctly set up this function. These are a few areas you should consider in regards to coding you business transactions:
Accounts Payable (Creditors) – You need to able to automate your accounts payable function so that your controller authorises payments . As a business owner you should not be paying a third party $70/hour to enter all your bills or have your account manager wasting valuable time completing data entry. This function should be processed for under $30/hour. This means as you grow, you will achieve significant savings allowing you to free up your administration time.
Payroll – This area can be complex. Completing and entering time sheets for each employee can waste valuable time for your account manager. You should be able to outsource or systematise this process which should be completed for under $30/hour.
Accounts Receivable (Debtors) – Cash flow is the life blood of your business. Remember the saying: “Cash is King”. You need to make sure you have a process that will enable you to invoice and collect cash as soon as possible. You should focus on your cash conversion cycle – which is how long capital stays in your company. As a business owner, you should be aiming to keep the cost of this function down to a minimum.
Tradies Accountant can offer a solution for your business data and tailor the services to suit your business. We will help you design a new system for your trade business that changes the bookkeeping function and gives you and your team more time to focus on value added-services for your customers. The bookkeeping packages are offered at a fixed monthly price so you can budget for the expense.
Please contact us for more information.