Good business practice adds value to every business, in both good and bad times. There are many benefits good business practice may bring to the business, including:
- – The business is more likely to be profitable, have better cash flow and operate with less financial risks;
- – The business may be better placed to respond to future challenges and opportunities
- – The business may be easier to sell in future, and possibly at a better price
- – The business may find it easier to access external finance, including bank finance, if needed.
Implementing good business practice involves identifying the critical tasks that must be done to keep the business in good shape, and having discipline to ensure that those tasks are carried out consistently.
The checklist below is to highlight good business financial practice that a SME can follow. The checklist is not a definitive, however this is intended to start you, the business owner, to think about the actions needed to put your business on the right track.
Strategic Financial Tasks:
- – Set targets for financial performance.
- – Review and analyse financial statements.
- – Prepare cash flow forecast and budget.
- – Review actual performance against budget.
- – Review cash flow forecast with actual.
- – Have a good financial software.
- – Enter data promptly and accurately.
- – Review stock balance and reconcile to physical stock.
- – Review receivable and payable.
- – Reconcile banks.
- – Reconcile GST.
- – Reconcile other material balance sheet accounts like fixed assets, PAYG, superannuation, employee leave entitlements, equity accounts.
As a business owner, it is often difficult to align your priorities when it comes to bookkeeping, accounting and tax. It is usually not a top priority in mind. However a good business advisor and tax accountant in Sydney can help you keep focused on the growth. The tax accountants and bookkeepers here at DSV Partners will ensure that no benefit or documentation slips from your hands. Excellent business advice and meticulous record keeping will help you save thousands, and give your business a huge boost as well. For more information, contact DSV Partners today!
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