Why We Love Accounting (And You Should Too)

Why We Love Accounting (And You Should Too)

We know what you are thinking. The last thing most of us want to do is spend hours pouring over our finances. We are busy people, running our businesses and our lives. Can’t our finances just take care of themselves? The answer is no! Small business owners often dread the tedium of bookkeeping and accounting. But the reality is your bookkeeping and accounting is one of the most valuable management tools you have available to you.

Business Management thinker Peter Drucker is often quoted as saying that “you can’t manage what you can’t measure.” What he means is that is impossible to know whether you are successful unless your business goals and finances are well defined and tracked.

And that in a nutshell is what bookkeeping and accounting is all about. It is managing and measuring, so you can run a better business.

It helps you build and grow your business

If you don’t know what money is coming into and out of your business, it is very difficult to grow your business. Tracking and managing reports such as profit and loss statements can help you see exactly how much money you are making and spending every month. Without a firm understanding of where your money is going it is impossible to plan your budgets or control your spending when you need to. The key to growth and profit is spending less than you earn, and if you don’t know what you earn, budgeting is very difficult.

You learn to plan for the future 

Good financial planning equates to a solid business plan and if you have a concrete business plan, you have financial planning in place. These two processes go together, you can’t have one without the other.

Feeling confused? Think it about it this way.  If you have a goal to double your revenue this financial year you must understand where you are getting the most value with your clients. Understanding which clients generate the most revenue and then acquiring more like them is key to your growth. You must focus on the highest value clients to bring in more money. Your business plan should reflect goals such as were to find them, what to charge and providing high value services to these clients. Plans like this ensure you are working with the right types of clients to grow your business.

Know your value

When you aren’t charging enough for your services it becomes obvious right away if you are paying attention to your books. Keeping track of things like wages, taxes, expenditures or overhead ensures you are aware at all times what you need to charge to cover your basic operating costs. If there are any changes in your outgoings you will know when it is time to increase your prices or look for places to reduce costs. This will never come as a surprise if you are keeping track of your in’s and out’s every month.

Pay for help

Always be sure to get the right advice at the right time. A good accountant is worth their weight in gold! Many people think of accounting as an expense, but a good accountant doesn’t save you money, they make you money. If you don’t have the time or interest to examine your books on a regular basis, now is the time to take that leap and start working with someone who will make that commitment for you.

While loving bookkeeping isn’t for everyone, there are many accountants who do love it and will happily help you. No great business is built in insolation. The appropriate help at the right time will take you from goal to goal!

Get in touch

If you have any questions about how we work with clients please get in touch. We offer free consultations to help you and your business grow! Book in today!


Stay On Top Of Your Books In The Hospitality And Retail Sectors

Anybody who owns or manages a hospitality or retail business knows how hard it is to stay on top of things like staffing, stock and payment systems — you’re always so busy just keeping the business ticking over. In the following, we highlight the accounting software tools that are available to lighten your load, keeping your books up-to-date and transparent with very little effort on your part.

Accounting Software

The most common issue we encounter with hospitality and retail clients is that there is very little reporting on stock, staff, and profit and loss statements. Rather, business owners and managers in these sectors tend to look at their bank account, and that’s it. This means there is a lack of management of cash flow, which can lead to big issues at tax time, not to mention running out of stock or being under-staffed.

The solution to the above is as easy as investing in an accounting software system, such as Xero, MYOB or Quickbooks. Each system can generate reports on staffing, stock, and payments, and reconcile your books automatically. These systems allow small businesses to keep up-to-date with what’s coming in and going out in real time, giving owners and managers the ability to make informed decisions about staff, stock, and expenditure.

Payment Systems

On top of the above accounting software, there is a range of plugins available that provide specialised oversight and automation of separate aspects of the retail and hospitality sector.

One such plugin is Tyro, which we highly recommend for payments, due to its simplicity and competitive pricing and its ability to integrate with your payment system.

Tyro provides both hospitality and retail businesses with tailored and flexible solutions that recognise the specific needs and variations of each sector. For example, Tyro caters for everything from cafes to bars, to accommodation and retail liquor outlets within the hospitality industry. In terms of retail, Tyro is flexible enough to provide payment solutions to any kind of business, whether it’s a service such as hairdressing, a food store, or a fashion outlet.

Point of Sale

There are a number of other point of sale (POS) systems on the market, many of which target specific industries. Of these, there are three that we would recommend in particular, given their state-of-the-art features, flexibility and integration capabilities.

For retail businesses, we’d encourage you to take a look at Vend. This solution prides itself on being a comprehensive POS system that combines highly advanced technology with ease-of-use. To give you an idea of Vend’s capabilities, here are just two its standout features:

  • Sign in from anywhere at any time: Vend is based in the cloud, so you can sign in and work from anywhere on the globe, easily accessing your sales data, products and reports, even when you’re on your well-earned holiday!
  • Keep selling when the internet goes down: Vend continues to work even when it’s offline and re-syncs your data as soon as the internet comes back on, so you’re never faced with losing a sale or the uncomfortable situation of having to turn customers away.

For hospitality businesses, there are two POS systems that we think offer excellent features and flexibility for cafes, bars, restaurants, accommodation and all things in between. These are:

  • Kounta: A one-stop shop for everything POS for hospitality businesses, featuring the ability for you to customise the system to your exact needs, down to the most minute detail.
  • Square: Not only was Square one of the first POS systems to accept chip and cardless payments, it comes with the free Square POS App that gives you the tools to run every aspect of your hospitality business through your payment software.

If you have any questions about the software solutions mentioned above please get in touch with us at 360 Accounting. We have worked with small businesses in the hospitality and retail space for years and understand your unique challenges.

Book in for your free consultation today!