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!


4 Things Le Tour De France And Your Accountant Have in Common

You might not immediately think that the most famous cycling race in the world and your accountant have much in common, but we’re here to show you the similarities and how these can benefit your business.

Le Tour De France, Dinard, Brittany, France

  1. Like elite cyclists, accountants train every day
    Not only do accountants have to keep up with constant changes in small business tax and financial obligations, we are always on the look out for the best solutions for our clients. This means we are committed to training on a daily basis, including keeping up-to-date with the latest accounting apps and platforms and how they might improve our ability to provide the best financial advice and services to our clients. Add to this the yearly professional development requirements for CPAs, and you can be assured your accountant is not only fighting fit but also mentally prepared for the challenges ahead.
  2. Accountants are in it for the long haul
    No one takes on Le Tour De France unless they’re committed to seeing it through until the end. The same goes for accountants and our relationship with the businesses we work with. Once we’ve hit the road, we are there beside you through all the twists and turns of a small business, helping you adapt to changing circumstances, taking on the burden of your business bookkeeping, and providing sound financial advice for the long-term. We are committed to seeing that your business not only survives but thrives.
  3. All the best cyclists have a Plan B, and so do we
    Those who follow Le Tour De France know there’s always something that can go wrong that can’t be predicted – the infamous case in 1999, for example, when a photographer jumped out in front of Italian Giuseppe Guerini, who was leading the Alpine climb stage of the race. While the crash wasn’t the most horrific of all time, it does show how even the best can be derailed by the unpredictable. Business accountants are here to prevent the ‘crash’ and get your business back on the road with the minimum of fuss – we always have a Plan B to assist you in dealing with hiccups, such as late payments or cash flow issues. Like Giuseppe Guerini, who went on to win the stage following his encounter with the photographer, your accountant is here to get you back on track and feeling confident in your business again.
  4. Knowing when to leave it to the professionals
    How is this related to Le Tour De France, you might ask. Well, all professional cyclists start out as amateurs and have to learn the ropes from the professionals – a grueling lifestyle by all accounts, and one that only a handful make it through to compete at an international level. The parallel here is, you may be a small business owner, but that doesn’t make you an expert on small business tax or GST or bookkeeping. This is because you are the expert in your industry, which is what you should be focusing on – the day-to-day running of the business. Knowing when to hand over your financials to an accountant is key to a successful small business plan. It may be at the point you need to register for GST, or as your staff, locations and customers grow, or when you need to find ways to reduce your tax liabilities. Whatever stage it is that you find yourself feeling hemmed in by your financial obligations or the demands of growing your business is the time to hand it over to the professionals. After all, business accountants are the elite cyclists of the world of small business financial advice!

If you are at the beginning of your race or reaching your goals around a finish line now might be the right time to book in a free consultation. We are excited to help you on your race of a lifetime!