Hawthorn, Victoria Australia (PressExposure) June 03, 2011 -- Managing a business requires knowledge in both management and accounting principles. With increasing dependency on computers a business operator also needs to have a basic understating of computers as both elements of business, management and accounting, now deal increasingly with computer programs. Your chance of success will be greatly reduced without this basic knowledge and understanding.
With today's global economy and tighter spending habits, the accounting side of a business is often handled by the business operator themselves or outsourced to external accountants who are called upon for end-of-month or year accounting requirements. Utilizing an online accounting solution like Shoebooks who can professionally handle all the accounting and bookkeeping needs is a great idea.
Unfortunately a lot of struggling small businesses simply ignore the importance of accounting, hoping that in the near future their business will survive and flourish. This is the wrong approach. The health of your business should be assessed using typical financial measures including a balance sheet, profit and loss statement and cash flow statement. With these three measurements, you as the owner will need to learn at least the basics in accounting, even if you have your own accountant, in order for you to understand these reports to assist in making decisions.
With this in mind, it's vital to your business to learn some smart Shoebook's business tips to keep your business afloat in these difficult economic times. Shoebooks aims to help small businesses survive and become a success. Shoebooks provides these business tips assist you:
1. Update all your business accounts regularly in order to have an understanding of your current business financial standing. Preparing accounts after the event for compliance reasons means you miss out on the important information that can be revealed through regular assessment of your businesses performance.
2. If you have hired an accountant, always keep your accountant fully updated so that they will be able to give you the right guidance and support.
3. Maintain a good working relationship with your bank and always inform them of any cash flow problems in advance to allow time for a solution to be found. Keeping them informed about your business helps them to better understand your banking needs and leads to them being more willing and able to assist you.
4. Regularly update and review your payments, specifically your Tax, PAYG, GST and insurances. Ignoring these expenses can cause major cash flow problems.
5. Always try and leave 2 months of working capital in the bank and remember to never tie up all your finances in one transaction.
Following these business tips will surely help your business to survive. If you want to be free from the hassle of bookkeeping and accounting, why not use Shoebooks, a web based bookkeeping and accounting software solution that is affordable and can deliver financial information fast, simply and intuitively in a format that suits your business. Shoebooks provides a full range of bookkeeping and payroll services and provide instant online access to your accounts. Shoebooks accounting software is fully customized to provide specific solutions to a wide range of businesses and can meet almost any requirement for a very affordable fee.