Strategies for Small Business Resilience
A Bookkeeper’s Crucial Role
As small businesses experience cost escalations while running a business, bookkeepers play a crucial role in proactively preparing and equipping you with essential financial strategies to navigate cost increases effectively.
Anticipating Cost Increases
According to the Australia Small Business and Family Enterprise Ombudsman (ASBFEO), a significant proportion of small businesses struggle with financial sustainability:
• 43% of small businesses failed to turn a profit in the previous tax year.
• Three-quarters of self-employed individuals earn less than the average total weekly earnings.
These statistics underscore the urgent need for strategic financial planning. Small businesses can survive and thrive by implementing strategies despite impending cost escalations.
Enhancing Value Through End-of-Year Analysis
Beyond basic financial reporting, your bookkeeper provides actionable insights into your financial data through comprehensive end-of-year analysis. This includes identifying trends, patterns, and areas for improvement that can drive growth, cost savings, and risk management.
Budgeting and Forecasting Support
Bookkeepers assist in setting realistic financial goals and creating forecasts based on historical data. They regularly review and update these forecasts to track progress and make necessary adjustments, ensuring your business remains successful.
Tax Compliance Strategies
Utilising their expertise in business compliance and regulations, bookkeepers help develop effective tax compliance strategies. They keep you informed about changes in tax laws, deadlines, and lodgment requirements to ensure your business stays compliant and minimises tax liabilities.
Analysing Payroll Obligations
Bookkeepers assess the impact of pending increases in national minimum wages, award rates, and superannuation contributions on your total employment costs. They provide insights into employee leave entitlements and the financial implications of pay increases to help you manage payroll effectively.
Leveraging Analytical Reports
Using analytical reports, a bookkeeper can empower you with data-driven insights. They compare current performance to previous periods or budgets, identifying variances and trends that inform future decision-making and enhance business strategy.
Delivering Finalised Accounts Insights
Through finalised accounts, bookkeepers offer clear indications of performance movements in sales, expenses, profits, and wages. This information enables you to make informed strategic decisions that drive business growth and profitability.
Have any questions?
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– Team BKSP