I am often asked, how should I run a business? That is a question that has a million answers! Because nearly all businesses are different.<\/p>\n
These are some sound ideas and best practices that I have seen over my years\u00a0 of helping businesses.<\/p>\n
1.\u00a0 Record \/ Bookkeeping: Bookkeeping is the recording, on a day-to-day basis, of the financial transactions and information pertaining to a business. It ensures that records of the individual financial transactions are correct, up-to-date, and comprehensive. It allows all transactions to be summarised and presented in a way that allows the owners to understand how their business is going and make decisions with good, accurate information.
\nMost of us can\u2019t summarise a box of receipts, invoices, and bank statements in our heads! Plus, it is a legal requirement under the Income Tax Act.<\/p>\n
2.\u00a0 Collect your income: Most businesses are busy doing their job, selling chocolates, repairing cars, mowing lawns etc. then they are too busy or too tired to chase up what they are owed by their customers. If you don\u2019t, you will go broke! Various studies show that the best time to get paid is when you do the job, don\u2019t delay, it only gets harder.<\/p>\n
3.\u00a0 Don\u2019t ignore your customer: if you get a call or an email or any sort of enquiry, strike while the iron is hot, and do that quote, take that booking, get that job, and then get that sale! We are all busy and tired, but it\u2019s the most important thing you can do.<\/p>\n
4.\u00a0 Know your costs: a business is busy but goes broke! The reason is often that it\u2019s costing more than they are making. We sometimes forget the hidden costs, the ones we don\u2019t see every day. The mechanic knows about the parts used on the job, but what about rent, insurance, electricity, gas, postage, phone, internet etc. You must build those other costs into your price.<\/p>\n
5.\u00a0 Do I need a budget: well maybe, but more importantly what is a budget and how do you use it? A budget is a financial plan for a period, normally a year. It helps you think about all the costs and income you expect for the future year. It helps with working out your costs, and you can use your past years bookkeeping to give you a base for the budget, and thereby work out how much you need to charge to make money.<\/p>\n
A business is like a baby or small child, it needs constant attention, on a daily basis, you cannot just give it attention once a year at tax time.
\nDo not be scared \u2013 be organised and prepared. If you would like some help, give me a call.<\/p>\n
I am often asked, how should I run a business? That is a question that has a million answers! Because nearly all businesses are different. These are some sound ideas and best practices that I have seen over my years\u00a0 of helping businesses. 1.\u00a0 Record \/ Bookkeeping: Bookkeeping is the recording, on a day-to-day basis, […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-18","post","type-post","status-publish","format-standard","hentry","category-uncategorized"],"_links":{"self":[{"href":"https:\/\/server.highlightphotonics.com.au\/~rickmandelson\/wp-json\/wp\/v2\/posts\/18","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/server.highlightphotonics.com.au\/~rickmandelson\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/server.highlightphotonics.com.au\/~rickmandelson\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/server.highlightphotonics.com.au\/~rickmandelson\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/server.highlightphotonics.com.au\/~rickmandelson\/wp-json\/wp\/v2\/comments?post=18"}],"version-history":[{"count":1,"href":"https:\/\/server.highlightphotonics.com.au\/~rickmandelson\/wp-json\/wp\/v2\/posts\/18\/revisions"}],"predecessor-version":[{"id":19,"href":"https:\/\/server.highlightphotonics.com.au\/~rickmandelson\/wp-json\/wp\/v2\/posts\/18\/revisions\/19"}],"wp:attachment":[{"href":"https:\/\/server.highlightphotonics.com.au\/~rickmandelson\/wp-json\/wp\/v2\/media?parent=18"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/server.highlightphotonics.com.au\/~rickmandelson\/wp-json\/wp\/v2\/categories?post=18"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/server.highlightphotonics.com.au\/~rickmandelson\/wp-json\/wp\/v2\/tags?post=18"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}