sarina abbott

3 Simple Tips to Improve Cashflow

3 tips for improving cashflow

I think I’ve read almost every small business finance book in the Tea Tree Gully library here in Adelaide – some of them twice.

I’ve found 3 great tips that I’ll be incorporating into my business.  They are not only an easy way to help increase cashflow but will also help tweak your mindset if you find your confidence flagging.

This is from Accounting for the Numberphobic by Dawn Fotopulos.

Dawn writes:

“Invoices become a running record of the value the business delivered for every client – a testimony of what’s been accomplished.  Listing the benefits the client received is the key to differentiating your product or service from others.  It will remind the client of what makes the business you manage different and more professional than that of your peers”.

She goes on to write “Invoices help to build the reputation of the business”.

Have you ever considered the effect your invoice has on your client when they receive it? Is it possible they look at your invoice and think “How did he get to that price? What exactly did they do in that 8 hours they have charged me for?”

If you’ve poured your heart and soul into providing a great product or service for a client – don’t risk your invoice getting put on the backburner whilst your client pays everyone else before you.  Remind your client of the value you have provided so that paying you is that much easier and they have a great reason to use your business again in the future.

So these are my 3 tips for improving cashflow & boosting business confidence:

  1. Include a detailed description on your Invoice of the service or product you’ve provided and remind them of the value you’ve added for them. Be confident in your invoicing!
  2. If some of the work was complimentary and isn’t being on-charged to the client – include that on the invoice so the client is aware.
  3. If 2 or 3 people have performed the work for the client – include their names to give more meaning to the work.

I’ll definitely be incorporating this into my own Xero invoicing for Festival Bookkeeping – it will only take an extra 5 minutes.  Such simple concepts and easily implemented. Love it.

 Looking for more small business tips? Here are some others that readers have liked:

 

Happy bookkeeping…

Move forward

Take charge tip

I’ve been thinking about how we sometimes put things in the too-hard-basket, where they stay for much too long. Cluttering up our lives not only in the physical sense (ie a desk covered in paperwork), but emotionally too. Sometimes you just have to take charge, dig in and deal with it.  A weight will be lifted off your shoulders and by de-cluttering physically and mentally you leave space open for good things to come into your life.

This has recently worked for me.

Has this ever happened to you? 

 

The Festival Bookkeeping story

 

festivalbookkeepingstory

I grew up in small mining towns, attended high school in Whyalla, South Australia, and got my first job as a legal secretary for a law firm there. This was also my first foray into studying at TAFE, where I was introduced to the mysteries of double entry bookkeeping.  (Little did I know this would make an appearance further down the track and become a big part of my life).

Fast forward 22 years and I’m now married with 2 children and living in Adelaide. I’ve studied and gained an Advanced Diploma in Accounting and gained the experience and extra studies required to become a Registered BAS Agent.  In between I’ve worked in accounting and administration for large corporations, for several small businesses, government organisations and a non-profit.  On the side I’ve sold Body Shop products in people’s homes where I first learned to become comfortable standing up and speaking in front of groups of people.  Without knowing it at the time, this equipped me with the confidence and skills needed to teach accounting to students at TAFE in the following years.

So this has all culminated in where I am today – having a small business based in the North Eastern suburbs of Adelaide that enables me to help other local business owners with their finances and also teaching students at TAFE.  Two things I love doing.

And that is basically the Festival Bookkeeping story. I hope that by reading this you have been able to gain an insight into both my personal and business background and why I love to do what I do.

Oh, and the short version of the story:

Country girl turned City Girl. Accounting Nerd. Small business owner helping other small business owners.

Happy bookkeeping…

You can find me on Facebook here: Festival Bookkeeping

And find me on Instagram here: Festival Bookkeeping

3 basic admin tips that will save you an hour a day

I love a good time-saving tip!  I’ve found these 3 great ideas that anyone can easily implement in their business or at work, from Debbie Eglin over at the Flying Solo website.

Tip 1 especially fits in with my favourite subject at the moment – going paperless.  I hope going paperless is something you are working towards in your business or workplace.  It really is the way forward and makes a lot of sense.

Tip 3 is another great tip because we often find ourselves typing the same words over and over, which is a time-waster.

3 basic admin tips that will save you an hour a day

Happy bookkeeping…

 

Why I prefer to go paperless #1

trees

You don’t have to be a tree-hugger to be interested in going paperless – it will also save you in the hip pocket. So it’s really a win-win situation. A win for you and a win for the environment (which of course benefits you too!)

I previously shared some tips on 4 Easy Ways to Go Paperless. The 4 tips are some really simple ways to make that step towards going paperless without having to spend lots of money or make huge changes to the way you work or run your business.  Readers shared some of their tips on going paperless too, which you might want to check out in the Comments section at the bottom of the post.

I wanted to write a couple of posts about how exactly you can benefit from moving towards a paperless office, particularly from a bookkeeping point of view. So instead of the “how” I wanted to explore the “why” of going paperless.

So read on for the first of many great reasons that I prefer to go paperless and how you, too, can benefit.

# 1   Online banking is better than writing out cheques.

  • Banks often charge a fee to send out cheque books
  • Banks sometimes charge a fee for each cheque presented
    I discovered this the hard way – being charged .95c every time one of my cheques gets deposited!
  • Mailing cheques is time consuming and you have to pay for stamps.
  • People can lose cheques, resulting in double the amount of work.
  • Cheques for small amounts are often not banked, and sit there in your accounting records as being unpresented month after month until you finally get hold of the person and sort it out, or it goes stale.

Just like having 2 cheque signatories, you can set up your online banking so that 2 people have to authorise each payment – resulting in better security of your money.  And whilst on the subject of online banking, bank statements can be downloaded from your bank’s website and saved in a suitably named folder which can be backed-up, reducing the need to have paper copies sent out to you.

Happy bookkeeping…

Payslips – 10 things that must be included

Payslips

I’ve noticed that whenever someone in a movie is being set up on a blind date, it is always with “such and such from payroll”…which is followed by an eye-roll and much protesting.  Are payroll people that bad? We do, after all, process your pays – shouldn’t you be nice to us?

But I digress, this post is about the 10 things that must be included on payslips in Australia.  And here they are:

  • Employer’s & employee’s name
  • Employer’s ABN if applicable
  • Pay period that is covered in that pay
  • Date of payment
  • Gross and net pay
  • Hourly rate employees – ordinary hourly rate, number of hours worked & total dollar amount of pay
  • Loadings, allowances, bonuses, incentive-based payments, penalty rates or other paid entitlements that can be separated out from an employee’s ordinary hourly rate
  • Pay rate that applied on the last day of employment
  • Deductions – amounts & details of each deduction plus the name or name & number of the fund/account deductions paid into
  • Superannuation contributions – amount of contributions made during pay period plus the name or name & number of the super fund the contributions were made to

Bonus tip: Payslips can be either be printed out or be an electronic copy, but make sure employees can access and print their payslip in private.

Personally I love payroll and it’s become a bit of a specialty area for me.  I was a legal secretary for many years and used to watch the bookkeeper handing out payslips each week and think to myself “I would much rather be doing that”.  And here I am now working in, writing about and teaching payroll.

Do you process pays in your workplace or in your own business? Do you love it or hate it?

If you’ve enjoyed this post or any of my other posts then it would be great to connect with you on Facebook: Festival Bookkeeping.  Look forward to hearing from you!

New rules for claiming car expenses

Car Expenses

From the 2016 financial year and onwards, the Australian Taxation Office have changed the way that businesses can claim deductions for their car expenses.

The ATO website has more information:  New rules for claiming car expenses

Happy bookkeeping…