As another season of The Block draws to a close and resulted in a derelict building in South Melbourne being converted to a prime residential apartment block with all properties selling for more than 1 million dollars. I thought to myself, residential property investors commit so much to renovate these properties, but business owners don’t do the same to their businesses. Is it because some spend so much time working in their businesses, they don’t have the time to renovate their businesses or to many simply not know where to start?
Any successful renovation must start with a strong foundation, which in your business is your bookkeeping. Successful business people realise that bookkeeping is much more than data-entry. Your most important business decisions are based on the information contained in your financial records. If your books are not in order, you may be making poor business decisions, which cost you money.
Renovating your bookkeeping systems and financial records may be the key to finding the path to success.
How does bookkeeping influence your business decisions?
Your financial records are the basis of a range of decisions which touch every corner of your business.
- Operations: Are we reaching our goals? Have we set the right goals?
- Cash-flow: Is cash flowing through my business efficiently?
- Inventory: Which products are driving profits? Do we have money tied up in obsolete stock?
- Marketing: Are we communicating the right message? Is this demonstrated through profit or growth?
- HR: Do we need to employ someone new or terminate an employee?
- Systems: Are our internal systems supporting our business?
- Strategic planning: Is our business heading in the right direction?
Data-entry should not be the extent of your bookkeeping efforts. Investing in brilliant bookkeeping is investing in success. Renovating your bookkeeping can allow you to make smart business decisions and revitalise your whole business!