Newcastle Living Magazine
Edition 7
Helping Your Small Business
Area locals Pitcher Partners Newcastle and Hunter are business advisors and accountants with a firm focus on helping businesses. Their goal is to empower the local business community to help reach their potential by offering a range of services from tax to audits. They recently gave us three golden tips to help your small business succeed without the financial stress.
“More and more business owners who I talk to are saying they need a few more hours in the day. The real reason you want to be smart about utilising technology is that it gives you back time.”
Stop chasing your tail
Have you been too busy to get your books organised? Do you know your current financial position? Will your family and employees be okay with the changing economic conditions? These are questions we often ask ourselves but don’t have the answers to. Business Services Manager Greg Logue says the best thing you can do is get your engine into gear.
“If you have accurate bookkeeping and data that’s ready to pass on to the bank or your advisor, you have the ability to make fast financial decisions when it matters,” Greg says, “but if that information isn’t readily available, you’re stuck chasing your tail”.
If you begin to get organised now you will be able to make quicker and more informed decisions if a problem does arise – and that’s what will help you create wealth.
“People often overlook it because they get too busy and forget how important it is to collate and reconcile your data so it’s up-to-date. You don’t want your reports to be hiding any unforeseen problems that might bring your business undone.”
Use technology to your advantage
COVID-19 forced a lot of small businesses into using technology “a bit better”, according to Greg. But the ultimate benefit of systems such as Xero isn’t just being able to access government subsidies, it’s in the efficiency it creates for your business.
“Less manual input means you’re more cost effective, and all of this comes back to time.
“More and more business owners who I talk to are saying they need a few more hours in the day. The real reason you want to be smart about utilising technology is that it gives you back time.”
That’s time to enjoy doing the things you love and allow you to focus on business improvements rather than the day to day grind.
“Sometimes as small business owners we lose sight of why we started our business in the first place.”
Make sure you understand your cash flow
Even the most talented tradesperson or professional can come unstuck if they don’t understand that cash flow is the lifeblood of their business.
“If you’re not making smart decisions and cash flow is reducing, it’s only a matter of time until your business is in financial distress.”
“That means knowing exactly when money’s coming in and when you’re spending it, in other words, knowing the cash cycles of your own business.”
“With accurate cash flow forecasts and budgeting, you won’t just be a more educated business owner growing your wealth, you’ll enjoy more peace of mind.”
Longstanding accounting, auditing and advisory firms DFK Crosbie and Pitcher Partners Newcastle and Hunter joined forces recently to unite under the Pitcher Partners brand. Pitcher Partner Newcastle and Hunter is proudly based in Newcastle and Maitland.
Need more help or information? Feel free to contact them on (02) 4923 4000, or read more about how they make business personal at pitchernewcastle.com.au
You can also follow them on Facebook for regular accounting tips and to see their community projects over on their website.