GoFi8ure on Setting Financial Resolutions to Start the New Year Right
Concluding the year means wrapping up tax returns and keeping financial statements up to date. This way, business owners can welcome the New Year with a brand-new slate. To help, GoFi8ure shares some important financial resolutions that businesses should stick to for an uncomplicated and stress-free New Year.
- Set realistic budgets
Business owners who are planning to expand in the new year should first look into their company budget. A good first step is to review expenses with a professional accountant, and see if expansion is even viable in the first place. There may be instances where one business needs to trim expenses and set a more realistic budget to improve cash flow first. Whether that is in the form of examining operations, inventory, or cutting unneeded personal spending, there are many ways to significantly influence a company’s cash flow and financial position.
- Become more organised
Accounting can be time-consuming and difficult to manage, especially when businesses don’t have great record keeping. This could easily lead to losses if one does not keep files and records organised. Losing cash slips and encoding the wrong data will influence profitability. GoFi8ure recommends investing in professional help. Professionals specialise in handling time-consuming accounting tasks, so it is a valuable investment that will likely outweigh the costs in the long-term.
- Always be one step ahead
Complacency will never work when running a business. Businesses that are planning to apply for a business loan will need to provide tax returns, and this means businesses need to file them early on to obtain a stronger position, in order to get loan approval. A major plus is also utilising a reliable accounting software—such as Xero—so one can review and keep financials up-to-date.
Profit vs cash
Do you understand the difference between profit and cash? Are you improving your profits but not seeing an improvement in your bank balance?
There is a massive difference between profit and cash. Let’s explore the differences to make a better plan to increase both.
Profit increases when you increase sales; cash increases when you collect the money from customers. To increase both your profit and cash from sales:
- Delight your customers
- Generate more leads and referrals
- Convert a higher number of quotes or proposals
- Increase transaction frequency
- Increase transaction value
Profit increases when you send an invoice to a customer; cash increases when you collect the invoiced amount. To increase both your profit and cash:
- Set clear Terms of Trade
- Offer a small discount for early payment
- Agree the price in advance
- Stick to your payment terms
- Don’t do work for people who have overdue payments
Increasing your margins will increase your profit; collecting the increased margin will increase your cash. To increase both your profit and cash:
- Increase your prices
- Invoice faster
- Negotiate better payment terms with suppliers
- Reduce errors and rework
- Train and empower your team
- Increase your efficiency
Reduce your finance costs to increase your profit; borrow money for assets to increase your cash. To increase your profit and cash through financing:
- Spread the costs of assets over 3-5 years instead of buying them outright (e.g. vehicles)
- Borrow from a bank instead of a finance company
- Secure the asset purchases over ‘bricks and mortar’ (if possible)
Reducing your overheads will increase both your profit and cash. To reduce your overheads:
- Negotiate with suppliers
- Measure your return on your spend (e.g. advertising, accounting fees, etc.)
- Review your subscriptions
- Go paperless
This is not an exhaustive list of ways to increase your profit and cash. We can help you identify specific areas of improvement in your business to increase both profit and cash.
“Never take your eyes off the cashflow because it’s the lifeblood of the business.” – Sir Richard Branson
Xero Reporting: Drilling down into your numbers
Knowing the status of your finances is a vital part of running your business successfully – and with Xero reporting it’s incredibly easy to run key financial reports at any time.
With a wide range of standard and custom report templates, you’ll get a better view of your profit margins, your cash position and how expenses are affecting your bottom line.
Real-time reporting at your fingertips
Cash is king when it comes to business success, so having Xero’s real-time reporting at your fingertips means you can control your cash flow, your aged debt and your profitability.
With Xero’s easy reporting tools you can:
- Run a Profit And Loss report and see how your business is performing over time
- Review your Aged Receivables so you can understand who’s not paying invoices
- Dip into the Cash Summary and get more control over your operating expenses
Talk to us about getting more from Xero Reporting
If you are want to get in real control of your numbers, we can with you to set up simple, customisable reporting templates – giving you the key financials you need. Find out more by sending us a message.
Meet New Zealand’s Latest Xero Platinum Partner, GoFi8ure
September has certainly been kind to GoFi8ure, a leading accounting, tax return, and bookkeeping service in New Zealand. GoFi8ure started the month by snagging accounting software company Xero’s coveted Bookkeeper of the Year award. More than the award, the company made history by becoming the first bookkeeping practice in New Zealand to become certified as a Xero platinum partner.
GoFi8ure attributes this success to a journey 9 years in the making. The company put their trust in Xero, and this opened up fresh opportunities and innovative solutions, becoming a highly beneficial partnership. 9 years of hard work later, and the company has finally gained recognition for its stellar performance through the opportunities the certification will bring.
Xero isn’t your average, run-of-the-mill accounting software developer. Largely based in New Zealand, it has since grown to serve clients across the regions of Australia, the UK, the UK, Canada, Asia, and South Africa. Key features of the software include auto bank and credit account feeds that can be sourced through the cloud.
The Xero partner program provides big boons to companies through its many extra features as well as the addition of fresh clients. Xero has grown to become the preferred bookkeeping solution by many industries and companies; as more and more companies started using Xero, GoFi8ure realized the importance of polishing and optimizing their Xero training. As a result, the company has reaped the benefits of Platinum accreditation.
GoFi8ure attributes their success to customer interactions that have been more proactive than reactive. Their accountant training has always been geared toward understanding the clients’ need first and foremost and working their way towards their satisfaction. After all, an accountant that’s passionate about helping clients is good for everyone.
GoFi8ure still possesses the same passion toward helping businesses perform and achieve impressive financial results. For inquiries about working together, or simple curiosity about Xero, drop by https://gofi8ure.co.nz/ now!
How to turn your passion into a business
Ever dreamed of turning your passion into a business? It can be a rewarding way to make a living.
With the rapid growth of online shopping and affordable ecommerce platforms, some of the traditional barriers to launching a small business are gone. You can potentially make sales without buying a shop or giving up your day job. Here are some thoughts to help you monetise your hobby and turn your passion into a business!
1. Be prepared to lose some love – Once you turn your passion into a business, you’ll never feel the same way about your hobby again. The idealism of doing what you love for a living will collide with the reality of:
- tracking sales and cash flow
- hitting targets
- managing inventory
- watching competitors
2. Balancing creativity and commercialism – When you create something for personal fulfilment, you can make it to suit yourself. But when that creation becomes a service or product you wish to sell, you have to work within boundaries that suit your customer’s needs and requirements.
3. How do you monetise your hobby? – You’re enthusiastic about your hobby and the business idea that flows from it but ensure you fully test ideas within your market to find out what works and what doesn’t. Try to solve a problem or find a product that already exists and find how you can improve on it.
4. Building your brand with free content – Sharing relevant content is a great way of building up your customer base.
5. A pragmatic approach to social media – Find out where your audience spends their time (Facebook, Twitter, Instagram) and focus there. It sounds obvious but this simple piece of research can save hundreds of hours of lost effort.
6. Separate your personal and professional goals – When you turn your passion into a business, it’s easy to lose track of time. Both the passion and the business soak up a lot of energy – making it hard to get your work-life balance right.
Talk to us about turning your business ideas into reality
Turning your passion into a business is an exciting prospect and you could earn money doing what you love. Talk to one of our team and we can help you to come up with a plan and put steps in place to help turn your passion into a business reality!
For the third year in a row, mobile Accountants and Bookkeepers GoFi8ure attended the Xerocon Conference and Awards in Brisbane and were named as Xero’s Bookkeeping Partner of the Year for New Zealand, on account of their effective and innovative use of Xero while providing bookkeeping services.
“Words cannot describe how honoured and grateful we are,” said the Accountant and Bookkeeper in a blog post last week, giving their thanks to Xero for recognising the growth and change that GoFi8ure has seen over the last 36 months. They also congratulated the other finalists for the award, Julie Russell Bookkeeping and Katalyst Cloud Business Services, and praised their achievements over the last few years.
In their blog post, GoFi8ure also attributed their success in this category at the Xero Awards to the business’ core values, which they say have been integrated throughout their businesses and services on a day-to-day basis. Values such as responsibility and accountability for completing every task given to them by clients, integrity in honouring professional commitments, and efficiency and effectiveness in their approach to every job, have all been a crucial part of their business and its success over the last three years, according to GoFi8ure.
GoFi8ure use Xero extensively as a tool and platform to provide SME business owners, sole traders, contractors and non-profit organisations with a one-stop accounting solution, and generate every tax return and financial statement their clients need. GoFi8ure’s services even include one-on-one Xero and bookkeeping training sessions, with their own tailor-made training programme that utilizes a 12-step ‘best bookkeeping’ checklist.
GoFi8ure have a team of 16 qualified accountants and bookkeepers across their branches in the Wellington CBD, Upper Hutt, Auckland and Dunedin, allowing them to offer services to businesses from all over the country. Anyone wanting to learn just how GoFi8ure can help their business can visit them online at gofi8ure.co.nz, or call 0800 463 488 to get in touch directly.
Become Financially Aware in 2018
The better you understand your business, the easier it will be to make more money. Management decisions rely on a sound understanding of the financial implications for a business. It is important when you choose an Accountant that they support you in other ways, not just preparing and filing your annual Tax Returns. At GoFi8ure we help to empower business owners so they can fully understand and interpret their numbers. This gives them a strong foundation on which to grow their business.
Who would benefit from Financial Awareness Coaching?
If you are passionate about your business and want to better understand your numbers so you can answer questions like:
• How much profit have I made this year?
• Why has my profit increased but I have no cash?
• Is my cash level increasing or decreasing?
• What is affecting my cash level?
So, when should you begin Financial Awareness Coaching?
Any time is a good time to improve your understanding of your financial reports in order to improve business performance. The sooner you start Financial Awareness Coaching the better your understanding of financial results and their implications, and the more control you will have over outcomes.
Interested to know what the benefits of Financial Awareness Coaching are?
• Enable you to better understand your business
• Iron out any existing errors to ensure accuracy in your financial reports
• Help you better manage and monitor your cash-flow
• Customise your reports to ensure you capture the right information
• Allow you to format your reports in a way that makes decision making easier
• Help you gain better understanding of the financial implications of decisions
• Give you the ability to make better informed decisions
• Allow you to review your reports and record actions to be achieved before the next meeting
• Help you be held accountable so you can achieve progress between meetings
• Identify any burning issues that need to be addressed
• Access the collective wisdom of our accountants, our systems, products and services
• Phone support to address any burning issues between meetings
Call us now on 0800 463 488 to further discuss how Financial Awareness Coaching can help you and your business.
Have you got your succession plan sorted for your business?
Xero recently released their “The importance of Succession Planning” Guide specifically aimed at small businesses in New Zealand.
Xero’s succession planning report outlines strategies for working with business clients to plan for a successful exit well ahead of time. It helps advisors start the conversation about this important but often neglected topic.
Succession planning is an important part of your business model, so when GoFi8ure were asked to contribute to Xero’s Guide we jumped at the chance.
Executive Director Lisa Martin truly believes that every business needs to have a Strategy, a way to Execute it and a good Cash flow forecast.
To read the online Succession Planning Guide and the value information provided by these amazing contributors click here to read the guide.