From un-trained staff to the dreaded ‘profit & loss haze’, Oscar Fairchild’s Kim Redwood Lee shares the bookkeeping mistakes which have the power to de-rail your business…
Everyone knows that a business can’t succeed if the numbers don’t add up. So, whilst it might not be the most exciting thing on your ‘to-do’ list right now, having a solid bookkeeping foundation will enable you to focus on growing your company, safe in the knowledge that your figures are secure.
So, what are the 3 common business bookkeeping mistakes you should swerve
1. Inadequate bookkeeping systems & management accounts
When you run your own business, especially a relatively new one, money and resources are often limited. For businesses to grow owners need to be able to make tough Profit & Loss decisions quickly. Accurate and systemised bookkeeping gives you a real-time management dashboard, helping the company decide between those things which will drive growth, and those things which are merely ‘nice to haves’.
2. Junior or un-trained staff in charge of bookkeeping
When a business first starts-up the focus is on development. Usually a small team operates an ‘all hands-on deck’ approach. However, once a company is more established there are core business functions (like credit control and payroll) that should no longer fall into this bracket.
This is where businesses need to take advantage of outsourced service providers with expertise in the areas they need. At Oscar Fairchild we’ve been helping high-growth businesses since 2010, and our professional team of AAT qualified bookkeepers & accountants are ethical, practical and really know their stuff.
3. Relegation of the first principles (even in the ‘Uber’ age they still matter)
Small and medium businesses, especially those that are owner operated, are different from large corporates. But even the most dynamic, high-growth SMEs need to pay attention to the brass tacks of business. No amount of passionate leadership, dedication to customer care or tight-knit team ethics can replace the value of solid bookkeeping and financial planning.
Sustaining rock-solid profits, protecting revenues and keeping debt within safe levels will safeguard growth (and make your business more attractive to potential investors and partners).
About Oscar Fairchild:
Oscar Fairchild (incorporating Redwood Clarke since 01.09.18) is an Association of Accounting Technicians (AAT) qualified accountancy & bookkeeping practice with offices in The City of London and Billericay, Essex. Offering a wide range of services including Self-Assessment Services, Annual Returns, VAT Returns, Credit Control, Payroll, Auto Enrolment Pension and Management Account services to high growth businesses across London, Essex and Hertfordshire.