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       13 January 2017 by Sarah-Jane Smith

sjsmith.com.au - blog

Know Your Numbers

Finance Basics

When I first started running a business the thought of managing the accounting and finance side was pretty daunting.  I had no real background in those areas and was really wary about making any mistakes.  I decided to start simply with a basic exercise book.  One page for money coming in per month, the opposite page for money going out per month.  It may not have been very high tech but it was what worked for me.

We got a little bigger and I decided I needed something to save some time so I set up a basic spreadsheet.  Again one sheet for money in and one for money out.  I went to the library and got a book on setting up Lotus 123 spreadsheets (that was what we had on our system at the time).  Once I learnt to do formulas in a spreadsheet I set up payslips for the staff.  Prior to this I’d hand written payslips.

As we expanded and started employing more staff, it became clear that we were going to need to upgrade to a computerised accounting system - I was terrified!  So I hired a trainer to show me how to use the system.  It wasn't cheap but it gave me a great grounding and she set up the system initially so that I knew that it would work right from the outset.  Initially, I just entered sales and purchases and continued to do the wages manually but after three months we went fully computerised.

Now we do everything electronically.  Wages are paid directly to staff accounts, suppliers are paid online via EFT and we receive money directly into our bank account.

My point about all of this is that you don't need to start with a you-beaut system.  If you are a small independent operator without too many transaction you can still manage your business finances.  What you really need to know is whats coming in and whats going out.  Keep a good track of your cash flow and chase up debtors.  Find a good accountant.  Like all things in business, finance is learnable.

Till next time,


Sarah-Jane X




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