Unlock the value in your bookkeeping

JobKeeper and government grants means our bookkeeping has never been more important or up to date. But if you are only bookkeeping for compliance in your business, you are missing out on the real value of that work. Your numbers are not doing the heavy lifting that they could be.

One of the easiest ways to unlock the value in your figures is to customise your Profit & Loss statement. A simple realignment of the expenses can instantly provide insights that the standard format does not.

Isolating and grouping similar expenses can identify and summarise the costs involved in providing your goods or services, the collective costs of employing your team, renting premises, advertising and marketing your business and general overheads.

What measures would be valuable to your understanding of your business performance?

Identifying the overheads of your business can provide a very clear understanding of what is the very minimum amount you must earn just to keep your doors open – your break even point.

Measuring profit margins could provide more relevant feedback than sales income alone.

Looking at results as percentages might be more meaningful than absolute values.

If managing cashflow is a challenge, month to month comparisons of income and expenses can paint a picture of trends and the financial implications of seasonality and provide alerts to when some of our larger business expenses fall due.

The bookkeeping that you do for JobKeeper and government grants and BAS provides the basis for all these measures.