Organisation is the key to success, and intelligent bookkeeping services for your business finances will give you the peace of mind that you need to succeed. Accounting for any new or long-lasting business can feel daunting, a world restricted to those with finance or accounting degrees.
But what if you didn’t have to worry about bookkeeping? What if you could outsource it to an accredited accountancy service that wouldn’t break the bank and provide you with industry-standard financial advice? With Surebooks bookkeeping services, this is a real option that your South African business should be considering.
In the following article, let us look at why Surebooks is such a fantastic option for your accountancy needs. This article will examine five of the most popular bookkeeping services used by financially intelligent businesses or five bookkeeping services you should be using for your own business. This article will not only list these services but also give a brief rundown of what they entail and why they are essential to the smooth running of your business.
Service 1: Business Invoicing
In this modern age, invoicing for your company’s goods or services has become inundated by a million apps, all promising you the quickest, easiest, or most efficient invoicing software. But trying to choose one that works for you can be a tedious process. So why choose at all? Surebook’s small business bookkeeping services will enable an invoicing system to work for you and your business. You can rest assured that your invoices are accurate and sent on time.
But what should an invoice even include, and how can you be sure that your invoice is of industry standard? In this section, let us imagine an invoice together and make a list of things Surebooks is sure to put on your invoice:
Business contact information
This is an essential part of any invoice. This includes your company name, address and contact details. This is to let the client know whom they are paying and give them options to contact you in the business in case of any queries.
This is more for you or your Surebooks accountant rather than the client. An invoice number allows you to keep track of how many invoices the business has already issued within a given time frame, whether a day, month or year. The invoice number is generally reset at the end of that period.
There are generally two dates on your invoice. However, the primary date is when the invoice was issued to the client. Sometimes, but only in some cases, an invoice may include a second date, informing the customer of when the balance should be paid.
Description of goods or services
An itemised list with exactly what was offered to the client should always be included. The list should generally be as detailed as possible, avoiding confusion on the client’s side and allowing you to make sure you haven’t missed anything.
Although other things may be included on your invoice, the above checklist of items will always be included on an invoice. And Surebooks will make sure that it is.
Service 2: Tax Return Preparation
The word ‘tax’ can strike fear in the heart of even the bravest man. Why? Because tax is complicated, and without the correct advice, you will surely miss something. Taxes are a legal requirement for any business and therefore carry with it legal responsibility. The bookkeeping services offered by Surebooks will provide your business with the tax return preparation it needs and the peace of mind that you are covered. Below is a quick breakdown of the essential elements of a tax return form, a report that must be regularly filed with the appropriate tax agency.
This section of a tax return form will include all sources of income for your business and determine how significant your tax liability is. This may consist of traditional payment sources to the company but could also include dividends, royalties, employment income and capital gains.
If income determines the size of tax liability, deductions have the opposite effect in diminishing tax liability. In addition, what can be claimed as a belief varies widely depending on the country in which your business exists. However, with a company, operational costs are generally deductible.
3. Tax Credits:
Tax credits diminish the business’s tax liability, like the above deductions. However, credits are related to your company’s social impact rather than operational costs. There are several tax credits a South African business can claim, including Disabled access credits, work opportunity credits, biofuel credits and renewable electricity credits, to name a few.
Service 3: Produce Management Reports
As a business owner, it is essential to you that you make the best possible decisions with the most accurate information from your business. It may be unexpected, but bookkeeping services can help you here too.
Generally, a management report is a combined document that includes the managers’ messages for the company’s branches—allowing for a complete overview of the company’s operations. But Surebooks understands that your business may still be growing and that you don’t have access to an entire team to create a management report. This is why the production of management reports is included in Surebooks’ bookkeeping services.
Mission, vision and values: This may seem trivial to you as the business owner, especially if you are the ones that came up with them in the first place. But a management report is accessible to any employee; therefore, by listing your mission, vision and values, you reinforce the company’s identity amongst the staff.
Organizational (balanced) scorecard: This tool allows a manager to look at the business from four perspectives: financial, internal, innovation, learning, and customer perspectives. Each stand includes a column for goals a company wants to reach in each view and the measures to achieve those goals. A balanced scorecard is a standard tool in management reports and helps the owner meditate on the business’s future.
High-level project overview: A report can quickly become about the business’s small daily challenges. But a management report should look to detail more prominent information. Including a high-level project overview section in which a detailed breakdown of the business’s current projects is essential to keep the report focused on a long-term strategy for the future. This section should include a detailed description of the projects and their current status.
Action items: Finally, a section should be included in the management report in which decisions and actions made by management are captured so that staff uniformly understands the company’s next steps.
With Surebooks bookkeeping services, you will receive a management report that will help you and your staff be ready to take the correct steps to success.
Service 4: Budget And Analyse Cash Flow
Surebooks bookkeeping service also provides you and your company with more regular financial advice for the daily running of your company. With Surebooks, two of the most common aspects of day-to-day finance will be taken care of; this includes your budget, which will be set up and adjusted in a way that suits your needs. Furthermore, qualified financial professionals will analyse your cash flow, ensuring that every cent that comes into your business is used in the best way possible.
So, let us separate these two elements and look at them in closer detail. First, the budget and then the cash flow.
Section A: Budget
The budget is among the most financially essential tools for any business owner; it helps regulate the business spending practices and ensures that those things that are a financial priority are seen first. Although budgets can be as lax or as detailed as you allow, with Surebook’s bookkeeping service, you can rest assured that your budget is managed with the utmost care. Here are just a few things your Surebooks accountant will do to make sure your budget is top quality:
- Collect a detailed report of the company’s income and expenditure.
- Take into consideration your environment and the unique challenges your business may face locally.
- Predict advantageous or disadvantageous budgeting-related outcomes.
- Finally, consult with you on the targets you need to meet, adjusting the budget to help you.
Section B: Cash flow
And what about your cash flow? Cash flow can be loosely defined as payments in and out of business. However, the difference between these two amounts is crucial in understanding the company’s economic health. If the balance is not finely tuned, your company will struggle long-term. Surebooks’ bookkeeping service is there to help you balance your cash flow correctly! Let us look at two unstable situations where an accountant providing bookkeeping services may come face-to-face.
Scenario A = Large Income but low outgoing payments: This may seem like the dream scenario, but in the long run, this might be troublesome. This is because if your company hoards its wealth like a dragon on a pile of gold, your company is not utilising its liquid assets effectively, which may lead to stunted potential growth in the future.
Scenario B = Small Income but high outgoing payments: This is troublesome. Because if your company continues in this way, you will be left with sizable debt in the long run, which in extreme scenarios, may lead to your company having to declare insolvency.
Service 5: Breakdown Of Performance Indicators
Another bookkeeping service you may need to be aware of, and the last one we will look at in this article, is performance indicators. Also known as KPIs (key performance indicators), quantitative values give your company a complete overview of its financial situation. Although this list can be long and detailed, here we will define three of the most important indicators that your Surebooks account is looking at:
KPI 1 Revenue growth: This metric is the most important. This is the percentage change in how much money the company brings in between two defined periods, usually a year. Revenue growth is positive if the company brings in more money than it did the year before.
KPI 2 Profit margin: A company’s profit margin can be defined in two ways; gross and net. A gross profit margin is how much you sell the product for minus what it costs to produce; if that difference is positive, your company is making a gross profit. Net profit is the gross profit minus the business’s operational costs. The net profit is your company’s actual profit.
KPI 3 Customer retention rate (CRR): This is an essential metric in understanding the quality of your company’s goods or services. If the CRR is high, meaning that you have many repeat customers, this generally means that the goods or services are to the customers’ liking. Therefore, they return to your business to do business again. Thus, your company is retaining that customer.
Bookkeeping Services: In Conclusion
This article has looked at five bookkeeping services you should be utilising. But, of course, all these financial systems, checks and balances, can become overwhelming and hinder your focus on what is important – your business. That is why you should choose Surebooks, their industry-leading bookkeeping services will keep your business financially healthy, and with everything in one spot, you can rest assured that you are taking care of your business finances responsibly.