Seven ways a Financial Audit can assist your business to be on track

Success starts with a sound financial strategy.

It is part of the continuing conflict between working in the business and working on the business. This results in small business owners who create and deliver their products or services ignoring the calculated events that keep the business healthy and growing.

Results could remain the same with happy customers and busy employees, but you may recognize something is out of sync when reviewing profits and losses. This is a sign that it is past time for a detailed financial audit requirement.

Audits are not valid when your business is approached by a lender, getting ready to take on partners, or preparing for sale. However, regular audits provide helpful knowledge to help you build financial control into your plans.

Here are what you want to understand:

1. There is a varying cash flow. Yes, it is achievable to be profitable but run out of cash, which is not good! However, long-term awareness is about your business's capability to maintain a positive cash flow. When you do not have, you will not be able to pay your monthly expenses.

2. You have enough working capital. Separate from cash flow, working capital measures your business's short-term financial health and profitability efficiency. This is calculated by deducting your current liabilities from your existing assets. When your business has a positive working capital, your business can pay off its short-term liabilities at any given time. Conversely, negative working capital means you do not have that ability.

3. You are having on budget. However, you cannot just hope you have sufficient cash to pay the bills.

If you have acquired having a budget, are you sticking to it? If not, what adjustments are required?

4. You are unprepared for unexpected expenses. You will need funds to pay employees, vendors, and suppliers during a slump period. You are better off with a large buffer of reserves, approximately near six months' worth. If you have less than that, then you are placing your long-term success at risk.

5. You have a significant amount of debt. Unfortunately, debt is not uncommon for a small business.

However, it is likely to have too much of it. The technique is to achieve debt with a good cost-cutting and speedy reduction plan, so debt does not become a trap.

6. Are you frequently paying the bills late? Frequent late payments mean trouble. You are running the possibility of destroying supplier relationships and being cut off from vital services. This is where the difference between manual to automated accounts payable systems can be extremely advantageous.

7. Need to comply with tax expenses.

This is the last thing your business requires is to be paying penalties on top of your tax commitments.

This will end up costing you time, money, and energy.

To sum up: Regular financial audits give you a better understanding of how your business must operate, use money, and take risks. Set up tools to improve you regularly audit your financial health to make sound decisions about urgencies and improvements. If you do need support with audits, reach out to your accounting professional for their guidance.

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You can create any structure you want by using the same tools as in the regular workflow. Add buttons and forms or anything else you'd want.

Being experienced with an accounting background, we can offer a wide range of reliable and accurate bookkeeping services. A common question often asked is, "What exactly does a bookkeeper do? "The answer to this question is shown below for our services as specialist bookkeepers. We can,of course, modify our services to suit the needs of your business whether you need a few of these services or all.

·      Accounts Receivable*-Invoice preparation and follow-up with the client

·      Accounts Payable* - Suppliers' invoices are processed and paid when due.

·    Bank Reconciliations -Reconciling Bank and Credit Card accounts with daily bank feeds

·     GST Filing                        - Timely filing of Bi-Monthly or Six-Monthly returns

·     System Training               - Training is required whenever you choose new software. We provide free training.

·    Accounting Software conversions – With our expertise, we can switch your accounting information to XERO/MYOB

·        Payroll

·        Unlimited Email Support

*Note:- Accounts Receivable and Accounts Payable are closely monitored to ensure that your business has no issues with cashflow

Payroll Management

Business Pillars offers all-inclusive payroll services that help your business run efficiently. We are committed to being legally compliant. Our services are built to simplify payroll processes for small to medium-sized businesses throughout New Zealand.

PAYROLL processing made easy

We provide the most updated payroll solutions tailored-made that is affordable to your requirement. We are committed to taking care of all the work demanded, allowing you to focus your time and energy on more essential things you love to do.

Our payroll services are:

·        Employees pay, On-time payments including benefits, reimbursements, deductions, Weekly/Fortnightly/Monthly

·        Employee PAYE

·        Payday Filing   – Timely filing returns to IRD

·        Leave entitlements– Accruals for each type of leave

·        Leave Payment - As per Holiday Act 2003

·        KiwiSaver contributions

·        Maintaining payroll records – payments and documentation

GST Filing

Timely Processing

We ensure that we file all GST Tax returns two weeks before the due date. We keep our clients informed before we proceed. This ensures that the client is at ease.

·        GST Filing        - Timely filing of Bi-Monthly or Six-Monthly returns

Monthly / Quarterly Advisory

The clients are in a position to process their reports from the software chosen. Based on the service requested, additional reports are also given that are not available in their chosen software. These reports enable the client to make corrective business decisions. Business Pillars reaches out to clients who require more assistance.

Monthly Management Meetings

The primary purpose of a monthly management meeting is to get the business to grow. This is either done through a phone call, zoom, or meeting in person.

Cash flow Management

Managing cashflow is a significant responsibility faced by most small businesses. We reach out to businesses making it stress-free to ride on the highs and lows of the cash flow throughout the year.

We assist in producing a cashflow statement which is a financial statement that summarizes the amount of cash entering and leaving the business. The cashflow statement measures how well the business can manage its cash position, meaning how well the business can generate cash to pay its debt commitments and fund the day-to-day operating expenses.

Budget Forecasting

Small business budgeting and forecasting

We need to get some relevant numbers to know what the future will look like regarding a business. Budgeting and forecasting will help to support this vision. Business Pillars can work alongside you to understand these basics so you can build a financially sustainable business.

What is a budget?

The budget estimates how much money will come in and go out from your business over time (usually a year). Budgeting and forecasting normally benefit all businesses and first-time startups to see if they can afford to run the business and compensate for all their hard work with a good return for their initiative.

What are the main principles of having a budget

Budgets forecast the money-making possibility of a business. It will also highlight things like:

  • How much will it cost to startup?
  • How much money is needed to borrow?
  • When will be the breakeven point?
  • How much should the customers be charged?
  • How many staff are needed?

Monthly / Quarterly Advisory

The clients are in a position to process their reports from the software chosen. Based on the service requested, additional reports are also given that are not available in their chosen software. These reports enable the client to make corrective business decisions. Business Pillars reaches out to clients who require more assistance.

Job Management

Job Management is software that supports project managers and teams to complete client requests and projects efficiently. Most professionals depend upon this job tracking software which assists them in supervising multiple sections of a business. Business Pillars are here to assist in setting up this service to track income and expenses related to service jobs.

XERO and MYOB both have the capability for Job Tracking

These are the advantages:-

·        Create quotes immediately

·        Easily track jobs from quote to invoice

·        Schedule the jobs on the go

·        Get paid quicker