More and more women are going into business for themselves. In fact, according to the Australian Bureau of Statistics, women now operate one-third of all Australian small businesses, with a 46% increase in women-led businesses in the past two decades – talk about ‘girl power!’
As this number continues to grow, so does the importance of accounting for women in business.
This is where your Gold Coast Accountant comes in. We’ve compiled a list of accounting tips for women in business.
What are they? Continue reading to find out.
1 Create a strong business foundation
The key to business success starts with a strong foundation.
Where does this strong foundation begin? With understanding. Understanding of your business, product or service – well, that’s a given. There needs to be an understanding of your numbers too.
Who can help you understand your numbers? An accountant.
Not only can an accountant help you understand your numbers, they represent a supportive foundation to assist you with your business systems, structure and much more. All this is crucial for women in business, or anyone in business for that matter.
The right accountant will ensure you and your business are equipped with all the financial knowledge that will help you succeed in business.
2 Realise and review realistic goals
Realistic goals in your business are vital. These goals should be personal, financial and business related and reviewed regularly.
Your business goals could look something like this:
- Purchase a business premises
- Save a deposit for a new home
- Sign 5 new clients each month
- Take on 1 employee in the next 12 months
Once you’ve figured this out, set action items for each goal, with a deadline to help you achieve them. It’s also important to find someone to hold you accountable for these goals too – this could be your partner in life or business, a friend, family member, mentor, business coach, or even your accountant. Which goals will you set for your business and who will hold you accountable?
3 Budget, budget, budget
Did you know that your business needs a budget too? Oh yes! Without one, your business could be failing before you know.
Before you create your business budget, keep these business budget tips in mind:
- Don’t underpay yourself
Many small business owners (particularly us women), are tempted to save everything they can in the beginning, to keep as much in their business as they can. Whilst it’s important to keep money in your business and save, your budget should allow what you need to be paid to cover your personal expenses and lifestyle too.
- Overestimate your business expenses
Don’t underestimate your business expenses. Instead, we recommend you overestimate them.
Why? Well, much of business is planning and reacting to the unexpected, so it’s best to plan rather than react whenever possible. Failing to do this, can be crippling for a small business. So, overestimate your expenses when you can – think of it as a little ‘business survival tactic’.
- Regularly revisit your budget
Things change, so will your business and your budget. This is why it’s important to revisit it regularly.
By doing so, you’ll gain better understanding and control of your businesses’ finances. You’ll know what you can afford to spend, rather than what you project you can afford to spend.
There are many more accounting tips where these came from. With these tips though, comes the importance of mentoring, advice, support and asking for help – you don’t have to go it alone.
Who should you ask for help? Your local Gold Coast business accountant is a great place to start.
At Crest Accountants on the Gold Coast, we have over 45 years’ experience in working with female business owners, advising on processes, systems, and plans, essential to the overall structure and success of a business. We take the time to get to know our clients so that you feel confident we have your best interest at heart. Crest Accountants, accountants you can trust.
Contact us and book an appointment to discuss your business accounting needs today.