What i see in how people run their business is frighting.Indeed,the statistics on small business are frighting!
Did you know that with the average small business
*80% don’t last beyond 5 years.
*A further 80% of the remaining 20% don’t last beyond the next 5 years after that.(This means 96% of small business don’t last beyond 10 years).
*1 day per week is spent on bookkeeping and government compliance.
I have had successful business and from unsuccessful business and from my experience,record keeping and retaining financial control over your business,and ensuring that your systems grow with your business,and are carefully planned as it grows,is absolutely critical.
SMALL BUSINESS
With a small business, you may be a sole operator,with a few employees at the most.Many small business owners control the fiances and do their own bookkeeping.This can be mistake,depending on the business.Small business owners have to complete BAS statement every quarter.Their biggest mistake is keeping poor records and making inadequate provision for PAYG income tax.It is important to ensure that expenses and invoices are properly recorded using a system such as MYOB or Quickbooks or something similar.
Usually the financial controller is the owner themselves,with the help of a bookkeeper.
