You see, many business owners are so focused on delivery, they neglect to properly keep track of their expenses.

As a NDIS provider, managing finances is crucial to ensuring the sustainability and growth of your services. Yet, we still ask ourselves, “Where did my money go?”

Here are some essential tips for NDIS Providers:

1. Detailed Record-Keeping: Maintain accurate and detailed records of all transactions. This includes invoices, receipts, and payroll records.      Regular audits can help identify discrepancies early.
2. Budget Wisely: Develop a comprehensive budget that outlines expected income and expenses. Regularly review and adjust this budget to
reflect changes in funding or operational costs.
3. Monitor Cash Flow: Keep a close eye on your cash flow. Ensure that your income covers your expenses and allows for savings. Cash flow
projections can help anticipate and mitigate potential shortfalls.
4. Use Accounting Software: Invest in reliable accounting software tailored for NDIS providers. These tools can streamline bookkeeping,
manage your people, generate reports, and provide real-time financial insights.
5. Regular Financial Reviews: Conduct regular financial reviews and involve your team in the process. This promotes transparency,
identifies opportunities and collective accountability.

By implementing these strategies, you can gain better control over your money, ensuring that it is used effectively to provide high-quality support and services to your participants.  You'll no longer be thinking “Where did my money go?”, because you'll know exactly where it is going!

You know, I have a Financial Fitness group where we work on these areas and much more. I am taking in the next group of people so if this interests you, join the waiting list here: Find out more

The post She said: “Where Did My Money Go?” appeared first on Higher Purpose Accounting.

Separate personal and business finances completely

That dinner you had wasn’t part of a meeting with client, yet you used your business card. Those computers that you bought were meant for work, but you ended up using your personal payment card. Yeah, you can pay yourself back from your business or pay back to your business from your personal account. But DON’T!

It’s that simple.

Personal and business finances should never ever be mixed together whatever the circumstances may be. Generally, when you spend on your business, you should record a transaction. If you don’t or if you combine personal and business finances, then things can become a pain pretty soon and it will be hell for you to track down all the expenses.

So, separate the two accounts right from the start and you’ll be saving yourself a good amount of time and pain in the future. And let’s not forget that this will be a huge help when you lodge your tax return.

Organise yourself!

For organising your finances that is. Spend around 15 to 30 minutes every week and the only thing that you should be doing during this time is to sort out your finances and make sure that they are in proper order.

And by the way, this little activity can even help you gain insights especially if you make good use of your accounting system.

Track salaries

Yes, there is a need to mention this separately. Whether you are the only one working or have a team of staff, track costs associated with salaries, benefits, leaves, overtime and other relevant expenses separately.  This will let you know if your labour costs are within the budget or outside it. Accordingly, you can decide if you should spend more on incentivising your team or if you need to cut down on some benefits.

Consult the professionals

We mentioned this at the start of our discussion, but let’s talk about it again for emphasis. Accountants are a vital part of any team.  They are an expert in maintaining accounting and finance systems and have done it for so many businesses just like yours. They know exactly what works, what doesn’t and which deductions you should utilise.

Agreed, you may want to refrain from hiring an accountant for anything other than tax and other compliance areas, but trust us, bring a professional accountant and trusted advisor on board and the improvements made will more than compensate for the investment!

So, there you have it - Separate, Track, Organise and Consult.  Then you will be well on your way to manging your finances effectively.

Higher Purpose Accounting can help you in setting up your accounting system and managing your finances. Visit our website or book in a call for more information.

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While there isn't a fool-proof plan to reach small business startup success, there are common and costly mistakes many new business owners make that can negatively impact their businesses.

Here are 10 of the most common mistakes to avoid as you start your small business.

1  Skipping the Planning Phase

Planning may be tedious, but without a solid plan for your business that includes business idea research and market potential, you will be operating in the dark. The most important plans to consider include a business plan, a financial plan, and a marketing plan.

2  Not Setting Goals

Goals can give you direction when you first start your business, then keep you on track during the day-to-day operations. By making sure your goals are SMART goals, you can identify where you want to go and outline specific steps that you will take to get there.

3  Undervaluing Your Products or Services

Many times, lack of confidence in our ability and fear of failure causes us to under-price our products and services. This is a dangerous path to take because it undermines the unique value you bring to the table and opens up the possibility of resentment and frustration. Recovering from undervaluing your products and servicess is a long road, so you should explore the market thoroughly as you start your business to identify the best price entry point for what you're selling.

4  Avoiding New Technology

As small business owners, technology can provide new opportunities, help us do our work more efficiently and even help us save money.  New technology may be intimidating, and require time to learn and understand, and require a financial investment but an unwillingness to adapt to technological advances can hurt your business in the short- and long-term.

5  Being Afraid of Marketing

Marketing can take many forms from word of mouth referrals, to traditional advertising, to social media marketing. There aren't any set rules when it comes to marketing; the best type of marketing for you depends on your business and your target audience. The mistake is assuming you don't need to market and that business will come to you.

6  Not Knowing Who Your Ideal Customer Is

One vital part of any successful marketing campaign is understanding who your ideal customer is. It's not enough to create a marketing budget and try a little bit of everything. You need to do market research to identify who you are trying to reach (your customer avatar), where you can find them and how they will react to your marketing activities.

7  Overspending

Starting a business doesn't have to require a large investment, but some new business owners feel that they need to spend a lot to purchase the best of the best everything from marketing help, to equipment, to software at the start up stage.  There are usually other, less expensive but equally viable options available, if you're willing to do the research.  And allways measure your return on  investment from each item.  Creating and sticking to a business budget to curb overspending is always an excellent idea.

8  Underspending

Some small business owners who don't overspend fall on the other end of the spectrum and refuse to spend much on anything. While there are certainly ways to start and grow a business with limited funds, going too far and not investing any kind of capital in your business can severely limit your potential for success.

9  Doing It All Alone

A small business owner may be willing to learn how to be a jack of all trades, but it doesn't have to be that way. Effective delegation can be one of the best ways for new small business owners to build their businesses, free up their time for business activities that require their unique expertise, and build a team positioned for future success.

10  Not Making a Commitment

Starting a business requires a number of success-oriented character traits such as drive, dedication and a serious sense of commitment. Small business owners need to be willing to make sacrifices, put in the time necessary, and face challenges head-on if they want their businesses to be successful.

We all make mistakes. The key is being aware of them and consistently working to make smart, well-informed decisions in your business. If you can do that, and remain resilient when you do make a mistake, success will be within your reach.

To learn more Contact us today

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