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Preparing Your Own Accounts

As Electricians, accounting and book keeping can be a scary business. The least scary option is to have an accountant do them for us. This frees us up to do what we do best. That way we can keep earning instead of losing our head in numbers and hoping for the best!

If you do your own accounts, that's fine too. I can say though, that an accountant is much more likely to keep you compliant as well as save you a lot of money in tax savings and more. Do speak to a few to get an idea where they can help.

More Important ... HOW you submit your accounts can save both you and your accountant a lot of time. This means a lower bill for you!

If you are one of those people that turn up late in the financial year and throw a carrier bag full of receipts on your accountant's desk ... Chances are you aren't doing anyone any favours. While a professional accountant won't curse you (not to your face anyway!), chances are the bill we be higher. This is because they have to spend the time sifting through mountains of unprepared paperwork.

 

Before mentioning any ideas, first of all I want to point out that it's habits that make or break us. That's true in life and it's the same with our finances. So as well as finding the right (and inexpensive) tools for the job, it's worth learning the options and getting into the habit of adopting a better method.

What are the important financial tasks that we could be doing ourselves?

  1. Create Quotes quickly using a template (with fixed, but customisable prices)
  2. Connect your bank account to automatically reconcile all bills and payments
  3. See at a glance who still owes (otherwise we spend hours doing this manually)
  4. Offer card payment as well as other online options (including direct debits)
  5. Send automatic reminders and automatic collection initiations when late

Not only do the above tasks save us a lot of time, but doing these means our cashflow situation is massively increased (as long as we maintain the habit)

When this is done it also makes the accountants job much easier.

But HOW can this be done?

We could rely on doing this regularly as a disciplined habit. This is the hard way!

There are also various apps that can be used to do some of these tasks individually. But seperate apps can be a pain ... Duplication issues being just one thing that comes to mind.

A far better solution is to use an inexpensive financial package to handle this. There is a learning curve when changing over to a new tool. But the investment in your time is more than worth it once you are set up correctly.

As an example, Quickbooks and Xero are common (although there are others too). Both of these (at time of writing) come with a trial version, plus your accountant may be able to offer you a licensing discount. These will do ALL of the above tasks and more.

If you want to dive deeper into what else should be considered in your Electrical Business ... Whether it's converting more customer, financial, increasing prices, perceived value, getting things done quicker ... and MUCH more. Then you might want to check out our completely free 4 part video series and Guide:

Get the Guide and video series here

If you have any questions, contact me any time (See social media buttons on this page).

I hope that this was useful and that you consider this in your own business.

Thanks,

Simon

 

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