Are you a small business struggling with business debt?

Do you feel you are drowning in figures and not making any headway?

A bookkeeper may be just what you need to pull you out of financial trouble and take the load off your back.

Identifying a business in distress

Bookkeepers can not only assist you with the day-to-day management of your business finances but also identify any early warning signs of financial trouble.

They are experts at identifying signs of a small business in debt by spotting early warning signs you may overlook.

These factors can include:

  • lack of working capital;
  • overall asset deficiency;
  • inability to meet financial obligations;
  • creditors being paid outside of their trading terms;
  • inability to raise further capital or obtain further borrowings;
  • tight cash flow leading to juggling payments;
  • making special arrangements with creditors or favouring certain creditors;
  • poorly maintained accounting records;
  • rent not being paid on time; and
  • employees not being paid all their entitlements such as superannuation.

The true value of a bookkeeper

Think of your bookkeeper as a health-check expert for your business.

They can keep an eye on your day-to-day operations to ensure everything is working as it should.

On the flipside, if your business is heading into financial strife, a bookkeeper can identify these distress indicators and guide you towards the assistance you may need.

This may include partnering with insolvency experts to enact a strategic recovery plan, debt restructuring and guidance to navigate through the financial hardship.

Understanding cash flow

Maintaining adequate cash flow is where many small businesses come undone.

Bookkeepers can be instrumental in helping you to understand cash flow by conducting a cash flow analysis of your business.

Adequate cash flow will ensure you can meet your business commitments, pay your bills and your staff and most of all, remain viable.

To determine whether a bookkeeper can assist you with your business cash flow, ask yourself these 4 questions.

  1. Are you trading profitably?
  2. Are you meeting your regular financial commitments?
  3. Do you have enough money aside to spend on yourself and pay your staff?
  4. Is your business getting ahead or falling behind?

If you answered no to any of these questions, it is worth looking into a bookkeeper to help your business and to care a positive cash flow environment.

If you’d like to discuss or bookkeeping services, book an appointment with our friendly accounting team to discuss your bookkeeping needs.