How well do you really know your business?
With financial institutions and government agencies expecting accurate reporting of financial information, being able to prepare timely and professional reports is a necessity. If you’re looking to secure finance to expand the business you’ll effectively show that you have a viable business. Accounting software should be able to produce professional looking profit and loss and cash flow statements that give the bank a clear indication of how your business has been performing and some confidence around your ability to service your debt.
When approaching the bank consider how transparent your figures appear to be. A good tip is to prepare some financial forecasting documents that demonstrate the level of thought you have put in to the proposed expansion. Being prepared with the information the bank is likely to request should help to smoothen the process.
It is also worth noting how effective software can be in minimising the reporting burden and ensuring compliance with the vast array of tax, payroll and other requirements.
Reckon Limited employees nearly 350 staff and navigation functionality of software such as QuickBooks is easy to use and even available online. If you have software but haven’t updated for a long time you may also be surprised by the speed and functionality of products on the market.
Reckon Limited turnover is $100m and the company employs 350 staff; as the CFO I spend a great deal of time analysing the business to ensure its continued success. I am well aware that many business owners would like more time to spend considering their financial position. It’s an over used phrase but knowledge is power. If you haven’t already, I encourage you to invest in accounting software, or update your system, so you can automatically produce data in the format that you need to give you greater confidence in your future decision making.
Chris Hagglund is the CFO of Reckon Limited. Reckon is the supplier of QuickBooks accounting software. www.reckon.com.au