Dream & Do

ACCOUNTING, BOOKKEEPING, MONEY, oh my!

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As a start-up, you might not need a fully-fledged bookkeeper or accountant when you first set up shop, but it’s important to at least find a mentor or someone good with numbers to guide you. You need to spend your time worrying about your business, not if you’re meeting the many ATO requirements. Look to work with someone who you can grow with and can bring some knowledge or contacts to the table. Dream & Do founder, Tara, was lucky enough to have a husband in finance when she started the agency, but has since moved to contract an accountant specifically for all the business’ needs.

Dream & Do’s chief numbers guy and official accountant, Daniel Chiha from Kelly Partners, shares his advice, because we’re definitely not the experts in this area!

1. As a start-up, sales is the most important number – it cures everything.  

2. Know your numbers – No one will believe in your product/service if you can’t explain the financial mechanics. You will need to have a deep understanding of the following:

a).      Gross Profit – How much you make from each product or hour of service

b).      Net Profit – Profit/Loss after all  expenses

c).    Working Capital – Understand how customer receivables, supplier payables and inventory impact your cash flow.

3. Do a budget and set non-financial KPIs to drive it, then measure against it at least monthly.

4. Cash is King – While profit is great, if it doesn’t turn quickly to cash in your bank account it means nothing.

5. Get a mentor – Chances are you are not the first person doing what you do. Find as many mentors as you can and learn as much as you can. People are more than willing to share their knowledge with an eager mind.