Published on May 20, 2021
Natasha Lorde

Running a business is difficult and staying on top of administrative work can be lost on us in the whirlwind of pressing day-to-day demands. As business owners it sometimes feels like we need to be everything and everywhere all the time and because that is impossible, the most pressing things take precedence, meaning, admin is usually a response to crisis rather than a maintained effort to avert it.

We generally know the woes of unattended administrative work and what that means for our business.

1. We are at risk of internal theft or bad governance.
2. We run the risk of being unprepared incase of an audited;
3. And most fatally, we have no idea how our business is actually doing.

At the risk of sounding like an alarmist, administration is literally the backbone of our businesses. All our operational decisions, KPI measurements, employee’s and shareholder’s wellbeing hinge on our businesses being able to collect, store and interpret data efficiently and continuously. This is not to say there is no room for error, but, that we should- as responsible business owners- look to find ways to narrow the gap.

So, ask yourself;

1. How is your data collected?
2. How is your data stored?
3. What is your data telling you?

We all have the best intentions when it comes to recording our financial information, no one wants to be caught unprepared if the Taxman comes a-knocking with an audit but no matter how sexy a well put together spreadsheet is, keeping a firm grip on tracking our every transaction or filing records for a rainy day which may or many never come, can be tedious and sometimes downright impractical.

So, what can we do about it?

Everyone loves a good life hack. They are an amazing way of achieving things more efficiently without skimping on quality. Luckily for us it applies to administrative tasks too.

Here are a few administrative hacks you never knew you needed:

1. Take a picture of your receipts and invoices.

Keeping track of expenditure, more so than income, and especially keeping track of cash expenditure can be difficult, but, this is an easy way for you to have complete and verifiable information and documentation in an accessible way.

Physical documents are prone to wear and tear and/or loss and it is vitally important for you to keep your documents safely for at least 5 years.

Taking a snapshot of invoices and uploading them to an aptly named folder in your Google Drive, DropBox, OneDrive or cloud-based drive of choice is a great way of keeping track of your expenses. It is an easily learnt habit, costs little in the way of effort and anyone in your company can do it, meaning there is more accountability with regards to who is spending and what is being spent.

Trust me, your accountant will love you for doing this!

DID YOU KNOW: SARS can audit you going up to five years back?

2. Keep Track!

Having data and turning it into information is where the true value lies. As a business owners, we want to make contextual-data-driven decisions. Converting our data into information that we can interpret and use to inform our decisions will make sure we move in the direction of verifiable facts at the right time. Our experience and knowledge can be placed in the context of the real-time information we have gathered to make the best decisions and pivot or adapt to the context at hand as far as possible.

Are you thinking of expanding? Or buying an asset? Do you know if your company is really turning a profit? Do you need to take out a loan? Or pay your taxes?

A lot of things are lost on us when we do not analyse the data. We may think we know what is happening with our businesses but, a simple Profit or Loss Sheet could make all the difference.

And, how do you create a Profit or Loss Sheet?

Using Excel, Google Sheets or any Spreadsheet programme makes a world of difference. List all your Income for the period (i.e week, month, quater or year) and then list your Expenses beneath that. Subtract you Expenses from you Income and you have got what you made or lost for that period i.e Profit or (-) Loss or a quick “Profit or Loss Statement Template” Google search should do the trick.

 

3. Ask An Expert

It never hurts to get some professional guidance on how our company’s doing or where they are going. Letting an expert take the information gathered allows for a different and deeper perspective to be considered.

Make sure to check in with your accountant at least every 6 months for compliance, tax planning, growth planning and general business advice. Your business, like your body, needs a check up and where the case becomes nuanced, you seek out a specialist. Do not neglect the health of your business let professionally trained eyes give you professional insight into what is really happening with your business.

Seeking professional help also frees up your already constrained time to focus on more strategic goals and activities and not to get bogged down in the myopic and monotonous admin and specialised financial work.

Lastly, ask your friends or business partners for a referral to a trusted accountant or reach out to us and we can help you

How can we help you? (www.pathfinderssa.co.za)

Pathfinders is exceptionally qualified to advise Business Owners and Managers alike! Alongside our business advisory services and mentorship services, we dive deep and focus on all aspects of your business strategy and performance, which creates the magical winning formula for success.

Contact us via info@pathfinderssa.co.za or via our website www.pathfinderssa.co.za to find out more.