As any small business owner knows, the key to running a smooth operation is positive cash flow. But for many – maybe yourself included – grasping the numbers can sometimes feel like learning a new language; it’s complex, time-consuming and even frustrating. And there are few people who understand how this feels for entrepreneurs better than accountants and bookkeepers, writes Natalie Amor, Partner Community Manager – Xero, AU

As the brains behind the balance sheets, they help countless small businesses keep their finances in shape. However, you might be surprised to learn that their skillset extends well beyond the cheques and balances. 

This month, we’ve been exploring the full potential of advisory. Why? Recently, we marked Global Bookkeeping Week (7 to 13 November) and International Accounting Day (10 November) – two annual events acknowledging all that these communities contribute to the world of business. So in the spirit of celebration, we sat down with Anita Leach of All Virtual Bookkeeping for some expert insights into her trade and to learn why advisory is such a worthwhile investment for small businesses. 

Walk us through an advisor’s role in the small business journey

Anita: Put simply, my job is to work with small business owners to help them take the stress out of their finances. This enables them to focus on their goals and work on the business zones they actually enjoy. I often say to my clients, ‘You didn’t go into business to manage your bookwork; but I did.’ Because whatever motivated them to become their own boss – be it independence, flexibility, or just doing what they love – needs to be present in the day-to-day.

Advisors are also natural problem solvers. One of my favourite examples of this is a young entrepreneur who came to me as a bit of a hot mess – business was booming, but her debtors were up to the $10,000 mark. We started working together, specifically on her accounts receivables, by introducing stricter payment terms and more streamlined processes. Over time, she’s become super financially savvy. She’s also way more relaxed and happy. For me, there’s nothing more rewarding than knowing you’ve positively impacted a small business owner’s journey. 

Beyond the numbers, what support can advisors offer?

Anita: There are all kinds of expanded service offerings that accountants and bookkeepers can support small businesses with. The top three that come to mind are: 

• Automation: When I start working with a new client, we spend time implementing processes, systems and technology (like apps and software) that will ensure they’re making the most of their hours as well as mine. And I’m not just talking about the financial side of things. For example, I would recommend a job management tool for a tradie or a stock control app for a retail business. Building out a tech stack to automate and simplify operations gives business owners loads of time back, so it’s a key part of my service offering. 
• Education: Every small business owner should understand their numbers. If you only rely on a bookkeeper to input financial data or an accountant to do your tax, you’re not making the most of your investment. This is why many advisors will offer education sessions to teach clients how to run reports (and understand what they’re looking at), manage budgets and use accounting software – among other things. For a small business owner, these are skills for life, so well worth the time and effort that goes into learning the ropes. 
• Compliance: A big part of an advisor’s role is to keep their clients compliant, often without them even knowing it. Of course, every small business owner has obligations – like tax, BAS and now Single Touch Payroll (STP) Phase 2 reporting – which are essential things to get right. But amidst all the other pressures, having an advisor take care of this can save time and offer peace of mind.  

When it comes to taking advantage of everything an accountant and bookkeeper has to offer, the best place to start is with an open conversation. Whether you’ve worked together for five years or five minutes, they’ll be able to recommend areas where you could learn more or use some extra support. 

What’s your top tip for business owners managing their own books?

Anita: For any small business owner doing the finances themselves, I recommend engaging an advisor for a one-off consultation. If you use accounting software and connected apps, ask them to show you how to use them properly – from the basics to shortcuts and hacks, and where you can learn more. As an entrepreneur, you’ll have a gut feeling about when the time is right to outsource your books. Trust your instincts, and whenever you’re ready, we’ll be there to help. 

No matter how fluent you are in the language of numbers, having an expert eye over the books (and all the other systems and processes that keep the wheels turning) is a valuable option for every small business owner to consider. After all, it’s why accountants and bookkeepers are in business – ultimately giving you time back to focus on what’s most important. 

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