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Outsourcing your bookkeeping and why it makes perfect financial sense…

Do you find you just don’t get stuff done…you feel frustrated as you just aren’t cutting through the work!!!!  Well, I’ve got news for you….you aren’t on your own!

Do you find yourself putting off important tasks over and over again?

 

Most people procrastinate….and it stops people from living the life they want, they deserve and from feeling fulfilled.  For people in businesses it’s not a good thing!!  Apparently, around 20% don’t reach their potential due to it!

In business, it’s a killer, if you want a super successful business that enables you to live the life you want!!  To have the money you want in retirement and spend time with your family and loved ones making memories…..

So how do you overcome it?

Well, like me you have probably heard the gurus say “Eat that Frog”

  • Acknowledge you are doing it…
  • Work out why you don’t cut through stuff
  • Get organised
  • Just do it

It’s not always that easy though is it….

It’s true that planning and getting organised helps.

Breaking it down into bite sized chunks is a good idea too, as is focusing on the biggest single thing that will move your business on that day.  Then doing it first and getting it out of the way….before you get on with the day to day grind….

Who should do it?

The experts say that in order to overcome procrastination you need to first recognise that you’re doing it, then work out why you’re doing it (usually it’s because we don’t enjoy doing that thing and we try to avoid it, sometimes it just boils down to being disorganised… and sometimes we procrastinate because we just don’t feel we have the skills and we put it off because we’re overwhelmed) and then you need to put strategies in place to break the habit of procrastination.

My take is slightly different though…

There are a number of things as the MD, CEO, Founder…whatever you call yourself …you have to do, but I would always argue that you should focus on what you are ideally good at and on stuff that you and only you can do……and that’s usually being the face of the business and sales and marketing….

To most people, marketing doesn’t come easy and because of that, this can be the ‘thing’ that doesn’t get done! Usually because people wrongly assume they can’t afford to market (A Financial plan will help to prove that this isn’t the case!).

If this is happening in your business it’s a disaster, as without marketing your business will die….. because marketing is the single most important thing you need to do every day.

If you are procrastinating, here is one good reason why you should change that habit NOW! TODAY!

Without you selling your business nobody else will (unless of course you employ a sales team) and in order to grow your business you may have to work at it…work at you…so where do you find the time…

Quite simply put outsource………

No excuses!

You need to free up time, so analyse where you are spending your time….I bet you it’s on low value stuff you shouldn’t be doing in your business, but you do it because you have no one else….

If you work out what you want to “earn” from the business divided by the number of hours you are prepared to work each year (divide those hours by 2 as I bet you aren’t always super productive….)

Then you will have your hourly rate….SPOILER ALERT for most business owners that is more than £50 an hour…..

So the way you free up time…is to outsource everything where you spend time earning less than £50 an hour….

So if this is you and you want to earn more, grow your business or take more holidays then I recommend you turn off the phone, your email and all other distractions,  close the door and focus for 90 minutes when you’re at your best and pull together a list of what you do now and what you could and should outsource?

I bet the main ones will be….

·         Dealing with emails

·         Answering the phone

·         Doing your own bookkeeping

Then there’s the rest of the ‘stuff’ you might be putting off!

Here’s a word of advice – if there are things that you are ‘trying’ to do yourself (or that you’re just putting off), that you’re not good at, you don’t enjoy OR if they are taking up time you could be spending getting and keeping customers – get them outsourced ASAP!

Smart business owners have structured things so they spend their time GROWING the business

They focus ONLY on what matters the most – and they get help with the rest!

So if you need help with bookkeeping or planning (A financial plan to show you how to do this), so you get to take out of the business what you need then ping us an email to [email protected] and we’ll be in touch.

 

 

 

Disclaimer
It is important that you take professional advice before making any decisions based on the information that you learnt here. While every effort has been made to make sure it is accurate it cannot be precisely tailored to your personal circumstances. This article is for general information only and no action should be taken, or refrained from, as a result of this information.  Professional advice should be taken based on specific circumstances in each individual case.  Whilst we endeavour to ensure that the information contained in the article is correct, no liability will be accepted by Krystal Clear Accounting which is a trading name of Kim Marlor Associates Ltd or damages of any kind arising from the contents of this communication, or for any action, inaction or decision taken as a result of using any such information.

What are Bank Feeds and how do they work?

In short, bank feeds create a digital link between your business bank account and your accounting software, such as Xero or QuickBooks.  

This means bank transactions are automatically downloaded into the accounting software. This simple piece of automation, completely removes the need to manually input every bank receipt and payment into the accounting software. 

Having bank feeds in place, saves a HUGE amount of time bookkeeping. That’s because it completely removes the need to manually input bank transactions into the accounting software. 

Saving time bookkeeping isn’t the only benefit for the business…. 

 

 

Outsourcing your bookkeeping and why it makes perfect sense

What are the main benefits to a business using bank feeds?

Bank feeds automate, what was previously, a time-consuming task of entering all the bank transactions into the accounting software. 

 This saves the business a HUGE amount of time (& money) spent on bookkeeping.  

With bank transactions being downloaded from the bank every day, it means it’s quicker and easier to keep the bank balance in the accounting software up-to date. 

With the accounting software up-to date, the bank is updated daily which gives you a clearer, real-time view of your business’s cash flow.  

This makes it easier for you to plan your cashflow, and take action to improve it. 

There is always the risk of errors being made when data is being manually inputted into the accounting system. It is often time-consuming to find and correct any errors. Also, if an error is large then the Profit & loss and Balance Sheet reports will be inaccurate and potentially misleading. 

 Automating the bank transaction entry previously manual process, reduces the risk of errors being made and ensures that the bookkeeping records and reports are accurate. 

How to Link Your Bank to Xero

Ensure that your bank account is set up for online banking. This feature is typically available from all major banks. 

Log into your Xero account and navigate to the banking section. Select ‘Add Bank Account’ and follow the prompts to search for your bank. 

After adding your bank account details, you’ll see an option to set up bank feeds. Click ‘Agree’ to the terms, then securely log into your online banking portal through Xero to authorize the connection. 

 

Are Bank Feeds Safe & Secure?

Yes. 

Firstly, having bank feeds in place ONLY means bank transactions are downloaded into the accounting system. They do NOT give anyone else access to the business bank account. 

 Secondly, XERO has various security measures in place to give you a piece of mind that your financial data is safe and secure: 

 

  • Encrypted Connections: Xero uses advanced encryption technology to secure the data transmission from your bank to Xero. This means your sensitive information is encrypted during transit and cannot be intercepted or read by unauthorized parties. 

 

  • Compliance and Standards: Xero adheres to high standards of data security compliance, thus ensuring that its practices meet or exceed industry security standards and regulations. 

 

  • Regular Renewals: To maintain a high level of security, XERO requires that the bank feed connection is renewed every 90 days. This process is straightforward and helps ensure that the integrity of your financial data is always protected. 

 

people are connected
KIm Marlor the MD of Krystal Clear Accounting
krystal clear accounting

In Summary

In short, having bank feeds really saves businesses time and money on their bookkeeping.  

 They automate and eliminate what is otherwise a time consuming and error prone manual process.  

 Bank feeds is just one of the ways technology can be used to help business owners improve the financial side of their business.

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