Stewardship is a job of taking care or supervising something, such as an organization or property. We also believe that stewarding relationships, health and finances makes for a great balance in ones life and business.
In this blog we focus on you and your finances! Here are some tips and tricks to help manage and look after your finances.
Stewardship TIP 1
Do you have a system in place to manage your finances?
Systems we suggest to manage your finances are
- Set up a 3 bank account system
- If you learn to manage your finances well, partner with an affordable accountant that will assist with a budget, train you to steward your money well and be available for any other growth concerns!
- Have your accountant set up a Xero accounting software subscription plan, that includes your end of year income tax filing.
- Set up google drive or the like to file your information online. (paperless system)
- Depending on your budget, industry and turnover, have your accountant recommend workflow efficiencies.
1. 3 Bank account system
BANK ACCOUNT 1 - Operating Account
This account is set up to receive all income and make regular payments to suppliers, staff and any other stakeholders that assist with the day to day operation of your business.
BANK ACCOUNT 2 - Savings Account
This account is set up to help you achieve your goals. We recommend you include a set amount in your budget and each month transfer an automatic payment to the savings account. Check out our Budgeting and forecasting Blog
BANK ACCOUNT 3 - Tax Account
This account is set up to help plan for your Income tax, GST, PAYE and Provisional tax. Check out our stewardship tips on budgeting and cashflow)
2. How to choose an accountant?
You'll need to think about issues such as the accountant's location, the division of workload and the type of accounting software you'll use. Consider how much you'll have to pay the accountant, and whether they can help to reduce your business taxes.(Check out Xero Blog on choosing the right accountant)
3. Set up a Xero software plan
When choosing your accountant, have them select a plan that best suits your business. We recommend Xero, as using this is a time saver and cost effective for your end of year income tax when filing your return. Check out our services HERE or book a discovery call HERE.
4. Go Paperless
We encourage a paperless system for efficiency, cost less and we do better business with less paper. Xero has an in file system or you can implement google drive. (Check out how to have a paperless system).
5. Workflow Efficiencies
With the correct choose of your accountant being cloud savvy, also enquire what software solutions can help your business and ensure that it is appropriate for your industry. Check out the Xero app Marketplace or call 0800 650 017.