I feel like I am working harder than ever but seem to be falling behind!!

A number of small business owners we have spoken to over the last 12 months are growing increasingly frustrated in that they seem to be working harder than ever but don’t seem to be reaping the financial rewards that come with this additional work.

This can create significant stress for business owners and lead to them feeling like running their own business is too hard and not worth the sacrifice.

As a business owner if you are in a situation like this it is imperative that you sit down ideally with your accountant and drill down into the numbers to try and ascertain if you are actually working harder for less reward or if there is another reason you are not generating the rewards you are after.

It is even more important at the moment in the high inflation that we are in to keep a track of the costs to run your business. A common trend we have seen over the last few years is that the cost to run a business has increased significantly however business owners have not factored these increased costs into what they are charging their customers which has resulted in decreased margins on work performed and hence decreased profits.

A simple look at how your costs have tracked in relation to your turnover over the last few years will be able to identify any trends in areas where your costs may have increased significantly and confirm if you are charging out enough for your goods or services. These reports should be looked at regularly on a quarter by quarter / year by year basis to ensure that your profit margin is staying consistent so that is you are working harder you are seeing the rewards you deserve for this additional work.

Another area that is extremely important for small business owners to keep of track at the moment is their accounts receivable and the collection of these funds.

Unfortunately at the moment there are a number of individuals and small businesses that are struggling to make ends meet which can lead to people not being able to pay for goods and services or pushing back payments. As a business owner it is imperative that you are on top of your cashflow and ensuring you are following up on outstanding debts especially ones that go over there due dates. You don’t want to get into a situation where you let these amounts drag on unpaid and leave yourself with a cashflow problem that develops your ability to keep your business running.

If you are in a situation where you are feeling a bit disillusioned with how your business is tracking reach out to your accountant and book and appointment to sit down with them a drill into your figures. It may be the simple fix that gets you back on track and earning the rewards you deserve as a hard working small business owner.