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The Ultimate Guide to Managing Small Business Finances

Taking control of the financial operations of your small business is the first big step in making sure your practices are set up to succeed. With accurate and detailed financial planning and assistance, you can set long term plans for expansion and growth within your field. While small business accounting can seem like a big task, following the right steps can make the overall process enjoyable and highly profitable for the operations of your business.

1. Separate Your Finances

The first rule of operating a small business is separating your finances. Not only will this give you transparency in the incoming and outgoings, but it will enable you to protect your personal finances should anything happen to your business.

Opening A Business Account

Opening a business account is an important step, with putting your personal financial particulars aside, you are going to need to select a bank and account type that has user-friendly features for your small business, for example, you are going to need services and fees that enable you to manage your finances on a day-to-day basis. This will enable you to accurately see when invoices are being paid and to manage and foresee your taxes for the end of the year.

Some key features to look for in a bank account best suited to small businesses are:

  • Business checking account and business savings account.
  • Monthly servicing fees and ways to waive them.
  • Included transaction fees.
  • Wiring and transactional allowances.
  • Cash deposit limits and restrictions.
  • ATM access and fees.
  • Online and mobile banking capabilities.

2. Understand Your Business’s Financial Needs

Getting to know the financial particulars of your small business can seem like a complex and daunting task. But in actual fact, understanding these key terms can help you to recognise how you are progressing, what you are achieving and how close you are to reaching your personal goals. This is helpful knowledge for when you enlist the services of a professional small business accounting service, you can then work with them in understanding your operations.

Gross Revenue

This is the sum of all funds you have received from clients in exchange for your products or services – it’s important to note this is before any deductions are made, such as tax, and the cost of the goods sold.


This includes anything that intercepts your gross income, for example:

  • Rent..
  • Payroll..
  • Cost of materials for goods sold..
  • Taxes..
  • Interest on debt..
  • Utilities..
  • Operating expenses.

Net Profit

Often referred to as ‘the bottom line,’ your net profit is what is left over after you have deducted your expenses from your gross revenue. When this number is positive, it means your business is making profits.

Cash Flow

Even if your business is profitable, keeping enough ‘cash on hand’ is crucial to the operations involved in running a successful small business. Keeping adequate funds in the bank to pay bills and your employees is an important balancing exercise for your company. The more you understand your financial particulars, the easier and more straightforward this balance becomes.

3. Find An Experienced Accountant

The next step, and arguably the most important in our guide to managing the finances of your small business, is finding an affordable and experienced small business accountant. Because this job traditionally involves a lot of paperwork and a meticulous eye for detail, working alongside a professional will guarantee you are successfully adapting and sustainably growing your business.
From helping you fulfil your small businesses taxes – and understanding them, to tracking your revenue, expenses and profitability, you can rest assured you are in capable hands. So you can focus on the other areas of your business, enlisting the services of a specialist financial accounting group such as Consol will ensure you are implementing the legal regularities that are essential for the running of your business. Consol Group will assign an accountant to you that has relevant experience and expert knowledge in your specific area of operation, answering any questions you may have while providing you with unparalleled support and guidance for all of your financial requirements.

4. Utilise The Latest Technology

A specialist small business accounting group will be working alongside the very best in financial technology. With partners like Xero and SmartPayroll, you can view, manage and facilitate your small business in the easiest way possible.
With mobile-friendly applications and a simple layout, paying your staff, invoices and outgoings can be done with the tap of a finger. Another one of the great benefits of working with intelligent software systems like Xero and Smartpayroll is the affordability of the service they provide. In between the time you save yourself billing, invoicing and making payments, these two systems, along with an experienced accountant will take care of the technical and legal requirements for you.
To learn more about how working with a small business accountant and these unique software systems can benefit the financial operations of your business, get in touch with the team at Consol today. We are an experienced group of accounting professionals who specialise in every aspect of your small business financials.

If you couldn't find your answer, or are unsure about the information provided, please don't hesitate to contact one of our dedicated accountants at today!


"When I first found Consol accounting on Google I thought that they must be too good to be true. Then I talked to them on the phone and I was almost certain they were too good to be true. Luckily for us they weren’t. The customer service, price and ease of use make this company out of this world. I could not recommend them any more. They are utterly seamless to integrate and effective as can be. "

Curtis and Katie Hacon Director, FiTiki Limited

"I had put off finding an accountant for a while because of the cost and perceived hassle however after my first consult with Consol, I immediately wished I had connected with them sooner. Consol are responsive, affordable and easy to deal with. Being able to outsource this aspect of my business has allowed me to focus more energy on the parts of my work that I love. "

Dr Rebecca Herald Clinical Psychologist

"I have been most impressed with Consol accounting team since I made the switch last year. The ‘Switching over’ process was really simple, after the initial set up process I can track and log my company’s financial activity with ease and accuracy. By far the most efficient and helpful service I’ve had with accounting companies. Thank you"

Vivien Ye Aesthetic Nurse Specialist, Vivip Limited

"I started out in full-time private practice over a year ago and also registered as a limited company. I love doing my work and seeing my clients, but I soon discovered just how much time doing the financials could take up. In the first year, I worked on my own tax returns and company statements, but was unsure I had done them “right” and really wanted an accountant’s expertise and guidance. From my first phone call to Andrew Joo of Consol Accounting Limited, I could tell that this service would meet my needs. He has been quick to respond, patient with me, great at teaching lots and is a Xero master user. I find the system easy to use now, and feel encouraged to get the most out of my business and confident in knowing that I will meet my tax obligations. Compared to how long it took me to struggle at doing this on my own, there is clear value in getting the professionals to do my accounting."

Dr. T Melanie Lage, MNZCCP Clinical Psychologist, Lakes Psychology Limited

“I had been searching for an option for my accounting for my business I found Consol to be so easy to get started with the team being available at nearly every point in the day! Highly recommended all those that have busy lives and need to free up some time.”

Andre Stewart Tremains Real Estate, Bay of Plenty

"Consol are great to work with responsive when I have questions, quick to prepare any necessary document and always willing to help if there's anything I'm unsure of. Very happy to have found them."

Stefan Dyke Director, SLHE Consulting Limited

"I would genuinely recommend Consol for all your financial and accounting needs. I needed an accountant quickly to help me find my feet starting up a rapid business. I genuinely had hundreds of thoughts and questions and wanted to do things right first time ... it was all a bit daunting, exciting and a steep learning curve. Andrew Joo was so supportive as he instantly responded to all my needs and then coached me through a solution and helped me understand the minefields at first . It’s really easy now the business is booming and all my accounting is taken care of so I can enjoy the fruits of my labour. I still reach out occasionally and have the answer super quick.. thanks to Consol."

Karl Jones Director, Retail Resilience

"I had just started out in business and soon realised that someone was going to have to help me with my accounting and tax compliance functions. I was very conscious of the need to be vigilant about incurring any new costs, consequently I did a fair bit of research. I came up with the conclusion that I could get everything I wanted, under one roof, from Consol Accounting, at the most competitive rate I could find on the market. It was a win-win. After joining their team I discovered there were a lot of loose ends to sow-up before I could start functioning effectively, and focus solely on running the business side. Andrew, the Founder from Consol Accounting, was an absolute God-send. He was very personal and approachable, and made setting everything up from scratch so easy and so quickly. I’ve basically been running on auto-pilot each month ever since. Just as I had planned. Thanks for your service, guys, best decision I made."

Andre Illemann Like No Other Limited, trading as GoodMooty

"I operate 3 businesses. As a busy owner I needed reliable accountant. I have been using Andrew as my accountant almost for a year and this is my second accountant. I commited transition as one of my friends recommended him and now I thankful to him. Andrew and his team provide a prompt sound and reliable service that is always professional. Andrew is always on hand to answer my queries and it is very professional and prompt in replies even on weekends and publicholidays. He has wide range of knowledge and experience in service of accounting and taxation. He has been helping me out with tax deduction and meximisation of profit. I can highly recommend him to others as he is very motivated and trusted. I would like to make longtime relationship with him and his team."

Steve Kong Director, Katsubi Hamilton & Tauranga

"When I need to get help with my finances and taxation since starting my own business, Andrew at Consol Accounting has advised me on the right approach. Professional and a great experience overall, I strongly recommend Consol Accounting to everyone who needs to get support for taxation."

Michael Park Director, Renewcar East
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