Running a pet boarding business is more than taking care of day-to-day operations. At the core of its success is the financial component: How you make money, spend money, and plan for the financial future of your company. Running a pet boarding business takes up so much time, so it makes sense that the financial part may easily take a back seat, especially if finance is not your forte. But you can easily make it a high priority, using tips and tools to make your life easier and your business healthier.
Smart bookkeeping is vital for a successful business. Tracking your revenues, expenses and cash flow is essential, and these records will be required for tax purposes too. You cannot avoid bookkeeping as you will need this data anyway!
Revenues and Expenses: How much is coming in; how much is going out. Every transaction should be recorded. Cash: Documenting cash expenditures is more important than you may realise. Document cash expenses by keeping receipts or writing reimbursement cheques. You will be surprised at how much cash you spend on your business. If you are terrible at keeping receipts, start using a dedicated card for all business expenses, so you can use the monthly statement for your purchases.
Invoicing: Yes, this is part of your revenues, but invoicing can have a life all its own! If your invoices are not paid at the point of sale, you may need to track Accounts Receivable too. This should be something that is monitored closely and invoicing needs to be an active part of your daily business model.
Accounts Payable: If you are running a legit business, (and of course you are!) you probably have some business debt or at least recurring payments to vendors and suppliers. It is important to keep track of these payments.
Employees: Payroll, taxes, withholdings, worker's compensation. Yep, even with one employee, these are things you must understand and have integrated into your financial plan.
Small and medium sized business owners many times opt to take care of their own bookkeeping. Many find benefits in using online accounting software. Benefits include:
Think about the kind of features that will truly enhance your work day. You want everything in one designated place - not a paper folder here, and computer file there, with notes, invoices and receipts all over the place. You want everything in one application, integrated together, so when you make updates to your inventory or sales, for example, it reflects these updates in all ledgers and reports.
And it gets better!
Connecting your online accounting software to your bank account creates tremendous efficiencies when taking care of your business finances. The software can automatically import bank and credit card transactions every day. Customise rules, create invoices and purchase orders, and use cash coding and sorting to reconcile large bulk transactions quickly.
If your pet boarding business takes payments, (which hopefully it does!) why not take them electronically, right at the point of sale? Integrating EPOS (electronic point of sale) will be that tweak that makes everyone happy; employees, customers, and You. Third party EPOS can sync to your accounting software, making taking payments, controlling inventory and tracking sales and revenue a breeze.
Did you know that you can upload your receipts and invoices to your cloud accounting software with a mobile app? Integrating an app like Xpenditure or Receipt Bank can easily minimise the paper in your office. It scans the receipt and extracts all relevant data. You can add important details such as project or category, so everything is neatly categorised and accessible.
Xero is a great example of online accounting software, with all of the features we mentioned above. Learn more about Xero
Using online accounting software will certainly allow you to create all kinds of efficiencies with your pet boarding business. In addition to saving time, you will be impressing customers, making vendors happy and making tax time easier. Now that you're in the groove, what other changes can you make to boost your bottom line? Profits and pricing have a direct correlation.
How much should you charge for pet boarding? How do your rates compare to your competitors? Do your rates vary for type of pet or type of stay?
We've compiled some useful statistics using our own customer base at Revelation Pets. Use this data to assess your pet boarding business. Are your rates competitive and within the industry range? Review Pricing
Happier pets and human customers, because you have more time to focus on them.
Happier business owner, because your finance department is under control.
Revelation Pets offers online booking software for your pet boarding business. Learn more about Revelation Pets