Lebo Gunguluza, a local businessman with a big dream, says his success as an entrepreneur in South Africa has been an exhilarating journey but it hasn't been without its downfalls. With an initial plan to launch his own business, Gunguluza realised way too late that he, like so many other over zealous entrepreneurs, did not have the basic business and financial skills to manage the business and ensure its success. Turning to local accounting software provider, QuickBooks, Gunguluza says he learnt two very important lessons: the first is to understand how to manage cash flow and the second is the immeasurable value of financial management within a business.
One of the most important tasks business owners face is managing the company's finances. While a bank account balance offers clues to the state of the finances, it doesn't show a complete picture. Gary Epstein, managing director, QuickBooks SA says that successful business management begins with keeping good financial records: "This means developing and regularly using a bookkeeping system that helps organise financial information and makes it easy for businesses to stay up to date." Simply put, Epstein says that bookkeeping is the recording of a business's financial transactions. A bookkeeping system could be anything from paper ledgers or spreadsheets to financial software such as QuickBooks. It enables a business to stay organised, run useful reports about the state of the business, and plan ahead.
According to Gunguluza, it was only after a friend introduced him to QuickBooks that he realised the error of his ways. Today, he is a great success, owning Gunguluza Enterprises and Media Group (GEM) and a restaurant in Rosebank. He is also the founder of the South African Black Entrepreneurs Forum (SABEF) and a member of the South African Black Supplier Development Association (SABSDA). Gunguluza says he attributes this success to QuickBooks and the lessons he learnt using the innovative accounting package. He says he is so passionate about the lessons he learnt that he has agreed to become a brand ambassador for QuickBooks, using his experience to educate other entrepreneurs and encourage them to adopt accounting software such as QuickBooks.
"A friend referred me to QuickBooks and I was introduced to QuickBooks SimpleStart. This package was ideal for a beginner, who did not have any accounting experience," says Gunguluza. He says it took 10 minutes to install and is an ideal product for new businesses that are taking its first step towards computerised book-keeping. Offering a simple interface and interactive tutorials with video and voice instructions, the product features reports for viewing customer information, supplier and bank accounts as well as the profit and loss financial status of the business. "What was really useful was the business start-up advice included as well as useful websites for assistance and help topics for current business activities," says Gunguluza. "It also offers upgrades with more advanced features suitable for a growing business, which was key for someone like me who had big ideas."
Gunguluza says QuickBooks taught him three quick ways to successfully managing his cash flow:
Stay organised and record all your information in one place - keeping money in a cash box and writing receipts by hand may be all you need to sell your products to customers. But successful business management doesn't happen by stashing sales receipts in shoeboxes or recording information in multiple spreadsheets. Good bookkeeping starts with keeping all your data-including information about your company, customers, vendors, employees, and banking- organised in one place Understand and tap the power of financial reports - a key benefit of using a bookkeeping system is that you can quickly create insightful summary reports based on complete and up-to-date transaction records. As a business owner, it's vitally important to learn to read and use key reports. These provide insight into a businesses performance and answers questions such as which invoices are past due? How profitable was that big project? What will my cash flow be for the next quarter? How much did my business grow this year? What were my best- and worst-selling products this week? Plan ahead - while reports from a bookkeeping system show the current state of the businesses finances, they can also help predict what's ahead for a business. By investing some time maintaining accurate records and learning to read and use up-to-date financial reports, it is far easier to identify both positive and negative trends in a company's financial health, and respond accordingly. A bookkeeping system is one of the best planning tools a small business can use. Reports showing profit margins for every inventory item can help business owners determine if items are priced correctly.
Epstein says that small business owners have to work hard and work smart to thrive in an increasingly competitive business climate. He believes that one of the most important reasons to use a bookkeeping system is that it helps you work smarter. From a practical perspective, QuickBooks has also made its products more attractive to entrepreneurs by having no annual license fees, featuring a non-modular approach coupled with enhanced data security features: "These elements make a big difference to our users and have impacted our success greatly."
In support of his new role as a brand ambassador, Gunguluza says that business owners must never think they have to go it alone to achieve success: "There is no substitute for talking to an accountant, professional bookkeeper, or other business advisors such as a QuickBooks business partner who can help you make the right choices." He says he is available to assist entrepreneurs with successful business management, believing that QuickBooks is one of the quickest and easiest solutions around."
For more information please contact QuickBooks on (011) 291-7300 or go to www.QuickBooks.co.za
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