How to Stay on Top of Your Business’s Finances

Posted on June 22, 2018 by Guy Atkinson

Many business owners step onto the scene bright eyed and bushy tailed, only to be stunted by the realisation that running a business is really hard work. One of the main problems business owners come up against is how to deal with their finances. This can cover a wide range of things relating to money, all of which have the ability to bring a business to its knees if not handled properly. Here, we will take a look at some of the most important aspects when it comes to staying on top of your business’s finances.

Budget

Every sound business must come backed with a sound financial plan. This involves a good deal of realistic forecasting and budgeting to ensure that your business is future-proof. You should consider your financial targets and how you plan to meet them, along with back up contingencies to cover your back in the event that something doesn’t go to plan. Try to buy anything that you might need for your business at the best possible price, you can do this using price comparison sites like Only Reviews.

Payroll

Your workforce is essential to the smooth operation of your business but an unhappy workforce inevitably leads to a drop in productivity. One of the key grievances for workers tends to be payroll. Being paid late can not only make them feel undervalued, it may also have a hugely negative impact on their daily life such as missing rent or bill payments. This is why having a reliable payroll system is absolutely imperative for you to keep your business afloat. Systems such as this free cloud payroll provide an integrated service that can cover a range of other services, including billing, and e-portals which can cover HR aspects, such as booking leave.

Invoicing

Cash flow can be a very real problem for business owners, which is why a proper focus on invoicing is essential. Your billing system should be well thought out and methodical to ensure that it remains organised and easy to stay on top of. You should have a numbering and filing system alongside a system for chasing up invoices which are late or missing.

Banking

It is important to opt for dedicated business banking in order to keep your business finances separate from your personal ones. This will make it far easier to manage your finances in the long run and is a safer approach for those who struggle to keep their incomings and outgoings in order.

Stay on Top of It

Staying on top of your net profits and expenses is another important aspect when it comes to your business’s finances. You should set aside fifteen minutes each day to go over these aspects – this may seem like a faff at the time, but it’s a whole lot easier than trying to unravel it all weeks, or even months, later.

Use a Qualified Accountant

For those who are finding it all a bit too much, using a qualified accountant to handle your finances is the best bet. Even if you don’t employ someone year-round, having an accountant on hand to sort out your tax return can be invaluable.

By having the right help on hand, planning ahead and staying on top of everything, you can ensure your business’s finances are in order and don’t pose a threat to your enterprise.

Tip of the Day

Time management for Finance Professionals

time management

 

I’ve just re-read Richard Denny’s fantastic book ‘Selling to Win’, in which he mentions a time management technique that I learnt many, many years ago from an old boss of mine.

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