As a small business owner, managing your accounts may be the most difficult part of your job. Next to the freedom of being your own boss, tracking your expenses and managing outgoings may seem tedious. However, it’s an integral part of doing business - it’s what determines your success, whether your company lives or dies. Managing your books, and managing them well, is what makes a small business thrive.
It’s not an easy task, though. Utilise accountancy services to ensure it’s done right. In the meantime, there are a few things you can do to maintain your finances and assess your business’ overall health.
Start by getting in the habit of routinely checking your bank transactions. Knowing where your money’s going, who’s been paid, who hasn’t paid, and how much you’ve spent is crucial to running a successful operation. Check your outgoings at least once a week.
Furthermore, record your outgoings as they happen. Collect receipts. Get a smartphone app that tracks expenditures. Stay on top of the situation so spending doesn’t get out of hand.
Next, manage your bills. Ensuring you’ve paid suppliers on-time will benefit your B2B relationships as well as your accounts. By providing an accurate picture of your overall outgoings, proper bill management will help prepare you for any unexpected expenses.
Update invoices regularly - after all, they determine when you get paid, and how much. Since staying up to speed on the status of invoices can be difficult, specialised software can help make this process much easier. Additionally, invoicing programmes can be used to update clients as well. Streamlining the invoicing process can help make your business more profitable and create a steady flow of income.
Similarly, assess your projects to make sure they’re earning you enough. Don’t wait until a project has finished to do this. Instead, conduct regular checks throughout the process to make sure spending is on target.
Finally, trust certified accountants to do your book keeping for you. You’ve got enough to get on with - let the trained experts manage your finances so you can spend your time managing your business.