Top Tips For Keeping On Top of Company Finances
Running your own business can be exciting, and of course you will want your company to be as successful as possible. However, even if your business seems to be thriving, there can be times when you won’t be making money. By keeping on top of your company’s bookkeeping, you will be able to spot trends in its finances and better understand how you can maintain a healthy cash-flow. It will also help you avoid fines from HMRC for being late in getting important financial information to them! Let’s take a look at these great tips for keeping on top of your business’s finances…
Payroll can be tricky, especially if you have several employees or your business has a somewhat complex structure. However, payroll software can be a great way to keep on top of your company’s finances, whatever the size of your company and whatever its structure. It can cope with multiple company payroll tasks, ultimately ensuring that staff are paid accurately, on time, and within the payroll regulations laid out by the HMRC recognition scheme. Payroll software is easy to use and can save your payroll team a great deal of time, transferring information smoothly from personnel to payroll, without so much as a glitch.
When you started a business, you probably underestimated how much paperwork you would be faced with. However, this is a downside of running your own company, and in order to keep on top of your company’s finances, you need to organise its financial records. You will need to keep your cash book up-to-date in order to keep track of payments in and out of your bank account. You will also need to have a well-organised sales invoice file – you could use an accounting program such as Sage or you could organise them manually. Either way, ensure invoices are kept in chronological order and those that are yet to be paid at the front of the file. Your company will also need a file for purchase invoices in order to keep track of your purchases.
As a business owner, you should always keep separate business and personal bank accounts. This is the case whether you run a limited company or you are self-employed, as this keeps your accounts clean and avoids complicating your business’s finances (if you own a limited company, you are not legally entitled to spend the company’s money on personal purchases). It’s also important that when your company receives its bank statement, you don’t simply file it away without looking at it. Check them for indications of fraud or errors made by your bank, as one event like this can throw your company’s finances into chaos! It will also give you a better idea of your outgoings and how you can cut spending.
Bookkeepers and accountants
Times are tough and you have probably realised the importance of cutting costs in your business’s expenditure, however, one area that you can’t afford to skimp on is professional help with your finances. A good accountant can save you a lot of money by offering expert advice, and a skilled bookkeeper can help get your books in order, which will also free you up to actually get out there and do what you do best – your business! You should be able to locate a great accountant and bookkeeper pretty effortlessly using the Internet or by asking fellow business owners for recommendations.
If you can’t stretch to the services of a professional accountant or bookkeeper, then you should realise the importance of setting aside time to complete your own bookkeeping, as although it is not the most exciting aspect of running your own business, it is an incredibly important one. Efficient and organised bookkeeping allows you to keep on top of your company’s finances and to assess how and where you can cut costs and spending in order to make your business more profitable and successful. You may find that accounting packages like Sage take much the pain away, as well as payroll software. Whatever bookkeeping methods you choose, keeping on top of your business’s finances really is crucial.
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