Keeping on top of your business finances is vital in growing and developing within your industry. However, maintaining organised and accurate figures can sometimes take the backseat when you are focused on delivering the best service or product to customers. If left for too long it can even begin to feel overwhelming. Can you relate?
Today we are sharing some of our top tips for cleaning up your business finances and most importantly, keeping them that way. As a business owner, you can take action and implement just a few simple, yet effective, practices into your working routine to better streamline and organise your finances.
Use cloud accounting systems
One of the best ways to streamline and organise your business accounts and bookkeeping is to go digital with an automated cloud accounting system. There are various different software options available with some offering different packages aimed at larger companies and individual sole traders. One of the most popular is Intuit Quickbooks which we use here at Fraser Accountants but you can find out more about our other cloud-based services here.
The benefit of using an automated system is that it is a lot quicker than manually doing your bookkeeping. It can also lessen the chances of human error and will be in an industry-standard format that will be easy for your accountant to access and analyse.
Create a business savings account
If you haven’t already divided your business banking into multiple accounts then this is a super-effective way of keeping track of where your internal funds are going. Keep a separate business savings account and make monthly deposits if possible and you can then refer to your savings account when you consider investing back into your business.
Review and de-clutter debit card transactions
Small regular payments add up and with subscription services ranging from social media tools to insurance, it’s always worth checking in on where your money is going. Browse through your automatic direct debit payments to ensure that all of your subscriptions are still relevant to your business and have not changed in price without your knowledge.
If all are still needed but you are looking to decrease your expenses, you can always look into changing providers or enquiring about a better deal or package to reduce costs.
Keep all physical receipts and bills in one place
Although you may have moved your books online, it’s still important to keep a hold of your physical receipts. You can purchase a folder and label each pocket a month and keep corresponding receipts and paper bills in there. You can also use this system to hold a paper copy of your monthly accounts using a folder for each financial year.
Dedicate time to your finances
It’s a much more daunting task to sit down and backtrack months of expenses in one go and it can often be the reason that business owners procrastinate doing so. That’s why we recommend setting aside a small amount of time each week to check in, review and take note of your finances. That way you can be more prepared to take action and adjust your budget accordingly. Your future self at the end of the year will also thank you when it comes to submitting your taxes! Keeping your books up to date as you go takes a lot of the pressure off of what is already a stressful time of year.
Outsource an accountant
If you’re a busy business owner or feel that you could use a little extra support when it comes to organising your finances then why not outsource an accountant? We can help relieve the pressure by supporting the general management of your business cash flow, offering professional advice, completing your tax returns, and more. That way, your finances stay in tip-top shape and you get to focus on taking your business to new highs.
In fact, we recently discussed our top five crucial things to consider when choosing the best accounting firm for your business which you can read here. Certainly, take a look if you are new to the world of finance and have never considered outsourcing an accountant before.
Hopefully, we have left you feeling a little less daunted by the prospect of organising your finances and inspired to get started.
We’re happy to help.