You didn’t start a business to manage the finances. You started it to do what you love. That’s why we’re here to give you an essential checklist if you’re struggling to stay on top of your accounts.
#1 Check, check and check again
One of the most important things you have to do is regularly record, check and update your accounts. Business finances fluctuate, even more so in light of the pandemic. You might have a great month followed by a slower one. That means your cash flow management might need to change slightly.
If you don’t have an accurate idea of your accounts, you won’t know where to cut or where to invest. If you want to minimise the risk of cash flow problems, or even falling into debt, regularly refreshing and updating your accounts is a must.
#2 Record all of your data
It can be easy to finalise a transaction or expense and decide to just record it later. But if you’re busy or you’re growing, you might forget, or lose track of what you have and haven’t done.
Entering data into your system the same day you receive it keeps your system current, giving you a more accurate view of the finances, whether that’s how much stock is available, or your current cash flow.
You might be thinking that recording everything takes up a lot of time, but it’s easier than you’d expect. Many accounting software programs have apps you can use to report expenses and upload receipts, so it’s easy to take care of them immediately. Rather than sort through a stack of receipts at the end of the month, just snap a picture of the receipt and jot a note about the details.
#3 Back everything up
Nobody wants the nightmare of losing all of their data. Not just in terms of the accounts, but for client confidentiality as well. Your accounts are vital to the running of your business, and keeping them secure should always be a top priority.
A part of that is having a reliable backup system in place. Though some businesses still use physical storage, digital and cloud security is much safer. You don’t have to worry about physical damage, stolen files or even lost padlocks and keys if you use digital storage. Digital systems use firewalls and other security features to make sure your data is protected as much as possible.
#4 Ask your bookkeeper for help
No one can be expected to do everything perfectly 100% of the time. As a business owner, you’ll have your area of expertise, but that might not include accounts management. It’s always better to ask for advice and support from an expert if you’re unsure.
Whether it’s a system query, advice on how to build growth, or general guidance on how best to manage your accounts, an experienced bookkeeper will be able to keep you on track and minimise mistakes.
At Numero, that’s exactly what we’re here to do. Think of us as an extension of your team. To find out more about working with us, give us a call.