Accounting. Potentially one the least attractive parts of your business and the area most small business owners know the importance of. Keeping up to date and thorough accounting records means that you will be able to file tax returns easily, balance your income and outgoings and see which parts of your company are working best for you and where you need to focus on more.
Keeping detailed account records isn’t easy, but luckily there are more than a few different ways you can keep detailed records.
Hire a Management Accountant
Hiring a management accountant can help you to crunch the numbers and make sure all your figures balance. Hiring someone to take care of all your accounting and finance needs explicitly can take a weight off your mind and help you to keep on top of the figures.
Hotspotfinance can help you learn what the role of a management accountant is and how best to perform as a management accountant as well as common pitfalls to avoid.
Outsourcing your monetary needs to a third party means that not only do you not have to worry about bookkeeping and balancing the figures yourself you don’t have to hire anyone to do it for you. Keep an accountant on standby to accumulate your finances ready for submitting your taxes or have them on hand for more complicated financial tasks such as VAT, employees wages and more.
Keep Records Separate.
Always separate your business and personal finances. One should never infringe on the other. Whether you choose to do your own bookkeeping or you have someone to take care of it for you, making sure your accounts are clean and free from the wrong type of transactions for the account.
Create a Bad Debt Reserve
Should customers be unable or unwilling to pay, having a bad debt reserve can help reduce the impact on your business? Especially for smaller setups where you rely on everyone paying invoices in full and on-time more to pay expenses, suppliers and staff.
The amount in your bad debt reserves is usually based on typical figures for your industry and is a pot of money to act as a buffer should you be out of pocket for any bed debts and monies owed.
Use a Mobile Apps
It goes without saying you will have a dedicated business banking account, using a mobile app to access your business account can help you to stay up to date with income and outgoings and track your spending quickly and easily without having to rely on statements or other people processing the information for you.
Invest in Accounting Software
Even if you have an accountant or bookkeeper on staff, installing a proficient accounting software for your company to use will serve you well. Some of the newer software comes with an app to help you record payment receipts digitally by taking a picture of record income and send invoices to track your finances all in one place making sure nothing gets lost during the tax year.