Even if you are a successful business owner, mistakes can always be made with your finances. Having accounting tips and professional accountants to advise you in every situation could significantly improve financial performance for all small businesses.
Whether you have been established for several years or you are a start-up business, accountants can always provide fantastic tips. Roger Hatherall & Co are happy to work with clients throughout Bath, giving you any advice you require.
Track Customers Payments
You should always be able to trust your customers, however, failing to track their payments could be a big mistake. When an invoice is sent out to your clients. You should always ensure this payment has been made and the correct amount has been paid. Whether this is one-off payments or fixed monthlies, you should continue to track these transactions.
Failing to do this could easily lead to a reduced revenue, without you understanding the reason why. Customers could cancel at any time and tracking their payments ensures you know about it and that you can speak to the customer to resolve any issues. Tracking payments will prevent your income dropping more than expected.
Use Accounting Software
Controlling your finances can often be a struggle, especially if you do not have the best possible resources available to you. Investing in accounting software will make managing your finances a much easier process and ensures you are in control from your home, workplace or holiday destination.
Most accounting systems can be accessed from any device, whilst still offering a high level of security. By using accounting software, this security is maintained and you also have many more tools available to manage and improve your financial performance. Accountants will always use the best industry software available, ensuring finances are accurate and contain all the data you require.
Record All Transactions
Recording all transactions will make your life a lot simpler. Whether it is to complete your tax returns, create annual accounts or to use for business performance, record keeping can help in a range of different ways. Even the smallest transactions must be recorded to ensure your business accounts are updated and if investigations were to occur, you would be prepared.
With all finances being recorded, tax returns and annual accounts will always be completely accurate and submitted on time for all deadlines, whether this is to the HMRC or business shareholders. Bookkeeping is also beneficial to businesses when creating cash flow forecasts. Having a record of previous financial performance and transactions gives you a more accurate plan for your future cash flow. Record keeping is essential and can be very beneficial to your business.