5 Tips for better financial management

Staying on top of business finance may be tough and seem like a lot of hard work; keeping up with every receipt, invoice and payment – but that’s why organisation is key. The financial planning and management of your business will guide you to where you want to be.

Plan

Creating a business plan will help you to establish targets and goals that you want the company to achieve over a set period of time, allowing you to future-proof your company and will put emphasis on the idea of what money you need and where you will obtain it from.

Once a plan has been put into place you are likely to have a better financial understanding of what state your company is in, allowing you to make better financial decisions that will stick within the set budget you have planned.

Monitor

Once you have your plan in place you must monitor it to ensure you’re sticking with it. Review your position against what you aimed for in your business plan, check whether you are on track and if you aren’t, refer back to your business plan and decide upon a more effective or realistic budget that you are able to follow.

Avoid Tax Fees

Late tax returns and payments can lead to your business obtaining fines and added interest on top of your usual fees. Avoid these extra and unnescacary costs with correct and efficient planning and organisation. Keeping accurate records will save your business both time and money, and will also ensure you’re only paying the tax in which you owe.

Use Tech  

Digitally manage your finances with QuickBooks, a software that lets you stay in sync with your bank and all your transactions. Record expenses for tax, photograph and save receipts with the use of your phone and create invoices with company branding and the fields you need on it. If you don’t keep a close eye on your accounts you risk falling behind, so keep on track of customer and clients payments so you don’t fall behind either.

Get Help

Many businesses just don’t have the time or experience to handle finances as well as the everyday troubles their daily job already entails.

Hiring an accountant is a great way to get someone with expertise to take all the stress off your plate so you can focus on what really matters to you. This may even benefit your business as you are able to concentrate and focus all your attention on what you do best.

A small building services company hired aa accountants to take on their finances and help them to understand and deal with issues such as why they weren’t as profitable even though they had been hitting their target sales. The outcome of hiring the accountant reduced the company’s overdraft by 58% in just nine months and increased the company’s overall profit by 213% in the first year.

The sort of improvement that was made could not be made without the help of someone with expertise and knowledge within the field.