Keeping track of business finances can be the source of a great deal of stress for many business owners and it never seems to get easier. You will always have to pay an invoice, pay your taxes and pay yourself!
Here are a few effective methods that can aid you in keeping on top of your finances:
Accounting – having an experienced, high quality accountant is invaluable particularly when it comes to those annual reports and tax returns. A good bookkeeper is also recommended if possible to help with the day-to-day organisation of your financial paperwork.
Organisation – Keeping all your receipts and invoices well organised allows for stress free record keeping and troubleshooting where needs be. If you can afford to hire an administrator or bookkeeper who can help with this then go for it! Anything that will keep you organised.
Credit control – Make sure that all credit terms are strictly adhered to – chase up unpaid invoices regularly; a well organised system is vital here to ensure healthy cash flow. Again if you can afford to outsource this then by all means do so if it helps to keep things stress free.
Budget & Planning – Make a monthly budget which allows for all regular outgoings as well as any new projects that require a financial injection. Plan your projects accordingly in order to work well with your budget.
Awareness – Most people take it for granted but its crucial to keep up to date on what the financial markets are doing and how this will affect your business. Understanding market trends and interest rate fluctuations can prove priceless for long term financial planning.
Remember that making money may be hard work but it should not be stressful. Find a away to stay on track and the process can be much easier.