It is important to keep track of the record keeping and accounting aspect of your business. Here are some top accounting tips that can help save you time, money and stress.
1 – Manage your Business’ Cash flow
Managing your cash flow is one of the most important aspects of running a business. By monitoring the money coming in and out of the business you can make sure that you have enough resources to pay debts as they arise. Simple task such as invoicing immediately after a job or sale is completed or paying debts on their due dates and not earlier can be used to ensure your business has a healthy cash flow.
2 – Manage your Debtors
For businesses, late payments are a significant challenge. It can be a waste of your time and effort having to chase up clients for payments. To make this process easier:
- Know your customer and make sure they are able to pay their bills on time by getting a credit check.
- Agree payment terms before you supply. If the client intends to take 60-90 days to pay, you should make a decisions if this is best for your business.
- Invoice accurately, clearly, and promptly.
3 – Use Real Time Accounting Software
Cloud accounting and accounting programs, such as QuickBooks and Xero, offer a straightforward, simple interface to help monitor accounting data with ease and speed. These programs are also designed to assist you with paying your bills and creating invoices, saving you time to focus on other aspects of your business.
4 – Know your Banking Arrangements
By reviewing your banking every couple of years will ensure you get the deal that you deserve. As your business grows or changes you may need to negotiate with your bank to come to the most appropriate arrangement for your business. Keeping up to date with new developments and offers will also help you decide what is best for you.
5 – Keep up to date with Technology
Keeping up to date with the latest technological advancements has become increasingly important. Being on the lookout for new capabilities will improve internal efficiencies and reduce costs. There are a range of strategies that can be taken:
- Monitor how other firms in your industry are applying new technologies, and attend events that display new technologies
- Read publications that focus on technological advancements and how they are being applied.
- Expand your view, look at other industries and see if any of their technology or practices can help improve your procedures.
Bonus Tip – Have a Great Accountant
There are many advantages to having an accountant on your team. Having an accountant can save you time, letting you focus on the areas of business you want to, and money. A good accountant will make sure that you and your company take full advantage of the ever-changing tax laws to make sure you pay as little tax as possible. The services offered by an accountant can go beyond just number crunching, and can help your business grow and successfully operate for many years to come.
© Fitzpatrick Group 2017
Peter is a Certified Practicing Accountant (CPA) and has completed an Advanced Diploma in Accounting and Bachelor of Commerce (Accounting and Finance Law).