If you’re running your own business, you need to stay on top of your accounts. Losing control of expenses and marketing budgets is a surefire way to slide into debt, and destroy a business before it ever gets the chance to flourish. From monthly expenses to managing your invoices, the organisation of your accounts are of utmost importance.
Here’s some pointers to make sure you stay on top of your bookkeeping:
Keep Borrowed Income Separate From Payments
If you need help with marketing and even startup capital, don’t add these incoming sums into your accounts as if they were a client paying you for services. Use some decent software to separate the two. You’ll be in real danger of missing a payment to a creditor if you’re not careful.
Always Chase Invoices
Finishing a job and entering the invoiced amount onto a spreadsheet doesn’t count as payment. You need to make sure the invoice is in the bank. Always be firm with clients that haven’t paid their bills, and think about holding off repeat jobs until they’ve been paid.
Track Your Expenses Regularly
It can seem obsessive, but it’s a good idea to track how much your spending on a daily basis. You’ll have a much clearer idea of where you’re wasting money, plus you’ll slowly be able to make a projection for the future and avoid any nasty surprises that might crop up.
Aim For A Minimum Profit Each Month
It sounds obvious, but you should have an absolutely definite idea of how much profit you need to make each month to cover your outgoings. This should be a fairly easy figure to calculate, so make it a priority.
Do You Need An Accountant Or Is It Possible To Do It Yourself?
Trying to do everything yourself might seem like a cost saving exercise, but it’s actually detrimental to your business. Juggling web design, marketing, bookkeeping and the actual day to day tasks of your business is going to seriously compromise your profits. Leave these tasks to people who know how to do them properly, and concentrate on increasing the profit to cover the costs.
Accounting services can range from a yearly meeting with a freelancer, right up to a fully managed package from a reputable firm like Clough and Company. It’s perfectly possible to scale things up as the business grows. Click here for more information.
Keep The Accounts Organised
Consider moving to cloud based software to keep your accounts in good shape. It will also cut down on accounting expenses if everything is properly organised and stored in a safe place. There’s nothing worse than having to gather up a mood of poorly organised paper work when it’s time to visit the accountant.
Accounting is never going to be an exciting or fulfilling experience, and it’s best to tackle it on a daily bases to avoid the work piling up. With a an organised and methodical outlook, you’ll be in good shape when it comes to filing your return.
By Harry Price
Harry Price is a bachelor living in the south coast of England. He enjoys the freedom of entrepreneurship and has a goal to move to a different country every 3 years.