It’s Time You Got Your Business Finances In Order

While you are busy managing the customer service aspect of your business and coming up with brilliant marketing campaigns in your spare moments, who is looking after your business finances? Is it something you do every now and again or do you just pile all of your receipts in one corner and hope for the best? For your sanity (and that of your accountant), it is essential that you spend time each week checking your business finances to avoid panic and stress when it comes to submitting your taxes. Do away with those excuses because it really is time you got your business finances in order!

Keep personal and business separate

If you are continually paying your private bills through your business account and vice versa, things can get slightly messy. Try to keep things separate. Maintain two different credit cards and two separate bank accounts for neatness and accurate recordkeeping. You will save yourself many hours of having to sift through those receipts and trying to work out what was what.

Schedule regular bookkeeping updates

If the only way you will look at your finances and update your expenditure is to book it into your calendar on a regular basis, then do it. Consistent effort on your part will ensure that you maintain accuracy and have a good handle on your cash flow and expenditure. While you may feel there are other more important matters at hand, do yourself a favour and commit to the success of your business by taking time of out of your regular schedule. Get that bookkeeping up to date. Be organised; get on top, and stay on top.

Move to the cloud

Cloud-based software such as Xero means you can actually do your bookkeeping from anywhere. You don’t have to stay late at work to get things done; you can go home, freshen up and then spare half an hour in the evening once you feel recharged and reenergised. Tackling your bookkeeping in good spirits will ensure that you don’t rush through them and make unnecessary errors. Not only is cloud-based accounting and bookkeeping software extremely flexible, but you can also view your accounts in real-time so you can see where you are at any given moment.

Hire a bookkeeper

You can only put it off for so long. If you are the type to just look at your business finances in the lead-up to the EOFY, then you need professional help. Hire a quality bookkeeper to help you get up to speed with your accounts and then update them as necessary. Once you have them in order, you will be surprised at how relatively low maintenance they can be. As a creative entrepreneur, you are probably juggling one too many balls, at least. Handing at least one over by outsourcing to a qualified bookkeeper can help your business grow.

Stick to your budget

If you are not following a budget, how do you know how well you are doing in business? Are you making a profit or a loss? Are you spending more than you bring in? Without a current bird’s eye view of your cash flow, you won’t be able to manage your business efficiently through the slower periods. Reviewing and sticking to your budget will ensure you make better spending decisions and don’t put all your eggs in one basket. Always save money for a rainy day and try to avoid making large financial decisions on a whim without consulting your books first.

Be Prompt With Billing

If you are not strict about sending out your invoices, then your cash flow will suffer. If you send them out late, then clients will be more likely to pay late too. Show them how professional you are by sending them out on time. Then, follow up immediately if they are not settled before the due date. They won’t take an email personally – it is just business – and good business sense at that! It may not be the most exciting thing you do in the scheme of your day, but it is one of the most important. How else can you pay the wages and settle your invoices if the payments are not coming in promptly?