How do you manage your business’ accounts? Would you say they are well-managed or do they resemble a madhouse?
Running a business is often very stressful, with a million things requiring attention at the same time. In these situations, it’s common for the maintenance of the books to be put on the backburner.
However, neglecting your accounts for too long could lead to real issues in the future, these include.
Are you aware of the receivable accounts you have coming in each month? Inaccurate tracking of your monthly income can put your business in an awkward position of appearing to have great ‘potential’ income but in reality, having limited cash in the accounts.
This is a position that no business wants to be in. If you don’t have a system in place to track and monitor outstanding invoices you may run the risk of losing visibility over your accounts. Which could have drastic effects on the rest of your business, such as your ability to cover overheads, marketing budgets or even the ability to pay suppliers.
Whether you are a new startup or established brand, the best way to avoid this is to implement some form of accounting software. CashManager by Accomplish is a great means of managing your business’ invoicing procedures. From creating an invoice template to following up outstanding invoices, you’ll be able to accurately manage your income.
Running a business is not a cheap operation, between the large overheads and the small or recurring payments, expenses add up.
Large overheads, such as rent, wages or insurance, are fairly easy to budget for, as you can see them coming well in advance. However, smaller expenses, such as subscriptions, hidden fees or one-off expenses, can add up.
Failing to track these expenses could result in a large shortfall between the cash you believe is available and the actual amount.
Are you paying too much tax?
Overpaid tax is one of the biggest issues businesses run into when their books are mishandled. That is because, messy or inaccurate accounts make it hard to track your business activity, meaning you may miss out on claimable expenses.
The way to counter this is to ensure you keep your books in order throughout the year and record every expense you make that is related to the business. This will provide you with clear visibility over what you can claim back come tax time.
Putting it off till later
It’s a common occurrence for many businesses, the end of the fiscal year scramble to organise everything. If you don’t maintain clean and up-to-date books throughout the year, you are opening yourself up to a world of pain come tax time.
The later you leave it in the year, the more you will have to rush, which increases the chance that you will miss something and make mistakes. The time you spend correcting these issues, or worse the money you lose, could have drastic implication for your business in the future.
How to avoid these issues?
Running a business, particularly a small one, is hectic and stressful enough without factoring in time to regularly go through and maintain your books. If you have the resources available, look at hiring an experienced bookkeeper, to take this pressure off your back.
However, if this is a step too far, CashManager by Accomplish will be your best tool as you aim to stay away from these common bookkeeping issues. CashManager, provides you with complete visibility over your business’ accounts, whether it is invoice management, budgeting and forecasting or bank reconciliation.
Implementing CashManager in the day-to-day management of your accounts will allow you to concentrate on other important aspects of your business. While saving you a lot of time and heartaches when the taxman comes calling.
To trail CashManager by Accomplish, click here to download a free demo.