When running a small business, it is essential to keep on top of your finances to ensure that the business stays afloat. If you don’t manage your bookkeeping strategies effectively, your company may sink fairly quickly. If you’re in any doubt about how to keep tabs on your accounts and finances, it may be best to hire a professional.
Here are 4 useful accounting tips for your small business:
1. Do you need an accountant?
Many businesses aim to manage their finances themselves in order to cut costs. Yet, this could be a huge mistake if you are a new company who is still finding their feet in the business world. Accountants are professionals in dealing with bookkeeping, debts, taxes and other financial matters and will be able to guide you through everything using their expert knowledge and tactics.
2. Chase up outstanding payments
If clients or customers owe your business any outstanding payments, make sure you follow up quickly and effectively. Having a large number of clients on your database is fantastic, but doesn’t really add up to anything until the money starts to roll in. Chase up particular cases before allowing these individuals to make any further orders. Without this strategy, your business could easily fail.
3. Keep track of expenses
In order to monitor your daily incomings and outgoings, ensure that your expenses are kept on record to refer back to. To make the process much easier, focus on one day at a time, or perhaps even a week ahead. Month by month may be too difficult to judge when you are first up and running. If in any doubt, ask for the help of an accountant.
4. Calculate profits
To work out whether your business is doing well, make a note of all of your profits. Numbers can become complicated fairly quickly, so the help of a professional may come in useful in this instance. Set targets based on what you should be earning per week and keep track of your accounts so they don’t become confusing.
If you believe an accountant could be beneficial in managing the finances of your small business, please contact Dunkley’s today on 01454 619900 or by emailing advice@dunkleys.accountants. We are a local chartered accountancy business based in Bristol and are dedicated to help make your business a success.