There is no doubt that effective financial management is essential for business. If you are an entrepreneur running a new start-up or more established SME, then you need to make it a priority. Keeping on top of your business accounts will ensure that you don’t run out of cash, know the financial health of your business, and hit any necessary reporting deadlines that are legally required.
But what if you are new to handling business accounts or need a few tips on handling yours more efficiently?
Awesome financial management tips for business
If you find looking after your business accounts a headache, then the below tips should help make it easier:
- Use accounting software – one thing that could really help you handle your accounts better is to use a piece of accounting software such as Xero. If you prefer, you could opt for an online accounting solution such as QuickBooks instead. These kinds of solutions make it simple to enter data, get useful reports back, and see where your business finances are up to. Many business owners use this type of solution now – QuickBooks, for example, has around 2 million global users as of last year.
- Outsource them to an accountant – while the above options are great, you may simply find looking after your accounts miserable. If this is the case, then why not think about hiring a certified accountant to do it all for you? For a fee, they will take away the work of handling your business accounts and mean that you do not have to worry about it anymore.
- Hit deadlines – whether you handle your account personally or your accountant does, you need to be aware of any important reporting deadlines. The most pressing is anything related to your tax return and payments each year. HMRC gives out a standard £100 fine for just missing the return deadline, so it really is worth knowing about.
- File records – a great way to make looking after your accounts easier is to have a filing system that you follow for invoices, receipts and expenses claims. This will make it simple to get the information you need when completing any returns and also assess the financial health of your business at regular intervals.
- Use an online money broker – another great tip for efficient handling of your business accounts is to use an online money transfer broker for any international payments. This is becoming an issue for many businesses now with so much global trade happening. Rather than using your bank for international business payments, choose an online broker as they will give lower fees, faster transaction times and better exchange rates. It is best to conduct a money transfer comparison online first though to select the broker with the most favourable rates.
Handle your business records like a pro
One thing that all successful businesses have in common is a focus on maintaining their accounts and excellent financial management. By doing this, you not only make it simpler to see how your business is faring but also ensure that it stays on a sound financial footing. If you do not pay much attention to your business accounts currently, then it really is worth doing.