Tips for Keeping Your Business Accounts on Track!Let me make this clear, I’m not an accountant and I always suggest you see an accountant for advice on your business accounts, these tips are to get you started and if you do these it will definitely help you keep organised and on top of your numbers so when you do go to your accountant you are ready and organised.
  • Keep your financial records and bookkeeping up-to-date, messy accounts are not good! 
  • Have an up-to-date budget and cash flow forecast so you can see what money you have and react to any changes.
  • Manage your cash in and out – be prepared for anticipated tax installments and other payments. 
  • If you are working with cash – do your banking regularly, both for security reasons as well as keeping track of your cash flow. 
  • Reconcile your bank statements regularly, double-checking receipts and payments with your own records. 
  • Ensure that you receive, record, and retain all tax invoices for taxable
    purchases to support your government tax requirements.

Money Matters 

Invoice your customers early and often. Keep a detailed account of all your debtors and act promptly on overdue accounts. Consider alternatives to improve your sales terms, e.g. lay-by terms, payment terms, and credit terms.

Keep a detailed list of amounts that you owe. Your debts may build up without your knowledge.  Use payable credit terms to your benefit, increasing the effectiveness of your cash flow.  If suppliers want to be paid early, ask about discounts for early payments.

Money Tips 

  • Manage your investment debt. Don’t over-borrow. 
  • Keep some cash for rainy days. 
  • Don’t over-commit your personal expenses.

Management 

  • Use professional advisers – the money this cost is an investment, not an expense. 
  • Watch trends in your business and the economy, review your business plan, and update regularly.
  • Regularly review your business performance and identify if you’ve met your goals. 
  • Review business insurance policies annually to ensure that coverage is appropriate.

Office Management 

The functioning of your office can be improved by making sure that: 

  • Papers and electronic data are filed so that they can easily be found when needed.
  • The office is kept clean, tidy, and well organised.
  • The phone and all enquiries are answered in a timely and professional
    manner.

IT & Communications Management 

Your business communications can be improved by making sure that: 

  • The computer system and software, as well as furniture and equipment, is efficient.  
  • Computer software up-to-date. 
  • Anti-virus software is loaded on every computer and regularly updated.
  • Files and settings are routinely backed up and back-ups are stored in a safe and secure place.
  •     Common problems with your computer system are fixed immediately.

  • The correct phone and email address are all printed on stationary.
  •     Mail, email, and message banks are checked and answered daily.

Sales 

The sales process can also be improved by making sure that: 

  • There are systems in place to ensure that quotations and work are done on time.
  • There is quality, up-to-date information available on all products and services.
  • There are innovative customer satisfaction processes and complaint mechanisms.
  • Records are kept of all sales activities.

Product Inventory 

  • Have an inventory system and do regular stock-takes. 
  • Introduce measures to ensure that each stock is rotated and that stock levels can be adjusted in a timely manner when needed. 
  • Review storage facilities and maximise safety and security. 
  • Ensure that there are measures in place to minimise stock damage. 
  • Introduce processes and systems for checking the quantity and quality of goods received.

Marketing 

  • Regularly review and update your marketing strategies. 
  • Monitor market trends and the changing needs of customers. Make sure to adapt to their needs because they won’t adapt to yours. 
  • Maintain a competitive price strategy. Look at what your competitors
    are doing.
  • Identify your core and occasional customers. Work out strategies to attract repeat business from both groups of customers. 
  • Identify a unique selling proposition (i.e. a unique aspect of your business that will give you an advantage). Work on this advantage to keep you ahead. 
  • Work on promoting your business through your customers. Develop advocate customers that promote your business. 
  • Keep your product and service development up-to-date with technical changes. Consider attending relevant trade shows and exhibitions that may inspire your business. 
  • Look at offering add-ons or package your goods or services to meet your customers’ needs. 
  • Encourage follow-up orders and work by delivering promptly. Always check the quality of the product or service delivered. 
  • Consider advertising in a group of co-operative to increase the effectiveness of your advertising.

In a nutshell, that’s how you keep your business account on track! If you need more in-depth tips on how to keep your business on track, I offer coaching sessions to solopreneurs and small business owners who need help in setting their business in the right direction. Contact me for tried and tested advice tailored to your business!

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