Make effective accounts management top of your new year’s resolutions
With the new year well underway, there may be a variety of business plans or resolutions you’ve pledged. However, in any business, effective accounts management underpins a successful operation, so this should be top of your resolutions list if it hasn’t been a priority in your business thus far.
Proper accounts management is the kingpin of business. Here are some reasons why getting accounts in order is crucial.
Making lifer easier when it comes to tax return filing – whether you’re conducting your own tax return submission or using the help of an accountant, having proper accounts kept in an orderly manner, with all expenses and income logged along with corresponding bank statements and receipts, will help the process enormously. If the process of manually recording expenses and keeping reams of receipts gets you in a tangle, consider investing in accounting software, which automates the process for you. With recurring invoice generation, digitalised expense logging and receipt filing – among other features – all kept secure in a cloud-based system that can be accessed from a mobile device with a fingerprint log in, you might wonder how you managed without this technology.
Increasing chances of access to finance – looking for finance to take your business to the next level or to invest in vital equipment or more staff? Gaining bank finance can be a difficult enough task, but nigh on impossible if your accounts are in a mess. Whilst alternative lending sources means the bank no longer has to be the primary source of lending and your first port of call, private investors or crowdfunding organisations will still want to see some robust accounts.
Heading off a potential crisis – forearmed is forewarned, and with effective accounts management, you’ll be able to identify any potential financial issues the business may face and help put in place a strategy to deal with them. Having a non-routine approach to book keeping is a recipe for disaster and can often mean potential cash flow problems are discovered too late to be able to deal with them. Cash flow is one of the biggest business killers, so don’t let it ruin yours. Additionally, having good, orderly accounts means you can execute business planning much more effectively.
Adams Moore offers accountancy software Xero, to help with bookkeeping. To find out about Xero or any other aspects of accounts management, get in touch on 01827 54944.