Managing a business means you probably have 101 things on your to-do list every day, and organising your business finances usually takes a back seat until there is a need to.
Running a business is hard and staying organised can be difficult, but organising your business finances can actually take the pressure off, making other areas of your business run a lot smoother.
Why? The correct management of your money is what ultimately secures your business’ success, and that’s why we’re giving you eight tips designed to get you started with organisation today.
Separate business and personal bank accounts
This is the number one priority when it comes to business finance. Keeping organised is difficult anyway, but when your business transactions are mixed with your personal ones, you’re making things more difficult than they have to be.
Having a separate bank account for your business makes it easier when it comes to working out your taxes. Not only that, but the monthly bank statements you receive from your separate business account will enable you to get a clearer picture of cash flow.
Track your income
Tracking your income means keeping a note of all incoming business related revenue – that’s received and due to be received income. Knowing how much money you will have coming in will allow you to understand the limitations and opportunities of your budget, as well as supporting forecasting.
Many smaller businesses begin tracking their income on spreadsheets, but with the advancements of cloud accounting software, there are many apps that can make your life much easier (and organised!).
Apps such as Xero and Quickbooks, or our own app KashFlow, allow you to view your income and cash flow over different periods. These apps can also be useful as your accountant (should you have one), can be granted access to your accounts.
Track your expenses
It’s never a bad idea to keep a track on where your money is going. If you are not aware of your outgoings, it’s very easy to become disorganised and overspend.
Tracking your expenses isn’t only an organisational tactic, but a money-saving one too. Some of your expenses will be tax-deductible, such as travel expenses, so it’s always a good idea to have a clear structure for expenses organisation.
You can track your expenses with all the apps previously mentioned, so it doesn’t have to be a manual process.
Be strategic with how you receive payments
Ultimately your business, beyond your overall purpose, was set up to generate revenue for either a cause or for yourself.
That’s why deciding on the most efficient way to receive payments can help to ensure revenue continues to come in as expected.
If you sell a service, for example, it is important to sort out how often you will invoice your clients, and what methods of payments they can use. Direct debit payments for regular clients are a fantastic idea and can help keep you on track with your forecast.
Set aside money
We’re sure you’re aware of the importance of budgeting when it comes to organising your finances, but are you aware of the various tools you can use to set aside money for various outgoings?
Banks like Starling have created spaces within your account where you can separate money from your general balance to account for things like VAT, Tax, and even bonuses for your team at the end of the year.
If you don’t bank with Starling, that doesn’t mean you don’t have options. Check with your bank to see what’s available – you may just be surprised.
Make time to organise
The problem with running a business is that there is always something more important to be doing, and setting aside time to do admin is a mean feat.
However, setting aside even a small amount of time each week to get on top of your finances will work out better in the long run.
Spending half an hour to an hour every week sorting out receipts and invoices means you won’t become overwhelmed.
Not great with planning time? Try time blocking https://todoist.com/productivity-methods/time-blocking.
Having loose papers everywhere can put even the most organised of people at risk of becoming disorganised.
Digitising your financial records and accounts makes it much easier to access and organise your documents, and reduces the risk of things slipping by the way.
We understand many business owners like to keep hard copies in case of emergency or fault, but unless it’s vital, it’s just an additional thing to manage. If it is vital to keep copies, make sure these are filed strategically and stored in a safe place.
Sometimes, the best way to stay organised is to seek the support of an expert who lives and breathes organisation.
Consulting with an accountant, financial advisor or a VA for example will not only save time and money in the long run, but it will also help you to develop the right level of organisation specific to your financial needs and concerns. As always, if you require our assistance here at Shenward, do not hesitate to get in touch. Email email@example.com