If you’re running a small business, you’ll undoubtedly have come across the phrase ‘cashflow is everything. One of the best ways to manage your cashflow is to keep a very tight grip on the money coming into your business and the money going out. It can take as little as 10 minutes a day to protect your cashflow!
Develop daily bookkeeping habits
This ‘little and often’ approach works incredibly well when it comes to keeping up with your business finances.
Five practical ideas in 10 minutes to keep on top of your finances
Here’s what you can do in 10 minutes at the end of the working day. It really could make the difference between your business thriving or just surviving.
1. Check your internet banking. Match the transactions to paper records, receipts, and invoices.
2. Check customer payments. What’s come in? Who still owes you? Contact every customer with an overdue account as soon as possible (this is the essential part of managing your cashflow). Prepare and send out invoices from today’s work.
3. Transfer the transactions into your bookkeeping software. That’s purchases, sales and any other incidental spending, including travel expenses.
4. Take photos of any cheques before you pay them into the bank (preferably the next working day) and receipts for major purchases. Bits of paper go missing; you’ll thank yourself at the month-end.
5. Check your time or job logs for each piece of work you’ve done today.
How to choose a bookkeeping software package?
There are loads of software packages to choose from, some complex, others covering more basic needs. Your accountant will be able to help you choose, and the best option may be simply to use the software they use?
HMRC has information on a range of software applications, and whilst they do not endorse any package, the information is verified as authentic and secure.
HMRC also offers information and a printable guide about the records you need to keep and how long you need to keep them.
https://www.gov.uk/self-employed-records/print
Help from Rackhams Accountants
Rackhams Accountants offers a free, no-obligation consultation for start-up businesses and advice for established businesses. Call 01482 631700 or see our website for more information:
