Efficient and effective management of your business is absolutely vital for its survival and growth. Of course, there are plenty of accountants around Newcastle that can help you in terms of financial planning, but it never hurts to have your finger on the pulse as a business owner and understand a few top tips that will help you improve your overall financial management.
Ensure customers pay you on time
One of the main reasons businesses run into financial problems is because of late customer payments. Make your credit terms and conditions obvious from the get-go, to reduce the risk of late-payment. You should also make sure you issue invoices quickly, making sure they’re accurate. Ensure you use a computerised system to help you keep track of customer payments.
Be selective over who you do business with
As a small business, it’s important to be selective over who you do business with. Turning down potential business certainly won’t be easy, but it could be the best thing you ever do for your business. Consider running a credit check on any potential business partners, to make sure they can make good on any financial promises. Based on the outcome of the credit report, you can make an informed decision about whether or not working with this business would be a good financial decision.
Keep your records up to date
If your accounts are not up to date, you stand to lose a lot of money. Make sure you use a good record keeping system that you can track online. Of course, these aren’t just records of who owes your business what, but also when you’re due to pay your bills and suppliers. A good record keeping system will help you keep track of your expenses, as well as identify opportunities to apply for additional funding and even save some money.
Meet tax deadlines
Failing to meet tax deadlines and payments can be fatal for a business, as they can incur fines and build interest. All of these are unnecessary costs that could be avoided by simply forward planning. Tax can be extremely confusing, which is why it is advisable to consult an accountant over such matters, to ensure you’re paying the correct amount of tax, and you also take advantage of any tax rebates your business could get, such as a deduction for working at home, or for hiring a vehicle.
Tackle problems when they arise
Financial problems are very stressful, particularly as a business owner, but there are plenty of sources out there who can help you tackle all of them head on. Be sure to seek professional advice before things get out of control. Some initial steps you can take to minimise any financial issues escalating include tackling priority debts first, and assessing how you can improve your cash flow management.
Hopefully, implementing some of this advice will help you to get complete control over your business’s financial situation. Of course, it never hurts to consult the opinion of an expert accountant, especially on matters as important as tax and collecting debts from customers.