Regardless of the type of business you run, there will always be a requirement to keep track of company finances. While in the initial period this can be as straightforward as income and expenditure, but as the business develops you will find that there are more avenues to contend this could anything from loans from companies such as oinkmoney.com to other funding and capital that you have received.
It’s easy to be come overwhelmed with the financial commitments of a company, but if we deal each step accordingly, it all soon fits into place.
Review All Aspects of Incomings and Outgoings
Although a basic overview of the company finances can help paint a picture of where money is being sent, a startup should ensure that all financial aspects of the business are recorded. These can include what is being spent on payroll, petty cash and the services the businesses we use.
Should you take your eye off the ball in relation to one segment of the business, it can mean that other segments have ramifications as a result.
Stay Organised Throughout the Financial Year
Many of us can view accounts as something we review on an annual basis, but this means that we have less time to contend with anything that doesn’t seem right.
Staying on top of your finances from the off means that you’re able to better manage the business as a whole, and any inconsistencies can be dealt with instantly.
Of course, it can be understood that some aspects of the financial world are hard to navigate. However, knowing what these are means that you’re in a better position to seek expert advice where it’s needed, thus allowing you to find a cost-effective solution.
Makes Plans for Major Expenses
While many expenses within the business will be the same throughout the year, there will be occasions where you have to spend a little more. What these expenses depend on the nature of your business, but an example can be the update of operating systems to ensure that your data remains safe.
To ensure that the business has enough capital to content with such expenses, you should ensure that you diaries any upcoming events, and look to put a plan in place that ensures that these costs are met.
It will also allow you some breathing space to find the right kind of service provider. If we have to rush when it comes to large expenditure within the business, we will often pay more for the service as a result.
Have a Clear Invoicing System in Place
Sending an invoice is a pretty straightforward endeavour, but if a business isn’t able to deal with invoices in the right way, then it will suffer some cash flow problems as a result.
Having a clear invoicing system in place ensures that you’re paid on time, thus ensuring that there are no financial hiccups in the business moving forward.
The terms and conditions of the invoice should be made clear to the customer. This includes detailing when the invoices should be paid by, as well as any fees that arise for late payment.
It can also be a good idea to keep details of an inventory sent or services provided should there ever be a query in relation to the invoice.
Having a time period in which the invoice has to be paid allows you to chase up later payments more effectively.
Don’t Dismiss the Use of Software
When dealing with company finances, there are many who will try to contend with the task alone in order to keep costs down. However, there are many open-source solutions available to use for your accountancy, regardless of the operating system you use. The following is a snapshot of what kind of software is freely available online.
GNUCash is geared towards small and medium businesses that allow business to keep track of income and expenditure with ease. It’s written in PHP and MySQL and can be used on Windows, Linux and Mac.
Written in PL/SQL and Perl, Ledger SMB is another piece of software that is ideal for small to medium-sized businesses and can even be used through regular web browsers such as FireFox and Chrome.
Openmiracle is an adaptable piece of open-source software that relies heavily on accounting principles. What this means to the end-user is that they’re able to create reports that are accurate, thus ensuring the finances of the company are heading to the right direction.
Setup Your Payroll in the Right Way
Payroll is one of the most important aspects of any business, as failure to maintain payments could lower morale within the business.
However, there can be a number of obstacles in place when it comes to ensuring that all factors are considered. The following is merely an overview of some of the considerations that need to be made.
- Ensure your business is registered as an employer on the HMRC database.
- Decide who will deal with PAYE for your company. This could be you, or a third-party depending on how many people your business employs.
- Check that the data you hold for your employees is correct and up-to-date.
- You are able to calculate bonus pay and overtime.
While it can be more cost-effective to simply work out everything yourself, this can be detrimental if you’re not fully versed in PAYE or payroll as a whole.
You should also ensure that you have a date in place for when employees need to hand in any correspondence, such as timesheets or overtime forms.
However, there can be software that can be used, or you could seek the services of a professional.