You may have realized that one of the biggest headaches you have to deal with business accounting. And even more so since the Covid19 pandemic began. It’s keeping a balance between growth and your business accounting. Although, since the health crisis began. Many companies are forced to have an accounting professional to advise them and manage the accounts. And to be able to focus on the growth of their business. There are many SMEs, freelancers and self-employed who do this work for their account. Who needs to include the work of an accountant in their daily business.
To be able to identify the possible solvency problems that your company has. It is necessary to carry out a series of steps if you do not want to jeopardize the viability of your business. Therefore, in this article we offer you 5 basic tips to be able to take advantage of the resources you have that you may not have known about.
Track and sort all receipts for business expenses.
It’s not rocket science to keep track of receipts for business expenses. The problem for most small business owners is staying consistent. It’s much easier to adopt a simple habit than one that’s complicated.
“Tracking paper receipts can be overwhelming, but with technology. We can take a picture of every receipt and automatically record it. Once you get in the habit of archiving the receipt immediately, you’ll never miss another one.”
Even if you have good intentions, it’s very easy to misplace paper receipts. This causes you to fall behind on your bookkeeping. The expense tracking option in a cloud accounting platform allows you to take a photo of your receipt and store it securely in the cloud. The simplicity of the process allows you to stay on track.
Know your business accounting
One problem that small businesses usually face when dealing with accounting is the wide network of factors. This must be considered to achieve a sound financial structure: Financing, Treasury, Liquidity. For this reason, the first advice we want to give you is perhaps the most basic. If you have decided to do this process yourself: Take accounting courses.
In today’s world, where it is more necessary than ever to acquire new knowledge in order to apply it in business and create additional and differentiated value, learning about how a company’s accounting works at different levels will be very enlightening if you want to get involved.
Technology, our great ally
In these moments when every penny counts and the forecasts of companies to invest. Innovation is becoming more and more complicated. It is necessary to pause for a moment and think about the advantages that management software offers in this case.
The lack of time and knowledge can be the walls that prevent you from seeing how a software with these features can help you improve the financial issue. And you prefer to invest in outsourcing this work. However, thanks to the rapid development of these programs, we increasingly find a wider offer, at a lower cost, and very importantly! adapted to any type of company.
One of the tips that experts give to reduce unnecessary costs is exactly what we indicated in the previous point: Know your business well and examine the needs that need to be covered in order to take the necessary measures without incurring unnecessary expenses.
Keep your company up to date
If you don’t have management software (SaaS) that records cash inflows and outflows. Payments to suppliers, payments for services, etc. it is possible that no matter how small your business is. Over time, this data is lost and it is almost impossible to balance the cash at the end of the month.
This fact is called “cash flow”, that is, the inflow and outflow of money in a given period of time, which is used to know the actual liquidity that a company has and its financial situation, to know what money you have. for expenses, debts or investments.
Therefore, it is advisable to indicate any movement that occurs in your company. However insignificant it may be, and that it is well classified in the accounting plan. Because in this way it will be easier for you to assign each movement and, if necessary, to be able to prove each one and avoid possible administrative sanctions.
Even though this may seem very tedious if your company serves a large number of customers, for example. Who make payments in different systems such as credit cards, mobile payments, etc. And in different currencies. Today there is software that allows you to work with an integrated collection system that helps you with this management. This way you keep every movement collected, and later it will be easier for you to square the numbers.
You can also use companies like Bookkeeping Services and many others in the
Create an accurate billing system
Having a system that organizes all of your bookkeeping is key. And the better organized you are, the fewer headaches you’ll have later. In today’s technology-driven age, choosing the right accounting software for businesses is very important and the first step to creating a reliable invoicing process.
“There are a lot of options on the market. So it’s important to choose an option that not only has all the features and integrations you currently need, but also has the ability to scale as you grow,” recommends Stephen Young of Blinds Direct.
Young is right, because moving everything to a new platform can be a costly endeavor. While professional-looking invoices are important, so are features and scaling potential.
Ignorance of the law is no excuse
Or as the saying goes, “ignorance does not excuse compliance with the law.” Now that the deadline for thousands of businesses to file their 2020 income tax returns is approaching. It’s a good time to update your obligations as a business owner.
As we told you in the previous paragraph, any type of business needs to be aware of the current legislation and the changes that are occurring. This is because complying with tax obligations is essential to avoid fines or administrative sanctions. For this reason. It is advisable to seek legal advice to comply as much as possible and not get into delays that cause headaches in the long run.
Check the results
A good way to monitor where your company stands is to do a monthly evaluation. Just like we do when we look at our bank account statements. At the end of the month to check the expenses incurred. You can do this with your company’s accounting records. What income you have generated or what are the expenses produced are the basic data that you need to manage in order to be able to adjust the strategy little by little.
Nowadays, most management programs allow access to detailed reports to check the results and make comparisons between specific periods to see the evolution of your business.
As you can see, keeping accounting records requires time and knowledge, but it doesn’t have to. Even if you outsource this task, you can’t do anything to make it better and you have to be unconcerned. The more you get involved, the more control you will gain and the better results you will achieve.