Spring is nearly here and there’s never been a better time to get your businesses finances in order. As the end of the tax year looms, considering ways to give your accounts a spring clean will help you re-evaluate processes and set you on the right track for continued success.
Take a look at some simple ways to get your business finances in shape for the new tax year.
Analyse the data
Taking a good look back at your finances will help to give a broader picture for future reporting. Evaluating what worked and what didn’t will also help plan for future seasonal highs and lows plus highlight any financial issues such as debt that require attention.
Organise your records
Keeping records is vital to ensure you comply with tax regulation but that doesn’t mean they have to be messy. Sort through old files, archive information more often and start filing as you go to save sorting through masses of paperwork every few months.
Chase old debt
All businesses have to deal with late payments and bad payers but keeping on top of this should be a priority to keep finances healthy. Set aside time to chase old debt and analyse the data to ensure money owed does not slip behind, making it nearly impossible to call in.
Re-evaluate business credit
If you have business credit cards, overdrafts or loans, it may be time to reassess your credit options. These accounts may not be working for you and you may be able to get a better rate elsewhere. It pays to shop around, as it could save the business money.
Return surplus goods
Sometimes you may order too much stock or incidentals that ordinarily will just sit around for years and never get used. If you’re working with these suppliers on credit, assess your needs carefully and if you order too much send it back.
Complete regular reporting
Smaller businesses often find they don’t have enough time to do adequate reporting as other activities get in the way. Making a plan to do monthly reports including forecasting will give you a clearer picture of the months and years ahead.
Upgrade company accounting software
Unless you are already using a cloud-based system, upgrades for accounting software can be a manual process. Keeping on top of updates will give you the latest features and security systems to ensure data is safe, secure and easily accessible.
Enter records regularly
Processing business transactions as they come in offers a greater view of the company position. Businesses may only have a bookkeeper or small team behind them but processing invoices and payments less often can lead to mistakes and rushed reporting.
Set new company goals
As your business progresses, targets and goals need to be adjusted in line with successes and failures. Setting new targets each year gives everyone something to aim for plus analysing during the year keeps your finger on the pulse.
File your accounts
This might seem an obvious process in business accounting procedures but very often companies fall behind on filing and paying monies due to HMRC. Keeping a note of important dates and setting reminders will ensure you keep on top of important processing deadlines.
Contact us today and find out more how RBF could help finance your business requirements.