Working here at Quill as the Accounts Assistant for the last 4 years and having previously owned a successful bookkeeping business and supported my husband with his business accounts for over 15 years, I know first-hand how important a disciplined approach to your accounts is for a sound and healthy business.
Here are my Top 5 tips for successful account keeping practices:
1. Get automated
Invest in a professional online Accounting Software program. The monthly subscription costs can be claimed as an expense to your business and far out-weigh the value of your time and resources. This will give you back valuable time to re-invest into your business and focus on the big picture, and not spend your precious time on the small stuff.
I would also recommend you investigate some of the add-on apps available too. These apps can upload your small receipts on the go, so no more crumpled up pieces of paper in your car or handbag.
I will include some links below that I use and recommend. There are many more on the market and it is a personal choice as to which work best for you and your business.
2. Be organised
Spend time getting your accounts in order and set up a schedule for bookkeeping duties. Put aside time either weekly, fortnightly or monthly to record your business expenditure and review your accounts payable and receivable.
If you are time poor, think about hiring a professional bookkeeper for a few hours per week/month to help with these tasks. Your expertise in your business can be better spent on productive and income producing activities. Outsource the small stuff.
3. Utilise Supplier payment terms
Ask your suppliers for payment terms rather than COD. Set up 30 day accounts where you can and utilise these terms to free up cashflow.
4. Follow up your Debtors
Don’t be afraid to follow up overdue invoices owed to you. Most times it is simply a forgotten invoice and a quick call is all it takes to get paid.
Some online accounting software programs have in-built invoice reminder features, or use an add-on app that sends automated reminders, meaning you don’t have to be on the phone chasing money and can help take the stress out of these tasks.
5. Align your business with an experienced Accounting Practice
It’s important to have a professional accounting practice you can trust, so ask colleagues or business associates for recommendations. Seek out a firm who has experience with your type of business. Take the time to build a trusted relationship with your accountant to gain the very best financial outcome for you and your business. Need help with this? Get in contact with Quill Group today.