Improving Financial Records
If like most small business owners, you spend the majority of your time managing daily operations, keeping customers happy, and looking for new ways to grow, it is likely that keeping financial records such as spreadsheets, cash flow analysis, and financial projections are not your first passion.
However, measuring profitability, creating realistic budgets, and planning ahead for the future are crucial to your success.
Follow these tips to get a handle on the numbers and take control of your business finances.
Move to the cloud
How much of your time do you spend hunting down financial documents, poring over spreadsheets, and tracking expenses?
Manage your business finances faster and more accurately by moving them to the cloud.
Cloud-based financial management systems have several benefits, including:
- Integration with all your other operational systems for the quick retrieval of the most current data;
- Automation of daily financial processes so you can step away from spreadsheets;
- Efficient expense tracking that improves accuracy and reduces revenue leakage; and
- Easy collaboration with team members and other stakeholders.
Regular financial reviews
Each month, set aside time to review your balance sheet, profit and loss statement, cash flow statement and other KPI’s.
Regular monthly check-ups will give you actionable insights into your business performance and growth potential. This information is crucial for:
- Projecting future revenue, cash flow, and expenses
- Validating major purchasing decisions
- Anticipating and mitigating risk
You will need this key data, too for a number of other reasons such as if you ever want to apply for a loan to expand and grow your business.
Struggling to interpret or prepare the right information?
On the surface, hiring an experienced bookkeeper or accountant may seem costly, but the benefits should outweigh the costs as their expertise could mean considerable long-term gains for your business and allow you to focus on what you are best at.
A financial expert can optimise the efficiency and accuracy of your financial management, granting you peace of mind and added time to pursue growth opportunities.
An accountant will be able to help you manage crucial processes, plus add value in a few extra areas such as applying for a business loan or overdraft, articulating and adapting your business plan and managing sudden growth –other significant decisions can also have an impact, for example; hiring new staff, acquiring office space, or determining when to introduce a new product or service.
We always recommend you do your research and consult an expert before investing in any new accounting solutions for your business.
MHA Moore and Smalley believes cloud technology is the way forward for businesses and though our systems reviews will be able to recommend the best software and applications to fit your company needs.
Our Digital Services team has extensive and specialist knowledge in this area and can provide a range of services, including system implementation and training.
If you have any questions about digital solutions and how we can help streamline and support your business, please get in touch with Judith Dugdale, Head of Digital Solutions, on 01772 821021 or via email : Judith.email@example.com
Part of this blog first appeared on one of our member firms, MHA Carpenter Box.