Top tips to improve organisation skills and improve cashflow
My new year’s resolution is to: Improve my organisation skills and improve cashflow
How much time do you lose sorting through all of your credit card charges and paper receipts to work out how many of your purchases were business expenses? Perhaps 2018 is time to step up your organisational efforts and implement a system for tracking your business expenses in real time. Look at our top tips:
Create a business bank account
If you’re a sole trader with a new business, you may not have made it a priority to separate your business and personal transactions. If that’s the case, don’t delay it anymore! Put all of your business income directly into a business account, and use a business credit or checking account for any business-related purchases that can be paid by card. You can move money from one account to the other as necessary, but drawing a clear line between the two accounts will help you easily keep track of whether you’re making business or personal purchases. Creating a business bank account will also build up your business credit, which will come in handy if you might need financing in the future.
Stay on top of your receipts
Without a doubt, one of your business priorities should be staying on top of your expenses as without a firm grip on just how much you’re spending, what looks like a healthy profit, could in fact be worrying losses. QuickBooks makes it easy for you to keep your expenses under control using the mobile app. All you need to do is take a photo of your receipt and attach it to your transaction within your QuickBooks account – simple.
Evaluate your payment terms
Cash flow can be difficult to manage, particularly if your customer and supplier terms aren’t well balanced. It’s important to look at whether the terms you’re offering customers work well for your business and have a clear indication as to whether your customers are receptive of your terms.
Suppliers must also be considered. Are your terms similar to others within the marketplace? Could you be missing out on a discount if you were to pay earlier?
Whilst that may not be in line with reducing the receivables-payables gap, the discount may make it worthwhile!
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