When you are starting up a business, it is essential that you keep on top of your finances. It is of course integral in ensuring that your business stays afloat. Of course, it’s likely that you will have all kinds of advice from financial services professionals – but it’s important that you don’t feel surprised or confused by your end of year finances. We’ve put together some tips to help out.
Don’t Forget HMRC
Income can fluctuate when you are in business. Irrespective of whether your business has had a fantastic month or not – you should make it standard practice to put away 20% for HMRC. To make sure you do this, setting up a separate bank account for this purpose may be a good idea. It means when you are hit with a tax bill, you don’t need to worry. This will ensure that you always have the necessary cash on hand even for things that you’d rather not pay!
Choose the Correct Banking Solution
Choosing the correct banking solution is essential for small businesses. It should be as convenient as possible, so it takes you as little time as possible to complete. You need to be able to view your financial situation with ease – as well as be able to complete and accept payments quickly. As well as this, you might want to integrate it with you accounting software for even more convenience or add trusted users to keep on top of things. You can click here for some great business banking solutions.
Get Good Accounting Software
Having good accounting software is essential in making sure you are on top of your company finances. There are some great free ones that you can take advantage of. You can use the likes of Xero to do this. Here you can generate invoices, review your incomings and outgoings at a glance, you can easily identify if someone is taking too long to pay their bills – and you can even pull profit and loss reports. There is even a Xero app that’s available on your phone that will allow you to access this data at your convenience.
Hire the Professionals
It’s always a good idea to seek advice from professionals when dealing with company finances. Choosing the right book-keeper or accountant can be important in terms of getting things right from the get go. Book-keepers can make sure that the day to day operations such as getting invoices ready and receipts etc. Accountants can make sure that you are being as effective as possible in terms of tax savings and strategic financial planning when it comes to long-term goals.
If you are having trouble when it comes to keeping on top of your small business finances – then hopefully some of these tips will be able to help keep you on track.