Accounting can be a lengthy and complex process for businesses and for SMEs, it could potentially claim hours of your valuable time. Whether you’re processing an expense claim, invoicing clients or planning your monthly budget, the best way to save time is to get organised.
Here’s four ways that you can keep control of your business’s outgoings.
Keep Business Accounts Separate
It may be easier to use your business credit card in some situations, but you should keep your business and personal purchases strictly separate. Your business outgoings can get incredibly complicated – when it comes to accounting for your expenses, it could take you hours to separate your deductible business expenses from your personal finances.
Save yourself the headache by keeping a tight control of your business accounts.
Keep on Top of Accounts
Try to set aside time every week to organise your finances. By taking a regular step back, you can get a better insight on your business’s expenses and you may be able to make better financial decisions as a result. You’ll thank yourself when your tax return is due!
Properly track your business spending and review it regularly. Keeping an eye on everything from wages, overtime, benefits, travel and outgoings will give you better control of where your business can save money.
Keep Track of Invoices
This may seem obvious, but with so many customer payments, invoices and deadline dates around, small businesses sometimes struggle to keep on top of whether they’ve been paid. In fact, a massive 62% of small business invoices aren’t settled until they’re overdue.
Keep a proper record so that you don’t realise months later that you have outstanding invoices due. Missed payments could be a nightmare for your business, and late payments could delay money that you could ultimately be put back into your business.
Apply for a Fixed Rate Mortgage
Having a fixed mortgage rate on your business rates is a good way to keep control of your business’s outgoings. You’ll know exactly what you’ll be paying for a set period and if interest rates go up during that time, you won’t be paying any more than your agreed payments.
Your mortgage is likely to be the biggest outgoing that you have to plan for each month so it’s helpful to know how much you’ll be paying. It can be easy to arrange, with places like Saffron Building Society offering a range of fixed rate mortgages for businesses, and will help you to plan your budget more accurately.
Get your business finances in order this year and get organised. By keeping a tight control of your business’s outgoings, you can save yourself time and see clearly where your business can save money.