7 tips for staying on top of your business accounts
As a freelancer or small business owner, you may sometimes find yourself a bit overwhelmed by all the different aspects of managing a company. Invoicing and accounting have the poor reputation of being one of the more time consuming and, let’s be honest, less fun parts of running your business.
But with a few tips and the help of cloud-based invoicing and accounting software like Debitoor, these tedious tasks can be managed more quickly and easily than ever before. With technology and a little dedication, your accounts can be running smoothly.
1. Get your invoicing down
Invoicing is a cornerstone of running a successful business. Develop a system that works best for you. Take some time to determine an invoice numbering system that will be effective for your business, which allows you not only create the number of invoices you need, but can also provide a bit of organisation for your records. Read more about invoice numbering.
2. Set up a business account
Separating your business finances from your personal finances is an easy decision for some, but may be a bit more of a grey area for others. By setting up an account dedicated to your business, you not only protect your personal account but make it easier to manage finances directly related to your company.
3. Keep your income and expenses up to date
For many freelancers and small business owners, it only takes minutes a day to stay on top of entering any expenses, or to upload your bank statement to reconcile your bank account. While it may not be the highlight of your day, taking this simple step could save countless headaches further down the road.
4. Follow up with your customers
Recent studies found that one of the biggest issues for sole traders and small businesses was not receiving payment from customers. Use reminders to gently (or more assertively) remind your customers that their payment is still outstanding.
5. Create a bad debt reserve
It’s unfortunate that part of running a business may inevitably mean you will come across a customer unable or unwilling to pay. In this case, having a back up (bad debt) reserve will prevent this from having a larger impact on your overall business. Think of it as a safety net of sorts.
6. Use a mobile app to track on the go
A mobile app is a great way to stay on top of your finances outside the home or office. Quickly take notes on expenses and enter payments on invoices using a mobile app linked to your cloud based accounting software, to go back and enter details later.
7. Connect with an accountant
At the end of the day, it’s important to get a professional overview of your business accounts in order to ensure they are balanced and prepared for tax purposes. With cloud based accounting software like Debitoor, you can grant your accountant read-only access for seamless transferring of up-to-date information.
By following this outline, you can quickly and easily get (and stay!) on top of your business finances. You’ll also save time that you can use to focus on the more exciting parts of your business.