Getting down to the brass tacks, or the bottom line is simple when you are a business owner. In addition to and as a result of providing the service or goods your company supplies, you are in business to make money. In an increasingly expanding and competitive market place it is imperative to be financially stable and innovative in order to remain viable and at the top of the arena in which your business plays.
Learn to Delegate
Whether you are a hardworking sole proprietor of a basement start-up or the Chief Financial Officer of a major company, what is key to making your business run smoothly is the proper and appropriate delegation of duties. You cannot be everywhere at once.
Often, trying to individually take on multiple tasks and responsibilities all at once only leads to mistakes. These mistakes then mean that your time has been put to waste and more is going to be needed in order to rectify them. Through delegation, you can assign all of your accounting to a member of your team who knows what they’re doing and who can put their sole focus into it. If you do not have a trained accountant in your team, then you may want to look at hiring a financial professional. Although this could come at a high cost, it will save you from creating errors which could result in a loss of business – thus benefitting you in the long term.
Keep Financial Records
If you don’t keep a record of all the payments you need to make and when they have been made, errors will soon arise and you will have to come up with more time to rectify them. For instance, if you miss a payment and the client begins to chase you up on it, you’re going to have to spend valuable time backtracking to find out what happened.
By keeping a digital ledger to record your payments, using online software or hiring an accountant, you will be able to keep track of all of your payments and will have an organised way of managing your expenditures to prevent future mistakes.
Use Automated Payment Software
Using bacs payment services can make accepting and distributing payments so much easier. It is all digital, organised and readily accessible. You know exactly what is going on without having to spend time and effort on the details. Bacs payment systems are reliable, long-established and all of your payments can be automatically submitted, including:
- employee payroll
- business payments (for utilities, services, restaurants, events etc)
- business to business credits
All of your business expenses are taken directly from your account. You authorise the dates, payment amounts and everything else will be taken care of for you. This will free up a significant portion of your time and eliminate the possibility of human error.
Monitor Your Income
If you don’t monitor the money coming into your business, you won’t be able to effectively manage the money that is going out. You need to ensure you aren’t spending more than you’re receiving, as this could lead to errors when making payments if the money simply isn’t there to make them.
Start off by creating a budget and ensure you stick to it and regularly assess it. If you notice that you are going way over this budget, then take a look at your expenditures and eliminate anything that isn’t a necessity. Furthermore, if your sales have been down, then you will notice that your income will have reduced. Monitoring this may also allow you to see what payments can be eliminated or reduced.
Financial management is imperative for every business and applying the above techniques will provide you with both security and simplicity when it comes to making payments. Time is ever more valuable today as not utilising every second only provides your competitors with a way to get ahead, so streamline your financial processes sooner rather than later.