pring is finally here! While you’re dusting off your tools and tidying up your workspace, why not give your business accounts a bit of a refresh too? A financial spring clean can help you get organised, save money, and take the stress out of managing your accounts.
We know that accounting can feel like a chore, but a few simple steps can make a big difference. Here’s how to get your business finances in top shape this spring.
1. Review Your Cash Flow
Cash flow is the lifeblood of your business. It’s not just about how much money you make—it’s about knowing what’s coming in and what’s going out. A healthy cash flow means fewer nasty surprises and a better handle on your finances.
How to Review Your Cash Flow:
- Go Through Your Statements: Look at your income and expenses over the past few months.
- Identify Regular Expenses: Spot any payments you can cut back on, like unused subscriptions or services.
- Plan Ahead: If you’ve got big expenses coming up (like new tools or equipment), budget for them now to avoid cash flow problems later.
Quick Tip: If cash flow is a bit tight, consider offering incentives for quick payments—like a small discount for customers who pay their invoices early.
2. Tidy Up Your Receipts
If you’ve got a van full of old receipts or a wallet stuffed with crumpled bits of paper, now’s the time to get organised. Keeping on top of receipts makes it easier to track expenses and claim what you’re owed come tax time.
Simple Ways to Organise Receipts:
- Go Digital: Snap photos of your receipts as soon as you get them. There are loads of apps that make storing and categorising them a doddle.
- Set Up a Filing System: Even if you prefer paper, a simple folder with sections for each month can keep things in order.
- Regularly Sort Through Them: A quick 10-minute tidy each week will stop things piling up.
3. Chase Unpaid Invoices
If you’ve done the work, you deserve to get paid. Unpaid invoices can cause cash flow issues and unnecessary stress, so make it a priority to chase them up.
How to Get Paid Faster:
- Send Friendly Reminders: A polite nudge can often do the trick.
- Set Clear Payment Terms: Include due dates and payment methods on all your invoices.
- Be Consistent: If you usually wait to chase payments, set a regular day each month to check what’s still outstanding.
Pro Tip: Offering multiple payment options—like bank transfer, card payments, or online apps—can make it easier for clients to pay quickly.
4. Set Up Good Habits
When it comes to your accounts, little and often is the way to go. Creating simple routines now can save you hours of stress when it’s time to file your tax return.
Simple Habits for Managing Your Accounts:
- Log Income and Expenses Weekly: The more often you do it, the less work it feels like.
- Reconcile Your Accounts Monthly: Make sure everything lines up with your bank statements.
- Review Your Cash Flow Regularly: This helps you spot any financial issues before they become a problem.
If You Struggle with Routine: Set reminders on your phone or add a regular accounting session to your diary.
5. Plan for the Year Ahead
A good financial plan isn’t just for big businesses—it can help sole traders and small business owners too. Knowing what’s on the horizon can help you manage your money better and avoid those “oh no” moments.
What to Include in Your Plan:
- Expected Income: Look back at previous years to predict busy and quiet periods.
- Upcoming Expenses: Factor in things like equipment maintenance, insurance, and tax bills.
- Savings Goals: Whether it’s for tax, a rainy day fund, or a new piece of kit, setting aside money regularly will make it easier to manage bigger costs.
A Fresh Start with Buzz Accounting
A spring clean isn’t just about clearing out the garage—it’s about creating a fresh start. If your accounts are causing you stress, we can help. At Buzz Accounting, we make managing your business finances easy.
We’ll help you keep on top of your accounts all year round, so you can focus on what you do best. Want to know more? Drop us a message or get in touch today—we’d love to chat!