Staying on top of the finances of your startup is not always easy. If figures aren’t your thing then the accountancy side of your company may be an area that you generally try to avoid. However with so many advancements and developments in the world of business and finance management, keeping on top of your numbers doesn’t have to be so much of a headache anymore. Here are our tips on how to improve efficiency in the finance department of your business.
Consider Going Paperless
With the age of the paperless office steadily coming into fruition there really is no way to avoid considering the benefits a paperless office can bring to your business. Transitioning your business to an electronic management system will bring about a huge difference in the efficiency of your accountancy team, or if you’re a one-person-band, then your individual accountancy activity. You will significantly reduce costs by reducing the amount of time necessary for manually inputting financial information.
This will free up time for your accounts department to focus on other more interesting areas of the business, like analytics and improving communication and relationships with clients and suppliers. If you automate your system with a streamlined electronic invoicing system you can reduce the amount of team your finance department spends on monthly invoices by up to 80%.
Utilize Modern Technology
It goes without saying that the world of business has never been so evolved and intelligent. There has never been so much technological assistance available to make the running of our business as easy and seamless as it does today. That is particularly true when it come to the financial department of any business.
There is a whole wealth of streamlined accountancy software and incredibly intelligent apps and programs that allow us to keep on top of our accounts and get organized. Put in some research into the top apps, software and programs available on the market today that will help you control your financial accounts, keep up to date with your figures and help you to create future financial stability.
Schedule Regular Financial Focus Time
Making sure you allocate a certain amount of time, each week, to go through your figures is crucial to make sure that you are on top of the week to week financial activity of your company and to help you avoid coming up against any unpleasant surprises in the future. There can be a natural tendency to always want to push the analysis of the business figures down to the bottom of the list of priorities and this is one of the worst things you can do.
Looking at the expenses of your company is another good way to stay on top of the finances for your company. What are your biggest outgoings? Explore whether it’s really necessary for you to spend so much, or if there is any way that you can shave a little money off those larger expenses. If you have any office space or any staff then make sure you are continually looking into those overheads to make sure that they are controlled and there are no hidden extras involved in these overheads that might disrupt your monthly outgoings. Staff asking for pay increases, for examples, or possible tax or inflation rates for electricity can be just some of the small details that can come up that can have a big impact on your company’s financial balance. So always try and be one step ahead of the game and try and always be ready for these types of potential financial fluctuations.
Also look at things that you need to invest in to ensure the success of your business. Perhaps it’s computers and electrical equipment or perhaps you need a travel expense account to get out and meeting your clients face to face in an attempt to further grow your business. Well, this all costs money and all needs to be factored into your yearly financial budget. Look at any financial help you may need to get you through quieter times, or if you’re just setting up, to help get your business off the ground. There are some very good business loans currently available, with low interest rates and flexible and customized repayment schemes, so do your research if this is something that you need.
Being able to react well to change is one of the most important things you can do as a business owner. Our business are constantly evolving and the markets within which we work are constantly fluctuating so it’s important that we are adaptable and flexible with the ways we evolve our business to adapt to those changes. These changes should begin with our accounts. When you are enjoying times of strength and growth in your business you should be jumping straight into your bookkeeping and look at how you can save that profit away and how you can invest it back into the business to ensure continued growth and success.
Similarly if your business is going through a time of sudden difficulty and money is a little tight then again you need to be quick to react. Be proactive and positive with your planning and make sure that you don’t make any rash decisions based on panic. Looking into the areas of your business where you can pull back a little is where all the above comes into play. By continually keeping on top of your financial activity and your outgoings you will be in a strong position to react to these kinds of situations quickly and rationally and without affecting the overall balance of your business.
Improving overall efficiency in your business is all about trial and error. Learning from the mistakes you make, as you go along, is one of the best ways you can learn about what works and what doesn’t work within your business which will lead you to create a really solid foundation in the financial department of your business and in your company in general.