Staying on top of the book-keeping is often an overlooked part of business, with a mad rush around deadline time to get everything up to date. However, in order to better understand your business and ensure you are maintaining a healthy profit margin, keeping on top of your records is key.
We recommend you therefore do the following on a monthly basis:
- Reconcile your bank accounts.
Ensure that the balance you have on your records agrees to your bank statements – if not, have a look to see if you’ve missed any expenses or receipts. Remember – you need to record every transaction, even if it is not business related, and just indicate that it is private in your books.
- Review your creditor lists.
Check your records of suppliers you currently owe money to. Any outstanding invoices can then be paid either within the credit terms or earlier, potentially receiving an early settlement discount, if offered. You will also be able to check for payments you have made up front, and are yet to receive an invoice for. Chase it up now while this is fresh in your mind.
- Review your debtor lists.
Cash is king in business, so it’s important to regularly review who owes you money, and chase it in as soon as the invoice is due. This will also prompt you to keep on top of your invoicing. The sooner the customer is invoiced, the sooner they will pay!
Book-keeping is not always everybody’s cup of tea, so if you feel you need extra support with yours, or would like some training on the best way to monitor your business, please feel free to give us a call.
Accounts, Audit & Tax