So your business is going well, but you always seem to be chasing your tail when it comes to your finances.
Here are three things you can do to organise your finances in 10 minutes.
CASH MANAGEMENT:
The most important thing in all businesses is cash. So tip number one is to check your bank balance. With internet banking you can see your bank balance and recent transactions anywhere.
By doing this you get some quick benefits. These include:
a. How much funds you currently have available;
b. Recent transactions, which helps inform of any surprises that might come along;
c. If there are automatic payments setup, you can check these are still in order.
CUSTOMERS: Second is making sure you get paid. Have a quick look at outstanding invoices from customers.
This means you can focus on identifying any that are overdue and\or critical to receive.
If there are any that need action, take the time to prompt these customers as part of this 10 minutes. A couple of calls should only take a couple of minutes. Even if you focus on the top three outstanding invoices. By doing this it will start to lower the number of outstanding invoices over time.
CRITICAL PAYMENTS: Third is to make sure you make critical payments.
Check if you have any invoices requiring payment in the next week. Make sure you schedule these and you know when they need to occur.
You can also make sure you are aware of any loan payments or tax payments that are coming due.
From Cash Management and Customers, you should have an understanding of available funds. This will allow you to judge whether you will have enough funds to make these payments.
Spending these 10 minutes two or three times a week will help keep you on top of your cash. And staying on top of your cash is the core to keeping on top of your business’ finances.
It will also lower the chances of “surprises” popping up which take you away from running the business.
I am an Accountant and CFO for Businesses, Founders and Entrepreneurs. At Right Source, we manage the numbers so that you don’t have too. I offer an initial complimentary 30 minutes session to see if he can help you to save business costs and reduce risk.
To arrange an initial, complimentary discussion, email me justin.hogg@rightsource.com.au or call 0414 896 696.