We are just a week away from Christmas. Businesses everywhere are expecting that slack period whilst employees and clients take the time to celebrate the festive season. It also means that revenue will dip somewhat, and may not pick up again until January, when the New Year celebrations stop. With staff celebrations, your in-house business expenditure is likely to go up, and it becomes time when many small businesses lose out from not planning out their finances.
If you are a small business owner and feel like you need help, Pebbles Bookkeeping Services in Manchester has some helpful tips so that it won’t be a blue business Christmas.
Know the Flow
Do you have it figured out on what is coming in and what is going out from your business? Have you designated a place for your business receipts to go to so that they are safe?
Ideally, you will have a designated online folder where your receipts can be stored rather than distributed into random places such as emails, desktop folders, and cloud drives. If you are running Xero, you can photograph your expenses and send them straight to your XERO account. Understanding your cash flow is more than simply keeping track of your office bills – it involves knowing precisely what products and services you have sold to your customers.
Track Those Expenses
It is natural for a small business to have unexpected expenses, but the more you try to forecast your business expenditure each quarter, the better you stand.
One way to do this is by keeping accurate records of all expenses – supplies, payroll, insurance, rent, utilities, etc. – and budgeting for an emergency fund that can be accessed whenever unexpected bills surface.
Get Onto Those Late Payments
Sometimes you have to resort to a friendly nudge for certain customers who are behind with settling their bills. Don’t be shy about following up on late payments, especially if they have a habit of not paying when prompted.
If you use XERO, leverage its built-in reminder system and ensure customers realise they are falling behind. If you have to, add a late payment fee for delays beyond a specific date. Also, be sure to pay off your creditors promptly – or inform them if you struggle to make payment on time.
Get Help If Needed
If you are struggling to manage your ins and outs when it comes to your business bookkeeping, you can consider outsourcing this area to bookkeeping services. At Pebbles Bookkeeping Services in Manchester, our certified team works to save you time and money and advises on making the most of tax returns for your business.
Contact us today to handle your bookkeeping tasks and enable yourself to enjoy the holidays.