Review your bookkeeping system
If you haven’t yet started to re-evaluate your bookkeeping, just ask yourself how much time you currently spend on managing your business finances, or how much you spend on invoicing clients, forecasting your tax bills and chasing customers who haven’t paid you. Perhaps you’re still using a spreadsheet even when your business has grown to the point where your finances are becoming too complex for Excel, so that you’re spending whole days reconciling your books.
Remember, that is all time that may be better spent elsewhere in your business, such as developing new products, devising marketing campaigns or networking for new clients. So if your accounting year coincides with the new tax year, now would be the easiest – and least disruptive – time to consider making any changes to your business’s accounting system. It’s a good idea to take a look at options which could make your life easier, including investing in dedicated cloud accounting software.
Alternatively, if you’re not yet ready to invest in an alternative set-up, take a look at changing your bookkeeping routine instead. Block out time each week in your diary and use it to stay on top of your invoices, chase up those clients who haven’t paid you, manage your bills and reconcile all the unclassified bank transactions in your accounts.
Once you’re routinely spending time on your books, you’ll then be able to see accurate, timely information about your business – including which projects are earning you money and what your up-to-date profit and loss account looks like. You’ll then be able to take that information and make informed decisions about what direction to take your business in next.