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Owning a business requires a lot of input on the growth side of things. Between planning market strategies, networking and research, there is not much time for keeping the finance side in order, yet it becomes so important when closing some business deals to know what the financial implications of that deal might be, or if you are growing and at what rate you are growing.

We have touched on some of these in a previous article, but here are some simple tricks to keep the time needed on this to a minimum:

KEEP YOUR BUSINESS AND PRIVATE ACCOUNTS SEPARATE

Not only does this simplify the processing of your transactions, but it also has a psychological benefit in channelling spending to where it is needed while curbing unnecessary purchases.

Many banks produce downloadable bank statements from internet banking that could be imported into a range of accounting products available on the market, which brings us to the next point:

AUTOMATE THE PROCESS AS MUCH AS POSSIBLE

It is worth spending some money on hardware and software that help automate the transaction flow into the financial reports, be it on the spending or sales side.

Many accounting packages nowadays facilitate the transactions emanating from a point-of-sale (POS) or accommodate direct processing of transactions affecting stockkeeping.

On the payments side regular payments can be automated using debit orders or the “Recurring Payments” options available on the internet banking facility of most South African banks. For larger businesses with an extensive payroll, salary transactions are made simple by the export of a file from the payroll package that could be up-loaded directly to your bank’s internet banking facility.

USE CLOUD BASED ACCOUNTING SOFTWARE

Not only will you find that it is more cash-flow friendly, but loss of data tends to be less of a problem or no problem at all. It allows for easy processing, centralisation and consolidation of data, instant remote access by your accountant and instant reports. Although this makes one dependent on good internet connectivity, those factors are manageable and the pro’s outweigh the con’s by far.

USE A SIMPLE DIGITAL RECORD KEEPING SYSTEM

Orders, delivery notes, invoices and receipts can be submitted, processed, and stored digitally. This will simplify the search for and access to these documents if required at a future date. Keeping it simple leaves an audit trail that could be followed in case of an audit requirement.

CREATE REGULAR REPORTS

Good accounting software allows for budget processing and instant performance reports. Use this facility on a regular basis to track your business performance. This will also aid in closing business deals.

BUDGET

Probably the most important tool is your budget because this sets a track for your business plan to follow and measure performance against. Remember to keep your requirement for cash in mind while dealing with this.

OUTSOURCE YOUR BOOKKEEPING FUNCTION

Outsourcing this function has some obvious benefits like saving valuable time, stress, and money, but you also have access to objective advice on the improvement of your current bookkeeping system and possible guidance in finding the correct accounting package for your business. These are some of the services offered by Multical, so give us a call and we will go out of our way to help you get your bookkeeping on track.

 

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