Ah, finances — the necessary evil that forms the foundation of all successful businesses. Love it or hate it, if your business doesn’t have a streamlined and effective business finance operation, you run the risk of your competitors sprinting past you in the race.
Furthermore, keeping on top of your business finances is the one and only way to ensure that you will be placed in good stead when it comes to the overall impression you give to suppliers, customers, and investors.
Are you someone who is looking to stay ahead of the curve and manage your business finances in the most efficient and effective way possible? Well, look no further because today, we look at 6 handy tips for streamlining your business finances. Read on to find out more!
Automate Wherever Possible
If a computer or software can do it, then a computer or software is definitely something you should be making use of. When it comes to keeping on top of your business finances, automation is king. Not only will you be able to save hours of precious time that would otherwise be spent doing things manually, but you’ll also be able to ensure that your finances are free from human error.
Using tools such as accounting software, invoice templates, and payroll systems are a great way to streamline your business finances and also ensure that you are always compliant with ATO rules, which is never a bad thing!
Categories Business Expenses
We get it – running a business, let alone a successful one, is hard work. Amongst the chaos of money flowing in and out, it can be all too easy to end up feeling overwhelmed when managing the finances of your business.
Keeping track of individual expenses in order to differentiate them can often end up last on the list of priorities, which is why we highly recommend that business owners dedicate time to organising the sources of revenue and expenditure into categories.
By doing this you will ensure that all your finances are organised and that stress is kept to a minimum. This also makes for a much easier task come tax time, as you will already have everything neatly organised and ready to go.
Ensure Your Team is Up To Speed
Having great accounting and finance software in place is just half of the job — ensuring that your team is well versed in using it and adequately trained is the other half.
Regardless of the beauty of automation, there is still a need to ensure that your team members understand the basics of how to operate said systems. You can ensure that your team is up to speed by holding training sessions that will cover all aspects of software integration, from A-Z, with your employees.
Ensuring that everyone is kept in the loop and fully understands any new software or automation that is introduced to the business is vital in ensuring that your business finances are all smooth sailing.
Hire A Bookkeeper or Accountant
If you don’t already enlist the help of a bookkeeper or accountant, we highly recommend doing so. Hiring professional help can go a long in streamlining your business finances and can help you keep track of ongoing financial transactions and tracking details.
Accountants can also help with tax filings and any other financial tasks that need to be done, which can make a huge difference in the success of your business. Professionals will also be able to give their opinions and input based on their extensive experience — something software cannot provide better than a trained and experienced professional can.
Make It A Habit
If you want to ensure that your accounting and finance process is streamlined, it is incredibly important that you make a habit of it. It is always advised that business owners ensure that employees regularly attend to account maintenance, regardless of how busy or tied up they may be.
This is especially important during stressful periods of the year when updating financial data can easily be neglected amongst the chaos. At the end of the day, the lynchpin of streamlined finances is consistent management. After all, it is better to do it right the first time than spend precious hours rectifying issues that may take twice as long to fix.
Aside from the environmental benefits of going paperless, doing so can also greatly streamline your accounting process. Piles of paperwork is without a doubt, a nightmare, which is why it is always recommended that businesses go paperless. Paperless financial tracking offers numerous benefits such as increased productivity, organisation and less shuffling around the office all day long.
Going digital with receipts, invoices, contracts, and other documents is also a great way to ensure that everything is backed up in the Cloud and easily accessible when needed. Say goodbye to stacks and stacks of paperwork and endless papercuts!
Keeping your business finances streamlined and organised at all times is one of the best ways to ensure that your business succeeds in the long term. We hope that this article has given you insight into some of the habits you can implement in order to ensure that your finances are always kept on track.
Jason is the Marketing Manager at a local advertising company in Australia. He moved to Australia 10 years back for his passion for advertising. Jason recently joined BFA as a volunteer writer and contributes by sharing his valuable experience and knowledge.