Many business owners find a great deal of satisfaction in ensuring their bookkeeping is up to date and accurate, although it does mean setting up an efficient and orderly system and actually sticking to it! However, most businesses will have quiet periods and other times when everyone is rushed off their feet. A company making artisan ice cream is likely to be hard at it through the summer months and quieter in the winter, as is a sole trader offering gardening services.
Alternatively, if you make Christmas crackers, the autumn will be frantic but once the New Year comes things will probably calm down a bit. It should be fairly straightforward to keep on top of bookkeeping in quiet periods, but what about the busy times? Fulfilling orders and keeping customers happy is the top priority, so how do you ensure your finances stay on track?
We’ve put together five suggestions to help tide you over at times when there simply aren’t enough hours in the day.
Use accounting software
This is arguably the most effective method of keeping up with bookkeeping. There’s a wide selection of bookkeeping software, such as Xero or Sage, which can save a hard-pressed business owner a considerable amount of time in the long run. It may seem like a daunting process to get to grips with, but if you get it installed during a period when your business isn’t as busy, it will be ready to go for your peak season. Automated software can computerise invoicing and reporting, provide an instant update on your cash flow position, collate payroll information and even assist in preparing your tax return. It can be linked with your bank and credit card account and organise and digitise receipts on the spot. Most business owners who purchase accounting software wonder how on earth they managed without it!
Get ahead on tax before tax deadlines
If your busiest period coincides with the tax season in April, then it’s critical to get ahead with your tax return. Even if it doesn’t, you can’t play fast and loose with HMRC deadlines as that could result in a hefty fine. Make a note of key tax submission dates well in advance and check and confirm the type of tax you will need to pay, whether it’s corporation tax, VAT or business rates. During a slack period, use the time to get your accounts in order and examine your business budget. It’s a huge relief when you finally press the button on your tax return, so schedule it well before the due date.
Make notes about every single meeting
For larger companies, meetings will usually be minuted, but fleeting chats on site and decisions made on the hoof or in a brief phone call are easily forgotten when there’s a lot on. It may seem like a chore, but making a cursory note about the conversation content, the date and time and the customer, supplier or sub-contractor involved can save a great deal of hassle later when you’re trying to match up invoices with cash payments or work out which customer needs a gentle reminder about an overdue payment.
Diarise time for finances
However busy you are, you will always manage to make time for important events; meeting a prospective customer or your bank manager, or popping out to attend a child’s nativity play! It may not seem like keeping finances up to date is as important, but if you specifically diarise a slot in your day or week when you get your head down and balance the books, it will pay dividends in the long run . . .
. . . and when you get the books out, concentrate!
You need to give your full attention to bookkeeping. It’s no good thinking about your new marketing strategy while running your eyes down a balance sheet. It’s easy to get overwhelmed, so shut the door, make a list, start at the top and stick to it. You’ll get everything finished much more quickly than you would if you were trying to multi-task.
At AMR Bookkeeping Solutions, we carefully guide our clients through the peaks and troughs of their annual work cycles, aiming to achieve maximum efficiency right through the year. We’d love to help you overcome your seasonal bookkeeping challenges – why not give us a call on 01892 559480 or get in touch through our website.
