Take advantage of this seasonal downtime to really improve the way you hold your current financial data.
Make sure your accounts match your bank account balance
Cash is the lifeblood of your business. Without a steady flow, you will most likely find it hard to survive. So there’s a need to monitor how much cash you have in your business account on a regular basis.
If you haven’t already, try to see if you can set up an automatic program that pulls the data on a regular basis – this will minimise data entry errors and and free up valuable resource.
Remember to check your balance daily if possible. If you can’t, aim for at least once a week minimum. This will enable you to track that all of your transactions have been recorded.
Ensure your invoices are up to date
If your company issues invoices, you can use the summer downtime to check that you have sent them out for all of the work you have completed. You can also check all open invoices, as some customers may have forgotten to pay or are holding out.
Make note of all out-of-pocket expenses
‘Out-of-pocket’ expenses are business costs that you have personally paid for. For example, you could have paid for train tickets to go to a business meeting. As long as these are business costs, you can enter these into your business accounts. They will reduce the amount of profit you will pay tax on, so it is worth tracking them!
Check the categorisation of your costs
Ensure that all business costs in your accounts are allocated to categories correctly, as this will have an effect on tax relief. For example, make sure your train tickets are categorised as ‘travel’ and your stamps are categorised as ‘postage’.