If your business has the tendency to let finances go unmonitored for long periods of time, it could leave your business in a poor position. Without constantly monitoring your financial state, you may never be in complete control of your cash flow and all the transactions within your business.
Coleman & Co have an expert team of accountants available to provide financial management and regularly monitor your finances, keeping your business performance high.
Chase Payments
Chasing payments isn’t something a business wants to do very often. However, if you find your income lowering every month, it could be due to payments not being completed properly. Deciding to only monitor your finances at the end or beginning of each month could mean you miss a lot of the transactions that haven’t gone through correctly.
This could even be customers cancelling their payments themselves. No business wants to be losing customers and sometimes the best way to manage the status of your customer base is through whether or not they are paying the correct amount of money. If their payments are constantly changing or you have issues with them, you know to speak to the customer and discuss the problem.
Managing Your Taxes
Failing to pay the HMRC the correct amount of money when it comes to tax payments is a big mistake. Often you will be asked to make any corrections and pay the correct amount of money, but it could be worse than this. If payments are late or there are lots of mistakes, fines could result in your business being charged even more money to make amends for an error.
By managing your finances, you will always be in control of the payments you make to the HMRC. You can easily keep record of your business income and prepare yourself for tax payments that will have to be made. Without frequent monitoring, taxation is more likely to be incorrect, resulting in more money and time lost for your business.
Setting Targets & Comparing
Your business should always be looking forward and if your profit is decreasing each month, it does not show signs of improvement. Monitoring this through your finances is one of the best ways to help your business improve and ensure that your profit margin stays healthy.
By comparing your current performance to previous months, you can see just how good your performance is or whether it has been dropping over time. You can also judge why this is happening, as it could be due to fixed payments, poor performance from the sales staff within your business or overspending.
Once you have compared figures over time for your business, you can also set targets for every team within your business. You can see if you need to spend less or sell more and by managing your finances much more often, you can monitor this much easier.
Correct Financial Management
The main reason for any business to monitor finances is to ensure you are in a good financial state. Whilst it may help you achieve other tasks within your business, ensuring that finances are in the right state every day is essential. Knowing when payments are being made, when money is coming in and when you have enough money to spend is something you should always be in control of.
This could also have an effect on your staff members. If your payroll is not ready on time due to finances not being monitored and organised, staff performance will drop when they are not paid the correct amount of money.
You can also adjust how much you are spending on a daily or weekly basis by monitoring finances more often.
Contact Us
Financial management on a daily basis can be time consuming when managing your business at the same time. By outsourcing your finances to Coleman & Co, we can take this responsibility away from you. Call our team today on 028 9266 3599 for advice regarding all financial management.