With the Christmas and New Year period fast approaching us, many businesses tend to slow down in the lead up which may be a perfect opportunity to implement new strategies for your business or simply ‘improve’ any current habits.
- All business owners should review their bank statements to satisfy themselves that there are no unauthorised transactions being processed. Always keep personal and business finances separate – this will save hours in deciphering which transactions are related and deductible for the business
- Running a petty cash tin may be ideal in order to cover those small purchases as opposed to running everything on a business card (think stamps, milk for the office etc). Decide on a ‘float’ and purchase a lockable metal box to store the cash. Once an item has been purchased with these funds, place the tax receipt in the box and reconcile at the end of every month (or once the float has gone). Enter the month’s expenses in your accounting software and replenish the funds.
- Archive all documentation (invoices, tax receipts, tax returns etc) yearly per financial year. Records per law are required to be kept between 5-7 years (depending on the nature of the documentation).
- Backups are crucial and should be done regularly – we recommend backups in two places (one being external). There are many Cloud based options available for both accounting packages and the storing of files and documents, however external hard drives may also be used if preferred (ensure these are stored unplugged in a fire proof safe or off premises).
- Ensure your anti-virus software is up to date.
- Review and update budgets and cash flow forecasts as needed to ensure any major expenses are accounted for.
Running a business can be demanding – don’t be afraid to ask for help if required!