If you’re one of the thousands of businesses and enterprises based in London you will find these finance tips to be of great use. Many business owners overlook the management of their finances until a time when it’s a little too late, causing panic, stress and confusion. Rather than overlooking the important task of small business finance, use these tips to prevent possible problems in the future.
All Transactions Need to be Recorded
You must create and keep an accurate record of your transactions. These records can prove to be of huge importance in the future, for a variety of purposes such as the yearly audit, financial assessment of the company or your tax return. Get into the habit of recording all of your credits and debits as soon as possible, giving yourself time to create the records each week.
It’s difficult to manage financially when you’re setting up a business but it’s a good idea to begin putting some money aside each month, not spending every penny on the business or through your wages. Plan for rainy days when clients or sales aren’t forthcoming and also to make larger investments in the future. Another option is to invest in assets that will provide you with a return, making money for your business down the line.
Learn About Your Tax Responsibilities
You’re going to have to learn about taxes and your responsibilities. If you have any questions regarding tax or PAYE for example, don’t leave it to guess work, contact accountants in Central London and ask for assistance. If you miss the deadlines or make mistakes you might open yourself up to expensive charges or end up paying more tax than you need to.
Get Help if You Need it
Outsourcing to accountants is cheaper than hiring your own. Find an accountant that is able to help you manage your entire accounts so you can spend your time concentrating on the other areas of your business. Use www.gsmaccountants.co.uk which will be able to help you manage your finances, freeing up your time and reducing your stress levels as you’ll know your accounts are in safe hands, being kept up to date and are being carefully monitored.
Chase Those Who Owe You Money
Don’t ignore those unpaid debts, even if they are small. That is money you are owed for products or services you provided, it’s rightfully yours. Make contact with the debtors, send out reminders and final demand letters but if that gets you nowhere you will need to seek the services of a debt collector. Another point to make is to ensure you’re charging enough for the services or products you’re providing.
These five tips are surprisingly overlooked by small business owners in London. Don’t be one of the many that end up in financial trouble because they ignore their accounts. Take control now and organise your finances so you can grow and move in the right direction.
Image courtesy of bplanet/FreeDigitalPhotos.net