With the New Year here, I find myself looking forward and planning how to achieve my business goals in 2021 and beyond. I have been reflecting on my own successes and my moments that did ‘not quite go to plan’. As such, one of my next steps is to adopt a new practice management software that will be a better fit for my accountancy practice and much improve my internal processes.
With that in mind, I wondered if any of the ladies in this community could also look to improve their processes in 2021? One of those processes could be bookkeeping, and, if so, here are some points to consider:
1. Embrace technology: A good bookkeeping software will be intuitive, and once you have made the time to learn how to use it properly you will not look back. It will feel like you have an experienced bookkeeper working with you. If you feel your business is not yet ready for software, then create a workable excel spreadsheet.
2. Allocate time: The frequency of data entry and the capture of accounting information is so important. Set aside time each week or month to complete important bookkeeping tasks, updating your software or your spreadsheet. Do not let it get on top of you or become a daunting task.
3. Health checks: Review your financial records and understand which of your products or services is selling the most, your profit margins, your customer behaviour, and much more. The more you learn from your past numbers, the more you can adapt your business and make the right decisions for the future.
4. Cashflow: Ensure you understand your business cashflow, money in and money out. In particular, do not forget the annual fees or tax obligations that may fall due, such as an annual subscription or hosting cost. Put in your calendar key payment dates and reminders, and use your knowledge from the up to date record keeping to consider your cash flow.
Improvements to your bookkeeping is just one example of business next steps. You may reflect on the past year and choose to focus on another area – each and every business is different, and improvements need to be tailored to each one.
I know for certain that there are enough ladies in this community to offer advice and support no matter what your next step might be. However, if you want further advice on bookkeeping processes or other accounts and tax matters, then I am happy to help.
Happy New Year