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What happens if you don’t stay on top of your accounts?
27 April 2023

We know we’re always going on about the importance of understanding and keeping on top of your accounts but this year, more than ever, we can’t emphasise it enough. You can’t grow your business without having a clear picture of your financial situation and failing to stay on top of your accounts can lead to damage to your business.

Forecasting

 

Financial forecasting is essential if you want to grow your business and reach your goals. Is your business prepared for a financial emergency? What if you lose your biggest client? Or you need to make an unexpected big investment? Staying up to date with your finances means you’ll always have a clear picture of where your business is at and what you can and cannot afford.

Forecasting means you’ll have a better picture when it comes to cash flow and debt management. It will help you make informed decisions and reduce the number of risks. You can’t be financially secure if you don’t have all the facts. And the only way to get all the facts is by regularly checking and keeping on top of your accounts.

 

Keeping on top

Your finances need to be given enough time and attention to be done properly. The smallest mistake can cause a lot of damage for your business. We suggest setting aside specific time each week / month and sticking to it.  The “I will do it later” excuse will cause a whole lot of problems down the line.

It is important to remember that no-one gets everything right the first time and it’s not your fault….you’ve just never been taught! It can be very easy to try and push through and keep trying to manage everything on your own but if you’re struggling this can easily lead to mistakes that may end up causing issues that aren’t easily rectified.

As well as keeping on top of your bookkeeping, we also suggest recording everything, every expense, payment, invoice. It all needs to be recorded properly otherwise you could end up losing important information, have missing pieces of your financial picture, and make misinformed decisions.

 

Training

 

If you don’t know how to use your accounting software or you’re not using it properly this could be detrimental to the business. Every business is unique, and your accounting software needs to give you the precise information for your business needs. What information you may need might differ to what another business needs. We highly recommend using Xero accounting software – it is the software we use for all our clients, even ourselves!

Whether you need advice on automation, categorising, reporting we have a team of experts that can help and if you’re new to Xero we can train you and get you all set up.

 

Debt

 

We all know what happens if you spend more than you can afford for too long. You can end up in serious financial trouble. Once you’re in debt, it can be very difficult to get out whilst also trying to keep everything else in your business going. In some cases, you might not even be able to keep the business going and you don’t want to have put in all that hard work for nothing. Falling into financial complications can also damage your reputation. It’s important to seek expert advice to see if you can get any financial help before it’s too late.

 

Ask for expert advice

 

If you’re unsure about anything with your accounts, it’s always better to ask for support from an expert. Whether it’s advice on Xero, questions about records you need to keep, or general financial guidance, consulting with an expert, like ourselves, will give you peace of mind.

At Your Support Team we can help manage your accounts effectively and accurately so that you stay in the know and on top of your finances. It’s in your best interest to stay prepared for anything that’s thrown your way.

 

Outsource

Don’t have time to stay on top of your accounts or don’t know what you’re doing?  We understand accounts may not be your thing, but they do need doing! That’s where we come in. We’re there to manage your finances and make sure everything is on the right track. We can also spot any red flags and hopefully resolve them before there is a bigger issue.  You may be thinking that you can’t afford to outsource and that you’re trying to save money, but outsourcing can save you time and money in the long run and you will have the peace of mind knowing your accounts are being managed accurately.

At Your Support Team we understand that every business is different and we invest the time and effort to get to know the ins and outs of your accounts. We have the expertise and knowledge to give you well informed advice and always have your best interests in mind. We work with you to give you the best advice and support to help grow your business and help reach your goals. If you need any help or advice, please get in touch.