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How can you make business finances more efficient?

Efficient finances are what make a good business and a great business. You may have a fantastic product at a great price, or offer an amazing niche service that few other businesses can, but the key to maximising your profits without cutting any corners or reducing quality is the successful management of your finances. Fortunately, there are a lot of ways you can do this. Here are just a few and how they may help.

Keep track of things in real time
First thing’s first. It’s imperative that you keep track of your finances in real time. If you’re a small business or are self-employed then the tendency can be to leave things until the end of the week, or even month to log them down.

This is a big mistake as it can often lead to a lot of confusion about where money has come from, where it is supposed to go, or even why there is a money unaccounted for. Keeping track of your finances and logging any incomings or outgoings as and when they happen is essential for keeping track of things and just one example of the many top tips for growing businesses which are available.

Keep petty cash
Petty cash can be extremely useful when paying for things such as business lunches, petrol or other low-cost essentials. It will also make things easier to follow, as any large sums of money can remain logged and untouched and safely accounted for in your business account.

Try out some new accounting software
If you have been running your accounts on a basic spreadsheet, it might be time to investigate other options. There is a lot of very powerful, yet easy to use and highly stable software out there that can do this. Using dedicated accounting software will help do the complicated mathematics for you and may make you finances a lot more efficient by minimising the effect of human error and miscalculation.

Keep backups
Keeping backups of all of your data will make sure that if anything is ever lost or damaged, that there is another copy of it available immediately. Far from being solely an efficiency issue, backup data is extremely important in making sure that should anything go wrong, you will not need to waste a great deal of time and money rectifying the problem.

Migrate your data to the Cloud
Migrating your data online is an even more secure method of creating backups. An online accounting service for businesses using systems such as Sage One allows the user to access their information from anywhere. In the long run this can help to keep track of finances more accurately.

20.05.2016. 15:15