Everyone knows that staying on top of your business’ finances is essential. From details of transactions and how much income each deal rakes in to outgoings like overheads and staff costs, finances can take up a lot of time for many small business owners. It is hard to keep up with all of the details and make sense of such data unless you are a professional or have hired one.
While managing it on your own and hiring staff can be taxing to the business, there is a third option – outsourcing to an accounting services firm. It is worth knowing that you will be able to receive financial services from experienced accountants at affordable rates.
With that said, we share 4 reasons why it is vital to stay on top of your business finances.
1. Helps you stay organised
Staying organised, especially when it comes to your company finances, is vital when running any business. You should have an accurate record of every transaction, from the sales receipts to operational expenses such as staff travel. If you have to juggle between multiple business operations and bookkeeping, you could end up making severe errors.
Errors in your books could cost you dearly. For instance, you could quote the wrong price due to mistakes during the transaction. In the worst-case scenario, an error in your tax submissions could result in fines, penalties or even imprisonment. But by outsourcing to accounting firms, you can have a better chance at staying organised on the tasks for your business.
We provide convenience and affordability with our accounting and bookkeeping services. As corporate financial management is vital for small businesses, our experienced and professional accountants can help your business meet the requirements and fulfil mandatory compliance with the ACRA and IRAS. This ensures that the integrity of your books is maintained correctly and that your reputation as a trusted business continues to improve. This also allows you to gain a better understanding of your business’ financial health.
2. Plan for business growth
When you are regularly updated about your business finances, you can make better plans for business growth. For instance, accurate and updated records can help you to predict peak profit periods, and you can make important decisions such as whether it is financially viable to expand your operations team.
Staying updated about your business finances can also help you to make the right investment calls. For instance, you will know whether to apply for a loan when venturing to new areas or if you can sustain the business expansion using another way of financing. With outsourced corporate accounting services, it can help you to stay updated about your business finances so you can make such decisions with better financial management.
3. Maintaining cash flow
As businesses continue to grapple with the COVID-19 pandemic, maintaining sufficient cash to sustain day-to-day activities has become a top priority.
When you are on top of your business finances, you will be able to maintain a steady cash flow. You will also know how much to pay on different bills and invoices, and when they are due. You can optimise your Accounts Payables, and expedite on the Account Receivables.
4. Forecast with confidence
Ensuring that you are up to date about your business’ finances gives you the data to construct accurate forecasts for each area of your business. Correct and accurate financial records give you valuable information about where the company is headed and help you to estimate the profits or operating costs in the future.
For small businesses, there may be plenty of uncertainty in certain areas. Our team provides small businesses with SME accounting services to ensure that you can make the best decisions for the future. Our professional accountants are also able to advise you on how your business can move forward through financial risks, statistics and analyses that are crucial in helping you to forecast for the future.
If you are a small business owner, you should look to follow the crucial tips above and ensure that you stay updated on your business financials.