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A business with superb products and services and a growing customer base can still fail if finances aren’t kept under control. By keeping track of costs and practicing good financial habits, you can lead your business toward success. Here are ten tips to manage the finances for your business.

1. Do the Paperwork. When starting up a business, it’s tempting to leave the paperwork for later. However, this may cause you to forget important costs or fail to invoice a customer. Do your bookkeeping while the information is still fresh. This will also help you to avoid costly late penalties when filing documents with Companies House. For an overview of the documents that you’ll need to file, check out our guide to documents for startups.

2. Track VAT. If you are VAT-registered, you need to keep track of VAT records and make accurate returns. Don’t be afraid to seek help and advice if it will keep you from getting behind in your records. A decent source of free information on VAT is available on any of a number of internet forums.

3. Use Online Banking. Doing your banking online can save you time and money. This will help you to better monitor you credit limits and overdrafts. Make sure to still check all of your bank statements and stay above your authorised balance limits.

4. Document Quotes, Orders, and Invoices. Keeping track of these business transactions will help you control your margins and sales revenue. To ensure that you are are practicing good invoicing habits, please refer to our invoicing guide.

5. Brand Financial Documents. By putting your company logo on your financial documents, you gain another opportunity for advertising and selling points. You may even want to create your own distinctive forms with colour and images.

6. Plan Ahead. You can plan your budget and cash flow more effectively by anticipating significant costs. By scheduling recurring purchases and invoices, you will also save valuable time and maintain good relationships with suppliers.  Keep an eye out for our upcoming post on building healthy relationships with your suppliers.

7. Control Stock. Keep track of your inventory and stock movements. You may consider increasing stock turns to decrease holding costs.

8. Make Payments On Time. Keep accurate records of payments and pay your staff on time. By keeping up with tax and national insurance payments, you will also reduce hassle and worry.

9. Complete End of Year Summaries. Be sure to complete your P14 and P60 forms and submit them on time to HM Revenue and Customs. You can find instructions on HMRC’s website. To see which forms you’ll need to fill in, you can refer to HMRC’s guidelines. If you are unsure of how to proceed, it never hurts to consult an accountant for advice, especially if you have recently started your business.

10. Keep Track of International Trade. If you conduct business international, make sure you record transactions in the foreign currencies as well. Keep track of exchange rates and record gains and losses for your foreign transactions. Since currency fluctuations can affect your profit, make sure your margins hold up with foreign sales. A great way to keep an eye on exhange rates, as well as view historical rates, is to check out XE.

By keeping up with the finances for your business, you can avoid unnecessary losses and hassle later. Using financial software or consulting a qualified accountant is a good idea for any business, especially those that are just starting.

This article was submitted by Molly Cunningham. She is a business expert who owns the site Business Administration Degree.

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