Strategies to keep company finances organised

Posted: 18th April 2016 08:44

It's the one thing that every business should be absolutely clear about: what is the company's financial position? It can be easier than you think for the finances to get out of hand. To use a nautical metaphor, it needs a firm hand on the tiller before it gets to the stage of all hands to the pumps.
Keeping an eye on the money
When you run a business, you can't be everywhere at once, especially when you're working to develop and expand. That means you need to have good people to work with you and keep you informed as to what's happening on the financial side of your company. Taking your eye off the ball and just expecting your financial team to keep you abreast of what's going on may work when things are going well, but if there are irregularities, for whatever reason, you may not be in a position to spot them.
Running a business is a big responsibility, so keeping those financial checks on a regular basis is essential for avoiding significant problems. If your finances are under pressure, you want to find out the reason and deal with any problems. If you don't do this, there may be serious consequences: you could have to make staff redundant or reduce wages, neither of which is conducive to a good and productive working atmosphere. In the worst-case scenario, your company could go under – not an outcome anyone would wish for.
Identifying problems
Unidentified financial problems could lead to meltdown, so it is as well to be aware of what could be an underlying cause of the company finances not being in the state you expected them to be.
Taking advice
It can be easy to get lost in a bubble when you're running a business, concentrating on the internal aspects, whilst promoting a good customer-facing service externally. Many businesses now look towards outsourcing certain activities that are essential to the smooth running of operations – for example, marketing and IT are frequently outsourced to specialist companies because the in-house expertise isn't there.
It's certainly worth considering bringing in a professional accountant to handle your books. You get an impartial view of your financial situation, will be asked questions about a whole range of subjects relating to your accounts, and have experts whose job is to help you. They can also assist with limiting project budgets so that you don't overspend.
The way forward
Taking control of your finances means you have every possibility of ensuring your business thrives. Make a plan that flags up irregularities, and then make sure you deal with them effectively and fairly.