Every business wants to make a profit, or should aim to. But the problem many small businesses suffer is cash flow management. It has been said that “you can make a loss many times but you can only run out of cash once”. Keeping your finger on your cash flow is essential and using an on-line accounting package with bank statement downloads is one great way to manage this. But even if you have money in the bank is this available for you to use? You may have a supplier screaming for payment or HMRC need to be paid. On the other hand your best customer is about to send their remittance to you and all is not as desperate as it looks.
It can take time to monitor your cash, whether you use a cash flow plan or not.
Which is why you should hire somebody with this knowledge. But isn’t that an unnecessary cost? Well it can be so you need to have a detailed briefing with your prospective bookkeeper to clarify the requirements of their engagement. This will take both the burden of time from your shoulders and give you the re-assurance that the business has a sustainable future.
Of course engaging a bookkeeper gives you additional services which can help you manage your business. Keeping all the financial records up to date, giving you the key performance indicators for your business and generally acting as a support all mean that your bookkeeper should be an investment not a cost.
By using a bookkeeper you get your bank accounts monitored, your outstanding receivables chased, your payables planned and interactive, timely, advice about your performance, and no waiting for your annual accountants visit.
Contact AFS Accounts today, for professional advice on all your bookkeeping, payroll and accounting needs.