Keeping a close eye on the money

For small businesses, keeping control of cashflow is vital. The ability to juggle day-to-day finances can sometimes be the difference between success and failure. The prudent business owner needs to watch the money daily.

Thankfully, tools exist to help with this. Cloud accounting with built in bank feeds allows bank transactions to link directly to bookkeeping and invoicing software. With a cloud accounting tool like Xero, for example, the business bank balance is highly visible on a dashboard. Also shown on the dashboard is money due to come in and money due to be paid out, so providing an extremely useful ‘snapshot’ of the financial health of the business.

What’s more, the dashboard can be accessed from anywhere (with an internet connection), and from any device. So now you can keep an eye on the money from the car, from home, even on holiday!

As one MyTax client commented, “Keeping on top of the book-keeping is now a pleasure and not a chore. The dashboard gives an instant overview of our company accounts and helps us keep on top of invoice and bill payments.”

7 top tips to get paid faster

  1. Discuss payment terms before you get started. Getting this sorted upfront means that there is no confusion down the track. It also sets the clients expectations around payment before you start the work.
  2. Keep detailed records of inventory and time. This saves time when it comes to creating the invoice and makes sure you don’t miss anything. It also means if things are going over budget you can let your client know, instead of sending them an expensive surprise at the end of the month.
  3. Make the invoice clear and easy to understand. List the details of the job in a way that makes sense to the client, any confusion could create a payment lag. It’s also good to personalise your invoice with your business logo – it helps carry on the professionalism of your work.
  4. Set appropriate payment terms. If you need to receive payment within 30 days, our data reveals that you will need to set your payment term 13 days or less. Keep in mind that on average, debtors pay invoices 2 weeks after the due date.
  5. Address the invoice to the person paying. Make sure your invoice goes straight to the person who makes payment to avoid getting lost in someone elses inbox. If you’re unsure exactly who that is, give them a call – it pays to know the person paying the bills.
  6. Invoice as soon as possible. Send your invoice as soon as possible, the sooner a client receives an invoice the sooner they will make payment. It also means they will receive it when the value of your work is still fresh in their mind.
  7. Keep on track with debtors. The squeaky wheel gets the oil. When things become overdue send reminders, monthly statements or make a phone call. It will help remind your client that you are serious about getting the invoice paid.

Having a process that helps streamline invoicing can reduce the amount of time you spend collecting your hard-earned money. Find out how MyTax can help you get paid quicker here.

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xero bank reconciliaton

5 easy ways to make your business run smoother and smarter

  1. Use bookkeeping software that connects to your bank account and automatically organises your transactions.
  2. Do a bank reconciliation as often as possible, to see your cashflow in real-time.
  3. Give your bookkeeper and accountant a login, so they can give professional advice sooner rather later.
  4. Use online invoicing for quicker and easier payments.
  5. Connect your business systems to your bookkeeping software so all your data is accurate and up-to-date.

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Cloud accounting made simple

We are increasingly living our lives online: banking, social life, shopping, the list goes on. If you run a business it makes a lot of sense to get your accounting online too (it’s predicted that in 5 years we’ll all be running our businesses this way).

Cloud accounting can be defined as the use of the Internet for the accounting tasks you usually perform on your computer (the ‘cloud’ represents the Internet). The benefits speak for themselves:

  • Access from anywhere: flexible working for you / staff, check the finances wherever you are.
  • Access from any device: use your smartphone to raise invoices and get paid quicker.
  • No software to buy: save money, no more updates, reduced hassle.
  • Collaboration: as your accountant we can log in anytime and help you with your accounting.
  • Safe & secure: no more worries about fire / flood / theft risk, or data breaches.

So join the revolution – contact the cloud accounting experts, MyTax, today for a free demo.