Cash flow is the lifeblood of any business. If you can’t keep your cash flow up to date, you will quickly find yourself in trouble. In this blog post we will discuss some tips on how to connect your accounts and reconcile them so that you can manage your expenses more effectively. Having up-to-date information about your cash flow is critical for making smart business decisions.
Consolidate Your Accounts
When you connect your accounts you can see all of your financial transactions in one place. This makes it easy to track where your money is going and identify areas where you may be overspending. You can also use this information to create a budget so that you can better control your cash flow.
Consolidating your accounts can save you time and money. By having all of your financial information in one place you can avoid duplicate transaction fees and keep track of your spending more easily. In addition, consolidating your accounts can help improve your credit score by showing lenders that you are organised and responsible with your finances.
If you’re not already connecting and consolidating your accounts, now is the time to start! There are many tools such as Xero Accounting software and professionals such as Lucent Advisory ready and willing to guide your business along the way.
Once you have connected your accounts, it is important to reconcile them on a regular basis. This means matching the transactions in your accounts with the corresponding transactions in your bank statements. By doing this, you can ensure that all of your expenses are accounted for and that there are no errors or surprises.
The main areas you want to focus on are your line(s) of credit, balance sheet and cash. Depending on your business type and model you may be using some or all of these functions. Without reconciliation these functions can get way out of control and cost your and your business in the long run.
Reconciling your accounts can be time-consuming, but it is essential for accurate financial reporting. Lucent Advisory offers a range of services to help businesses with their bookkeeping and accounting needs. We can provide expert advice on how to reconcile your accounts so that you can focus on running your business.
Manage Your Expenses
It is important to manage all expenses in a timely manner. This includes both income and expenditure. By keeping track of your cash flow, you can ensure that your business has the funds it needs to meet its obligations.
Payroll, superannuation, employee hours and entitlements, debits, repayments, utilities, maintenance, rent or mortgages all require detailed and specific management. If one of these gets out of control your whole business can be affected! That is why it is so important to have tools and support onhand to ensure that your business is in control every second of every day.
Schedule Incomings and Outgoings
It is important to schedule all expenses to avoid late fees and debt recovery. This includes both income and expenditure. By keeping track of your cash flow, you can ensure that your business has the funds it needs to meet its obligations. There are several ways to do this, including connecting and reconciling your accounts.
No one wants a debt collector after them, it is bad for aesthetics and business, but it can also be devastating to a business’ future plans. If your business is considered a risk you may find it impossible to get a loan, get a line of credit, bring in investors or partners, all of which means your business is at risk. Once you are in control of your business’ incomings and outgoings nothing will surprise you; you remain in charge of its future and its success.
At Lucent Advisory, we offer a range of services to help businesses with their bookkeeping and accounting needs. We can provide expert advice on how to connect and reconcile your accounts so that you can focus on running your business. If you would like more information about our services, please contact us today. We would be happy to discuss how we can help.