Eight ways businesses can streamline their finance department – London Business News
Running a well-established and successful business requires a ton of hard work and planning. If you’re a startup, you’ll likely wear many hats, such as managing operational tasks, finding investment opportunities, planning marketing initiatives, and more.
But more importantly, to run a successful business, you need strong financial service. It is therefore necessary to keep control of your finances, even if you are a big name in the industry.
Lack of attention to your business finances can lead to missed opportunities for essential tax deductions, poor business decisions, problems obtaining loans, and possibly the downfall of your business.
Fortunately, streamlining your finance department and staying ahead of the game isn’t as hard as it seems. With a little forethought and the implementation of a few practical strategies, businesses can improve their finances and plan for growth. To better understand this, here are some simple ways for businesses to get their finance department in order and on the right track:
1. Hire an accountant or bookkeeper
We strongly advise you to hire an accountant or bookkeeper if you have not already done so. Hiring experts can help you organize your business finances and keep track of current financial information and activities. Accountants can also help with the preparation of tax returns and other necessary financial responsibilities, which can have a significant impact on the success of your business.
Along the same lines, the field of accounting is dynamic and the job opportunities for those with relevant degrees are plentiful. An advanced degree in accounting can give individuals the boost they need to secure senior-level positions in organizations with a finance division. You can also encourage your existing employees to boost their careers and get the right training to fulfill this role. An online MACC can be their ticket to success in the field. And by studying for a higher degree, they can learn broader skills, deepen their knowledge of accounting, and stay on top of the latest technology trends. Which ultimately benefits your business.
2. Set a budget
Having a budget is a necessary component of a realistic business plan. By creating a budget, you can identify your financial goals and track your progress against your business goals and forecasts. Make sure your minor accounting procedures are in order so that you can regularly monitor your cash flow and expenses against your budget.
3. Categorize your expenses
Maintaining a business, let alone a successful business, takes effort. When managing your business finances, it can be easy to get overwhelmed with money flowing in and out. We strongly advise business owners to spend time categorizing income sources and expenses, as this can often go to the bottom of the priority list.
By doing this you can guarantee that your funds are all structured. Then, the tax declaration will be considerably easier because everything will be well prepared and structured.
4. Use contemporary software solutions
Companies are investing heavily in artificial intelligence and robotics to improve their operations. With such implementations, your business can reduce the number of manual processes.
So, you can also think about using contemporary software solutions. You can use artificial intelligence technologies to make better financial decisions.
These AI-powered tools will examine market movements and help you buy and sell stocks at a profit. Similarly, accounting software can help in the preparation of financial statements. Make entries in the register and the software will create balance sheets and tax returns for you. In addition to reducing the risk of error, this will greatly increase efficiency.
5. Improve your team’s skills
Having great financial software in place is only half the battle; the other half ensures that your team is properly trained and familiar with its use. Despite the beauty of automation, you still need to make sure your team members know the fundamentals of the systems. Hosting training sessions with your staff covering all aspects of implementation will help ensure your finance department is up to date. Keeping your company’s finances running smoothly depends on everyone being informed and fully understanding any new systems that are put in place.
6. Focus on reducing interest-bearing debt
Another thing you can do is make sure your suppliers don’t charge interest on their products as long as they offer such discounts. When you reduce them all to 0% APR terms, which will take work on both sides, you will have a lot more money to use to improve your business. You’ll have to rework deals like this with your creditors once a year.
7. Loan consolidation
You might even consider combining existing lines of credit or loans. Keeping track of your payments can be difficult if you have multiple loans, which could cause problems if you forget to make a payment or make a mistake. Due to interest charges, it may even end up costing you more in the long run. You will be able to save money if you combine all of your loans with one provider so that there is only one set of bills to track.
8. Consider outsourcing payroll services
Payroll is one such aspect that is not only easy to outsource, but can also help a business save money on labor costs. It may be a good idea for you to hire a third-party payroll processor if your business doesn’t have a lot of capital or you’re still getting established. You can determine which choice is best for your business by researching and talking to local businesses that provide these services. A reliable payroll service provider will take care of all payment and tax reporting obligations, helping you save time and money down the road.
Money is an essential element to ensure the success of a business. One of the best ways to ensure long-term business success is to organize and streamline your business finances at all times. By considering the strategies mentioned in this article, businesses can build a robust financial system and plan for growth. However, keep in mind that streamlining the finance department takes a lot of perseverance and a leap of faith. You must be able to embrace and adapt to all changes and take advantage of modern technology to stay ahead of the game.