Being your own boss is something that many of us aspire to; free from the shackles of working for others holds hope for new opportunities, creativity and a fresh approach. Any entrepreneur wants the opportunity to make their own decisions, to work in an industry that they feel passionate about and to make their own fortune.
At the end of the day we need to make a living from our business for it to be viable. We may be able to endure a financial pinch for a few years whilst things get off the ground, but then we need to be able to afford to not only earn a decent wage, but also invest in the business. No matter what the aim, it is dependent on financial success.
Managing the Books
Although business finance is such a priority, many entrepreneurs experience a degree of dread when it comes to managing the books. Being far from the favoured task, it can easily be pushed to the bottom of the pile, whilst attention is focused on new opportunities, customers, products and every other aspect of growing a business.
However, the longer the finances are left, the more challenging it is to get things in order. Without a clear picture of your current financial position, it becomes impossible to make informed decisions about your business. The risk of not managing the books is that your company has insufficient cash flow to pay for rent, supplies or staff wages, at which point you will be far from living the dream of being your own boss.
Firstly, if finances aren’t your passion there are online and offline courses, along with a number of books which can help you learn basic bookkeeping skills. With this knowledge, the job will seem less daunting and you can commit a regular slot away from other aspects of the business to update and maintain accurate financial records.
It is also advisable to invest in software that supports the process. With a bit of training, you can learn how to input the data into the software. Once input the system will help to collate the records, reduce errors and produce useful documents such as invoices and reports. This can save time and effort and allows you to keep up to date with your current financial position.
The alternative is to engage the services of an experienced bookkeeper. For a start, they can advise on suitable software or use what you have already installed. Although they will undertake the administration behind inputting data and generating reports, their expertise brings added value. By nature a bookkeeper plays close attention to detail, so they can assist with tracking cash flow, spotting oversights and highlighting potential issues before they occur.
A professional bookkeeper goes beyond organising the books; they can offer advice, answer questions and make you aware of how changes in legislation could impact on your business. They might suggest opportunities and the financial data that they provide could be vital for informed decision making.
Whether you are a start-up or an established company that needs support with bookkeeping, Oxford based RCH Accounts has the knowledge and skills to help you manage the books.