IN THE NEWS
Featured in an Institute of Chartered Accountants in England and Wales (ICAEW) article: Business spotlight: how to juggle a portfolio (19 June 2020)
Latest Blog – November 2020
10 TOP TIPS FOR HOUSEKEEPING YOUR FINANCIAL SYSTEMS
If your business is working at less than full capacity, or if you are coming up towards your year end, now is an ideal time for some simple housekeeping of your financial data. Some of these will improve your quality of life, others may stimulate more business.
Here are our 10 Top Tips for timely tidiness:
- Check your system for any incomplete or unposted transactions. Sometimes these can be left “in limbo” and need pushing through to the right places. Any older unpresented items on your bank reconciliations need investigating and resolving.
- Review your aged debtor report for overdue invoices – are you owed money you haven’t collected? Can you chase for payment? Are they an indication that you are failing to provide satisfactory goods and services in your operations? Do you need to inform your credit insurers? Are they about to be excluded from your invoice discounting facility? Do you instruct a debt collection agency or start proceedings? Can you claim VAT bad debt relief? Do you need to provide for these or write them off?
- Review your aged debt report for old unmatched credits. Have you failed to produce an invoice, or posted it to another customer account? Is your customer owed a refund – could you tempt them to spend it on a new order?
- Review customers who haven’t bought from you in a while. Can salespeople contact them to understand what has changed in their business and try to rekindle the business? Do you want to reset their credit limits in case their circumstances have changed? You might want to flag them as inactive if your system allows.
- Review your aged creditors for old invoices. If you actually owe these, why isn’t the supplier chasing you for payment? Have you actually paid them another way, for instance by credit card, or a cash book / nominal ledger / proforma payment? Is this a duplicate that needs removing? You can ask your supplier for a statement or account history to check this.
- Review your agreed creditors for old credit balances. Have you paid the supplier but not received the VAT invoice and recorded the expense? Do you need to chase this down? Or have you overpaid and you are owed money you could ask to be refunded?
- Review old outstanding Purchase Order lines. If you haven’t received the goods or services, check whether you actually need them and see if you can cancel them down.
- Review old “goods received not invoiced” items. Have these been booked in mistakenly? It is unusual for the supplier not to have chased for payment. Trace these through to see if you have any systematic failings.
- Review your fixed asset register. Do you still have all these items, or have you disposed of some? It might remind you of things you own, but don’t use, and could sell.
- Check your payroll-related balances. Your Nominal Ledger balances for staff pay, PAYE, pension and other deductions should be clearing to zero after monthly payments. Check your HMRC online tax accounts to see if they think you owe what you think you owe – you might have overpaid and be due a refund!
Once you have finished this list your work should become easier and you should have improved your business’ position.