If you’re managing your business’s financial situation by keeping one eye on your bank balance and the other on your outstanding bills, you’re missing out on a huge number of insights into the liquidity of your venture.
You may be reporting year-end profits, but when your everyday cash situation is looking worrying – due to running costs, overheads and tax liabilities – it’s time to delve into the numbers and get a better handle on your cash flow.
Bad cash flow = bad news. And one of the biggest reasons for poor cash flow is customers not paying their invoices on time. So, how do you combat the potentially negative impact of outstanding invoices and get back in control of your payments and cash flow?
The key lies in some strategic use of technology, and a lot of thought about your internal processes and customer relationships.
Cracking down on tax avoidance has become a clear focus for HM Revenue & Customs (HMRC) in recent years. And with the creation of 27 new HMRC taskforces for specific industry sectors, the chances of your business going through the process of a detailed tax investigation are higher than ever.
Perception is everything when it comes to understanding your profit figures. The better your view of key profit information is the more informed you are about the underlying health of the company – and the better your decision-making will be for the future success of the business.
But are you getting the view of your profits that you need? Do you need more insight from your business reporting?
By combining the benefits of Xero online accounting software and the Spotlight Reporting plug-in you can get back control of your business information. These two solutions, in tandem, allow you to start drilling down into your data to find the really insightful nuggets of information about your profits.
Choosing the right platform for your business’s finance system is a big decision. Get it wrong and you could end up with accounting software that’s quickly out of date, doesn’t have sufficient support and, ultimately, ends up throwing a whole host of hurdles in your path.
But get it right and you can streamline your processes, improve your view of your business numbers and get a vastly improved sense of your business position and your underlying profitability.
That’s why Xero is the choice for the informed small business owner.