As a succeeding business, there is a requirement in keeping track of payments to your suppliers and those all important customer receipts.
It can be a tiresome job in itself and not every business owner is efficient in keeping on top of them both. There are instances where invoices can be paid more than once due to a supplier sending reminder invoices and confusion over if it has been paid or not which, if paid a second time and requiring refunding, can play havoc with your books and cause more headaches than its worth.
Either way, your limited cash reserves take a hit, momentary or not.
Headaches For All Involved
In instances where incoming payments are not matching against customer invoices or even against the wrong one, you face the supplier requesting payment for an invoice that has already been settled.
If the supplier does not record payment against a supplier invoice with a payment date, who knows whether it’s been paid or not? If you are relying on a supplier to tell you if you are outstanding a payment or if you have overpaid them, you may have a few not so nice surprises along the way. So being prompt and correct in your recording of incoming payments plays a very important role.
Staying on Top
Most business owners employ an outsourced bookkeeping services professional to help them keep on top of their financials and for good reason.
By having this very important area of your business operating 100% in regards to incomings and outgoings, you eliminate the possibility of upsetting customers by pursuing them for payments they have already made. This will help to create a better profile for who your good and bad paying clients are, being able to positively and accurately view which of them pay promptly and those who require being chased, which gives you a sense of priority over customers when it comes to billing on time.
By understanding and being presented an accurate account of how much you are owed and create a game plan around when these payments can be expected due to your client behaviour patterns around paying. You will also have a documented case for withholding any future service to those who have a tendency to delay paying when due.
An Aid to Prosperity
Small business bookkeeping solutions are an easy and effective way of keeping on top of things as well as streamlining your working day into not worrying over financials.
Keeping accounts in balance is not a straightforward exercise and definitely not a sideline to operating your business. By utilising accounting software as well as working alongside your company accountant, a professional bookkeeper Manchester is able to keep your business neat and tidy when it comes to book balance and financial future.
Nb. Collaborative post.