It sounds like a rash claim but it’s true!
Here at Yorkshire Accountancy we’ve seen lots of clients who resent doing their accounts who have found inspiration to not only keep their books and records up-to-date – but also enjoy doing it!
Just follow our simple tips and you too could be managing your accounts better in just one hour a week.
Step one: Create a list for keeping accounts
Very few people enjoy keeping their records but we all know that by putting off this exercise you’ll only be creating a bigger problem in the future.
Don’t forget you will have bills to pay on time and, eventually, a bill from the taxman will land so it’s better for you to have a system in place that is tried and tested.
That’s why you should set aside one hour a week for the task – and to help you there should be a checklist of things that defiantly need doing.
How to deal with your invoices
It’s crucial that your invoices are kept up-to-date and sent to clients promptly – by not doing this you will not get paid for the work you have done.
This is the first task that should go on your checklist.
You can either create your own invoice template and alter it for each client or you can use specialist invoicing software which will make the sending of invoices easier (and also keep track of them if they go unpaid!).
Step 2: How a business should manage its bills
The next task should be the paying of any bills.
You can do this online which makes the process easier and by doing so you will keep suppliers onside.
This is also a good time to check the transactions in your business bank account and make sure everything is accounted for. If you can balance the books you are on the way to success!
It might be a good idea to print out that week’s transactions and write on it what the amounts are for – believe us, this will save a major headache months down the line when your accountant asks you what the transactions are for.
If you are using an online accounting system – and there are some very good ones around – ensure you can import that bank statement into the accountancy package. This will save yet more time.
Step 3: Find the best projects for your business
Use this hour to find out which are the best-paying projects. When you calculate the expenses incurred for each project that week, this might put a different perspective on which projects are generating the most profit.
By recording the costs accurately you will soon be able to make a quick assessment about which are the best clients and projects to have.
Step 4: Review how your business can be improved
Within this hour, you should also put some time aside to learn something new about your business.
From experience, we know that when you look at the accounts there may be something appear that you hadn’t quite realised – so after doing the basic administration, look at how things can be improved and what you could do to improve things; for instance, would doing the accounts every day help you be more effective?
You should also look at how you track the time spent in your business by yourself and your employees. If there aren’t enough billable hours being worked then you might have to crack the whip on some projects.
And that’s it! With just one hour a week you will have your paperwork and filing done; looked at ways to improve how things are done and uncovered clients or projects who are costing you money.
Now put this into practice – you won’t regret it!