Four tips to make your company more financially efficient

Is your business as financially efficient as it could be? Or are your processes and practices costing you money? Read four tips to help you stay in the black!

Managing a business can be difficult, and ensuring it’s a success can be a tricky balancing act. From keeping track of your overheads and invoices, to ensuring that your bank account stays in the black, it can be hard for any company to keep themselves financially viable – and especially difficult for start-ups.

But whether you work in the financial department and it’s your sole task to balance the books, or have a number of different jobs within the organisation, there are always tips and tricks to help you make sure your company finances are running smoothly.

Four tips to make your company more financially efficient

To help you keep your business in the black, here are four tips to making it more financially efficient.

1) Have clear objectives

Having a crystal-clear business plan with outlined objectives and KPIs (key performance indicators) will ensure that all of your financial actions are working towards a goal.

Whether you’re working towards a set turnover projection or are looking to decrease aged debt by a certain deadline, having a clear path for progress will keep your finances on track. You’ll also be in a strong position should any problems arise, because you’ll be able to catch them early.

2) Be organised

It sounds obvious but organisation is essential for anyone managing the financial side of a business. This doesn’t just mean tidy folders and files, but meticulously tracking invoices, chasing late payments and keeping a watchful eye over any outgoings such as direct debits or supplier payments.

There are many software tools and programs that can help you to manage company finances easily and ensure everything is up to date. A little research can help you find helpful tools suited to your business’s needs.

Whether you opt for tried and tested tools such as QuickBooks or try some of the new apps on the market like Xero, there are plenty of ways technology can help you keep a handle on your company finances.

3) Deal with problems before they mount up

When the going gets tough, it can be too easy to avoid a niggling issue. You should never push it to one side and think that you’ll do it tomorrow. As hard as it may be, it’s always better to tackle – and hopefully solve – a problem before it becomes a bigger issue with further, much worse consequences.

Whether you are struggling to pay your employees on time or missing an important deadline, the quicker you take action, the more control you will have over the problem.

4) Seek expert help when you need it

Often, in a small business or start-up, it can be tempting to do everything yourself to lower costs. However, when you need help it’s better to seek out the advice of an expert or qualified professional, and this includes those in accountancy, legal services and niche roles such as payroll.

While their guidance comes at an extra cost, ignoring an issue can be a costly mistake that could even spell disaster for your company.

Outsourcing is common in many businesses and by handing over responsibility to experts, it can allow you to focus on making your business venture, which is something you’re probably extremely proud of, a real success.

Can you make your company more efficient?

Every business owner and diligent employee wants their company to be more efficient – whether that’s saving time, effort or money. From working with outside help to implementing helpful new software, there are many ways to make sure your business is running smoothly.

Niamh Spence writes for Portfolio Payroll, specialist recruiters with Payroll vacancies throughout the UK. Get in touch if you’re interested in a career in finance or looking to recruit for your business.