We know that for business owners it can often feel like your expenditure is running away from you. From surprise invoices to an ever increasing wage bill there are so many things that can crop up to derail even the best-laid plans. Through years of working with business owners, we’ve hit on some surefire ways to get back in the driving seat by implementing some robust financial procedures for business expenditure. Check out our top tips below:
Budget and Forecast – Give your business a roadmap for success by creating a plan. Budgeting gives you the confidence of knowing exactly where you are financially and helps you to foresee any issues on the horizon too. Rolling forecasts are great for tracking performance, knowing your expenditure and revenue levels and for helping to keep to your plan.
Purchase Orders – We know that POs can feel like a nightmare, you don’t want to deal with every little expenditure, but you want to prevent unnecessary waste too. With clients, we implement an electronic PO system that is tailored to trigger additional levels of sign off when you hit an expenditure threshold. So as a business owner, you can delegate authority to your team for lower level expenditure but still keep control of larger items.
Electronic Authorisation of Invoices – Did you know in 2018 invoice fraud cost UK firms almost £93m, with each case costing an average of £28,000? Just one of the reasons why invoice visibility in businesses is so important. With clients, we implement systems which ensure all invoices are approved based on criteria set by the business owner and that all invoices are seen by the person responsible for that area of spend. A Director in a company where we recently installed this system said “I love the approval system. I’m now seeing invoices which I previously didn’t see and can start to question why my managers are purchasing certain items from certain suppliers. It’s given total visibility over all areas of spend in the business in real time.”
Review your Suppliers – Ask yourself, could you be paying less for business services? We understand that sometimes businesses pay a premium to support local suppliers over national suppliers and, of course, we encourage these relationships. However, for non-emotional purchases such as credit card processing, or utilities where ultimately everything comes down to cost we work with a network of suppliers and cost specialists to ensure that you are getting the best advice, service and price.
Monthly Management Accounts – keeping your accounts up to date is important, however, the real benefit of management accountancy is in studying and gleaning insight into a business from its accounts. By providing detailed reports, we highlight key variances and KPI’s. Our systems give full visibility, so clients can drill down through the management accounts to view individual invoices if necessary. One of our clients who uses this service said “The online management accounts are a great support for me to be able to look at specific cost areas and challenge why decisions for certain purchases have been made. To have this information in real time can only help improve our buying decisions and our profitability.”
Wondering if you could cut your expenditure and increase your profits too? Find out more about the cost-effective services we have to offer. Get in contact at Jon@jrpaccountancy.com or call us on 01823 711007 today.