The key to business success is ensuring that your business operates efficiently. To find out what you can do to improve your businesses efficiency, then download our guide or read our blog.
How does this apply to me?
If you are a large business owner, then it is very likely that your business will have inefficiencies. Even small business owners should look into their business processes and consider new ways to create greater efficiency.
It is extremely beneficial that you take the time to reflect upon whether your businesses systems or processes can be improved upon.
How can I improve the efficiency of my business?
If you have found that your business has the same problems that reoccur, then to achieve greater efficiency you must identify and address the cause of the problem.
To improve upon your business’s productivity, then you should consider investing in outsourcing or automating business processes that take up long amounts of time.
Another good way to improve your businesses efficiency is by cleansing the data managed by your business. You should make the time to correctly implement the correct resources to ensure that information and records are kept in a clear format.
Why is Cashflow efficiency important?
You should know that keeping on track of your businesses cashflow is key to business success.
The best way to keep on track of your businesses invoices is to ensure that they contain the necessary information to pay such as:
- State payment terms clearly
- Make sure that they are labelled as ‘invoice’
- Despatched quickly
- Have access to online accounting packages
- Have an escalation process
- Charge for late payments
You should know that you can charge interest if your clients do not pay at the time specified on the invoice.
You can also charge a debt recovery fee of the following amounts:
- £40 for debts worth up to £999.99
- £70 for debts between £1,000 and £9,999.99
- £100 for debts above £9,999.99
Map your process
It is very important that you have set out a clear process of the functions of the business.
You should keep a guide of the processes of the business so that new staff can use it as a guide to help them, and this will reduce potential errors in service.
Keep a record of each staff members role, so that if there is ever any employee sickness then their duties are clearly outlined and can be taken over by another employee.
Tighten the purse strings
‘Bootstrapping’ is a popular method used by businesses to monitor their spending.
This is a useful way to carry out spending reviews to interrogate every penny that is in the business bank accounts outgoings.
This prevents unnecessary expenditure and encourages thinking about returns on investment rather than just spending.
You can decide whether you need to keep all your software subscriptions and trade publications or cancel and find a better deal to save money.
If you require products from suppliers, then it may also be worth looking at other suppliers and contacting them and asking for a quote to see if you can get a better deal.
Technology is a brilliant way to save money in your business as going digital saves on paper costs, saves filing space and reduces the risk of loosing documents.
How can I make my accounts more efficient?
Cloud accounting is a software that can be used to save time and effort as all of your reporting and forecasting can be found in the same place.
You can integrate cloud software with stock control and point-of-scale systems, and you can build a picture of your business in data.
You must make sure that you are aware of what tax relief the business is entitled to, and that you are withdrawing cash the most tax-efficient way.
At JDA we offer all of our clients help and guidance with growing their business and assist them with their financial planning, as this is key to an efficient business. If you need help from experts, then please get in touch as we can help you.
So, you need to make sure that whatever the size of your business, that you make sure that you look over the businesses processes regularly and address any issues that creates inefficiency.
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If you’d like a meeting or a Skype call to discuss this, please get in touch with your favourite Liverpool accountant
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