Click here to
Get an instant quote

Getting your Books in Order after the summer Rush

For many small retailers, summer is a busy time. People like market traders, toyshops, sport shops and seaside businesses take a large percentage of their takings during this period. Often, a small retailer will use the money they make during the summer months tohelp them to tick over for the rest of the year.

Understandably during a busy trading period, things that would normally be done every day are missed. There are just not enough hours in the day to do everything. One thing many small businesses do not do is to keep their accounts 100% up to date.

Most of the time this is not disastrous, but you do need to give your accounts a bit of attention now that you are not so busy. Here is where we suggest you start:

Invoices

The first task is to look at your invoices. You need to add any invoices that you have missed to your accounts system and immediately issue any you have forgotten.

Note any invoices that are outstanding and send your first chasing letter straight away. You should have a template for this. The sooner you start to chase up outstanding amounts, the better your cash flow will be during the winter.

Bills

Do the same with your bills. If you owe money, make sure that you pay as soon as you can. Start with the oldest bills. The last thing you need is to have to deal with expensive and time consuming claims from people you owe money to. In addition, bear in mind that you will need to use that supplier again, so it makes sense to maintain a good working relationship with them.

Expenses

Next, update your expenses. There is a lot of money tied up in all of those expenses receipts. The longer you leave, them the more likely it is that you will lose some of them or forget what the receipt was for. As you key in your receipts, add the business activity to your calendar so that you have a timeline you can use should your accounts be audited by the taxman later.

Profit and loss

When you are sure your accounts are up to date, run off a fresh set of profit and loss reports and analyse them. Your profit and loss reports will help you to understand what worked this summer season and what did not. Studying these reports and starting an action plan for next season will help you to be even more profitable next year.

Posted by Louise
October 14, 2015
Features

No Comments »

No comments yet.

RSS feed for comments on this post. TrackBack URL

Leave a comment