2017

Monthly checklist for your small business

Time flies when you’re running your own business.  Days can quickly turn into weeks as you focus on the day-to-day work and sometimes you can work so hard it’s easy to lose sight of the big picture.  Our monthly checklist will ensure you keep your business on track.

10 tasks to keep your business in good health

This monthly checklist will help you assess the health of your business and stay in control.

1. Step back and do a financial overview

Your business won’t survive unless you have a tight grip on your finances.  Make sure you carefully manage:

• expenses and bills – pay quickly to ensure goodwill
• invoices – chase all late payers
• payroll – ensure all staff records are up to date
• taxes – lodge your returns and pay on time, every time.

2. Review account statements from suppliers

Are your suppliers charging a price that’s fair?  Are you still getting good value for money?  If not, it might be time to look for new suppliers.

3. Review annual sales

Look at your year-on-year sales.  Are you doing better than the same time last year?  Are costs and profit levels where they should be?  Refer to your business plan and make changes if necessary.

4. Keep a close eye on stock

If you’re running a retail or manufacturing business then stock is your lifeblood.  You should:

• carefully match stock levels to sales forecasts
• make special provision for perishable goods
• ensure storage is safe and secure
• work with your accountant or bookkeeper to find the optimum stock levels.

5. Make sure your customers remember you

In a crowded marketplace, customers are likely to forget your service or product, so help them remember:

• Use a CRM (Customer Relationship Management) or MAS (Marketing Automation System) tool.  This will help keep your customers and partners up to date with news about your business.
• Use all available communication methods.  For example, email newsletters are a highly effective way of keeping in touch with customers – as long as they’re well written.

6. Spread the word about your business on social media

Social media can be a very effective marketing channel if you use it regularly.  Make sure your blogs always have fresh content, send new tweets and post on Facebook and LinkedIn.

7. Review your website traffic

Google Analytics is a tool that makes it easier to understand your website traffic.  It will identify pages that are performing poorly and pages that are doing well.  Ask a web developer to help you if necessary.

8. Keep on top of industry news

Set aside two hours a month to review industry news.  Sign up for Google Alerts and set an alert so that the news comes to your inbox.  If you are a consultant in the medical industry, you could set one up for ‘medical trends’ or ‘new technologies in medicine’.

9. Keep your data safe

Use cloud-based applications to store data and ensure your information is always available and automatically backed up.  Relying on your hard drive leaves you vulnerable in the face of burglary, fire or natural disasters.  If you use your hard drive to store data, make sure you do at least one monthly backup online or to an external device.

10. Talk to your advisors

Arrange meetings with your accountant or bookkeeper, board of directors and investors.  Meet them at the office or a cafe for a half hour chat over coffee. Review business performance for the last 30 days and last quarter to check you’re on track.

Successful business owners have great habits

Set yourself up for success and get into the habit of setting aside time for monthly tasks.  Business can move at a rapid pace, especially in the first year, so make this checklist a priority to ensure your business is going in the right direction.  This will keep things on track and under control – which can make all the difference.

 

Small Business Accountant and Tax Specialist

 

Other related blogs:

Tips for Managing Debtors When You’re Self-Employed

 The ins and outs of being a contractor

Get a better tax refund

Tips for Managing Debtors When You’re Self-Employed

Tips for Managing Debtors When You’re Self-Employed

You’ve poured passion, time and money into fulfilling a contract, have agreed on payment terms and invoiced your customer — and then nothing.  Days turn into weeks, and you still haven’t received payment.

For single proprietorships and small start-up businesses, uncollected invoices can sink your business.  Suddenly, you’re cash flow negative.  Income you needed to cover expenses and pay vendors dries up.  Without the safety nets larger companies enjoy, small businesses often face bankruptcy when a large client refuses to pay.

Wondering how to tip the balance of power in your favour?  Try these strategies to get paid quickly and avoid non-payment.

Send a collection request right away

It is absolutely crucial for business owners to follow up on unpaid invoices quickly, just a few days after the payment date is missed.

Contact the debtor by phone to confirm they received your invoice and remind them that it’s past due.  In many cases, your client has simply neglected to review their accounts payable and is behind with their bookkeeping.   Agree on a new payment date and follow up again if it is missed.

It is also possible that your customer is struggling with financial difficulties.  If so, be reasonable and suggest a payment plan.  It is better to collect instalments than to receive no payment at all.

Be persistent and firm, but always polite.  Harassment and escalating threats will often get you nowhere with no payment from the debtor.

Remind your debtor that late payments come with a cost

In many countries, late payments often accrue penalties that add to the debt the longer it remains unpaid.

In the UK, for example, businesses can claim interest and debt recovery costs if a client is late with payment.  The Late Payment of Commercial Debts Act considers a payment late 30 days after the delivery of goods or services.  After that point, interest is set at the Bank of England’s base rate, plus 8%.

Consider including a late payment charge in your terms and if your debtor won’t respond to your reminders, send them a “statement of account” that includes:

  • the date of the unpaid invoice
  • a description of goods or services provided for which you are awaiting payment
  • the total amount due, including applicable late payment charges

Proceed with legal action

Have 30 days passed and you’re still getting nowhere with your unpaid invoice?  Sometimes, all it takes to motivate a reluctant debtor is an official letter from a lawyer or debt collection service.

It’s important to note that in some cases (for example, the debtor has declared bankruptcy), it makes more sense to write off unpaid invoices as “bad debts” and absorb the loss.

When it comes to dealing with debtors, the key is to respond quickly to non-payment and follow up consistently until you’re paid.  It’s also wise to consult your accountant or a trusted business advisor to tailor your strategy to protect your business.

 

Other related blogs:

Tips for Managing Debtors When You’re Self-Employed

 The ins and outs of being a contractor

Get a better tax refund

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