Summer is here, many of us are planning a vacation, and our focus on business is not in full glory. For small business owners, it is common to let some of the business management tasks slide because they are distracted by other activities. Even though it is common for some companies to experience a decrease in business during the summer months, it does not mean that you can get lazy with your financial management or other tasks. You should consider the needs of your company and the things that you can do to ensure long-term success. To keep up to date and avoid mistakes due to excess work that has been piling up throughout your vacation, here are a few things that you can do to have a successful summer:
Budgeting & Cashflow Forecasting: Summer is a great time to reevaluate your budget process and the accuracy of past data to determine if you need a new approach. Run some numbers and ensure all your fixed costs are truly fixed.
Keep Up with Payments and Paperwork: Just because you are taking time off for a vacation, does not mean that you can neglect important tax payments and paperwork. Missing deadlines could result in late fees and interest costs, increasing the amount that you need to pay in the future. It is also essential to stay up to date with payroll and withholdings. You might be away from the office, but your employees will still need to be paid.
Bookkeeping: If you have extra time available during the summer months, then it can be a great opportunity to get caught up on Bookkeeping, sort through the paperwork, and finish up data entry. When business slows down, it is the perfect time to implement a new program if you want to make changes.
Track Expenses: Whenever you have an expense that can be used as a deduction on your taxes, make sure that you are keeping the receipts and documentation. Uncommon expenses might pop up during the summer, and these costs can be considered in your tax preparation, but you can’t claim the deductions if you don’t have documentation for the transactions.
Therefore, it can be a good idea to gather the receipts and file them for the future. A good filing system will ensure that you can find the documentation if it is needed for any reason.
Manage inventory: Spend slow seasons planning for the next busy season’s inventory. Use accounting software to record expenses and sales. Then, decide how much inventory you will need next season. Make projections for next season’s revenue.
Hire a Professional Accounting Team: There is no doubt that an experienced accountant can help you maximize your profits and improve future results for your company. Hiring a part time account manager can help you analyze your profit and loss reports so that you can look for ways to boost your cash flow. In CTC Accounting, we are a qualified team, composed of Financial Controllers and Finance Business partners with the support group of Accountants specialized in working with small and medium companies. With an entrepreneurial mindset, we understand the challenges start-ups and SMEs face, including keeping accounts in order and making financially sound decisions. Whereas a larger organization might be able to rely on an in-house finance manager, we give equal opportunity for all companies to be able to get a Financial Controller on a part time basis.
We wish you a great summer ahead!