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. It is common for some companies to experience a decrease in business during the summer months. But it does not mean that you can get lazy with your financial management or other tasks. Here are our accounting & finance tips for the summer.
You should consider the needs of your company and the things that you can do to ensure long-term success. We help you 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. It could also lead in 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 youstill need to pay your employees.
If you have extra time available during the summer months, then it can be a great opportunity to get caught up on Bookkeeping. You can also 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.
Whenever you have an expense that you can use 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 you will consider these costs 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 you need it for any reason.
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. Contact us for more information !