3 ways to improve your financial management in 2018

3 ways to improve your financial management in 2018

If one of your business New Year’s resolutions is to improve your financial management, then it’s time to start thinking about exactly how you’re going to achieve it.

However well organised or thorough you may be, there’s always room to refine processes for better results – and starting 2018 as you mean to go on could leave you with even more positive outcomes to reflect on this time next year.

For many SMEs, the key to improving financial management in their organisation is all about having the right systems and the ability to accurately analyse the figures. Here are my tips for things you could do differently – or better – next year...

3 tips for a better financial future

1. Smarter systems – It’s easy to get stuck in a rut and to do keep doing things simply because that’s how you’ve always done them, but it pays to keep up with changing technologies. If you’re not already using them, think about implementing the following financial management systems. By using cloud-based technology and state-of-the-art apps, you can free up more time for other essential business matters, while still keeping a close eye on your finances – and they can all be integrated for even greater efficiency too:

  • Xero – one of my most recommended financial products, Xero is the easy way to manage payroll, invoicing, inventory, expense claims, bank reconciliations and much more, in real-time. All of your data is securely stored on the cloud, so you can access it anytime, from anywhere – you can read more about Xero’s features and benefits here http://mellorfinancialmanagement.com/finance-hub/Xero .
  • Receipt Bank  https://www.receipt-bank.com/ – stop spending hours inputting data from invoices and receipts into spreadsheets, and start letting smart technology do it for you! This brilliant app lets you take photos of the documents and automatically extracts and processes the information, publishing the data to your directly into your accounting system via the cloud.
  • Tripcatcher  https://www.tripcatcherapp.com/– keeping track of your business mileage can be a bit of a nightmare – but this handy app lets you record as you go, with a smart mileage calculator and recorder that’s completely HMRC compliant.

2. Cash flow forecasting – If you’re not already creating cash flow forecasts, then you really need to start. Every business should do a 12 month cash flow forecast at the start of the year, using previous figures to estimate the money expected to flow in and out of your business, month-by-month, over the coming year. It will help you to identify any potential problems or shortfalls, and assist in your annual budgeting plan.

3. Financial review – as much as looking forward is important, you also need to understand the journey that brought you to where you are right now. I recommend trying out Fathom https://www.fathomhq.com – a user-friendly online suite of smart tools for management reporting, financial analysis and benchmarking. Create and access reports, and assess KPIs such as profitability and growth, plus much more.

Professional support to set you on the right track

By implementing and utilising some or all of these ideas for improvement, you’ll give yourself an even better chance of a successful 2018 – but if you feel you need a little guidance or support with your financial management, please feel free to drop me a line for an informal discussion about how I can help your business to grow.

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