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Efficient and strategic accounting is vital for businesses operating in the UK. This function not only performs a vital role in daily operations but can determine a company’s overall success too.
From accurate and relevant reporting to correct information tracking, financial management ultimately leads to enhanced operations in any industry. And even though Oxfordshire has been named as one of the UK’s most successful counties for new businesses, it’s important that entrepreneurs know the most essential steps to secure a stable future.
Accounting should never be overlooked. No matter whether you’re just starting out or upscaling this year, it’s always worth knowing some of the best tips and tactics.
Ensure thorough employee training and compliance
Unfortunately, no business is immune to fraudsters and scams. Increasingly, HMRC-related phishing scams cause a problem for start-ups and established businesses alike, reinforcing the need for comprehensive training across the board.
Employees should know how to recognise the most common techniques used by scammers. Being able to identify a phishing email could save your business hundreds of thousands of pounds, and prevention starts with this awareness.
Furthermore, you can build your own internal team of accountants with the right training. At the very least, your inhouse finance team should know the essential accounting procedures and how to keep compliant. Keeping up-to date records is essential.
Utilise accounting software
Contemporary, purpose-built accounting software could transform your approach to bookkeeping and financial management. When it comes down to the finer details, including individual invoices, accounting software could help to ensure complete VAT compliance and transparency across the board.
Automation might feel daunting, but it’s vital to recognise that these technologies will shape the future corporate sphere. Additionally, using software could help you to optimise your budget and reduce spending in certain areas too.
Implement Cloud-based solutions
Following outdated processes will only set your company back. For enhanced accessibility and improved communications with external partners and stakeholders, integrating modern technologies will reflect well on your company mission.
Cloud-based accounting systems can be integrated with your existing software too. Even if you’re not prepared to make the full move, embracing change could prevent barriers or even crises that might come with outdated systems.
Decide which information to prioritise
To build accounting records that encourage strategic decisions and genuine progress, you need to track the most relevant information. Your first priority should be cashflow, ensuring that you’re completely aware of all outgoings and incoming funds.
Tracking non-cash transactions might also be imperative to cater to the specific needs of your company. You’ll need to consider each area of your business: if you have multiple departments to manage, tracking these individually might make more sense from a logistical perspective.
Effective tracking means more than just looking at the obvious reporting figures. You need to look at the details too like profit margins, regional discrepancies, and specific one-off purchases.
Overview
Updating and refining your accounting processes means that you’ll need to prepare your colleagues for change. Once you’ve adopted digitised systems or started to integrate them with your existing strategy, you’ll be surprised at the new resources available. Efficiency is opportunity, especially where accounting is concerned.
