Every company needs cashflow first and everything else second. That’s right, everything else second. Craft beer on tap? Second. Really cool advertising agency? Second. Amazing offices with custom graphics? Second.
Here Richard Stonier, co-founder and partner of online accounting service, Tally Accounts, explains how a simple set of tools can keep your accounts up to date and make sure you get paid on time. Then you can have the craft beer.
A large proportion of entrepreneurs and small business owners quickly fall into the trap of being unable to meet their immediate and most important financial obligations due to a shortage of cashflow. Although a business may be operating at a profit, if the level of cash available is too low to pay wages, bills and transportation costs a company can quickly struggle to survive.
While an office dog and a pool table may be high on a company’s list of essentials, ensuring that there is a high enough level of cashflow to cover real priorities is a vital factor for survival. Innovative online accountancy software is one of the latest technologies that business owners can use to constantly keep control of their cashflow.
Here at Tally, we’ve developed a cloud-based accounting software that continuously tracks incomings, outgoings and profit margins, always keeping entrepreneurs up to date with just how much cashflow their business holds. One of the most efficient ways that small business owners can stay on top of their cashflow is through the daily reconciliation of their accounts. A task that can traditionally take three days of frantic sorting, can be completed in less than 30 minutes through the use of cloud accountancy software.
By monitoring personal and business accounts, Tally’s unique software automatically reconciles a business’s accounts each day without the time intensive input by the user. Add to this, the flexibility of being able to remotely access this timely information from any device, business leaders can make informed decisions about what actions they can and can’t afford to take, all without the need for time-intensive processing.
One of the most frustrating issues for business owners is the time consuming process that chasing up unpaid invoices presents. If all outgoings are paid promptly but the corresponding incomings are not received on time, cashflow can quickly dry up. Often faced with hectic schedules, it can be quite easy for small business owners to forget to chase up unpaid invoices leading to problems with cashflow. To eliminate this problem, Tally’s automatic invoicing service ensures that all invoices are instantly sent out to the correct clients and are continuously followed up until the payment is received.
By implementing low cost, yet highly effective, online solutions, business owners can always ensure that their cashflow levels are exactly where they should be. By removing the time intensive tasks, they faced previously, entrepreneurs can use cloud accountancy software to provide the silent and reliable ongoing support that allows them to focus upon those all important business decisions, one office dog or two?