How to keep track of your business’s finances

Track of your business’s finances

Track of your business’s finances

As the owner of a business, it can feel like there’s a lot of things you need to keep an eye on every day of the week. One of the most important which might influence many major decisions is exactly how much money you have coming and going out of the business. With that in mind, here’s how you can keep track of your business’s finances.

Calculate exactly how much you’re paying your staff

One of the most expensive assets to any business is the people that work for you. Whether you employ hundreds or even thousands of members of staff or your business is run by you and a couple of other employees, it’s highly likely that they’ll be one of the most costly parts of any company. That’s why it’s important to keep track of exactly how costly they are. The only problem is with things like overtime and pay rises; those costs could be different every single month of the year. By finding a payroll system that connects directly with your accounting system, you won’t need to make any separate calculations or enter any separate data to figure out exactly how your wage bill will affect your finances. Just open your accounting software, and it’ll be worked out all ready for you. As well as this, payroll systems take a lot of the stress out of paying your staff. You can see exactly who is getting paid what and quickly make any adjustments if needed. It also guarantees that you’ll get one of the most important jobs to boost staff morale right the first time – making sure your employees get paid every month and on time.

Analyze every single sale you make

As well as calculating exactly how much you’re spending every month, it’s vitally important to calculate exactly how many products you’ve sold every month. Not only will it help you calculate how much profit you’ve made, but it will also help you decide exactly how much stock you’ll need to buy or produce over the coming months. For example, if you see a rise in sales, it’s highly likely that those sales will continue to rise over the next few months as long as you have enough stock to make those sales. If you notice a drop in sales, then maybe it’s time to consider reducing how much you’re spending on stock and production, as well as coming up with plans to help promote the business.

Figure out how much your waste is costing you

You might think that waste is simply something that you throw in the bin.    In reality, everything you place in the bin is going to cost you money. It might be that it’s the offcut of a material or an ingredient that is too old or damaged to use or sell, meaning that you’re throwing away something you may have spent a lot of money buying. It could simply be the packaging from a product that you’ll have to pay to dispose of. Whatever the case may be, reducing your waste can actually save you a lot of money at the end of the month.