Bright Angels

With the impact of the credit crunch gradually filtering through to the wider economy, small businesses are under more pressure than ever to stay on top of their finances. And with the beginning of a new year now upon us, now is the perfect time to ensure that your business is keeping accurate records of money coming in and going out of the business.

Here are some tips on how small businesses can make sure they get their finances under control to weather the economic storm and start the New Year as they mean to go on:

• Ensure you have clear payment terms for customers and ensure your customers know them
• Make credit checks on significant new customers
• Issue sales invoices promptly during the month. Don't wait until the month end or even worse the start of the following month because you will then be way down the queue
• Chase debts as soon as they are due and keep chasing as much as required. Record progress with each debtor. Treat as a regular, important process - not an occasional afterthought - and outsource if required
• Be firm about withholding supplies to slow payers as there will be increasing levels of bad debts
• Bank cheques soon after receipt
• Sort out your paperwork; collate invoices, bank statements and receipts. Throw out what you don't need, catch up with invoicing, work through your filing system and get straight. Introduce some workable systems and stick to them

Many people cut corners, but it's a false economy. Professional bookkeepers, with the support of an accountant, can make the difference between success and failure. Not only can they help you introduce systems and procedures, they can take the hassle out of the day-to-day financial running of the business and ultimately prevent headaches at the end of the tax year.