The summer is often a tricky period for businesses of all sizes. And as the owner of a micro business, I know all too well just how challenging it can be to juggle my work commitments with the demands of a family (and, dare I say it, a little ‘me’ time!).
When it seems like the entire country is on holiday in July and August – and you’ve got time off in the diary yourself – the last thing on your mind is looking after your company’s books. But there are a few things you can do now to make sure you’re not faced with financial chaos when you return to your desk in September.
Here are a few tips for keeping your accounts ticking over during the warmer months while you’re out having fun!
Let your clients know your availability for the summer
First thing’s first – if you’re going to be away for an extended period of time, make sure your clients, colleagues and suppliers are aware of your annual leave dates, and who they need to speak to in an emergency. Send out an email with your availability, post your temporary hours to social media, and set that all-important out of office response.
Check in on your finances once a week
Whether you manage your books yourself or you have a team to support you, it’s important to know what’s going on in terms of income and expenditure. Spend 10 minutes every week checking your bank accounts, making sure your accounts receivable and accounts payable functions are in a good position, and getting up to speed with any issues that could be affecting your cashflow. It’s not the most exciting way to spend your time – but you’ll feel in control of what’s happening and will be aware of any potential problems.
Double check you’ve got everything covered during staff holidays
Half your office might be taking a break – but bills still need to be paid, outstanding invoices still need to be chased, and tax obligations still need to be met. Make sure holiday clashes won’t affect your finance department’s efficiency, as this could lead to frustration and resentment among your suppliers and customers, not to mention potentially land you in hot water with HMRC.
If you’re the only person responsible for your business finances, prepare as much as you can before you clock out, and make sure you have remote access to your bank account and accounting system in case you need to log in and sort anything out from afar.
Set up a system for storing receipts
It’s easy for receipts and invoices to be lost when your routine is disrupted – and not having these to hand can make it difficult to claim for expenses.
Carry a separate file or folder with you for all your business-related documents, or, better still, upload digital copies of your receipts to your bookkeeping software so they can be securely stored in the cloud.
Automate invoice chasing
The last thing you want to be doing when you’re on holiday is chasing up payments that should have been made days, weeks, or months ago. This is where the automatic chasing function in your bookkeeping system will come in extremely handy. You can configure the settings so that invoices are automatically created, sent out, and chased at regular intervals.
You can learn more about automating your bookkeeping here.
If credit control is an ongoing problem, you might find the advice in my recent blog useful.
Stay on top of your tax returns
There’s absolutely no excuse for not submitting your tax returns when you need to, because you could face a significant fine if you let things slip! This applies to your self-assessment liabilities and your corporation tax bills, as well as the quarterly information you need to send to HMRC as part of Making Tax Digital if you are a VAT registered business.
If any filings or bills are due over the summer, prepare for them in advance, set up pre-scheduled payments via your bank, or make sure somebody will be around to get them in on time!
Make the most of any downtime
You might find that business slows down over the summer. If you have some hours to spare, put them to good use by organising your files, doing your bank reconciliations, and getting up to speed with all those other pesky administrative tasks that are often at the bottom of your to-do list. You could also give your finances a spring clean by cancelling any unnecessary subscriptions, negotiating better deals with providers, or switching companies if you fear you’re overpaying for products or services.
Start thinking about your financial goals for Q4
When things are moving at a quieter pace, you should have a little more headspace – and this is the time to start planning ahead. Review your company’s performance so far this year and set new targets to see you through until the end of December. Having objectives to work towards will give you and your teams a purpose, and help to get you on the path to growth.
Outsource your bookkeeping requirements to a professional (like me!)
If you’re adamant you don’t want to spend any time looking at or thinking about the numbers over the summer, have you thought about asking for help from a third party?
As an experienced bookkeeper, I can take all those boring, time-consuming jobs away from your desk, leaving you with more scope for the fun stuff. From daily data entry to managing payment runs, chasing invoice payments and handling your tax returns on your behalf, I can lighten the load in all kinds of ways.
Enjoy your time off!
We work to live – so make the most of your holidays, spend that precious time with your family and friends, and recharge your batteries ready for the rest of the year!
