Times are understandably tough in the UK.
Soaring energy prices – soaring food prices – soaring fuel prices….the list goes on. It has left a lot of business owners struggling to pull back in the customers that they lost during Covid-19 while retaining the same profit margins that they need not just to survive but grow financially.
This has left many people living pay check to pay check and we wanted to put together some tips to help make it easier to get through the current wave of financial instability. Why? Because living pay check to pay check is a) not a sound strategy and b) all it takes is one little road bump and your ‘system’ goes out the window. So kicking off on that note…
Sign up to low balance alerts.
Most banks (if not all) have some form of low balance alert system that can notify you should you dip below a certain number. By doing this, you can know instantly if you have crossed what we will call the danger line. You still have enough to get to the end of the current financial month but you are now on high alert. It also means that you can move money (should you have it) from another account such as a savings account to ensure that you don’t get charged any kind of overdraft penalty charge.
Take the long way
By this we mean, when you receive your pay check, don’t just fire out payments for things on the day, look at the different ways you can complete transfers. Paypal for example offers different bank transfer options. Standard transfer is the free option and takes a few business days to complete. Other transfer methods can incur costs. It may only be a percentage here and a percentage there but it all adds up.
If you are being hit with late payment fees, you can set up auto pay on things like a credit card. This way you don’t have to remember a payment date, it will get paid automatically.
Get on a budget
We are not accounts, we are bookkeepers and we live by the ruling of numbers. And so do you. If you earn X every month, that is what you have to spend. Set a budget and decide where the money goes rather than what you still need to pay.
Set up an emergency fund
You may be thinking ‘how can I set up an emergency fund when I am living pay check to pay check?’ Well we mentioned speed bumps along the way…this is what that is for. You can begin to save money in a separate savings account. You just have to make small changes to your daily, weekly and monthly spending. Trust us, it will be worth it.
Spend money to make money
It always seem counter intuitive to spend money when you are on the bubble but if you have been trying to cut costs and do more yourself, such as your bookkeeping, you may actually be costing yourself more.
At Momentum Bookkeeping, we like to offer our customers a lot more. Value and a professional service go hand in hand in our business. And that is why we offer so much for our customers. So much so that we have put them into a list for you.
We can help you stay on top of your business accounts. By keeping track of every sale or purchase in your business, our bespoke bookkeeping software can make it much easier to keep an eye on cash flow.
As your bookkeeper, we will ensure that your business records are kept up to date. And if there are any inconsistencies, we will be able to spot them early and help you to sort them.
Prepare for Tax
Tax deadlines are fixed point in the year and for so many businesses that have fallen behind in their bookkeeping, the tax deadlines can so easily pass them by. We can help you to prepare for your tax deadlines and ensure that you don’t have any additional fines to contend with.
We can prepare your financial statements including profit and loss statements, balance sheets and cash flow statements.
It is our job to ensure that your books are valid and up to date for when your accountant needs them.
It is so often bookkeepers like ourselves that handle the payments on behalf of a business like yours. From paying supplier invoices to dealing with petty cash and company expenses.
We can assist you with payroll and the process of processing pay checks and tax payments for your employees.
Monitor cash flow
Making sure that your business does not run out of money is essential and we will monitor the balance of revenues to expenses and can even advise you on options to streamline your business to make cash more readily available.
When we work with a client, we begin the process with what is important to their business needs NOT what we are trying to sell them. We pride ourselves on building custom built MySQL cloud solutions that allow your business to run smoothly while all the accountancy processes runs seamlessly in the background.
As you would expect with bespoke solutions, every client gets a tailored made system for them. Thing of it like this, if your business is a square peg, we will build you a square hole.
If you want to build some real momentum in your business and stop living pay check to pay check then call us today.
Covering the full range of bookkeeping services that the typical business would require, we have built our bookkeeping services around going a step further. And that means that we offer not just what you expect, but what you need (even if you didn’t know you need it).
From VAT returns and payroll services to custom built MySQL databases as part of our Bespoke Services. From a once a year service to a daily interaction service into your business; we can be as integrated with your business as you want us to be.