How to Get Back on Top of Your Accounts
When workloads pile up, businesses often fall behind on their accounts as financial admin takes a back seat. But the backlog creeps up on you over months and suddenly you’re behind on your accounts.
The worst thing about letting things slip is that it can feel overwhelming to get back on track, however, it is possible. By taking the right approach, you’ll be back on top of things in no time.
Get clear on where you are
First of all, you need to work out where you stand. Write down what you know has and hasn't been done, and look out for anything that might need correcting too. You don’t have to get this perfect, but it helps to clear up any grey areas. Having a clear view of your starting point means you’ll be able to plan your next steps better.
Focus on what matters first
You might be tempted to throw yourself into getting everything done straight away, but when your accounts have fallen behind it’s easy to become overwhelmed.
Take a step back and deal with the important things first. Think of anything that is high risk or has impending deadlines. This usually includes:
- Upcoming filing deadlines (e.g. VAT return)
- How much cash you have on hand
- Gap areas that may cause compliance issues
Clearing these up first will give you some breathing room.
Take it step by step
Unless your accounts have only slipped a little behind schedule, chances are you won’t be able to clear the backlog overnight. Prioritisation is key, so work through your outstanding accounts step by step. Sort through a month or a quarter at a time until you’re caught up.
It might feel like slow progress at first but keep at it. Soon you’ll reach a point where you’re keeping on top rather than playing catch up.
Review your processes
If your accounts have fallen behind it’s worth looking at why they did in the first place. More often than not, it isn’t because you haven’t put in the hours, it’s because your process doesn’t work.
Take a look at how you manage your day-to-day accounting. Are your records up to date? Do you wait until the end of the year to do any financial administration? Are you still using a system or software that doesn’t suit your business?
Modern cloud tools like Xero and QuickBooks can make a huge difference, helping you record transactions, manage invoices, track cash flow, and keep your accounts up to date in real time, reducing the risk of falling behind again. Simple, repeatable processes will help you stay on top. Even if you just create a weekly task to record bank statements and update your invoices.
Implementing management accounts
Once you’re caught up it’s time to think about how you’re going to stay caught up. Introducing management accounts can help with this. Management accounts are your regularly-updated snapshot of your business finances. They allow you to see how your business is performing throughout the year, rather than waiting until the year end to gather information and compile accounts.
Good management accounts should allow you to:
- See how your business is performing throughout the year
- Help you make informed decisions
- Spot any issues before they become problematic
Essentially, you can use your accounts to support your business decisions.
Getting help where you need it
Please don’t be afraid to ask for help. Bringing someone in to help you sort through your accounts will ensure it’s done efficiently (and correctly). Not only that, but it takes the pressure off having to do it all yourself. Instead, you can continue to run your business as your accounts are being taken care of.
Keeping your accounts on track
You’ve finally caught up on your accounts, great work. Now you need to ensure you don’t fall behind again. That normally means putting systems and processes in place that work for you. Make sure you’re keeping on top of your day-to-day accounting; keep an eye on your numbers throughout the year and having clear processes that everyone involved understands.
Conclusion
Being behind with your accounts isn’t ideal, but it can be resolved. With time and commitment, you’ll be back on top of your accounts in no time. Use this time to improve your processes, and look into implementing management accounts. That way you’ll not only be caught up, but you’ll also have better insights into your business. Management accounts can help you make better business decisions moving forward.
