Running a business involves many moving parts and one of those is business admin. Here’s why managing it well can help a company thrive.
It’s probably fair to say most business owners didn’t start their companies due to a passion for paperwork (unless they actually did and their business helps people manage their admin…). However, small business admin is an important part of running a company and it can make a real difference when it comes to profitability.
In 2020, Sage research revealed that only 42% of business owners said they’ve always been good at looking after money. But for those who don’t feel they’re very good at managing money, it’s possible to learn the right habits so they can boss their business finances. Having a good understanding of business admin will help.
What business admin involves
Small business admin covers staying on top of the money that comes in and goes out of the business. It also involves keeping records – think receipts, bank statements and invoices.
There are legal obligations to be aware of too. Businesses need to keep records of income and expenses, while they have to pay taxes to HMRC.
Business admin can take time to complete but the data that’s collected can be used to generate insights that aid decision making. There are other benefits to keeping good business records too. Business owners can see how the company is doing, including how much profit is being made; which products and services are selling well; and which suppliers are paying on time.
And while spreadsheets can be used to record information, there’s a better option. By using cloud accounting software such as Sage Accounting, businesses can automate tasks, reduce time spent on manual data entry, keep accurate records, and generate insights that can be viewed on dashboards – all of which will save time.
Regular admin tasks to manage
Not all business admin tasks have to be done in the same period. Some need to be tackled on a daily or weekly basis, while others can be managed monthly or annually.
Daily tasks include checking the business bank account to monitor spending and see which clients have paid their invoices, and using accounting software to record expenses. Once a week, time should be taken to pay suppliers and chase invoices.
Once a month, there will be bigger admin tasks to take care of. These include sending invoices to suppliers; managing the payroll run if the business has staff; managing inventory to see what is and isn’t selling; and reviewing the performance of the business – including how much money is coming in and out of the company – then creating future plans and projections.
And on an annual basis will be the need to deal with Self Assessment and filing a tax return (for sole traders) or filing accounts and the company tax return (for limited companies).
Time to boss your business admin
While it might seem like there’s a lot of business admin to stay on top of, there’s a real benefit to managing it well. With the help of accounting software, bossing business admin will become second nature in no time.
To find out how you can boss your business admin, visit the Sage website.