Finance

Bookkeeping Tips for SMEs

MOMENTUM Business Support Administration, Business Support, Finance
Business individual carrying out administrative duties on a white table with a laptop, diary and tablet

No matter how much you try to avoid it, bookkeeping will always be an integral part of your business’s daily operations. Helping to improve your budgeting, target visualisation, and compliance with Government regulations, bookkeeping is the backbone of any well organised business. Failing to designate the necessary time and focus it needs, can quickly result in stunted business growth and progress delay. And while we can’t make it disappear, we can offer a helping hand and some of our favourite tips to help you boost your SME’s bookkeeping efficiency.

Separate business and personal finances

One of the most common mistakes among business owners is the mixing up of business expenses and personal income and spending. While it may seem a small overlook at the time, it is a sure way of overcomplicating your future bookkeeping duties and can actually lead to some larger issues down the line. Get a business bank account and a separate credit card before you begin any business operations. This will help to keep your finances organised and helps your business build its own credit rating.

Learn to automate

Automation can go a long way in helping you to carry out your accounts and bookkeeping operations – it’s a great time saving solution! Streamline your duties with smart accounts and payroll softwares and take time to pick the right one for you. Bookkeeping tasks you can automate include: payroll, categorizing transactions, expense management, bank reconciliation, cashflow forecasting and reporting.

Keep track of business expenses

Predicting and budgeting future business expenses is a tough job, which is why it’s imperative to track any current outgoings and keep organised records. It helps to create a clearer forecast and thus allows more room for any unexpected spendings. These records should include things such as: inventory, supplies, insurance, utilities etc. Not only will this give you a better idea of what to expect it will also make it easier to claim any business expenses when it comes to doing your taxes. Remember to always keep receipts!

Review regularly

Undoubtedly one of the most important things when it comes to measuring your business progress and making sure you’re staying on track are regular reviews. Looking back at past records and reviewing financial affairs gives a more in-depth perspective into any trends, and therefore allows you to better strategize your future plans. It also helps to establish stronger targets, boosts proactiveness, and improve responsiveness to any presented challenges.

Utilise time tracking software

Time tracking software can be a great addition to daily business operations, allowing your team to clock in and out of work using their electronic devices. It also promotes better time management and allows you and your employees to see how your time is distributed throughout the day. This will help you to gain a better understanding of your workloads as well as automatically tracking and monitoring wages and any additional overtime. Do your research and pick a tracking solution that works well with your other business software.

Stay on top of tax deadlines

Don’t back yourself into a corner when it comes to your tax deadlines. Anticipate and avoid running short by leaving finances aside for all established tax bills. Be sure to be timely and on schedule with your payments to avoid any fines and note all important deadlines in your calendar. To improve your efficiency set reminders on your chosen device, alerting you of the approaching deadlines ahead of time. When you can, try and leave room for any unforeseen mistakes and don’t leave your taxes until the last moment.

We know bookkeeping duties aren’t smooth sailing for everyone – which is why at MOMENTUM we offer various outsourcing services to help you and your business thrive. We hope you’ve found this blog insightful and encourage you to reach out should you ever find yourself needing any business support. If you’d like to find out more or have any additional queries, get in touch:

E: makeithappen@mbsmih.com   T: 01903 688789

Is It OK To Chase Payments During Covid-19?

MOMENTUM Business Support Business Support, Finance
Woman using a calculator with an open laptop and folders in front of her

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It’s a difficult time for everyone at the moment, especially when it comes to money. I’ve had a number of conversations with clients, friends and other business owners about the delicate matter of how to approach outstanding invoices, or current payment requirements.  

Is it OK or even moral to ask for payment during the current pandemic?

YES! Yes is absolutely the answer, but it’s how you go about it that’s important.

My thoughts are; there are 3 different types of scenarios, and 1 exception. Your customer:

1. is still able to trade – marginally or fully

2. has been forced to close their business for a period 

3. no longer has work due to their customers being forced to close

4. has sadly had to close for good (the exception)

I appreciate there are other influencing aspects here too, such as childcare, home schooling, vulnerabilities, supply and demand etc. Fundamentally though, these can all be factored somewhere into the above. 

So. Let’s look at each of these scenarios individually. 

Your customer is still able to trade: The first one is the simplest. In this instance we would assume that if they are using your services in any capacity, it is because they have a forward need and therefore an income off the back of that. In this circumstance, you can treat your credit control processes in the same way you always have. (I am assuming here that you have always followed the golden rules around building good relationships and providing excellent customer service. Check out our Credit Control advice HERE.

However, that being said, at the moment during this Coronavirus crisis it won’t always be that cut and dry. Another complication here is your customer’s customer. Whilst your customer might be trading fully, their customers might only be partially open or not at all. So the difficulty comes with them receiving payment also. The best way to understand this is to speak with your customers regularly to see how they are being affected and have open discussions around payment plans before you supply your goods. That way, everyone knows and agrees how it will work before you get started and you can mitigate any nasty surprises. In addition to this, when sending your invoice, add a new line or paragraph to your email that shows your understanding of the current climate and reiterates your newly agreed terms. 

If payment is not received and your invoice becomes overdue, you should still feel comfortable following it up – after all, you did agree considered terms in the first place. Keep in mind that things may have changed for your customer, be flexible, but make sure the outcome is fair and reasonable for you both.

Moving on to scenarios 2 & 3, these can be treated the same.

Your customer’s business is closed for a period: If your customer has been forced to close their business due to Covid-19 Government regulations or a lack of custom themselves, this requires a little more understanding and tact, but it is still absolutely OK to discuss payments.

I’ve used the word ‘chase’ in the title of this blog, and we all tend to use it in general. I do however prefer to use the term ‘follow up’. So I’m going to use that here for now, as I feel it better reflects the difficult times we are in, especially when it comes to cash flow!

Whilst businesses have had to close for various reasons, that won’t automatically always mean they are cash poor. The key here is to have open conversations with each of your customers to establish their current financial position, and move forward following up invoices with that in mind. Some customers will need more understanding and leeway than others, but regardless of the outcome of these conversations, you must remember that you have provided a service and as you understand your obligations to pay at some point, so will your customer.

It’s not about showing a lack of empathy or ‘losing your moral compass’. It’s about maintaining good relationships and staying engaged with your customer. Cashflow is the life blood of all businesses, and if you’re going to survive during these harsh times, knowing your income position and the difficulties your customers are up against is the key.

Finally, let’s talk about ‘the exception’.

Your customer’s business is closed for good: This is terribly sad all round. The impact of Covid-19 on some businesses is that they have had to make the difficult decision to shut down completely. Worse, the impact to you is that you have lost income and a good professional relationship (assuming again you have nurtured one with all your customers). 

If this has happened to you, or happens to you, it is likely to be extremely difficult to get outstanding payments for invoices. In rare cases, your customer may have taken the decision to close based on other factors than monies in the bank. If this is the case, you will likely be aware and again can follow the steps detailed above – open discussions, empathy, payment plans etc. Unfortunately, it isn’t very likely, and so depending on the total value you have outstanding, you may wish to seek legal advice to understand your rights and position.  

Regardless of any of the scenarios I have detailed and explained here, the significant element of chasing or following up payments with your customers is the relationship you have with them in the first place. If you get that right you shouldn’t ever be afraid to discuss remuneration for your services. It isn’t a shock that you expect to be paid, but the way you approach it is what makes all the difference!

If you’d like to chat through your specific circumstances when it comes to chasing payments, please don’t hesitate to get in touch. You can call 01903 688789 or email makeithappen@mbsmih.com

If you’d like to talk to me specifically, I also run ‘Open Door Q&A Sessions’ on a Thursday afternoon from 2-4pm, where we can chat for 15 minutes about anything at all business related. Book your free slot HERE.

I look forward to speaking with you soon.

– Mikki

Passing The Baton – 45 Tasks You Could Outsource

MOMENTUM Business Support Admin, Administration, Business Support, Digital Marketing, Event Management, Finance, HR and Recruitment, PA, Project Management, Research
Hands typing on the keyboard of a white laptop

When you pass tasks that you are finding time consuming on to your virtual assistant, it leaves time and space for your company to grow. Your focus can return to what you do best – running your business. You may not have been aware of the incredible number of tasks that you could outsource, so here are just some of them that we offer to give you an idea…

VOICEMAIL CHECKING – Does your phone get full of voicemails? We can keep you up to date.

APPOINTMENT MAKING – Conducting calls to existing and prospective clients to make appointments.

DIARY MANAGEMENT – Keeping you and your diary up to date.

EMAIL MANAGEMENT – Sorting, cleansing and replying on your behalf.

DATA INPUTTING – We can help you keep your business records up to date and accurate.

SERVER AND ONLINE FILING – It’s easy for your server and online files to get out of hand. We can make sure that they stay clear and consistent throughout.

PREPARE TRAINING MATERIALS – Running training events or meetings can be time consuming with the amount you have to prepare. Whether that’s PowerPoint presentations or questionnaires, we can help.

COMPILING MEETING MINUTES – Attending meetings can take huge chunks of time out of your day, so the last thing you want to be doing is compiling meeting minutes, which can take up even more of your time. We can compile meeting minutes for you.

LEGAL FORM COMPLETION – We can take the process of completing necessary legal forms away from you by taking care of this remotely. One less thing for you to worry about.

FORM CREATION – Forms can be useful tools to gather information. We can help create these for you.

PREPARING PRESENTATIONS – Preparing an engaging, well laid out presentation can take time. Our malicious attention to detail and keen eye for design can take care of this for you.

DATABASE CLEANSING – Keep your database free of irrelevant documents with our database cleansing service.

EXCEL DATABASE CREATION – We love a good spreadsheet! If you need one created, look no further than MOMENTUM.

REPORT CREATION – Need daily, weekly or monthly reports but don’t have the time in your day to create them? Pass the task on to us.

 DOCUMENT CREATION – Need a specific type of document created, but not sure how to do it, or simply don’t have the time? Let us help you out.

ONLINE RESEARCH – Collecting data via the internet.

CUSTOMER RESEARCH – Gathering information about your customers’ needs and preferences.

KEYWORD RESEARCH – Research into keywords that people enter into search engines relating to your business.

COMPETITOR ANALYSIS – An assessment of the strengths and weaknesses of current and potential competitors. 

TWITTER SOCIAL MEDIA MANAGEMENT – We are experts in the ‘twittersphere’. We’ll help you stay connected sharing relevant, frequent and direct messages to your followers. We help clients in a number of industries reach their target market in 280 characters or less!

FACEBOOK SOCIAL MEDIA MANAGEMENT – Our skilful social media gurus can help you gain organic page likes on this popular social networking site, making sure details of your offerings and expertise reach prospects and existing customers.

LINKEDIN SOCIAL MEDIA MANAGEMENT – We can help you reach even more businesses and contacts. Let us start building your business presence on LinkedIn by creating your Company Page, attracting followers, and posting regular updates to drive engagement.

PINTEREST SOCIAL MEDIA MANAGEMENT – Pinterest is a great social network for sharing details of your images and videos – including links, making this the perfect platform for us to promote and visualise your products and services.

BLOG CREATION – Helping you to get regular messages and insightful content to your online audiences.

PROOF READING – We can read over everything you’ve written, checking for errors and ensuring your grammar and tone are consistent.

COPYWRITING – If you’re creating or updating a website, we can help by creating bespoke keyword focussed copy.

EMAIL CAMPAIGNS – Targeted messaging, monthly updates, one off communication and much more.

SEARCH ENGINE OPTIMISATION – We can help you to achieve high ranking search results.

CONTACT DATA – Turning your business cards and other contacts lists into functional databases.

NEWSLETTERS – Regular digital communications providing key updates and marketing opportunities.

BUSINESS LISTINGS – Getting your business noticed and supporting your SEO strategy.


CREDIT CONTROL – Building relationships with your customers to improve your cashflow.

REDUNDANCY AND TUPE – We can provide specialist employer advice on making employees redundant, dealing with business transfers, or changes to service provisions within your business.

DISCIPLINARY AND GRIEVANCE – We can support you with developing a disciplinary or grievance procedure, or to provide advice and support when managing an employee disciplinary or grievance case.

CHANGE MANAGEMENT – We can support you throughout your organisational changes to allow you to focus on your day to day business.

PERFORMANCE MANAGEMENT – We can provide you with specialist advice or training on managing performance, and we can support you with developing an effective performance appraisal system.

RECRUITMENT AND SELECTION – We can help you with writing job specifications, job descriptions, recruitment selection frameworks and support you through the selection procedure. We can provide job offer paperwork and contracts of employment, and even support you on your induction procedure.

CONTRACTS AND EMPLOYEE HANDBOOKS – We can review your existing contracts, policies and procedures to ensure they are up to date with current legislation requirements. We can also tailor our templated frameworks and policies to suit and protect your business.

HEALTH AND SAFETY POLICIES – We can review your existing policies and procedure to ensure they are up to date with current legislation. We can also tailor our templated frameworks and policies to suit and protect your business.

INVOICE CREATION – Creating and generating your invoices for your customers and clients.

SENDING INVOICES – Ensuring your invoices are sent regularly and on time.

CASHFLOW FORECASTING – Ongoing predictions based on historical data.

 PROJECT MANAGEMENT – Planning, organising, staffing, leading or directing and controlling your project.

 PROJECT SUPPORT – Assisting with any aspect of your projects, and supporting managers.

 EVENT MANAGEMENT – Contacting and liaising with suppliers, gathering information needed for the events and finding the best prices. Planning, organising and managing your events – what, when, where, how, who. Researching venues and suppliers, finding the best venues and suppliers to fit with your event and budget.

We pride ourselves on adding value to every single task that we undertake. Whether you need your admin organised and taken off your hands, a virtual PA to keep you and your business on track or more substantial support with your HR, projects or events, we are here to make sure you can make it happen..

E: makeithappen@mbsmih.com  /  T: 01903 688789.

Getting organised for your Self-Assessment Tax Return

MOMENTUM Business Support Admin, Administration, Business Support, Finance
A pen, calculator, and paperclip laying on top of a financial graph

With only a few weeks to go now until the deadline for the Self-Assessment Tax Return we’ve been asked by a number of clients how they can be better organised and get prepared in advance. So here’s our top tips on how to get organised early, so you can cross off the dreaded task from your to-do list.

Start Early
Start preparing for your Tax Return early to allow yourself enough time. There’s nothing worse than being right on deadline for a task, so don’t leave it until the very last minute to start getting your preparation underway!

Little and Often
Throughout the year, set time aside each week or month, using calendar alerts to remind you to take that hour out of your day, to sort through the relevant documents needed to file your Tax Return. This way, you won’t lose information or build up an enormous amount of paperwork that you’ll have to spend hours trying to sort through at the end of the year – which can be very stressful.

Create a Filing System
Set up a filing system that works for you. Whether that’s using folders, spreadsheets or an app – use whatever you find easier. When you’re out and about running errands – take a document wallet with you so you can place any relevant receipts straight in there. This will save you scrambling to look for them at a later date!

Don’t Stress!
Filing your Tax Return can be an overwhelming experience. The key is to get organised using the simple steps above and you’ll be fine! Remember – you can always seek advice from a professional accountant if you’re unsure about anything, and we’re always here to help too!

All the information you need about completing your self-assessment Tax return can be found here on the GOV website:
https://www.gov.uk/self-assessment-tax-returns

If you find yourself needing help with organisation in 2018, we can help! Contact us today for more information.
E: makeithappen@mbsmih.com T: 01903 688789

5 Easy Ways To Improve Your Cashflow

MOMENTUM Business Support Finance
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Cashflow is without a doubt the number one issue faced by small business owners. Almost every survey, poll or graph highlights this, and even if they didn’t, we all know ourselves that this is most definitely the case!

We work with a number of small businesses in a wide variety of industries and sectors, and thought we’d share with you some of the best processes we’ve learnt and implemented.

1.    Reduce Payment Terms
Whilst the perceived ‘norm’ for payment terms is 30 days, there is no actual rule or regulation that truly says this must be the case. If you’re a B2B provider that issues invoices on a monthly basis you can decide when they are due. This may vary from client to client as agreed or you may decide on a generic approach, the point is, if you want your invoices paid within 14 days instead of 30, then this is your decision. The benefits here are that payments are received regularly throughout the month, and if you have late payers, their perception of how late the invoice is increases. Whilst you still might not receive the payment on time (within the 14 days), you’re much more likely to receive it within 30 days!

2.    Invoices Due At Different Times Of The Month
Though creating invoices at a set time within the month may be useful for your time management, it’s not ideal for cashflow. Creating invoices weekly with varied payment terms as you see fit or as agreed with your customer will help to ensure that you have fresh payments cycling through the business every week. It will also help with Credit Control and keeping on top of late payers. The benefits here are that payments will flow more regularly throughout the month. If you have 30 day payment terms, and space out your invoices to be sent (let’s say) each Friday, after the first month you will start to receive fresh income each week.

3.    Speak To Account Payers Regularly
The best way to ensure your invoices are paid regularly and on time is to ensure you have a good working relationship with your clients. Speaking with them on a regular basis about what’s happening in their business and understanding if there may be reasons to stop them paying your invoice on time will help to mitigate this actually happening. By simply following up once you have sent invoices out to ensure they have been received, and there are no queries, proactively reduces the likelihood of last minute ‘no pay’ reasons. It also helps build an open relationship and shows your clients that you’re happy to work with them and be flexible where needed, and encourages them to be the same with you.

4.    Get Someone Else To Cover The Credit Control
Another great way to help ensure your payments run smoothly throughout the month is to enlist the services of an independent person to conduct your Credit Control. This ensures you keep your working relationship with your client, they can vent any frustrations to you about your Credit Control person, but ultimately don’t ‘blame’ you, as the Credit Controller is merely doing their job. It’s the age old ‘good cop’ ‘bad cop’ routine, but really works when it comes to maintaining relationships and getting paid!

5.    Invoice On Time!
An obvious but easily and frequently overlooked factor in cashflow. Whilst it can be hard to keep on top of all of your paperwork and do the work too, invoicing should never be sacrificed. Book a regular spot in your calendar each week/month and above all else, once you’ve done the work, get the invoice out there!

We have lots of experience when it comes to cashflow improvement and credit control, so please don’t hesitate to get in touch if you’d like to chat through your current processes and how they could be enhanced – T: 01903 688789 E: makeithappen@mbsmih.com