23 June 2021
Table of contents
Table of contents
Two words in succession that are enough to send shivers down the spine of any business owner or accounts department are ‘month end’. The hectic time of the month where books need closing, and all accounts need tying up – and it always comes around so blinkin’ quickly.
When it comes to executing the process successfully, there’s a fair amount to think about. As the cliche goes, there are a lot of moving parts that need to come together for you to continue operating a well-oiled machine.
Month end activities generally include tasks such as:
It can feel like no matter how meticulously you plan for month end; it ends up being a mad rush. That said, there are a few things you can do to make the whole thing run more smoothly, starting with your bookkeeping.
We’ve compiled the best bits of advice on how to improve your bookkeeping system below, to help kick your month end woes to the curb.
One of the best ways to ensure something is done well is to leave it in the capable hands of a professional.
An experienced bookkeeper will significantly reduce the risk of errors which result from a lack of knowledge about bookkeeping processes. They’ll also be able to set up financial statements for you, so you can view reports on the health of your business.
When putting your bookkeeping protocol in place, make sure it is communicated clearly to everybody involved. Ensure that anybody with responsibility knows what they need to do, and when they need to have it done by.
It’s textbook best practice but being thorough (and concise!) with your bookkeeping processes will go a long, long way towards a smoother month end.
Standardising procedures also reduces the risk of making mistakes, and makes it easier to spot errors so they don’t slip under the radar.
This includes any external bodies, too. If you do outsource to a bookkeeper and/or an accountant, make sure they know your process, or even help you plan it.
Now we might be biased but for us, this is a big one. Investing in comprehensive, easy-to-use bookkeeping software with time-saving features is a fool proof way to improve your bookkeeping process. Particularly if you choose cloud-based bookkeeping software that can be accessed anytime, by anyone who needs it, from anywhere in the world with a solid internet connection.
As with any purchase for your business, it’s advisable to shop around and choose the best bookkeeping software for your needs.
There might be specialist processes that you want dealt with all in one, such as payroll, but generally you’re looking for features like those listed below.
Taking measures to ensure you run a tight ship when it comes to your bookkeeping is essential. But, do you know how to really, really get the best out of that process?
Hiring an accountant with knowledge and experience will allow you to take the rewards of excellent bookkeeping to the next level. They’ll help you understand the data, and use your records to plan future business growth as efficiently as possible.
An accountant will also be able to point out where your bookkeeping process needs to improve. This might be on a day-to-day, month-by-month, or annual basis, so that your accounts and reports can work harder for you.
They can help you transform your bookkeeping from a box-ticking exercise, into something with the potential to significantly influence your business’s bottom line.
Plus, having the support of a financial specialist is priceless if HMRC decide they want to have a word about anything.
Recommended guidelines tell you to keep copies of your receipts and invoices for at least three years. Once month end has passed, don’t think that’s your cue to ditch the paperwork and let your digital filing go awry. You never know when you might need it!
HMRC might decide to carry out an audit, or a client might raise concerns about an invoice leaving you to tunnel through the paper trail to support your case.
Maintaining a high level of organisation now can save you a great deal of time, and a huge headache, further down the line.
Don’t leave everything to the last minute!
In the world of business accounting, deadlines are the real deal. Miss one, and you’re likely to find yourself facing a hefty penalty.
Just because something is due at the end of the month doesn’t mean you have to wait until the end of the month to stick it on your to-do list. For example, regular accounts reconciliation as transactions happen is far more efficient than a single swoop when month end rolls around.
Leave yourself plenty of time to tend to your books or, going back to timesaving software, make sure your shopping list includes features which will help you manage your record keeping in real-time. That way month end doesn’t become a chaotic countdown every single time. It’s good for your business and it’s good for your stress levels.
If you’re the kind of person who struggles to focus, or tends to get sidetracked throughout the month, here are some great ways to reign yourself in and stay organised:
Another great tip is to set a soft deadline a few days ahead of the official one, allowing you the luxury of some wiggle room. This means you’ll have some slack to play with if unforeseen hurdles, like staff absences or business commitments, crop up.
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A content writer specialising in business, finance, software, and beyond. I'm a wordsmith with a penchant for puns and making complex subjects accessible.
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