When times are good in business, it’s easy to let direct debits come off of your card without notice - especially if you are no longer involved in the bookkeeping.
Now, more than ever, you need to keep on top of expense management and make sure what you are paying for is relative to where your business is now, not where it was six months or even six days ago.
Our top pick
Hubdoc is an expense management tool that allows you to fetch regular invoices from suppliers and also upload receipts and invoices ad hoc. It is already pre-connected to thousands of suppliers and makes keeping all of your accounting paperwork in one place a breeze. Further, Hubdoc is built in to Xero at no extra cost to with a Xero business edition subscription.
Don’t have Xero? Hubdoc works independently as a standalone software (USD $20 per month) and integrates with MYOB and QuickBooks.
Review your accounting file expenses and make a list of all your recurring or regular expenses. Take some time to identify where you can make cash flow improvements, perhaps by paying monthly instead of annually (some vendors might even give you the same pricing discount). Take note of any ongoing subscriptions that you had meant to cancel, and continued on direct debit, or that are non-essential to your business.
Remember that it doesn’t hurt to enquire with your suppliers about better deals, given the current circumstances.
Why you need to do this
It’s very easy to lose touch of outgoings in a business.
By raising awareness of the expense outlays, you will be in a better position to handle the more difficult task of cash flow forecasting and planning ahead for your business. Start with this lower level task to gain awareness and cull back non-essentials.
Your team at RSM is here to help you navigate the next steps in your business. Contact one of our digital advisers for assistance.