How Do I Keep Track Of My Bills?
Many business owners are concerned about a lack of money coming into their business as a result of the coronavirus pandemic and its knock-on effects. However, keeping track of money leaving your business in the form of bills is also essential to keep your cash flow as healthy as possible at this unpredictable time.
So what’s the best way to keep track of bills? How can you manage these outgoings to have as little impact on your business cash flow as possible? And can you get an instant answer to the question – can I pay my bills?
How to manage your bills
If there’s one thing that can seriously disrupt your business cash flow, it’s a large unexpected bill coming out at just the wrong time. Staying on top of your bills will give you the confidence to make important business decisions because you know exactly how much money you have in the bank at any given time.
Accounting software such as Xero or Quickbooks will show you what bills you’re expecting to pay, but you’ll have far more control over your business finances if you also use a cash flow forecasting tool to create a detailed picture of when money is actually going in and coming out of your business. A cash flow forecasting app like Float syncs automatically with your accounting software and regularly updates, so you have a detailed, accurate picture of your cash position.
As well as forecasting your cash regularly and keeping your accounts up to date, there are a couple of other steps you can take to limit the impact of bills on your bottom line.
It’s a good time to review any subscriptions your business has signed up for that you aren’t using or don’t need. You might be surprised what you’re paying for each month, from online tools to website plugins you no longer require. You could save some vital cash by cancelling these extra monthly expenses.
Also, when was the last time you shopped around to renew your energy and gas provider or looked for a better deal on insurance? With plenty of comparison sites to choose from, comparing deals to make your bills cheaper shouldn’t take long and is a worthwhile step to reduce your outgoings.
Bills are an inevitable part of running a business. But with careful planning, they needn’t cause too much disruption to your business finances.
Track bills in your cash flow forecast
If you use Float to keep track of your cash, on the Bills to Pay tab you’ll be able to see which upcoming bills are due. You can set an expected payment date for an individual bill or a batch of bills, so your forecast reflects exactly when that money will leave your business.
If you’ve negotiated with a supplier and either paused or delayed a bill to pay, you can change the due date in Float or hide the bill to exclude it from your cash flow for the time being.
Alternatively, if you’ve arranged to pay in instalments, you can split bills down into smaller payments in Float.
Taking these steps gives you a more granular and accurate picture of your cash position, so you can keep track of what bills are going out when and confidently move forward with your business.
Want to take control of your cash flow and always have the answer to ‘can I pay my bills’? Try Float for free today.