How to manage a business setting yourself free from administrative obstacles and by having control of the company, focusing on sales and its evolution!
One of the main problems in entrepreneurs when they initiate a new business or when they’re in plane activity is the effective control of its management and the accumulation of administrative tasks.
The entrepreneur must focus on what he does best, which is selling his “business”, whether it’s his know-how or experience, the services provided by his company or the products he produces or transacts.
At the same time, he must have control over his accounts, what he owes, what he has to receive and when those transactions are estimated to occur.
The entrepreneur’s problem starts here!
In order to start having control, there are several administrative, accounting and management tasks that must be completed and that takes work!
And work requires time and by using too much time with these tasks, our “focus” is deviated.
We stop paying attention in the development of our business, to stay organised.
The truth is that the entrepreneur has to be organised and disciplined to control these two situations.
Specially when taxation is more efficient and has no modesty, any failure incurs in fines that represent real losses in the company’s safes.
Then, there still is the tax control we aspire to have and the impact it creates in our treasury.
For example, we have Micro and Small companies, where around 90% still use the same working methodology when it comes to their accounting.
They receive invoices, receipts and other documents from the suppliers, tax authority, social security, between others, and they archive it in a file.
5 to 10 days after the end of the month, the file is given to the accountants. At this time, the accountant receives the file from this company and from all of the other clients and begins to process them. In great situations, 15 days later the client has the tax and accounting information. In extreme cases, the documents are delivered to the accountants when the trimester is over, because of the VAT, then the information is processed and the company has the accounting and tax information with a 4 month delay.
To make matters worse, at that time the accountant, when there’s 1 week left to the end of the VAT payment, sends an email stating that the company has to pay a few thousands of euros in VAT and the entrepreneur takes his hand to his head!
Moreover, by coming with a 4 month delay, the information cannot be corrected. If you were losing, you lost! If something was bad, it continued! And once again, the owner of the company takes his hands to his head!
Some companies with a slightly higher capacity usually hire an administrative who introduces the documents in the management software, known as the ERP (Enterprise Resource Planer) and then they will have more updated information, it is a solution, however it implies higher financial expenses.
Therefore, we must engage in practical and objective solutions, non-onerous and very useful!
I had one whilst entrepreneur and at the same time chartered accountant.
I have all the information updated, always available and control everything even from my smartphone, in my case it’s an android but it can also be an IOS!
How?
All of the documents in my business are digitalised and the accounting access it in the moment.
It’s true, whilst entrepreneur I felt the pain of any other entrepreneur and whilst accountant I have verified the obsolete e doubled way of working, firstly in the company and then in the accounting department, when it comes to the processing of documents.
So I proposed and advised some clients into starting working in this way:
-I created a cloud already organised in terms of files
-Our clients digitalise all of the documents and archive them in their computer files, as if they were saving any other document
-The files in the cloud synchronise and retain the saved documents
-The accounting access it, processes it and transfers it to the organised digital file
-The client keeps the physical file according to the digital
All of this done with free tools that don’t borne the company.
The result is amazing!
Updated information that the companies can use to the management, to correct what is wrong and to maximise what is good, to make it even better!
And all of this from being disciplined and in 5 minutes!
THE DIFFERENCE IS EXTRAORDINARY, OUR CONSCIOUS IS LIGHTER, THE COMFORT OF BEING ABLE TO ACCESS FROM EVERYWHERE AND TAKE THE NECESSARY CONCLUSIONS TO MANAGE THE COMPANY MAKES US FEEL EXTREMELY PRODUCTIVE AND IN THE END WE’RE ONE STEP AHEAD OF THE OTHERS. YES, WAY AHEAD!
WE CAN EVEN BE VAIN AND SHOW IT TO OUR FRIENDS AND OTHER ENTREPRENEURS, WHEN WE’RE HAVING A DRINK AT A COFFEE SHOP, SITTING WITH OUR LEGS CROSSED, CONTROLLING OUR COMPANY THROUGH OUR SMARTPHONE! QUALITY OF LIFE!
HOW “COOL” IS THIS?
The difference between having and not having is to many companies a matter of still existing or not!
I hope I was useful and if you want more information contact me. Thank you.
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