Running a business can be stressful. Most people who manage their own business would say that they have little spare time and that they spend packed days hopping from one task to another, working long hours and constantly juggling workload issues.

Chances are, looking after customers, ensuring product and service levels remain high, dealing with queries, and managing staff are likely to be the activities you prioritise. Essential tasks like going to the bank or processing payments probably come nearer the bottom of your list.

This guide aims to show anyone running a business how they can manage their business finances effectively while making the most of their time.

Finding the time

It’s a common problem. You’d rather focus – in fact you need to focus – on running your core business, but managing the financial side of things is still key to achieving success. If it gets out of hand, it can cause problems, making it difficult for you to see how profitable you are, to establish your cashflow situation and to maintain the records you need for your year-end. But you simply don’t have the time to devote hours to making this happen.

The good news is that nowadays there are many banking services on offer, which can help you save time and simplify the financial management of your business.

Counting the cost

Poor financial management can also cost your business in hard cash.

• Do you ever go overdrawn unnecessarily because you’ve banked cheques late?
  
• Do you incur penalties for late payment to suppliers?
  
• Do you ever have to pay bank charges for having to speed up an overdue payment?
  
• Are you missing out on discounts available for making bulk, or automatic transactions?

Today there are automated banking systems that are simple to set up and use, and which can offer a real cost saving.

So what banking options are there and how will they benefit me?

Telephone Banking

You’re in the middle of your monthly book-keeping when you realise you’ve misplaced your most recent bank statement. Plus, it’s 9pm on a Saturday. What are your options? Well, if you’ve registered for telephone banking, you could simply ring up and check your account balance, recent transactions, and then order a new statement over the phone. Telephone banking also allows you to make money transfers and bill payments, out of hours, seven days a week.

You can nominate colleagues as users and decide their level of access. Each authorised user will be given a membership number and an individual password, so you can track activity accurately and ensure security.

Internet banking

You need to buy a new piece of office machinery but are concerned that you don’t have sufficient funds. The Internet has made checking your balance instant and easy, with online banking. You can gain immediate access to your accounts and see exactly what’s come in and gone out.

To keep control of your cashflow, Internet banking can prove invaluable. You can use it 365 days a year, 24 hours a day, to transfer funds between current and deposit accounts and view loan accounts. You can also monitor incoming payments and pay bills. Access of this kind can make managing your business finances much easier and may help you avoid overdraft or late payment charges. For the over-stretched manager, it means no time-wasting trips to your local branch.

Payment cards

These work like a personal debit card, with payments coming from the business account. They are a quick and easy way to meet everyday expenses.

There’s no need to use a cheque book and it costs less than writing a cheque. It can be used in person, by phone, post or online and can also be used to withdraw cash from cashpoint.machines.

Using the card can also help reduce the need for petty cash as businesses can select different members of staff to have a card. And as statements show details of each transaction, keeping track of business expenses is straightforward.

Charge cards

Charge cards allow you or designated members of staff to pay for everyday expenses on a short-term credit basis. The balance is then paid off, in full, by direct debit each month. One of the greatest benefits of this type of card is that there is control over how much each cardholder can spend. Such cards can be particularly useful for managing business expenses, where administration is often time-consuming and cumbersome.

Automated payments

Automated payments are another way of saving money on your banking transactions. If you make a large number of credit or debit payments it can be more cost-effective for you to make automated payments by phone, fax or PC. While there may be a set up fee for some services, the discount for making bulk payments should reduce your banking charges considerably.

I’m still short of time to spend on the finances – what else might help me?

It’s lunchtime, you’ve been hard at it all morning but, when you get to your branch, you see there is a queue. You’ve got to rush back to check an important order, which means the finances will have to wait until tomorrow.

One way to avoid this scenario is to ensure that you are making best use of all the facilities your bank provides. You wouldn’t hesitate to use the Cashpoint® to access your personal account – now business bank accounts offer you similar options. With a payment card you can withdraw cash, order a mini statement or check your balance without having to queue at the counter.

Deposits can be made more quickly and cost-effectively as cheques and cash can be put in an envelope and deposited in a secure box within the branch. Staff will check and process your transaction by the end of that working day and commercial envelopes are available for bulkier transactions.

What other useful banking products should I look out for?

Aside from the many methods you can now choose from to check your business bank account, settle bills, watch your cash-flow and save yourself visiting your branch in person, it’s worth looking into the additional services your bank may provide.

For example, calculating and processing payroll can be a time-consuming monthly task – yet businesses with few employees may not see the benefit of outsourcing. It is now possible to access a fully-managed payroll service tailored for businesses with fewer than 50 employees, at a fixed cost, via your bank. While they tackle the year end paperwork (P60s, P35s etc); generate payslips and deal with employee PAYE queries, you are free to concentrate on running a profitable business, which could end up being a more cost-effective use of your time!

Another service on offer if you’d like to cut down on the cost and hassle involved in processing large amounts of cash and cheques is a card payment system. This is when your bank supplies point-of-sale terminals enabling you to accept payments via debit and credit cards, minimising your paperwork and potentially simplifying your accounts. While these services do incur set-up fees and service charges, letting your bank take the strain might well increase your productivity. You can spend more quality time in the workplace and it’ll certainly cut down on your admin! Furthermore, as payments are received near to the time of purchase, such a service may help to improve your cashflow and reduce your debtor period.

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