Monthly Archives: March 2015

Benefits of online accounting


As technology advances, more people are using the internet than ever before, with many of their daily tasks performed online. This includes banking, shopping, booking travel and entertainment and more, including Read more

How a financial health check can help your company


Excellent cash management is crucial for the health of a business, even if you have a healthy profit. Without sufficient cash, your business could be in trouble at any time.

Conducting a financial health check on a regular basis could help you to identify areas that require some attention, and those that are performing well. There are a number of steps to completing a health check, designed to examine all areas of the business.

Check company finance

Look at cash flow, and profit and loss and annual reports for the previous three years, or since the start of the company if you are a new business owner. Verify the figures using bank statements, invoices, sales records and any loan documents. The profit and loss records should provide an indication of whether the business is generating enough turnover to provide an income in addition to making a profit. Consider whether you have any increased or new costs in the future, so that you can budget. Your cash flow should indicate that you have sufficient cash to pay suppliers on time and have no outstanding invoices from clients. If this isn’t the case, you may need to take action.

Check company overheads

Although sales receipts are crucial for the success of a business, you need to keep an eye on the overheads so that they don’t get out of control. Study your overhead cost and sales receipts for the last year or longer. If sales drop but overheads remain the same, you need to consider reducing costs. If you lose sales, you may have to lower costs to compensate.

Measure performance of other areas of the business

Finance isn’t the only aspect of the company that’s important; you should also consider the performance of resources, production and marketing. Are you maximising productivity by utilising your resources to their full capacity?

Spend time finding out how engaged your workforce is and listen to suggestions for improvements. Consider the work you have on hand and also future orders yet to be fulfilled. If you have a backlog of work, this is costing you money. Prospective sales and orders will indicate future receipts.

Know your competition

Carry out a benchmarking exercise so that you can compare your company with competitors. Match up prices, earnings, profitability and costs so that you will know whether you could increase prices or should be looking at reducing costs. Consider an outsourced accounting solution so that you can rely on a professional to carry out your financial health check.

Leave a comment to let us know your tips for a company health check.

Everything you need to know about working capital


‘Working capital’ is one of those phrases frequently used in business, but often misunderstood. With this in mind, we at Sollertia thought it was about time somebody put a really good infographic together on the subject.

What is working capital?

Put in its simplest terms, working capital is the money to which a company has Read more

Payroll services VS in-house processing


Payroll can be costly and complicated for most companies, especially when incorporating all the recent changes, like Real Time Information. It is the duty of a business owner to make sure all employees are paid the correct amount and on time. There are Read more