3 simple rules for financial control in a small company
Most small companies in Poznań lose money due to a mess in invoices. At Idryleaks, we checked this process for 12 of our clients and drew conclusions that allow for rapid improvement of liquidity.
Invoice verification in 24 hours
The biggest problem we see in companies is putting off invoices until the end of the month. That's a mistake that costs time and nerves. Our system assumes that every incoming invoice must enter the system within 24 hours of receipt. Thanks to this, you know exactly what your liabilities are, instead of estimating them based on a bank statement.
We implemented this rule for 12 of our clients in the last year. We noticed that the average detection time for an incorrect charge fell from 14 days to just 1.5 days. That's a difference that allows for quick reaction and avoids unnecessary costs of return transfer fees or corrections.
Double-check before transferring
Facts instead of promises – that's our approach. Before you make a transfer, check the invoice item against the purchase order. We've seen cases where one company paid for shipments that never arrived because no one compared the documents. Implement a simple checklist for the employee responsible for accounting.
We developed a simple scheme: we check the total, account number, and payment date. If anything raises doubts, the invoice is held for clarification. For a medium-sized enterprise, this is a saving of about 2,400 PLN per quarter, which is visible after the first month of using this method.
We check the facts. If the invoice doesn't match to the penny, it should not be paid.
Regular cash flow reporting
Data must be secure, but it must also be readable. Once a week, spend 45 minutes on a summary of income and costs. You don't need expensive software for this, just a spreadsheet where you enter actual inflows and outflows. If you know that in 3 weeks you will have a cash drop, you have time to react.
From our experience, companies that monitor finances in weekly cycles fall into liquidity troubles less often. Transparency is the foundation of profit, which is why we encourage this even for sole proprietors who employ only 3-4 people.
When is it worth asking for help?
If you feel that finances in your company are black magic, it's a sign you need an audit. Owners are often afraid to admit mistakes, but it's honesty that allows you to get on track. At Idryleaks, we help organize documentation in 4-7 days, without interrupting your daily work.
It doesn't have to be complicated or expensive. Contact us if you need verification of your procedures or just want to sleep soundly. Remember: data must be secure, and financial control is the best investment in the stability of your business for years to come.
