Good finance and accounting routines
With good routines, you get better control of your finances and accounting. This is important for building a successful, stable and growing company.
The routines you and your company choose to implement are up to you, but typical measures that make it easier to stay in control are, e.g. keeping a calendar that shows the days you have to submit or pay something to the authorities. Some people choose to set aside time every day to keep track of bills and incoming payments. Others prefer to set up a cash flow forecast so you know what expenses to expect in the upcoming period. Whichever method you use for your business, we’ll provide you with some great tips in this article.
Accounting obligation – for almost everyone
Let’s start with just the basics. In principle, everyone is required to keep accounts, but you can decide whether you prefer to do this yourself or in partnership with an accountant. There are also exceptions in some cases, but in this article we’ll assume that everyone is required to keep accounts.
Keeping the accounts yourself can help you understand the core of the business, but it can also take your focus off the most important task which is value creation.
As the business grows, many people choose a combination of these, where you do some of the work and the accountant does the rest. Some people also prefer to let their accountant do everything.
Get paid for the work you do
There are several ways to get paid for the products you sell and the work you do. In the past, it was common to pay in cash, but today it is more common to use payment terminals, Vipps or invoices. The sale of products or services on credit is often done by invoice.
All sales must be documented and posted, normally in an accounting system. A good accounting system will tell you which invoices have not been paid, so you can send a reminder to the customer or forward them to debt collection.
Taxes and fees
All companies in Norway must pay tax on the income they earn. Your company type will dictate whether you, as a non-professional, or the company must pay the tax. You may also have to pay Value Added Tax. Value Added Tax, or VAT, is a tax on products and services that are sold in Norway. You can register for VAT so you can charge your customer VAT when your turnover exceeds NOK 50,000.
Other costs
All businesses have fixed costs. Unforeseen expenses can also occur, but what’s common to all outgoings is that, just like sales and income, they must be entered into the accounts. You may also have employees who need to be paid a salary. To avoid overlooking certain expenses, it's a good idea to have routines for reviewing all your expenses and to use an accounting system that helps you keep records.
Financial management
Good financial management can safeguard your company's operations, and there are many solutions and measures that really help your business. One of the most important tools for good financial management is a system that helps you keep track of things and which can do some of the work for you.