There are all kinds of reasons why a business leader may choose to move cash around within the firm. Perhaps you’re planning to set up a new branch or service, and the team responsible for it needs funds in order to lease spaces or buy equipment. Maybe you’re looking to buy up a foreign company in order to expand, and you need to get cash abroad in order to secure the deal on the ground. Whatever reason you have for moving money around, though, it’s important to do it in a secure and cost-effective way – otherwise, you may find that it’s more trouble than it’s worth.
The first thing that you should do when moving cash for your business is keep a record. When filing this record, you need to state clearly who received the money, what the amount was, the date, and – crucially – the purpose. Without this, it may be a nightmare for you or your accounts team to reconcile the transactions at a later date – and in the long run, it’s not sustainable to have endless disorganised records floating around. Not only will keeping accurate records of any money moves be a smart choice when it comes to working out your profit and loss, but these records will also often be needed by authorities of various types – including HMRC when the time to file your annual tax return rolls around.
Find a good deal
Unless you’re making a simple bank transfer from a standard account, moving money is unlikely to be completely free. If you have a business account, then it’s always worth having a look at online comparison sites that bring together the best deals with the lowest fees and charges. If you’re sending cash abroad, perhaps to pay a supplier or ensure that your worldwide offices have enough resources, then you should do the same to avoid getting hit by extortionate exchange rates. An online service that shows overseas transfer rates compared is worth looking at, as it can reveal deals that you might not have spotted if you looked at just one or two providers.
Think about security
Most high-profile money transfer services are reputable, but doing your homework is always a good idea. When you find a service that you like the look of and that is affordable for you, you should run it through Google with the added word “review” or “security” in order to see what other users have said. That way, you’ll be able to know if there are any security vulnerabilities and choose another provider instead. Remember, nothing is quite as important to a business as having a good cash flow – so don’t jeopardise it in the name of convenience.
Moving money around within a business or to a related organisation is a common practice, and it’s one that most business owners will be able to do without too much hassle. By investing the time in finding good deals and ensuring that accurate records are kept, it’s possible to move cash without causing a headache either for you or for your accounts staff.