After running my small business last year, I have learned so many things.
Specifically the headaches in accounting that usually happens for every business owner like me, this is one of the tasks that will come into your mind when you run your very own business.
Though this will suck your day and but as result it makes you run your business successful but in a much harder way. Don’t worry. There are still hope and start doing it by organizing things.
Here are some of the helpful tips that I personally learned to keep my business funds in order.
1. “Keeping things in separate”,
your wife’s new make-up is not an expense of the business, but your card for business was so handy enabling you to use it.
Do you certainly think that you can pay the amount spend in expense with your business, but by doing it so you need to record it on a normal accounting business transaction.
Remember that things might get complicated fast and I know you don’t want that to happen.
By just keeping a separate accounts personal and business, it will save you hours making it easy to track deductable expense in place. Though there are applications that can handle behind scenes accounting in terms of crossover expenses, still we recommend having a separate one as independently if possible.
2. “Professional back-up”,
since the earlier days, accountants plays an important role in every business. Their superb knowledge in terms of operation and laws in tax enables you to save more than doing it on your own.
I understand that you want to save a bucket and I know it is really “tempting” to do it your own. Experts like accountants will find ways to look for possible deductions and will keep your business free from penalty.
In addition, you will have a cleaner business records, fewer billable hour that you will have to pay and lastly it makes your year round organized (I am sure you got my point here).
But in situations like things getting technical or your taxes are already due, calling a trusted professional will help you save money, time and even headaches.
3. “Mark it”,
use your pencil and mark the needed things to be marked. Ten to fifteen minutes of your time each week VS social visit and activities a week for you to organize your business finances. Remember to set priority this time.
Device helpful ideas for your business and be informed on financial decisions, specifically when your tax schedule is near.
I understand that handling your business finance is not easy. But when you get used to, you will find it easy and the stress level starts to fade away.
4. “Know your people”,
when you look on your business spending, remember to tract properly on the portion wherein you have the highest budget allocation.
Labor, evaluate if you are paying “full staff” or just one in the payroll, and track the cost of your employees wage, the benefits, overtime hours and other cost connected to labor.
By just tracking your labor spending, benefits and even perks, you may found out that you are spending more incentives and overspending budget, doing math will help you decide later.
5. “Get paid”,
this one is obvious, but surprisingly many business owners don’t have a proper track on invoices and even payments to customers. If records are not properly managed, you will have a problem in the future, so making it in proper makes sense at all for you to look data at glance.
It might take months before you realize that you already have outstanding invoices or you have collected late payments, or missing them altogether.
Tracking your payments properly, all that are due and recording every invoices that has been paid, how long your customers pay and which of your clients have difficulties in paying from your previous transaction will help you decide on your financial flow.
Generally, money helps any business to last long, it is used to hire your staff, produce you product and used to rent your facilities used for your office.
Most business owners seek for financial support for potential investor or partner.
With funds not properly managed, it might place business at danger, the risk of losing.
To keep things in order, your leadership in the organization and your deep understanding on finance plays a significant role.
This ensures that you can effectively manage money and to secure budgetary goals and budget. In doing it so, the higher chances of achieving organization goals and missions.
Getting your business succeed is not magic, it takes some time for you to develop things, every single elements should be considered and planned well for you to identify short and long term business goals.
Along with these plans, we highly recommend again hiring an expert or accountant that will help you identify weak areas in your business, and with an expert, it will help you determine in your business in which it needs support.
Whether the concern is in the financial control, administration or something else, as owner you need to combine ideas in order to keep business finances as is.
As we said find or you can employ someone that has the expertise in terms of financial administration in situations that it is at need.
Creating a business plans that details the financial position of the company at your own fingertips, you will becoming a position for you to improve performance of the business and focus on positive decisions that makes your business move forward.
In the end, no matter how good or solid is your financial plans, implementation plays a big role for your goals to succeed without proper and adoption and implementation of the plan created, everything will be put into waste .
So again, make sure you have the plan, the right person and the solid implementation so everything will be a success, if there are circumstances that cannot be avoided, it is surely manageable.