Are You Managing Finances Successfully In Your Small Business?
/
The life of a business owner is so hectic. If you are working solo or with a small team, it can become completely overwhelming to stop and take stock of the health of the business finances. Many owners feel comfortable with managing their business finances with a quick glance at their business checking account and maybe a brief glance at the P&L. But that is not enough. It is important that owners go further to make sure that their business is going in the right direction financially before it is too late. The two areas below will help you to get on the right foot.
Hire a bookkeeping/accounting professional - This is the first step in the right direction. I have seen numerous clean-up projects from clients that decided to D.I.Y. their bookkeeping at some point in their business journey and it didn’t end well.
Use professional accounting software - This is important to put into place so that you are ready to file taxes in an organized manner. Additionally, software like QuickBooks Online will enable you to run management reports that help you to run your business better.
Read your financial reports - This is crucial. There is no point in doing monthly bookkeeping for your business and making the monetary investment if you don’t read your reports. A strategic partner like a bookkeeping/accounting professional can help you to make sense of your reports. To get a jump start check out this post I wrote about the Statement of Cash Flows report.
The life of a small business owner is not boring. It is filled with constant activity but if you are not on top of your business finances then all the sales in the world will not stop your business from ceasing to exist.
Keep IT Sunny!
