If you’re a small business owner, you’re probably used to multi-tasking, but juggling too much can lead to neglecting your financial records. To stay on top of your business accounts, you should employ a regular weekly schedule and stick to it, no matter how busy you are with other aspects of the business. Here are a few steps for success.
Know Your Cash Flow
Without enough cash on hand to make necessary payments, your business could dry up quickly. If you’re a small or micro-business, it’s especially important to manage cash flow well, so make sure you know all the payments you have to make on a weekly basis, and check these against your weekly sales to ensure you have a positive cash flow.
Update Your Accounts Regularly
To manage your business accounting and book-keeping, you’ll need to keep well-organized and carefully-labeled folders with items such as tax records, receipts, records of bills payable and receivable, business bank account and credit card statements, and details of any loans. Once you’ve got everything in order, set a regular time each week for updating your records. If there are any outstanding invoices or unpaid bills, you’ll spot them quickly before they become a problem.
Tech Solutions Save Time
It’s all very well having an organized set of folders but you also need a digital overview of your business data to chart longer-term trends and plan future business strategy. To help you with this, consider investing in accounting software that will streamline your financial records and automate repetitive tasks. The time you save should make the initial outlay worthwhile. At the very least, use an electronic diary, day planner or calendar on your laptop or other digital device to keep track of bills, payments and expenses.
Hire a Good Accountant
Like good accounting software, acquiring the services of a qualified accountant will save you time and money in the long run, and help you get back to the creative side of your business. You obviously don’t need to see your accountant every week, but knowing you have to factor in an accountant’s costs should be a good incentive to manage your records properly and keep professional assistance to a minimum.
Like a fitness workout, following a weekly schedule for your business accounting should minimize waste and keep your business in great shape.