What You Need to Know About Small Business Finances

Posted on June 21, 2016


5 Tips for Keeping Small Business Finances Running Smoothly

small business financesYou started a business because you had a particular talent or knowledge, and it’s probably safe to bet that the talent or knowledge wasn’t necessarily in small business finances. Business owners often cite finances as the part of running a company that they dread, push aside and generally ignore until they absolutely must confront the numbers.

So, if you’re dong your best to avoid looking at your small business finances, here are some important tips:

1. Messy financial reports will negatively impact your business. Keeping timely and accurate financial reports is critical to the health of your business. When you need additional capital, when you are worried about cash flow for payroll and in the case that you get audited, it is neat, accurate, timely financial reports that will keep your business in good, working order.

2. Invest in a cloud accounting system. The introduction of cloud-based accounting software has opened technology options up for small business finances. QuickBooks has a cloud version that gives you the benefits that come with cloud software: seamless updates, little investment in hardware and robust security. If it’s been a while since you’ve looked into cloud accounting software, you’ll be surprised by how inexpensive it is relative to on-site systems.

3. Get a company credit card. Keeping personal expenses separate from business expenses is a common and frequent problem for small business owners. If you stick to a company credit card, you’ll not only keep your business expenses separate, but you’ll be able to report your income more accurately on your tax return. Using cash often results in lost receipts and other records proving the expense, resulting in an overstatement of income on your return.

4. Set aside a time every week for finances. If you set aside one hour a week to record information with receipts and sort out financial concerns, you’ll avoid that feeling of dread that comes to so many business owners at the end of the year as tax time approaches.

5. Know when to outsource. If avoiding the financial part of owning a business is an ongoing problem, you should know when it’s in your best interest to outsource your accounting to a specialist. There are a lot of benefits to doing so, including the expert insight of an accountant that has experience working with many small businesses your same size. You’ll also receive timely, accurate financial records and advice on future financial decisions.

Bert Doerhoff, CPA, and the accountants at AccuBiz work with many small business owners like you to offer a variety of accounting services. While many companies begin with outsourcing one area, like payroll, there are others that prefer the peace of mind that comes with having a seasoned accountant handling all accounting functions. To learn more about the options available through AccuBiz, call and make an appointment. We look forward to talking with you about the unique challenges facing your company.

Posted in: Small Business