Bookkeeping Fundamentals for Small Business Owners
Being a small business owner means long hours and longer to-do lists. Not only are you responsible to keep the business running, you’re probably also figuring out ways to grow, keep employees happy, and delight your customers. Here is a short guide on how to maintain a healthy set of business financials.
Get on the cloud
In today’s digitally forward world, small business owners need to leverage available technology as much as they can. This allows them to increase efficiencies and maximize results. Cloud-based accounting software can provide a whole suite of tools to help business owners get ahead.
It’s simply essential – and results in reduced costs for your business. Not tracking daily transactions will cost you time and money down the road.
Monitor cash flow
This task helps you avoid running out of money suddenly — leaving you unable to pay employees, vendors, or Uncle Sam. According to US Bank, 82% of businesses that fail, are actually profitable but failed to manage their cash flow.
Handle payments and manage accounts payable
As important as it is to make sure customers are paying, it’s also important to make sure you are not overpaying vendors or getting hit with late fees. Taking a look at shipping costs can also help save a business money.
Prepare the books for tax season
Setting up your chart of accounts to be tax-ready from the start will help you with tax saving opportunities and help you prepare for your tax liabilities, with no surprises.
Delegate what you can
You’re a small business owner, so you have a lot of to-dos on your plate. Sometimes it’s best to focus on the things that help grow your business. A growing number of small business owners are outsourcing their bookkeeping to cloud-based companies that wrap around accounting software. It allows small business owners to worry about one less thing. And focus on what they do best.
If you liked this post, check out our Guide to Managing Your Small Business Finances.
About the Author
Luanne Bryant is Marketing Director at Xendoo. Xendoo is an online accounting and bookkeeping service dedicated to small business owners. They’ll partner you with a dedicated accounting team and provide three simple monthly rates that include your bookkeeping, sales tax, planning support, corporate tax return, and unlimited access to your dedicated CPA team. They simplify your bookkeeping and accounting and deliver the financial attention you deserve, unlike a traditional CPA relationship where the focus may not be on your big picture. They take a holistic and responsive approach to make your company finances operate faster and better.