You know how it is when you are running your own business.
There are a thousand things to do, many with urgent deadlines. It’s easy to let some things slide, like your accounts. Until you need money and realized you’ve failed to invoice some customers or followed up with others.
Here are some tips to help you stay on top of your accounts and keep bringing in revenue .
Utilize Technology
Many small business owners start out doing their accounts by hand.
They stick receipts in a drawer and file invoices or customer payments away until they need them. You may think you don’t need anything fancy if you are just starting out, but every business can benefit from using some type of technology. It may be an app that allows you to scan your receipts or a program where you can keep track of expenses.
The great thing about these programs and apps is that they automatically update for you. Update – Creating and managing accounts is much easier when you use even the simplest programs.
Hire a Bookkeeper
You may not have the finances or even the need to hire a full-time accountant or bookkeeper, but you can find someone to work part-time.
It may even be someone you know who would work 5-10 hours per week on the side. Just make sure you find someone qualified to do the job. They can handle the routine tasks of sending out invoices and making payments to venders.
Learn the Basics
Take a class to learn about accounting procedures and bookkeeping.
Even if you do plan to hire a part-time bookkeeper, you need to understand the basics about financial accounts. It can help you recognize the best way to track expenses and understand the financial process so you can be better prepared to manage your own finances.
Schedule Time
Make a regular appointment with yourself to go over your books.
If you hate dealing with the financial aspect of your business, you will put it off. This only makes things worse when you do sit down to look it over.
Instead, schedule at least one hour every week, or more if needed, to go over your accounts and see where you stand.
Have a Business Plan
While you know the importance of a business plan to make your company grow and succeed, have you thought about it in relation to your finances?
Every time a customer pays late or you have to spend time hassling them about an overdue payment, you are hurting the growth of your business.
Figure out where you want to be in a year, five or ten years and realize that how you manage your accounts directly impacts whether or not you will reach those goals.
For many small business owners, managing the financial accounts is not their favorite activity. However, it is an essential part of business ownership and directly impacts their chance of success.
Make it a priority and follow these tips to help take your business to the next level.
Photo credit: smead.com
About the Author: Joyce Morse is an author who writes on a variety of topics, including finance and running a small business.
