Tips to keep business finances in order
If you’re like most small business owners, you spend the majority of your time managing daily operations, keeping customers happy and looking for new ways to grow. Spreadsheets, cash flow analysis and financial projections are probably not your first passion, but they keep your small business finances in order. However, measuring profitability, creating realistic budgets and planning ahead for the future are crucial to your success. Follow these tips and take control of your business finances.
Make the switch to cloud-based accounting
How much of your time do you spend hunting down financial documents, poring over spreadsheets and tracking expenses?
Constantly searching for and trying to integrate scattered data makes it nearly impossible to close out the monthly books quickly and efficiently. Manage your business finances faster and more accurately by moving them to cloud-based financial management systems which have these benefits:
- Integration with all your other operational systems for the quick retrieval of data;
- Automation of daily financial processes so you can step away from manual record keeping;
- Efficient expense tracking that improves accuracy and reduces revenue leakage; and
- Easy collaboration with staff and customers.
Conduct regular financial reviews
Vigilance is key to effective business financial management. Each month, set aside time to review your balance sheet, profit and loss statement and cash flow statement. Regular monthly check ups will give you valuable insights into your business performance, which is crucial for:
- Projecting future revenue, cash flow and expenses;
- Validating major purchasing decisions; and
- Anticipating and mitigating risk.
You’ll also need this key data when applying for a loan to expand and grow your business.
Bring an expert or two on board
Hiring an experienced bookkeeper and/or accountant may seem pricey, but their expertise could mean considerable long term gains for your business. Also, a technical expert can optimize the efficiency and accuracy of your financial management systems which will give you peace of mind and time to pursue growth opportunities.
Consider enrolling in a course so you can better understand the fundamentals of business management. The knowledge you gain will empower you and, combined with professional support, is the very best route to sustainable and effective growth.
If you are looking for a business accountant who will support and guide you to help improve your business finances speak to the experienced team at BSN & Co today. Call 9204 3733 for an obligation free review.