Accounting is a lot more than just bookkeeping. Sure, the numbers have to balance but there are also many additional tasks that fall under the category of accounting. The size of your business does not matter nor does the amount of revenue it generates. An effective business accounting department has a firm grip on the day-to-day expenses and revenues as well as monthly forecasts and projections that extend beyond that timeframe.
Without a clear picture of the revenue and expenses of your business, you don’t really have a clue about how financially healthy it is…or isn’t. Believe it or not, when you don’t have an answer to the question, “How is your business doing?” you may be on your way to a large problem developing right under your nose. But there are ways to keep your business from suffering losses when it should be recording gains. Here are five ways to manage your business accounting like a pro.
1. Maintain A Cash Reserve
A contingency plan is a smart thing to have in any size business. Cash reserves come in handy in several ways and are effective in keeping the cash flow moving within your company – especially when seasonal dips in revenues occur. The general rule of thumb is to have enough extra cash stowed away in reserves to cover between three and six months of operating expenses.
You can do this by putting a portion of each month’s income into cash reserves to hold until you need them. It is also wise to monitor reserves quarterly to confirm there is enough available should a downturn take place and last longer than expected.
2. Don’t Ignore Multiple Financing Options
If you planned correctly, your startup should be able to hold its own before too long. Once it does, your business plan would likely support it in maintaining stability as long as possible. However, there are times when cash reserves run dry and you may have to turn to other sources to provide financing to keep your business afloat until things get better.
You also don’t want to miss an opportunity when funding from another source becomes available. These can range from angel investors, fundraising efforts and traditional places like lending institutions. Planning ahead for such assistance is also crucial as some forms can take months to be accepted.
3. Incorporate Accounting Software
Probably one of the smartest ways to take control of your business accounting is with the use of accounting software. This includes payment options that go far beyond paper checks and are internet-based. These payment platforms are secure and direct which speed up the pay process and gives your clients and customers options that may be easier for them to use. Plus, with accounting software programs, you can generate reports of all kinds for multiple reasons with ease. The ability to track and record cash flow with new technology brings a professional element to your business and also gives it the additional data required for decision making processes.
4. Delegate Accounting Somewhere Else
There is a fact that some small business owners don’t realize until well into the process of running their busy. Not all of us are good with numbers. What this means is that as great a manager you may be and as efficient you have made your business and all aspects related to it, if your financial affairs have suffered as a result, you may need to make a change. In this case, when time spent on keeping your business operating well has taken away from time that could have been spent crunching the numbers, you may soon have a problem.
However, there is a simple solution. You can out-source the accounting duties to someone, somewhere else. In fact, it is quite common for small and medium sized businesses to have their books handled remotely. In other words, by a sub-contractor who works from home most of the time.
5. Offer Rewards and Incentives
You’ve seen these and have probably even responded to a few. Some businesses improve their cash flow by offering customers a bonus of some kind. They come in many different forms such as a flat rate or percentage discount for payment in full by a certain date. Surprisingly, outstanding accounts can be reduced by offering something that gives your clients a break financially. Other deals that inspire additional spending come from discounts used as incentives to attract new customers or additional spending at slower times of the year.
You’ve heard of Black Friday and Boxing Day sales, right? These are two well-known incentive programs. When you use something like this to increase revenues in your business, it gives you more control over inventory as you should be moving some of it. Plus, your revenues will take a spike allowing you to build a cash reserve for when you need it most.
Business accounting is a vast collection of activities that involve the financial wellbeing of your business. Without it, there is no way of knowing whether or not your business is healthy nor can you determine the actual worth of it. With the proper business accounting tools in place, you will have access to all forms of data that can give you snapshots of what your business has been doing and what it can be doing based on actual figures. It is with this data you can make effective decisions related to your business. None of this would be possible without controlling and monitoring the bookkeeping parts of your business. The most important part of this is that every business, regardless of size, age, industry and income can benefit from having effective accounting processes in place. Fortunately, the tools exist and are readily available to assist all business owners. These tools are also affordable and give your financial accounting a professional touch.
Your Business Needs These 13 Digital Security Solutions – Here’s How To Get The Most Out Of Each
How would you characterize your organization’s digital security posture? If you’re not sure how to answer this question, or perhaps would prefer not to answer it at all, you’re not alone. Countless decision-makers, from uber-competent CTOs and CISOs to CEOs and COOs who couldn’t code…
Louisiana And Oklahoma Introduce Digital Identification To Prevent Fake ID Use
Digital ID in Louisiana Utilizing digital IDs has been a commonly broached topic for a while now. Although most states are only either deliberating their helpfulness or in the utmost initial stages, Louisiana has moved forward. The primary introduction of this technology was done back…
ScanGuard Review – Here is What You Should Know
Doesn’t it sound good and satisfying to have a goop-performing antivirus that is reliable enough? Yes, it is. For that reason, you need to be extra careful when you are in search of a good antivirus. Put all the necessary factors into consideration so that…
The Emerging Need for Social Media Security
By the time you’ve finished reading this sentence, nearly 700 passwords have been stolen from social media accounts across the world. Social media security breaches have the potential to cause up to $6 trillion in cybercrime damages by 2021, up from $3 billion in costs…
Which New Lorex Security Camera Is Right for Your Home?
Keeping your family and your possessions safe requires a proactive approach, and one way to protect what you care about is with a security camera system. Lorex Technology is well known for their security camera solutions, and their two newest products will change the way…
- 3D Printing
- App Dev
- Artificial Intelligence
- Arts and Entertainment
- Big Data
- Blockchain Tech
- Business Technology
- Car Technology
- Cloud Computing
- Cloud Storage
- Computer and Technology
- Conference Calling
- Coupons and Deals
- Cyber Security
- Dark Left 1
- Data Center
- Data Recovery
- Digital Arena
- Digital Marketing
- Edu Tech
- Email Marketing
- Google Glass
- Guides and Tutorials
- Health and Fitness
- Home Improvement
- Home Security
- Internet and Businesses Online
- Internet Marketing
- IT Careers
- Mobile Apps
- Mobile Security
- New Tech
- Online Shopping
- Project Management
- Reference and Education
- Reputation Management
- Sales & Marketing
- Shopping and Product reviews
- Small Business
- Social Media
- Tech Trends
- Technical Support
- Technology in Education
- Tips & Tricks
- Tips And Tricks
- Video Conferencing
- Virtual Reality
- Wearable Technology
- Web Design
- Web Development
- Web Hosting
Mathieu Chantelois, VP At The Canada Media Fund, Discusses Leadership Communications, Proudest Accomplishments
Mathieu Chantelois is something of a Renaissance man. At various points in his career, he’s worked as a magazine editor, a professor, a television presenter, a highly regarded journalist, and as a communications and marketing executive. Chantelois’ engagement in various social causes led him to…
Why You Should Start Playing CS: GO Right Now
Counter-Strike: Global Offensive – a game that’s been around for so many years that almost anyone and their grandma have heard about it. Despite going on for quite a while, the popularity has barely diminished. On the contrary, it had a boost thanks to the…
How To Become A Cyber Security Analyst
What is Cyber Security? Cyber security is the practice of protecting a system or network from digital attacks. These attacks are generally aimed to retrieve or destroy sensitive information and it is a serious threat to all the organizations. Who is A Cyber Security Analyst…
Internet Security Tips For The Modern Age
The internet is no longer new. It’s been in most peoples homes for twenty years or more now, and we’ve all come to accept it as part and parcel of modern life. When it first began, it was something that we only had on our…
How to Immediately Improve Your Online Security
While the internet might seem paradisiacal, danger lurks in the obscurity of it. Apart from outsourcing your IT needs to specialists like IT support companies in London, there are immediate measures you can take to ensure your online world is as secure as the home…
Everything You Need To Know About Cybersecurity In 2019
With long workdays and jam-packed weekends, it’s a godsend that we can do most of our shopping, social interaction, and many other day-to-day tasks from the convenience of our computers and mobile devices. The internet has been making our lives so much easier for the…