Accounting Not Your Thing? How To Manage Your Business Finances Yourself
Thursday, March 9, 2017, 6:00 AM | Leave Comment
As a business owner, it is important to know your numbers. This is true whether you are good at accounting or need to use extra tools to help make sure you do it correctly.
However, there are plenty of tools and resources that can help you manage your company’s finances without the need to hire a dedicated accounting professional. It would be worth your time as an individual and a business to invest in a variety of these tools.
If you look at it from a standpoint, it is a great business investment that will continue to pay off in the future to come.
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Create A Spreadsheet Of Your Business Activity
A spreadsheet is a simple and effective way to get a quick look at how your company is doing. It should show how much money is coming in as well as how much you spend each month. It should also tell you whether there are any future accounts payable or accounts receivable that may come due in the next 30 to 90 days.
This is a great idea not only for the finances part of your business, but for the organizational part as well. The more organized your business is the better you will be able to have things function more smoothly.
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Use Accounting Software
With an accounting software program, like the products offered at MSPartnership, you can stay current on all the issues that could impact your company.
For instance, you may be able to keep track of inventory levels to ensure that you don’t have too much or too little of a given product. Software programs may also allow you to create budgets or review your pricing structure to see how it fares against the competition.
These programs are built specifically for businesses and are made to be user friendly. This is a great option if you need help with accounting, but aren’t able to hire someone specifically for that position.
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Keep Digital Copies Of Relevant Documents
It is a lot easier to check the financial health of your company when you know where all of your important records are.
If you buy a product or service for use in running your company, make sure that you keep a copy of your receipt. This helps you track costs and makes it easier to take deductions at tax time.
You should also keep copies of all invoices that you send out as well as any that you receive from a customer or vendor. This is a great practice to implement anyways, because if you have fire or water damage you won’t have to worry about losing all of your important documents.
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Hiring A Part-Time Accountant May Be Beneficial
While you don’t need to hire a full-time accountant to manage your finances, it may be helpful to use one strategically. For instance, you may want to have someone organize your books before asking for a loan or before meeting with investors. It may also be beneficial to work with an accountant briefly during tax season.
As a business owner, you have to either be good at accounting, learn how to do it yourself or find someone who can do it for you. In some cases, it may be a mixture of all three as your small company matures into a company that may grow and thrive for generations to come.
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