Every business big or small, is always concerned about one thing – managing money. It’s imperative to business growth. It takes more than just a great idea to run a business. Every business needs a financial structure to stay healthy.
Use Accounting Software
This goes without saying. You really don’t want to have to do all of the work on sheets of paper and hope for the best. Small business accounting software is essential to making sure your business is heading in the right direction.
It can also collect your receipts for you, which makes things easier for both you and the ATO. There are many different options to use when it comes to accounting software – Reckon, MYOB, Xero, etc. – and all you need is the one that works best for your business.
Conduct Regular Financial Reviews
As you grow your business, it’s important to know where you sit financially. The last thing you want to have happen is to think you have a great month and be up when really you’ve been playing catch-up for two months. This happens to the best of us.
Instead, set aside time each month to review your bookkeeping. Take a look through your balance sheet, profit and loss statements, cash flow statements, all of them. These insights will help you with a business plan. Speaking of which…
Have a Business and Marketing Plan
You likely started your business with a goal in mind.
From there, maybe things changed. In a year in business, anything can happen. So, before the next year commences, update your business and marketing plan to reflect where you are after the year you just had.
By using the financials mentioned in the previous tip, you can assess your future revenue projections, expenses, validate major purchases, and anticipate risk. A business plan that is well maintained helps keep your business growing.
Backup & Secure Your Files
No matter what small business accounting software you’re using, you are always at risk for loss of information. Whether it’s through nefarious software, or power loss and human error (not saving it), that information needs to be protected. That’s why you absolutely need to back it all up, and do it obsessively. Dropbox and Google Drive can be used to keep your information safely stored.
Set Money Aside for Taxes
When you get into business, the ATO is always interested in what you’ll be giving to them. That’s why it’s important to be prepared for when they come to call. Having money set aside will stave off the temptation to spend it before it’s delivered to the ATO. This is good planning for whatever kind of business you operate. Ensuring you can pay your taxes is an essential piece of your overall budget.
Use the Cloud
As a new business, you’ve probably experienced the unfortunate event of searching through your files, looking for financial information, or tracking your expenses. This is what your small business accounting software is supposed to help with, isn’t it?
If you’re looking for data all the time, you definitely need to shift to cloud-based accounting. Luckily, your small business accounting software will have this built in (and if it doesn’t, you should upgrade or move to a different program). With cloud based financial management, you’ll be able to retrieve data faster, automate daily financial processes, and easily work with the people who need to see the financial data. Cloud technology is simply a good call.
Grow Your Business Efficiently
With the proper small business accounting software and a watchful eye, you can ensure that your financials are in order year round. Having a sound accounting system for your business will help it grow year after year. With steady growth, your business will know no bounds.