As a business owner, you may not feel comfortable managing the accounting side of your operations. However, there are several things you can do to easily take control of your business’ accounts and sustain your profitability.
» Separate Your Expenses– If you’re like many small business owners, you might keep all of your personal finances and business finances together. To prevent problems as your business starts to grow, set up a dedicated business account and leave your personal expenditures out of it.
» Keep Track of Your Expenditures– It’s easy to just spend a little bit of money here and there and not take the time to record these expenses in your accounting records. However, it is essential that you record every one of your company’s expenses, regardless of how small they are, and categorize each one of them.
» Follow Up with Receivables– Just because you send out an invoice to one of your clients doesn’t necessarily mean that you’ll get paid. To ensure that your cash flow operations stay on track, don’t let uncollected payments sit past their deadline. Instead, diligently follow up with anyone who owes your business money until you receive the funds.
» Let Us Help– In addition to these tips, you may want to consider letting our team at Cathy E. Parker, E.A. Bookkeeping & Tax Service manage some of your accounting work. We can compile your basic financial statements on a monthly basis, manage payroll, help you pay taxes on sales your business makes, and much, much more.