Are you having challenges managing your Cash flow? This precise solution is prescribed for you. Typically all small business and start-up ventures have peculiar challenges and yours is not an exception.
The most lethal of all small business problems is not staying on top of their cash flow or perhaps Money Management Palaver! Running a small business is not the same as balancing a personal checkbook.
In addition to managing day-to-day operations, small business owners need to track expenses and revenues, allocate funds for employee salaries and company resources, create budgets that reflect overhead costs and expected growth, and, importantly, pay their business loan and credit card bills in full and on time. Except you have an accounting degree or background in finance, you might feel overwhelmed when keeping your financial obligations organized.
Getting out of cash flow hick-ups; the Prescribed Solutions:
True, being a small business owner means crunching a lot of numbers (and keeping track of them). Lucky for the right-brained, you have a variety of tools at your disposal to help.
1- Install business accounting software:
Setting a realistic budget for your business is only half the battle; the real challenge is staying on track. That’s why many small business owners look to online accounting software like Zoho Books, QuickBooks, and more for support. These user-friendly tools track inventory and cash flow, run reports, estimate taxes, create and send invoices, and more.
2- Hire an accountant or bookkeeper:
This is even better than entirely relying on your business accounting software to keep your books in order? Relying on an actual, human accountant. Accountants are the solution for a variety of business problems.
If your budget allows for it, you might want to consider hiring an accountant outright. You don’t need to keep one on retainer, but your accountant helps you navigate benchmarks in your business’s evolution. That includes figuring out your business’s legal structure, expansion, and helping prepare year-end financial statements and tax forms. You can find one in your area by searching through the portals of your local Association of Chartered Accountants or the Professional Bookkeepers in your jurisdiction.
3- Pick your business credit card wisely:
What’s harder than keeping track of your business’s finances? Keeping track of your business’s finances when your finances are in the mix. For a whole host of reasons—not the least of which is avoiding extra stress during tax season—keeping your personal and your business finances separate is super important. This eliminates a whole host of business problems related to money management.
4- Sign up for a dedicated business credit card, and ensure only to charge business expenses on it.
There are hundreds of business credit cards out there—no-fee cards, travel cards, 0% intro APR period cards, Debit cards and lots, lots more—so you’re spoiled for choice.
Ultimately, you’ll want to choose the card that your credit score qualifies you for, with a rewards program that your business can truly benefit from.
In summary, follow the simple advice above and see yourself on top of your cash flow. And if you need help with your Bookkeeping and Accounting works, JSC Global Accounting offers a free consultation. Click Here!