Small Business Innovation, Strong Financial Management
Many entrepreneurs are big-picture visionaries. Unfortunately, they can miss valuable insights into the minutia of managing finances. For example, a budget can help you cut costs and maintain positive cash flow. Building a strong credit history can help you get funding for growth. Abrupt shifts in sales or profits could spot industry trends, and managing collections might give insight to your customers’ financial states. So how can you do the most to manage your small business’s finances?
Get Hands-On With Business Capital
Separate your company and personal expenses and open a business bank account, but remember to pay yourself a reasonable percentage of the earnings. Focus on your cash flow; invoice your customers quickly after rendering goods or services, and follow up on slow remitters. Stick to a budget, don’t buy things until you need them and if you must travel, do so as frugally as you can.
Don’t Underestimate the ROI of Professional Help
It can be nerve-wracking to turn part of your business over to an outside accountant. However, firms like those listed with the United CPA Association can do more than file your annual tax return. Certified Public Accountants can provide valuable advice with your business plan and help you restructure your company’s finances to accommodate rapid progress. They often handle payroll and could assist with an IRS audit.
Getting a handle on your company’s financial performance can give you a good indication of how well your business is performing. Give your company a tune-up if necessary, then get back to doing what you do best – innovating.