In today’s world of small to medium-sized businesses, one major issue that often befalls owners and operators is financial disorganization. It’s rather insidious and creeps up on you before you’re even aware of it. It stems from one simple thing and that is the failure to regularly do several rather tedious things.
A Financial Makeover
It’s true that there are numerous challenges involved in both starting and running a business but concerns about money are always topping the list for most business owners. When you modify your business operations, you can effectively give your business the financial makeover that it so desperately needs. For starters, here are a few simple things to get you going with managing your money better:
1. Never Mixing Personal With Business
That means expenses. There are a number of valid reasons, including confused accounting records, personal liability, and of course, tax issues. That also means that you shouldn’t use your personal funds for fixing business problems. Maintaining a clear separation means setting both a business and a personal budget. Adhere to those budgets as separately and strictly as possible so that any business loans and/or credit cards won’t be getting used for personal expenses and vice versa.
2. Paying Bills on Time
Paying on-time diligently is even more important when you’re in business, not only because loan and credit card late fees can add up, but also because even those smaller late fees on utilities and vendors can, too. And, paying taxes on-time to avoid penalties and interest goes without saying. Setting up monthly reminders is a good practice or simply outsource your bookkeeping and accounting to us and we’ll handle it for you. Remember, when you avoid those late fees, it could mean the difference between being in the black or in the red at the end of the year.
3. Negotiating With Vendors Prior to Signing
Sometimes digging for those bargains can get you a better deal. Remember also to closely examine contract terms, such as a grace period and late payment penalties before deciding to sign. In some cases, an additional 30-days to pay could save you more than five percent right off the top.
4. Tracking Your Spending
Writing down every single penny that you’re spending for 30 days (every day if possible) and it’ll help you get a better feel for your business expenses so that you can reign them in sooner rather than later.
Free Quote Available
Simplifying your accounting and bookkeeping processes so that you have more time for growing your business is only a phone call away. Outsourcing could be the solution, so contact us at (949) 200-6829 for your absolutely free DeepSky Accounting quote.
