Being the boss is much more complicated than being a simple employee. You don’t cash in your paycheck every two weeks and forget about your worries. There are a lot of responsibilities you need to juggle at once. As Shakespeare puts it, “Uneasy lies the head that wears a crown”. Small business owners are often under the pressure of keeping their company afloat. Wrapping your head around different functions of the company is a tedious task. However, it’s necessary because you’ll be responsible for most of these functions during the initial stage. Fortunately for you, the following tips will take the load off in the accounting department.
There’s no need for a paper shredder
There is absolutely no need for you to toss or tear any documents related to your business. You never know when you might need them. When you’re filing your taxes, there is nothing more frustrating than a lost invoice. Keep an organized filing system to find what you need, when you need it. Save digital copies of those files on your personal server and password protect it.
Complete your homework daily
Since you’re not exactly a wizard in the accounting department, make sure you tackle everything on a daily basis. Nothing can be done right at the last minute and we’ve all experienced that. Balance your books to know exactly how much you’ve earned and how much you’ve spent. If you get stuck or realize you’ve made a mistake, you can handle it before tax season. Staying on top of things is always a good practice when it comes to business.
Don’t mix business with pleasure
Some business owners are in the habit of mingling their personal and business finances together. That is one cocktail you don’t want to drink. Even something as simple as paying for a business meeting with your personal credit card, and vice versa is a mistake. It complicates the financial records and makes it difficult to track expenses. To keep matters simple, use separate cards and accounts for personal and business expenditure.
This isn’t a charitable organization
Sometimes, you’re faced with the dilemma of letting clients run late with their payments to secure their loyalty. In the accounting department this is bad ethics. Let your clients know that you’re serious about timely payments and enforce this rule strongly. Their tardiness may cultivate into a habit and end up costing you. Deny products and services until the backlog payments are met. Remember, you’re not actually making profits until they’re reflected in your bank account.
Know your limits
As your company grows, so do your responsibilities. While once multitasking between a CEO and an accountant was feasible, today it’s detrimental. Once the scope of operations begins to expand, it’s best to call in a professional to handle your accounts. Trying to save money by doing everything on your own will result in nothing but losses. You can still be involved in accounting by going through the daily reports, but don’t try to micro manage the operation.
If your ambition is to be the next Rockefeller, you need to run your business as efficiently as possible. These tips will help keep your accounts in check. The rest is up to you. If it’s too challenging to handle yourself, consider reaching out to a Chartered Professional Accountant, which will give you a little extra time to focus on your core business initiatives.
