Most of the difficulties of a company come from poor management or accounting. Paradoxically, it is to this area that entrepreneurs provide the least effort. Indeed, entrepreneurs who lack training in business management prefer to spend their time on more exciting activities: selling, customer care, communication, products (which is understandable). That is why we suggest a few tips to follow for a successful small business accounting.
The key to Small business accounting does not only have to do with numbers
I put this point first, since it is most important. Accounting is not an end in itself but a tool.
It is true that most of it has to do with keeping track of what comes in and what goes out of the business. However, if you look closer at the information small business accounting gives you, you should be able to see trends in sales and expenses for example. When you focus on the long term trends, accounting becomes more useful and interesting. It tells you what happens every day, it highlights the problems, but it can also help you to solve those problems. You can make small business accounting if you only changed the way you look at it.
Routine practices for a regular and consistent small business accounting
The secret is to get used to performing accounting tasks and making them part of your daily or weekly routine. For instance, you may see that it makes it easier to choose a day during the week to perform a task. You can write checks and make deposits on Mondays. You can also decide to call your debtors on Tuesday. By doing this, you will be able to keep an eye on your finances without feeling like you are doing it.
Examples of small business accounting tasks to perform regularly:
Verify what your fixed costs will be for that month and anticipate for the following. Pay attention to what you spend this and the last month. Make sure you verify all credit card payments. Keep track of accounts receivables. Remember to send the invoices to the customers. Ask your accountant to verify the work you do. Keep track of cash flow trends, etc.