As a business owner or company executive, you have a lot on your plate, but there’s one responsibility you must take seriously.
Without an accurate, spot-on view of your financials and a deep understanding of your operation, you’re in unknown waters without a way to navigate your ship to shore.
This is why accounting for a business is so important for your operation. Your books in accounting must be spot-on and accurate for you to keep growing and reach the level of success you’ve set for yourself, your company, and your future.
With this being said, that’s why I’ve put together this list of seven business accounting tips for owners and executives, but…
If your books are a mess or you’re behind on taxes, your risk of failure, bankruptcy, and closing your company’s doors is significantly higher.
Let me rescue your financials and bring your books current – the very first time. Call me, now!
7 Business Accounting Tips
It’s no secret that cash flow is the lifeblood of your business or company. Without it, you’re sunk. That’s why I’ve put together these seven business accounting tips for you to consider:
#1. Check Cash Position Daily
Cash is the fuel for your business. This is why before you start the day, you should check your cash position. Yes, do this daily. You never want to be running on or near empty. Also, you want to know if you’re nearing empty so you can act appropriately. One of the most dangerous business killers is to hear, “Sorry, but you’re out of cash.” Know your money. Create your success.
#2. Record Transactions Weekly
You should be using some kind of accounting software for your business or company. If not, get one. Inside your software, you need to record and reconcile your transactions at least once per week. Could you do it bi-monthly or monthly? Yes, but that increases the likelihood you make an error or miss something vital that changes your cash position or financial awareness weeks down the road. Don’t let having software make you lazy. Take care of your transactions. Know where your business stands financially at all times.
#3. Document and File Receipts Weekly
Collect, organize, document, and file your receipts every single week. Don’t wait longer. Paper tends to find its way “out of the pile” if you let that pile get too high. Also, the routine of filing weekly allows you to keep your company’s “paper trail” up-to-date and accurate. This helps keep you aware of your financial position, as well as helps when you get audited by the IRS. Yes, you will get an audit, but your organization and systems will save you. Keep organized. Keep more cash.
#4. Review Unpaid Bills From Vendors Weekly
Do you have an “unpaid vendors” folder? You should. Keep a record of every single vendor you work with, whether one time or ongoing. You want their name, address, phone, and relevant business information. The contract you have with them is important, too. Why keep all of this “on hand” for your company? This helps keep tabs on who you’re paying and who you still owe. You’d be surprised how often I find vendors still getting paid that are not rendering service for a client when I clean up their books. Know your vendors. Know your expenses.
#5. Pay Vendors and Sign Checks Weekly
Earmark your calendar for when to pay your vendors. Make sure they’re paid on time so you can avoid penalties. Also, if you pay vendors early, you can get preferential treatment when it comes to your projects. This means vendors will work on your projects first before anyone else because you paid early. Stay on time or ahead of your vendor payouts. Keep cash flow moving.
#6. Prepare, Schedule, and Send Invoices Weekly
Cash flow is the fuel for your business. Make sure you are preparing, scheduling, and sending relevant invoices every single week. Missing this is the second biggest mistake you can make as an owner or executive. The first mistake? Letting your books get behind and putting yourself in the IRS crosshairs. Send out invoices. Keep cash flow positive.
#7. Project Cash Flow Weekly
The second worst nightmare is not having enough cash to push your operation forward. Running out of money can bring your business to its knees. The biggest nightmare? Getting a letter from the IRS. Stay out of the IRS’ crosshairs and project your cash flow out a few weeks to a few months, so you know what you can spend and what you’re paying out. This keeps you ahead of the game.
Start with these seven accounting tips to get your books and financials back on track.
But, if your books are a mess, let me rescue you and your business or company!
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