Entrepreneurs and startups often make the mistake of handling their finances and taxes in-house. This takes them away from building their business, at the most crucial time. By hiring an accountant, small business owners have the freedom to do what they do best with the assurance an expert is handling their finances. Below is a quick look at the top 4 things small business owners must do for their financial health.
1. Keep Accurate Expense Records
Whether it is in our personal or professional lives, keeping track of expenses often falls through the cracks; however, this is vital
for the health of your business. Cash and credit expenses not only helps with deductions at the end of the year to reduce your overall tax bill but helps you keep an eye on the general expenses of your business. Keep receipts and written notes on the following expenses:
- Mileage
- Annual fees for professional associations and networking groups
- Event fees for professional associations and networking groups
- Costs for working meals
- Cash expenses for employee awards and client gifts
- Office supplies
- Furniture
- Software, and software subscriptions
- Landline and mobile phone expenses
2. Know the Status of Receivables at all Times
A key part of balancing the finances of your small business is to know, at all times, where your accounts receivables stand. It not
only helps with budgeting but
also gives you the vision of which clients are producing the highest revenue and who pays the quickest. As a small business, if one of your clients is consistently slow to pay, this can affect your ability to make payroll and meet other expenses. After analysis, you may find that it is best to cut that client loose and find one that more quickly pays outstanding invoices. Sometimes, for a variety of reasons, it is necessary to “fire” a client. With the help of an accountant, you can determine the best clients for your business and the ones that you need to let go.
3. Balance Budget with an Eye on Seasonal Challenges
Most businesses today experience the ebb and flow of seasonal changes in demand. If you own a business that has both high and low seasons, it is essential that you effectively plan for low seasons to ensure your can meet all of the expenses throughout that period. An accountant with experience in small business financial planning can help you to design and manage a financial contingency plan to get you through slower seasons. It is also important to prepare for possible worst-case scenarios — where your business may be offline for days, weeks or months. Such possible scenarios include adverse weather events, natural disasters and the illness of a principle part of your team. With careful planning and budgeting you can effectively manage the natural ups and downs of business.
4. Hire an Accountant for Taxes and Financial Planning
An accountant with experience in small business finances and taxation is essential to your success. Barry Bandler Accounting & Tax Services has the expertise you need to manage your personal/business finances and your taxes at the end of the year. Small business owners and entrepreneurs benefit from the professional expert. Delegating payroll management, financial planning, tax preparation, sales tax management and other financial details to an accountant gives you the time and energy to focus on building your business. Professional accounting services pay for themselves; it is an investment in your business’s financial health.
