Owning a small business is equally rewarding and challenging, with new experiences and obstacles to overcome every quarter. As a small business owner, it’s important to understand the tools and resources that are available to you in order to structure your business in a way that will promote longevity and profitability.
To ensure your business is able to realistically budget, spend, and manage its finances, we’ve put together a list of recommended financial tools to help you get started.
Professional Accounting Services
Balancing books and dealing with yearly taxes can feel like a daunting task on top of the everyday responsibilities involved with owning a business. Accounting services for small businesses can help you streamline your time by handling the details of your finances, which will allow you more time to handle inventory requests, customer inquiries, and fulfill your orders on time.
What may be an upfront cost could ultimately help your business cut costs over the course of the year. Accountants can identify wasteful expenses and help you identify key tax breaks which will put more money in your pocket.
Creating yearly business plans is a helpful way to see the full scope of your spending and projected revenue. With this information, you can establish building blocks for your small business that will help you grow in profit for years to come.
Financial projections include a variety of factors, from spending projections to expense reports, projected losses and earnings, and balance sheets. Each aspect is important to your company’s financial future. When developing financial projections, either on your own or with the help of a professional, it’s important to be realistic with the numbers you’re presenting. If you’ve been operating for at least a year, you should have references to help you identify your numbers. However, if you’re a new business, you’ll want to look closely at the market, consumer buying trends, and your competition for as much insight as possible.
Setting Up a Business Credit Card
Your credit history is important as a small business owner. It’s important to separate your personal and professional credit, and establishing a professional credit card is the first step. In many cases, small businesses aren’t always equipped with the cash they need for important inventory purchases.
A business expense credit card provides you with the opportunity to order everything your business needs and create a comprehensive payback plan as your revenue comes in. Many credit cards will offer rewards and promotions for extra incentives, which can be an excellent opportunity for small businesses to take advantage of.
Payroll Management Systems
Payroll management tools are a worthwhile investment for many small businesses since they can help you streamline the entire process and reduce expensive inefficiencies and redundancies. There are varying softwares to choose from, so it’s essential to understand what your business needs.
Payroll systems can identify employee payroll details and tax deductions faster and efficiently calculate any holiday pay or bonuses. The benefit of automating these tasks is that it frees up yourself and your staff to focus on other important aspects of your business.