If you’re like most small business owners, you have a long list of thing to get done to keep your business operating. Substantial effort is placed on increasing sales, product development, hiring the right people, and making sure customers are happy. Typically, bookkeeping is a secondary concern. Unfortunately, not keeping your books clean and concise is probably costing you money.
You've started spring cleaning your home and yard, but what about your office? Consider a paperless office as part of your spring cleanup and organization. There are benefits as well as incentives to going paperless and every dollar bill counts in today’s economy.
One of the most exciting things a small business owner will do is hire their first employee.
Here are a few tips when you do so:
1. Budget for the Addition
I hear regularly "I want to improve my profitability."
Here is the P&L from a company that improved their return on sales to 20% from -3.6% the prior year:
There are a lot of options for financing your small business. You can opt for the traditional method of a loan via a bank. Alternatively, you could take advantage of crowdfunding.
There will likely be a time when you are dealing with clients that may be negatively affecting your business.
These are some of the red flags you should notice:
Client doesn't Pay on Time:
Anything over 90 days is a big red flag. Slow payment reduces your profit margin. This client may not be as profitable as you think. The more time it takes to pay you, the more likely your client will forget the great work you did for him or her. Your client is paying at least a few of their bills. Make sure you are one of them.
We share a lot of information with our readers because, frankly, there's a lot to talk about when it comes to finances and it's our favorite topic! Here we've compiled our most popular posts of 2019 so you can be sure you didn't miss them!
There are many tasks involved with small business bookkeeping. These tasks often take much longer than we expect because concepts are easier to understand than to implement.
Here are some simple solutions to your bookkeeping problems:
Accounts receivable is difficult in most industries, particularly for small businesses. Dental practices are not exempt from the struggle of collecting payments. The challenge for many dentists is that payments are received in a multitude of ways, most commonly via insurance and direct customer payments.
Routinely looking at the financial ratios of your small business will help you reach your goals. Looking at your balance sheet, profit and loss statement, and cash flow is one way to gauge how your business is doing. Reviewing financial ratios is equally important. Ratios are commonly used to make comparisons between different aspects of a company’s performance and how it compares to other companies in the same industry.