Money in, money out. Simple as it may seem many businesses get process all wrong. With the proper setup, systems and guidance your back office can run like a well oiled machine.
Most business owners fail to setup proper accounting and have to react to what take place in the business. With a proper understanding of what you should be doing we’ve come up with 5 things you must do to make sure you’re getting the most out of your accounting.
- Reconcile Bank Accounts daily – Since we now have direct access with the bank an accounting systems you should know you true cash balance everyday. Most business owner bypass this step and just check their bank account. However checking the bank account does not give you the most accurate data.
- Run Profit & Loss Daily – By running this key report you now know exactly where your are in regards to your net income or loss. This would be your first management report. If you are in growth mode you should know exactly how your day begins and ends.
- Use accounting data to track forecasts – You can use the data to compare against your sales and spending. It’s always best to know if your plan is working or not. If you don’t look at this information you won’t understand truly what’s taking place in your business.
- Integrate other systems with accounting – There are many systems that do different things based on your industry but most have an accounting feature that your would want integrated in real time so you don’t have to wait til month end. Historically small businesses would wait til month end to review their numbers. The technology is available, use it.
- Know how where you are in regards to taxes – Many business owner wait til the end of the year or better yet, the next year to find out where they are with taxes. No growing business can afford not to know how the tax system can help them or better yet cost them more because they waited. Don’t be that owner that waits. Get your info during the year so you can leverage taxes.
If you feel like you need Accounting Services or a guidance in your Accounting, Schedule a Free Strategy Session.