Business owners are the most capable people when it comes to multitasking, and in most cases that works out just fine. However, when it comes to accounting, just fine won’t cut it for your business to be its most profitable and efficient. When you manage a small to mid-sized business, it’s tempting to try to do it all in-house. Whether the responsibility is squarely on the business owner’s shoulders or has been delegated to a manager who is overseeing other parts of the business, chances are excellent that neither has the time to manage all of the pieces of accounting for the business. It’s more than just balancing the books, which is in itself a daunting task for a growing company.
If You’re Trying to Manage Your Own Accounting, Make Sure these Important Factors Aren’t Slipping through the Cracks
Accounting and Bookkeeping
It’s not just about bookkeeping, but this is certainly at the top of the list. Make certain that there is one person who is responsible for collecting all of the expense documents from everyone in the company. This can be delegated by a department head or admin, with each department responsible for getting their information to the bookkeeping master at your company. However, if this person happens to be an administrative professional or someone who is already responsible for keeping another part of the business running, you are likely to see their job performance suffer due to the difficulty of splitting their attention between two, possibly equally important responsibilities. In the case of a business owner, forget two responsibilities, accounting will end up somewhere in a list of 100 things that need to be done now.
Business Cash Flow Management
This is one of the trickiest pieces of any accounting plan. However, that is particularly true for small to mid-size businesses. Trying to manage keeping a business moving forward with so many moving pieces can be a nightmare. Making sure there is money to cover all of the incoming and outgoing expenses while hiring and restructuring is an overwhelming task. Hands down, having an experienced accountant behind you during these times can give you room to breathe.
Argh! Right? You have to pay these people EVERY WEEK?! Really, we know you appreciate your very valuable employees. But we also know that every week it’s, “Oh shit, it’s time for payroll again.” Followed by the rest of your time that day spent panicking through administrative work that is better left to someone else so you can keep your business running. Does your business rely on you for business development? sales? community relations? Then there are better ways for you to be spending your time while maximizing your profit.
Financial Reporting for Business
So, you’re doing payroll, bookkeeping and general accounting for your business. Now, you need to not only put together a report from your CMS or accounting software but then analyze it and put your findings to work for you? Come ON, give yourself a break. Many business owners and managers alike are guilty of remembering reporting but neglecting to actually dive deep and come up with strategies based on those reports. Letting someone else do the heavy lifting here will not only save you time but likely help your business operate better and more profitably.
That financial report? Yeah, that, along with bookkeeping and everything that goes along with it will help you come up with a budget. But, unless you are handling all of the previously mentioned accounting tasks with the attention they deserve you cannot come up with a realistic budget that will help you run a profitable business.
Business Audit Preparation
So, maybe you had this whole accounting thing under control. That is until you saw the word audit. If there is ever a time that having an accounting partner who is familiar with your business and expenses, it’s during a business audit. No one wants to go through that alone. Just the word audit makes the hairs on the back of your neck stand on end, doesn’t it? Don’t go it alone, be prepared with a strong, experienced accounting expert who can guide you through the process and instill confidence during an audit.
Once you have a strong financial plan for your business, it is a good idea to take a look at your business plan and projections for years to come. Setting goals and a plan that will act as a roadmap to help you achieve them are paramount as you start growing and evolving. This should be well thought out, with time and attention paid, working from a broad vision to achievable goals, along with a timeline. It is always a good idea to look outside yourself, as a business owner, or the company as a whole to get a broader view of where you are at and where you want to be.
Profit Foundry works with small businesses who face these struggles all the time. Hell, we are a small business who faces these challenges ourselves. We value the small business partners that we work with who alleviate the stress of some of the tasks we just shouldn’t try to tackle on our own, and we’d love to help you mitigate the accounting challenges you face.