Untangling your small business
Too many documents, receipts and accounts can cause stress and loss of money
Running a small business requires constant vigilance. Leave any aspect too long and you’ll wind up with a pile of tasks that make you want to bury your head in the sand. Outside of your area of expertise, there are so many things to consider including tax compliance and keeping track of business related expenses. You also need to have a way to securely record and store relevant information about the customers who are your lifeblood.
When it comes to small business bookkeeping, you can’t afford to slip up. Anyone who has an established business will tell you –“use best practices from the start”. The sooner you implement efficient, automated systems, the earlier you will be able to get down to business and start focusing on making a profit.
Some quick tips from the experts that will uncomplicate your small business include:
Create separate accounts
As they say, you should never mix business with pleasure. You need a different bank account for your business and one for your personal life. Business revenue needs to be directed to your business account and business expenses need to come out of it.
Link your business bank account to a cloud-based accounting system like Xero or MYOB and each expense will be easy to track and justify. At the end of the month you’ll be able to look at a clear picture of how much money has come in and how much has gone out.
Keeping your accounts separate will also reduce the headache at tax time of identifying business expenses and sending a huge envelope of receipts to your accountant to have to wade through.
Be tax ready
There are a range of expenses that are tax deductible when you’re a small business – but you’ll still have to pay taxes. Many small business owners get themselves into trouble by spending every dollar that comes in and not putting some aside to pay their quarterly GST bill or annual tax bill. The result is a very unpleasant surprise when you realize you owe cash you don’t have.
Make paying easy
If you’re running the type of business that allows you to request upfront payment – do so! This means you won’t be forever chasing your tail financially and that you will only do work that you’re getting paid for.
If your industry doesn’t work with upfront payments, make settling the bill as easy as possible for your clients by allowing for direct deposit, PayPal or a monthly installments system that will break down large bills.
As with tracking your finances, a cloud-based accounting software will enable you to keep an eye on who owes you money. It will even let you set automatic reminders so you’re not waiting endlessly for money, making your small business bookkeeping much less of a hassle.
Reduce the stress of paperwork for yourself and your clients while improving your productivity with the help of a secure document storage system. Uploading documents safely (and securely) in the cloud that relate to the work you are doing with your clients allows you to easily search for the information you need.
If possible, work with software and applications that are accessible by both you and your clients. This will allow them to upload documents and you can lodge them electronically on their behalf.
If you know your product is worthy but feel like you’re drowning, there’s no shame in enlisting the support of a business coach, virtual assistant or small business bookkeeper to help you break down your business, streamline your activities and focus on what matters to you.
ezidox™ helps you untangle your small business by providing a customizable document storing solution. To find out how to improve your productivity and your customer experience, contact us.