Streamlining Your Small Business Finances in 2018
Small businesses actually have a small advantage over larger corporations in that their books aren’t as complicated. Small business finances may only include a couple employees and a few client accounts, and chances are there’s no international currency conversions mucking up the books.
But it’s no picnic, either.
Small businesses also typically have fewer resources, and in some cases, the owner is forced to put on the accountant’s cap. That’s why, wherever you can manage it, it’s helpful to take steps toward streamlining your company’s finances and making them easier to manage.
Here are a few tips that should lighten the load in 2018.
Five Tips to Streamline Your Small Business Finances
1. Separate Your Personal and Professional Accounts: Yes, going to the bank and opening up a small business line of credit and/or checking account will take time out of your day and give you an extra account to manage. But taking this step will simplify your life on the back end. Specifically, keeping all of your business expenses apart from your personal expenses will make a world of difference come tax time. You won’t have to pore through every last transaction to make sure you’re not mistakenly claiming personal expenses. As a result, you’ll be less likely to run afoul of the IRS.
2. Keep Tabs on Your Accounts: If you’ve had a business account for a while, take a few minutes to request an analysis of your monthly bank statement. You may find that you’re paying for certain services you rarely or never use. That’s a stepping stone for negotiations – from there, you can try to get your bank to back off certain charges, or shop for a different servicer that won’t nickel-and-dime you for frills you don’t need.
3. Go Pro (Forma): Many companies are required to produce financial statements that are adjusted for generally accepted accounting principles (GAAP). However, you can simplify your life when it comes to strategic planning by keeping “pro forma” records that emphasize certain past and projected results, helping provide a better big-picture view of the company. Determine a few metrics that you feel are most important for gauging your business’ progress, then map out your future actions based on that.
4. Pull Out the Toolbelt: The internet is crowded with small business software and tools that can give you a hand in managing your company’s finances. Freshbooks, for instance, is “ridiculously easy to use” accounting software that provides services such as timekeeping and project management. Then there’s Intuit’s well-known QuickBooks, which can help owners stay on top of payroll, or even link receipts to expense reports.
5. Don’t Go It Alone: A few tips can go a long way toward saving a few minutes here and a few dollars there, but a full evaluation of your business can result in a comprehensive plan that will make your company leaner and meaner. McManamon & Co. offers a number of services to small- and midsize businesses – from analyzing your taxes to accounting services to consulting help with issues such as cash-flow planning – that can help you streamline from top to bottom.
Set yourself up for success by making your finances simpler and easier to handle. Call McManamon & Co. at 440.892.9088 or contact us online for a streamlining plan that will benefit your small business for years.
Tags: McManamon, small business, small business finances | Posted in accounting, Consulting, McManamon & Co., small business