Business financials can be a hassle!
One of the most important habits to keep in business is maintaining your financials. Having a handle on your bookkeeping will allow you understanding your organization. It will help keep your business organized, manage financial flow, and assist you in remaining financially compliant. Finances are undeniably the “be all” of any organization.
Why do business finances have to be up-kept?
If your company needs funding, it’s a huge plus to have your finances up to date. Investors are more likely to go with a small business that can account for all money spent. Falling behind on finances can cause delays in funding and can leave room for error when it comes to playing catch up on your finances.
Burn and run rates.
The only way to determine how well your company is doing is by keeping up with bank transactions. After all, how will you know what’s needed in your weekly/monthly/annual budget? In addition, how will you know the success of your business if you’re unsure of the money coming in and going out?
Pay attention to what in your organization is profitable. Investing more money into those departments that experience more success can optimize your business and its growth.
KPIs (Key Performance Indicators).
Be sure to understand the price of your services, cost of labor, indirect expenses, etc. Not knowing this will cripple you in measuring areas of your business accordingly, which will in turn, affect your future business decisions.
Being audit ready.
It’s always important to pay your taxes on time. Keeping your business tax compliant will save you a world of trouble by avoiding fees and penalties that come with not paying taxes. Not to mention, you will be ready in case your business is audited.
Many small businesses can’t afford to keep a full time employee on that will maintain their finances. For this reason, this task is outsourced to bookkeepers and accountants. It’s also important to consider that with business growth, the complexity of finances grows exponentially. It’s always best to keep financial peace by hiring a professional that can keep you up to date, compliant and ready for growth!