Does your small business have an effective and efficient accounting function? Are you using technology to automate the major components involved in recording and reporting sales and expenses? Do you use analysis reports to help guide your decision-making? Improving your accounting function can provide you with essential information to help grow your small business.
After starting my own business and working with hundreds of small business owners, I have learned firsthand the challenges associated with accounting. If you don’t have an effective accounting process and system, it can be a big drain on your time. So how do you address this?
Start with a checklist of the essential components of basic accounting.
Learn the fundamental concepts of accounting, like the differences of a balance sheet, income statement and cash flow report.
Consider hiring a small business accountant to advise you on how to set up your chart of accounts and processes for recording transactions.
Evaluate software that you can use to automate the process of accounting. There are many great systems available for small businesses to use.
Effectively and consistently managing your accounts receivables and payables will improve your ability to forecast cash flow, which for all small business is a critical success factor.
If accounting isn’t for you, there are plenty of small business accountants that can be hired full- or part-time to help you out.
Improving your accounting function will help you spend more time working on your business than in your business, and keep you focused on growing your small business.