Knowing where to begin with your company’s finances can be overwhelming, to say the least. Your first choice should always be to get the help of an accountant or other financial professional, whenever possible. But even with professional help on hand, there are some things you can do yourself to help to mitigate financial risk and keep your business on the right track.
Here’s a financial to-do list for your growing business:
- Create a Budget – This may seem obvious, but when there are a lot of pressing tasks to tend to, like customers in need of your attention, coming up with a solid budget (and sticking to it) can easily slip to the wayside. Doing this is the only way to accurately analyze where your business has been and, more importantly, where it’s going.
- Record Daily Transactions – In order to make sure everything is just rosy on the financial front for your business, record the various daily transactions that take place in your business every day or as they happen, such as accounts receivable/payable and any sales transactions.
- Settle Up Every Month – By the end of every month you should send out your invoices, pay your suppliers and any other bills, submit sales tax reports, etc. If you stay on top of these tasks on a monthly basis, you will have a more accurate picture of your financial situation over the long run.
- Analyze (and Understand!) Your Financial Statements – Your financial statements aren’t meant to be simply tucked away into the shadowy corners of a filing cabinet, lost and forgotten until tax time (or quite possibly forever). You have a vested interest as a business owner to analyze your numbers and understand what they mean. There should be no guesswork involved when it comes to your company’s money! We suggest staying on top of this regularly, ideally on a monthly basis.
Woo hoo! Fun stuff! Okay, not really. Not even a little bit.
Want some help? We are bona fide accounting nerds who actually love this stuff and can help you make sense of it all. Reach out to us and we’ll be happy to address any finance-related questions you might have.