It is oh so easy to develop bad habits and very difficult to break them.  When you are talking about a business enterprise, bad habits can be disastrous.  Here are some things you might want to think about to help keep your operation in good working order and make your lenders and investors happy.

Budgets and Reports

One of the top projects to have up to date is a report of how you are faring compared to what you budgeted.  Along with that is looking at your profit margins, both gross and net.  Closely tied to these reports are your accounts receivable.  Staying on top of what is owed to you will help with your cash flow.

Establishing a Routine

If you don’t have a regular routine for posting information and generating reports, you should have.  If the reports are standardized and performed on a regular basis, you will have a better chance to review the key data for your company.  There are many accounting software packages that will help you with this project.

Synchronizing

When you choose your accounting software, be sure they will work well with each other.  The term is integration.  If all the platforms that they run on are compatible, you will have an easier time generating the information you need, as well as avoid wasting time re-entering or transferring data from one source to another.

Training

Be sure that someone else knows how to enter the data and retrieve information.  If something happens and you or your bookkeeper is suddenly gone for a week, work will still get done.  Cross training at least one other person is a necessity.

Along with that is keeping up with all of the changes in tax law and the accounting software.  Contact customer support for the program you run and see if they can help when necessary.

Allocating Funds

Be sure to reserve an appropriate amount of money for the payroll taxes.  The government doesn’t like to be forgotten and you would do well to stay on their good side.  Overhead and payroll are the next items to keep on your watch list.

Deadlines 

Having set deadlines means you will have the appropriate information at your fingertips when you need it.

Filing

Whether you keep paper files or electronic versions, the better your documents are organized the better chance you will have at finding the exact piece of information quickly when you need it.  Maybe it will mean adjusting work hours one day a week.  That is better than a missed deadline or overdue rent.

Mixing Personal and Business Accounts

If you are running your small business alone, be sure to keep your two accounts separate.  Have separate bank accounts and checks.  You will have a better picture of the health of your company. 

The survival of your business is based on a solid financial plan.  In order to be successful, you will need to develop the best bookkeeping and accounting habits possible to help you with the financial scrutiny you will have from the tax people and your investors.  If you are unsure of your footing, hire a professional at least as a consultant or as a long-term employee to keep things running smoothly and profitably.

Contact your Accountants today click on this link —> https://capexcpa.com/contact

- The Capex Team