9 Free Things You Should Be Doing Now To Help Your Business 2020 Accounting & Finance
Most of the challenges in starting a business relate back to doing the little things right. Like any good coach has said at some point: The fundamentals get you to the top. If you are thinking of starting or already have a small business, make sure you follow these seven important rules for small businesses:
Number 1: Bookkeeping, Accounting, Compliance and Cashflow
- Stop Flying Blind by routinely producing and reviewing monthly financial statements
- Do not run your business based on how much money is available in the bank account
- Review your Receivables, Payables and Inventory Reports
- Get in line with an appropriate collection policy to make sure your cashflow isn't adversely affected
- Work with your finance team so you're in compliance with all statutory rules and regulations
- Prevent and stop getting unexpected bills with interest and penalties, which can adversely affect cashflows.
- Create a monthly and annual cashflow plan
- It is highly recommended to not use family and friends in bookkeeping because while they tend to have no upfront cost.In the long term, it will cost you dearly afterwards.
Number 2: A Data-based Organizational Culture
- Meet with your team to review monthly business analytics at least once a month
- Meet with key team members to formulate key performance indicators (KPIs).KPIs are like dashboards of your business and can provide a lot of information at a glance. MyBook has a team of expert that will build the most practical, dynamically data-updated dashboards
- Understand your product and/or services margins
Number 3: Create a Board of Advisors
- Construct a Board of Advisors which can:
- Bring knowledge and expertise. It will enhance decision and strategic planning
- A line of second sober thought – alternatives that may have been overlooked by insiders
- Brings forth a network to open new business opportunities
Number 4: Computer Systems:
- Build a series of useful, yet simple business computer systems
- Computerized systems grow overtime.
- As business grows, other systems are added such as timesheet software like Tick, T-Sheets; Inventory systems like Unleashed
- Once the business outgrows the starter systems, hire a consultant who will review your systems and processes as well as be an independent advisor in choosing a CRM or ERP system.
Number 5: Mind Internal Controls
- Internal controls ensure a level of trust and integrity in the business financial statements:
- Trust and believe that numbers arriving into the financial statement are a true reflection of the business' performance
- Have a level of understanding on the Return on Investment (ROI), which compares the level of capital expenditures and fixed assets to yield the return on investment
- Reduce theft and safeguard assets
- Reduce opportunity for employee mistakes
- Reduce risk of employee collusion
- Enhance employee accountability
Number 6: Strategic Planning
- Strategic planning is the act of planning for the future
- Identify areas of quick wins
- Equally important are to plan for where the business will be in 2,3 and 5 years.10 years is difficult to plan because the world changes. Planning far ahead makes business processes rigid vs fast pace of technological and market adjustments.
- A succession plan
Number 7: Quality Assurance (QA)
- Create and foster a culture where continual improvement to improve products, services, or processes is easy and natural throughout the organization