Accounting may not be the reason many entrepreneurs start their businesses, but it’s essential to helping your company grow. This article offers three tips that will help your company master the art of accounting.

Decide on Human versus Software Accounting

It can feel tempting to take on accounting duties yourself; however, many small business owners take the step of hiring a bookkeeper. This can both lessen the business owner’s workload and allow a professional to focus on the job. One less pricey option is to hire a part-time or freelance worker.

At tax season, or when your business becomes larger, you may want to hire an accountant. In general, bookkeepers focus on keeping accurate records, while accountants focus on analyzing those records, though there is some overlap between the two.

If you decide to handle accounting yourself, then be sure to check out the US Small Business Administration’s information on the topic, like their course on accounting. You’ll also want to research and invest in accounting software, then become familiar with it. 

Stay on Top of Clients

Being firm with a client who owes your company money may feel uncomfortable at first, but it’s an essential part of running a healthy business. You can incentivize clients to pay on time by offering a slight discount for early payments, the normal price for on-time payments, and a noticeable fee for late payments. Additionally, if a client has not paid, consider withholding future goods and services until they pay what they already owe.

Budget

Budgeting is another important skill when it comes to keeping a company financially healthy. This of course applies to your company’s long-term budget, but it can also be helpful to track expenses on a daily and weekly basis to ensure your business has the cash flow it needs to stay operative. You can also use this data to calculate a minimum monthly profit, which in turn can help with decisions such as large purchases.

Elevation Financial’s other blog posts cover many additional business topics, so be sure to check them out!