Cash is king in business and good cash flow management is essential for the success of your startup. Think of cash flow as blood flow and you’ll understand just how vital it is to the health of your business; without it, you’ll die. That sounds bleak, but it really is important to manage your cash flow well from the very beginning and protect your business against any problems along the way.
Are you having a hard time making ends meet? Are you constantly worried about your cash flow? If so, you're not alone.
A lot of small business owners are struggling with cash flow issues, and it often comes down to bad billing procedures. In fact, you would be surprised at just how much difference a few simple billing and invoices changes can make to your financial health.
Healthy cash flow and an ample reserve is the backbone of any business. It provides stability and security, as well as maximum opportunity for growth. Perhaps even more importantly, good cash flow management ensures peace-of-mind so you don't have those late night worries about not being able to pay your employees tomorrow morning.
Whether you're a business owner or an employee, it's important to understand how the numbers in your account book can help you to do better. If you take time each week or month to analyze profit and loss statements, accounts receivable balances and cash flow reports, then it will be easier for you to make informed decisions about what is working best for your company and identify trends that need attention before they become too large of a problem. It always pays to be prepared.
Whilst cheap accountants may be attractive in the short term, they can end up costing you a lot more money overall. More expensive firms with qualified and chartered accounts actually provide much better value for money and can save you a significant sum on your tax return.
Having a solid understanding of accounting principles will help you to make informed decisions about the financial management of your small business. These tips will give you a good foundation on which to build.
Online accounting software has a myriad of benefits for the financial health of your business. This software not only saves time, money and stress but it also allows businesses to operate with more flexibility.
Accounting can feel notoriously complex but as a small business owner, good accounting practices are essential to the financial health of your organisation. Taking your accounting seriously from the start is the best way to set your small business up for success and it will allow you to operate much more efficiently in the future.
Losses in business are fairly common. But some business owners tend to attribute them solely to inefficient sales and marketing.
However, that's not the only way a small company can lose money.
Here are some of the lesser-known reasons why your bottom line may not be as high as you'd hoped it would be.
If you're running a business, it's important to understand what gross profit margin is and how to calculate it. This figure tells you how much money your business is making after accounting for the costs of goods sold.
