Most owners hate dealing with anything involving finances. However, they need to prioritize the back-office tasks if they want to have a successful business.
The key to organizing your finances is to take the time to develop a system for your records. No matter what industry you belong to, it is important to know what’s going in and out of the organization.
By being organized, you avoid anxiety when it is time for filing taxes. To help maintain good financial health, the following are some tips on how to organize your finances.
1. Learn about Business Finances
As the owner, you should know the different aspects of your finances. You should know how to read and understand financial statements. These documents tell you where the money came from and where it is at present.
Every financial statement has four important details: income statement, statement of equity, balance sheet, and cash flow statement. You should learn what information you can get from financial statements and how it can help with your organization.
2. Talk to an Accountant
An accountant can help you come up with a long-term strategy for your finances and can also act as your tax advisor. With the help of a Certified Public Accountant, also called a CPA, you will enjoy a more lucrative future, instead of simply trying to get by year after year.
The CPA can guide you about what to do with your finances. CPAs can also give you tips on how to avoid mistakes that are difficult to correct in the future.
3. Reevaluate Business Entity
Small businesses often start as a partnership or a single proprietorship. Frequently though, there’s a need to change the business entity into something else as it grows. You might need to think about creating a Limited Liability Company, abbreviated as LLC, to protect you from financial risks. You might also save money on taxes in the process. A CPA or lawyer can help you choose the right legal entity.
In most cases, forming an LLC is the smart choice because it protects you from various financial risks. Your corporate liabilities will not affect your personal finances.
4. Separate Personal and Business Finances
One of the common mistakes owners make is to mix their personal finances with their business finances. You should always keep a separate bank account for your company. You should also consider getting a debit card, which is the best way of monitoring your expenses.
Another thing you should do is to set aside 25 percent of payments you receive for products or services into the corporate account. That way you have enough money to pay taxes when tax season arrives.
5. Keep Financial Records Up to Date
You should not wait for tax season to arrive before you look for your financial statements and documents. Make sure that you keep all your documents up to date. By doing so, you will know your biggest expenses and understand where you can or need to cut back.
By keeping track of your finances, you remove the guesswork. You can easily monitor the important performance indicators: revenue, expenses, cash flow, and profit, just to name a few.
6. Use Technology Wisely
Technology helps companies organize their finances. Tools, such as tax software, accounting apps, and cloud hosting are available to help you with all your back-office tasks. The best thing about new business technologies is that most of them integrate seamlessly with one another. They can monitor your finances and generate reports.
When choosing software, make sure that it suits your operations. Various online tools provide real-time information that you can access from anywhere, as long as you have an internet connection.
There are many available apps to choose from, and you should make sure that you pick the right one for your organization. If you are unsatisfied with your current software, you can easily switch to another one that provides better services.
7. Pay Loans on Time
It is important to keep current with your loans so you can maintain a good credit rating. While a business is kept separate from your personal finances, some realistic loans companies report to both personal and corporate credit bureaus. If you are business-savvy and pay your loans on time, then you don’t need to worry about the loan affecting your personal credit rating.
8. Keep Your Desk Clean
One way to organize your finance is to organize your desk as well. You should keep your desk clean and clutter-free. Organize receipts, letters, and other documents so that they are not scattered all over the desk. By organizing it sensibly, it will be easier for you to maintain a more productive, and profitable mindset. You will also know where you kept documents and other important paperwork.
9. Always Remember Your Goal
You created the business because you have a goal 15 year mortgage vs 30 year mortgage. No matter what happens, it is important that you constantly strive toward that goal. It can help you stay motivated in organizing your finances. You should remember the reason why you started the company, as well as where you envision it going in the future.
Organizing your business finances might seem complicated, but you will get used to it over time. You will gain insightful information that can help your organization grow by simply being more organized. The good news is that you have advanced technology at your disposal. You can let it do the complicated work, which will allow you to focus on using the data technology produces to cultivate and grow your company.
The Value of Entrepreneurial Innovation to Convert Your Business Into a Brand
A common question that often pops up while starting a new business is:‘How much value will we place in turning this business into a brand?”If you are looking for ways to appeal to and reach out to several customers, then you need to find out the answer for thiscritical question.
The first step towards understanding the value of an entrepreneur to convert your business into a brand, is to understand the importance of branding. This process helps business owners to brand their products or services so that customers will remember them, and be attracted to buy from them again. Businesses have to be careful with this process, as it is often do-or-die in terms of retaining or losing their customers.
Branding takes time to accomplish because it requires a lot thought, effort and time from business owners. There are a few key elements to increase the value of converting your business into a brand. Leading entrepreneur Lewis Schenk has a unique strategy that is unseen in the current industry, which is integrating publication relations into branding and marketing strategies.
Who is Lewis Schenk?
Formerly an elite amateur/aspiring professional golfer, Lewis’s golfing dreams became more difficult when the covid-19 pandemic hit in January. With his plans put on hold without being able to play golf, he quickly pivoted with the help of one of his mentors. “I moved super quick when I knew the pandemic was about to hit. My plans got put on hold but I was fast to adapt” Lewis explains. Having journalism experience with projects he did in college in the USA, Lewis used his network to build his own agency, Boost Media Agency. Since then, he’s served over 150 clients, helping themto get featured in leading digital publications and become the most, known, liked & trusted in their industries.
Integrating PR & Branding
As a business owner, it is your job to ensure that you stand out in the market.You have to ensure that you will not waste precious advertising money in the start-up phases, by buildinga brand that has a high value to your audience – meaning more money and profits in the future. “As business owners, we cannot just jump into this process. It requires a lot of time, effort, guidance and money for this to be successful, and we have to be sure of our strategy before starting this process” Lewis explains. This is where Lewis shines, as he specializes in coming up with unique public relations strategies and ideas to ensure maximum growth for his clients.
A new business is a risky investment. There are many risks involved in setting up and running a new business, and one of these risks is the loss of your customers and losing your market value. A lack of strategy and experience is the new entrepreneur’s biggest downfall, as they spend all their money on pointless hacks and courses. Investing in public relations is the best form of advertising, as for one, its permanent. Rather than spend $200 on advertising that will run out on a week, spending $200 on a published article to a leading news site will yield results long term, as it remains permanently, meaning increased chances of more eyeballs seeing it over time. As a business owner, you must learn all you can about this process or consult with someone like Lewis who does, so that you know the value public relations to convert your business into a brand. With this knowledge and understanding, you can control your strategy, your business and your success.
Also,as business owners, we must use a strategic approach in our decision making. This strategic plan will help you to overlook the strengths and weaknesses of your business and how they can be turned around.A strategic approach also involves finding out what the strengths and weaknesses of your business are and implementing the appropriate changes to make your business more profitable. Evaluating your current business model to identify the strengths and weaknesses of it, can greatly improvethe company by making some tweaks and adjustments.
Ensuring that we don’t invest money and time in the wrong areas of our business, by shifting the focus towards branding and public relations in marketing strategies, will ensure far greater business success.A business without publicity has no potential for expansion. If you have no courage and time to take these steps for your own business, then you realize the value of hiring a professional entrepreneur such as Lewis Schenk, to convert your business into a brand.