Financial Tips for Small BusinessesCash management
Many small business owners can feel overwhelmed trying to manage their cash flow. Of course, you know you need accurate and timely data to align resources to handle crucial transactions, such as payroll, when needed. And the longer you wait to get your cash flow in order, the greater the risk of a mistake or oversight that could damage your financial reputation.
An accurate and timely budget is a must because it helps you make important decisions and manage your tax obligations. They are also a vital component of obtaining additional capital through a loan if needed. Unorganized financial documents can be a red flag for lenders and can give the wrong impression on the fiscal health of the company.
Having a modern, often cloud-based accounting system is a staple of many well-run small businesses. In fact, the useful accounting apps have become quite popular because they integrate with many other services for easier and more efficient use. For example, if a sale is posted to a department, a well-integrated accounting application can act almost like a virtual employee and immediately make the necessary income or balance adjustments to handle the transaction accordingly.
Small businesses should consider using financial / accounting applications offered through their commercial bank or commercial credit card to help them keep their finances in check.
A corporate credit card
Is a business credit card the right choice for your small business? Of course there are pros and cons.
For example, a business credit card like Ink by Chase helps keep personal and business expenses separate. The card also rewards spending. And those reward points are capital that can easily be reinvested in the business. Booming businesses can also benefit from a corporate credit card; this is a great way to establish credit and build financial stability.
Even the smallest businesses of today have access to financial and accounting tools and resources that can rival those of a company of twice the size. These technological advances are closing the accounting and financial gap for small businesses.
"Small businesses are short on time," said Laura Miller, president of Ink at Chase. "The more we can put together useful tools, the more we can help them succeed."
In the absence of a fully staffed finance department, or even a single dedicated person, a small business owner can rely on the many services offered by their financial institution or business cards to help them overcome any financial management challenges they may face.
Got any other small business financial tips to share?