The very words “accounting software” are enough to strike fear into the hearts of many business owners.
This kind of reaction is understandable as, for many people who didn’t choose a career in the financial industries, their last experience of dealing with debits and credits will have been at school.
That’s why most small business owners delegate their financial affairs to an accountant or bookkeeper and choose to have as little involvement as possible in the process.
But what about micro businesses? If you are a lone entrepreneur, you probably can’t afford to hire someone to manage your finances for you. Anyone who is self-employed or owns their own business will have to pay tax on their earnings and that’s when it becomes important to have some personal method of tracking all of their financial transactions.
The best way of collating and analysing this information is to invest in some accounting software. Depending on the requirements of your business, you might be better off choosing something easy-to-use like the Cashbook Software we offer rather than purchasing a full accounting software suite.
The Cashbook app allows anyone to manage their business finances with ease, no matter their level of financial expertise. In common parlance, the term cashbook refers to a ledger that would be used to keep track of small cash purchases. Our software works in much the same way, as you simply use it to keep an online record of all the money going in and out of your business and to see at a glance whether or not your business is profitable.
If that sounds simple, it’s because it is simple! If you don’t believe us we’ll even take a few minutes to show you.
Here are some tips for any business owner managing their company finances for the first time:
- Have very clear payment terms
- Be consistent with invoicing
- Keep track of your time
- Cut out unneeded expenses
Ensuring that your contract terms are watertight and that payment must be delivered within a set timeframe should be your main priority. Make sure that you get them checked with somebody that has a bit of legal knowledge just to see if there is any way of wording your terms better.
If you invoice your clients at irregular intervals, they won’t have any idea of when to expect their next bill and as a result they probably won’t have any money put aside to pay you. Stick to the same day every month and you might have more luck.
Find out how much time you spend on each client’s account and compare it with the amount you invoice them every month. Is it proportional or are you spending far too much time on a client that you never make much money from? Prioritising will help you make better decisions.
Your cashbook should be able to highlight all of the little purchases that you have made in the last month. It should be easy to spot the things that are just frivolities and not actually required.
For more awesome business tips like these, check out the WinWeb Slideshare page.