If you’re a new business owner or still taking the steps to become one in the future, these tips are essential for laying out your business from the numbers side of the equation.
If you’re an entrepreneur with a business idea you’re sure will find success, it’s important not to lose sight of the foundational financial limitations that often spell disaster for small businesses who lack the foresight to plan their business around a stable cash flow. This is particularly a problem for business owners who are embarking on their first adventure into entrepreneurship. Running a business yourself can be exponentially more complicated than managing just one piece of it as an employee.
On top of this, it’s important to realize that these kinds of core financial issues don’t only apply to small businesses. Enterprise-level entities can also find themselves reeling from poorly managed cash flows when significant changes in income level or expense fees mount too quickly. For larger companies, adjusting to an increasingly unstable cash flow can sometimes be an almost insurmountable challenge as multiple departments must work together to effectively bring the cash flow back to a balanced state. (more…)
We’ve tried our hardest to offer solutions to a wide variety of money issues for all kinds of business owners through both our blog and our outreach to the local Madison startup community. If you’ve been following our advice each week, we hope this post should apply to you!
But regardless of how you might find yourself grinning proudly at your bank statements after starting your small business the right way, or making efficient changes when things went awry, exceeding your revenue expectations is a great feeling. No matter how much you make, the need for a management strategy is still there if you intend on keeping the door open to success. (more…)
Many business owners that work with an outsourced accounting firm like ours will probably tell you they did it to save themselves the time and inconvenience of handling it themselves or saving on the cost it would take to hire someone to do it internally. But the benefits of doing so stretch far beyond those listed above.
One of the more important perks of an outsourced accounting function is the automatic layer of protection it provides against fraud. By upgrading your accounting function to an outsourced solution, you’ll get internal controls and innovative, fraud-proof accounting tools (like bill.com) that will give you peace of mind knowing your company won’t fall victim to crimes like these, as first outlined the August issue of the Journal of Accountancy:
Fraud Example No. 1: Employee embezzles money from trust fund for which he is the only trustee and then sets up a Ponzi scheme to draw out even more fraudulent funds. (more…)