Small businesses especially, don’t have all the specialist staff for each role. Most likely it’s the owner who takes on the data entry and bookkeeping role. Whilst owners have direct access to how finances are flowing to the business, it’s not entirely practical. As the owner, you are tasked to spearhead the business and lead it to success. That takes building relationships, talking to people in other industries, marketing, selling and promoting as well as managing your staff as you grow and employ people. Being behind the desk doing bookkeeping tasks takes your focus off growing your business and doing the important tasks that perhaps better utilize your skills.
What’s the role of bookkeeping in your business?
Bookkeeping keeps track of each of the transaction your business take. This includes both incoming and outgoing money. Generally, this is what we call cash flow.
Cash flow is important as it gives you a precise view of how your business’ financial position. Knowing how your money moves around your business can ultimately determine if you’re going to be a hit or miss.
How do you manage cash flow?
Up-to-date reconciliation is vital in ensuring the cash flow is as precise as possible. Reconciliation organises payments made through your bank account. It gives you the details on which money has been paid and not and where those funds have been directed. Knowing how much cash you have, how much you’re expecting still, gives you an idea of how you can protect yourself and the business and plan for the short to mid term future.
Integrate for a Faster Flow
If possible, you should be using a software or service that integrates how data flows from your cash registry to job specification software straight into your accounting software. When everything is integrated and connected, it makes things easier and faster and more accurate.
Since staff would be initially limited, business owners should consider third party subscriptions to do more menial tasks. Little tasks that take too much of your time and effort which you should channel somewhere else. There’s no need to stress out the little details if you can use a service that is reliable and cost-effective. Take advantage of the advancement in technology such as cloud computing. Do not hesitate to learn and research the different benefits cloud can give you.