Grow Your Business through Smart Accounting | Tally Services

For any plant or tree to grow tall, it requires a strong foundation of roots in the ground. The same goes for businesses, as well. The strongest businesses grow strong accounting roots by investing in and committing to keeping the books straight.

One of the best ways for businesses, especially new businesses, to grow and thrive is to build the operation on smart and effective accounting practices. This will maximize your revenue and provide you with the information you need to make smart business moves to help you grow.

Use these tips to help your business grow through smart accounting:

1. Employ Good Accounting Practices: We talk about this a lot on the Tally Services blog, but it’s still true. The first and foremost task is to set your accounting practices up in a way that will keep the books straight and help you understand the financial health of the company. Use these tips to help you organize your books and accounting practices.
   

2. Consider Becoming a Limited Company: If you’re currently operating your business as a self-employed person, you may consider moving your business to the tax category of a limited company. There are many potential cost savings and benefits of making this move, including potential tax savings (depending on the revenue of the company), separating out your personal responsibility if the business goes under, and so forth.
   

3. Avoid Commingling: If you have not separated your personal and business finances, you can be personally liable if the business goes under. Learn more about the dangers of commingling and how it can cost you personally, here.
   

4. Hire Your Kids: If you own your own business, there are many tax-saving benefits to hiring your kids for their summer and other school breaks. Learn more about this move here – not only will you get some help, you can reinvest these tax savings back into your business.
   

5. Put Money Aside: All businesses face ups and downs over the years, so it’s a smart decision to put some money aside for a rainy day – or for your tax bill. By keeping money aside for these kinds of surprises, you can avoid additional business loans, or worse yet – losing the business in the event of a big expense.
   

6. Follow Up on Your Overdue Invoices: This might be obvious, but we frequently run into business owners who have unpaid customer invoices that they have not followed up on. Create a reminder system and continue to chase unpaid invoices until the payment comes in. If you do not get paid after your designated time period, consider asking for help from a professional collector.  
   

7. Maximize Your Cash Flow: By maximizing and protecting your cash flow, your business will ideally have the cash you need, when you need it, to invest in your business and help you grow.

8. Study Your Numbers: Your numbers can give you great insight into your business viability and opportunities by looking at projections, trends, and places to cut costs. By studying and understanding your numbers, you’ll be better equipped to make smart decisions that will help your business grow.

By improving your accounting practices and increasing the amount of cash you have on hand through smart accounting, you’ll be better able to grow and adapt to the changes that come your way. If you’re looking for help grow your business, consider working with Tally Services. We’re here to help your business grow by helping you study your numbers and find opportunities to maximize your cash and resources. We’ll meet your business right where you are and help you put systems in place to grow and thrive with strong accounting roots. Contact us to get started!