Small Business Owners: Heed These Smart Money Tips for New Businesses
Starting a new business is not only financially risky, but very scary as well. Having good information and advice up front reduces the fear of the unknown, but also more importantly, it might keep small business owners from making critical errors. When it comes to starting and managing a small business or startup, one of the most challenging facets is managing the financial side of the business. Use these smart money tips to help your new small business succeed.
The Tally Services team is here to help with one of the most important aspects of your new business: cash. It’s critical that your cash is managed well and you establish smart habits up front. Use these tips to help you manage your small business’s money:
Manage Your Cash Flow
Watch your accounts receivable and payable like a hawk to make sure your cash flow is safe. Avoid paying out more in expenses than revenue and monitor your flow closely to always know what is coming and going. Use our top cash flow tips to help your new small business manage cash well.
Keep Your Books Straight
We talk about keeping your books organized a lot on the Tally Services blog, but it’s true. Organization is one of the best things you can do for your business. Organized financials will give you real-time actionable data to make strategic business decisions and help you succeed. It will also make tax season less stressful by staying on top of your financials all year long. Learn more about keeping your accounting organized.
Avoid Commingling
The term commingling refers to mixing personal and business finances. It can be incredibly messy but, more so, dangerous if the business ever gets into tax trouble. The IRS can ‘pierce the corporate veil’ and take your personal assets on behalf of the business if a clear distinction between the two has never been made. Click here to learn more about commingling and why you should make sure your accounts are kept seperate.
Implement a Segregation of Cash Duties System
In order to avoid embezzlement and help streamline your accounting practices, make a plan for your cash duties. Segregation of cash refers to the system of checks and balances for the cash duties of a business, to keep one sole person from managing all of the company’s finances. It will help prevent the risk of embezzlement and protect your company's assets. Click here to learn more about why all business owners should implement a segregation of cash duties plan.
Protect Against Embezzlement
In addition to a segregation of cash plan, implementing other practices to reduce the risk of embezzlement is critical. The occurrence of embezzlement is very high and no business is immune; embezzlement can be damming to any business, but especially small businesses. Use these tips to protect your business from the danger of embezzlement.
If your new small business could benefit from business coaching and accounting help, let’s work together to set your business cash plan up for success. We’ll help you determine and implement the accounting tools and systems that make the most sense for your needs. Tally Services in Fort Collins, CO is here to partner with your on the financial side of your business to provide top-notch accounting and bookkeeping services. Contact us today to get started!