Top Time-Saving Organization Tips that Actually Help your Business Finances
When it comes to a business’ success, one of the most important aspects an owner must take seriously is its finances. Having a steady income does not mean a business will stay afloat. In fact, the mismanagement of funds could send any, otherwise profitable, business into the ground. With 82% of small businesses failing due to cash flow problems, having your finances organized is an absolute must. We all know cash flow is not just the incoming, but also the outgoing of funds. In order to stay in a positive cash flow, we are sharing our top time-saving organization tips that actually help your business’ finances.
Kick the “Shoebox” Filing System to the Curb.
There will be a push and pull between funding and supporting the continuous growth of your company. So, first and foremost, having all financial data easily accessible for measuring and monitoring is critical. That means, tossing your “shoebox” filing system filled with receipts and invoices.
Instead, we highly recommend opting for an online tracking program or spreadsheet that allows you to track your income, monthly, weekly, or even daily so you can better understand how much money you’re bringing in. Not only does online record keeping allow for convenient remote access, but it also keeps documents manageable and permanently legible.
This allows you, your bookkeeper or your accountant the ability to log in to your account from any web browser, which gives everyone who needs-to-know powerful access to information on the go.
If you insist on keeping records in hard copy form, be sure to store them in ways that will be easy to find and also read. You’ll want to keep track of important paperwork like:
- Accounting and bookkeeping records
- Bank records
- Contracts, including leases and purchase agreements
- Trademark applications and patents
- Permits and licenses
- Employee records
Ask your accountant or us at Two Sense Consulting for which records are worth keeping at a minimum so that tax time is a breeze and you know which time-saving organization tips are best for your organization.
Make sure you separate personal and business banking accounts – and use them respectively.
It is all too often we see and hear that business expenses are coming from multiple accounts. What started as solely streamlined business transactions soon became the quick, yet confusing, convenience of a “few personal account transactions” that were actually business costs.
We know it can be tempting, but a little disciple in the moment saves you tons of time and money later. Especially when having to comb through paperwork for tax filing or loan requests.
We highly recommend separating your business and personal transactions – even having separate slots in your wallet or pocketbook for when such purchases are made. One option is having a separate billfold or wallet that holds receipts and business cards specifically for company-related costs. This way you aren’t tempted or tripped up at checkout. Plus, you can keep your receipts in there as a reminder to later upload to above-mentioned spreadsheets or digital apps.
Keep Records Organized by Keeping Staff Well-trained.
When it comes to the flow of cash in your business, it is vital that those who are handling money or online transactions in your absence are as integrity-driven and consistent as you are. Making sure your team is properly trained on how you handle and file various contracts, consumer payments and bookkeeping. This will save you a ton of time and money as well as grief. To do this, you’ll have to first invest in a time-saving organization tip known as regular Monthly Money Meetings.
We highly recommend revisiting this regularly with those that you deem need-to-know. If a color-code system would be best for your in-house staff, train them on expectations and what goes where. If you prefer a filing cabinet with various tabs, ensure that everything is legible and that your team is recording data the way you want. Need tips? We have seen plenty of unique ways that work for various clients in a multitude of industries.
From fast-paced receipt-keeping to in-depth invoicing, we can help you find a process that works for you and your personnel. We even offer in-house Project Management to get everyone on the same page. Our expertise lay in the life cycle of office reorganization, from managing an onshore team to transitioning to a centralized function and managing the shared service.
Outsource Accounting and Other Areas that Aren’t Your Expertise.
Outsourcing projects to a third party professional saves you time. I also means that you’re hiring experts in their various fields who have efficient processes. You can expect that they will provide their services in an organized and timely manner. We recommend, of course, doing your due diligence, looking up reviews and asking for proposals or similar to ensure that you are getting services and products that you understand. As we all know, busy-ness does not make for good business.
The one area in particular that is especially helpful to outsource is hiring a Virtual CFO or Financial Director. As your CFO partner, we will support making sound business decisions, interpreting your financial statements, and building forecasts to build your company in the future.
We implement the above-mentioned tips strategically while also offering a personal and intuitive approach to your bookkeeping that automated software can miss. Accounting software does not identify errors, interpret your finances, or ensures your fiscal fitness like we at Two Sense Consulting can.
Contact Two Sense Consulting for a free first consultation.
We bring more than 20 years of CFO Experience and Strategy driving sustainable business growth and optimizing business strategy processes. Visit our website to learn more about time-saving organization tips, who we are, as well as, what we can offer your business to save you time.