For many new business leaders (or established ones), the pandemic’s economic fallout was particularly painful. But with your strong entrepreneurial spirit, and with so many rallying behind you, the light at the end of the tunnel is bright.
Even so, keeping track of your finances and accounting, especially if you do it in-house, is more important than ever. As you continue your recovery, here are some quick small business finance tips that will help keep your business humming.
Keep up with billing
Auto scheduling your billing is a big plus. But sometimes there are no hard dates to rely on, or the timing is based on when a job is complete.
Whenever possible, however, business leaders must streamline their billing, even if they are a one-person operation.
A customer relationship management program is a good big first step in the right direction. All the information on your clients will be just a few clicks away, super powering your ability to start invoices and track other billing-related matters.
Digitize wherever possible
Eliminating or sharply reducing the need for paper can make life a whole lot easier, especially if you are already focusing on remote work.
By switching accounting to digital records, for instance, business operators can both reduce redundancies and improve accuracy. Some might be surprised with their new efficiencies, like auto-population of information, which will speed up overall businesses processes.
Stick to the budget
One of the big lessons from the pandemic is the wisdom of working from, and sticking to, a budget. It’s a must. Any vision you have for your business must begin with a well thought-out business budget.
Bad habits and impulse spending can bring operations to a sputter if left unchecked. Relying on a budget gives businesses perspective for baseline spending and allows for full transparency, which can come into play when applying for loan.
Specialized software can do a lot of the heavy lifting if you’re new to business budgeting.
Be aware of pricing
Flexibility matters. So anytime there’s an opportunity to vary your pricing, take a hard look. For some small businesses, their small pool of clients may require some creativity to stay on top of pricing.
Remember, it is still fine to offer coupons and use variable rates. Just make sure you’re marketing aligns with your pricing goals and that you appropriately bill your loyal customers.
If you decide to change things up, track the numbers and see if the variable pricing works better at certain times of the year. These kinds of insights can guide future promotions and price variance tactics.
Hire good people
The bottom line will always come down to people. Who you are as a business and who you hire to help are central to your team’s success.
Be thoughtful and cautious of hiring too quickly if there’s an opportunity to expand your team. Turning to an independent contractor, for instance, allows companies to meet business needs while evaluating things so they can find the ideal balance that promotes even greater growth.
If you need assistance on getting your finances in order, contact us today!
