Top 5 tips to managing Small business Finances
Wednesday October 31, 2018,
5 min Read
Why small business failure rates are declining?
Here is some positive news hidden in the gloomy business days for small businesses. Small business failure rate is on a long term decline. The rate at which American employers go under has fallen by 30 percent since 1977.
The rate is still far from linear. Business failure rates rise in recessions and decline in expansions. But the underlying trend is there. A smaller fraction of companies shut down now than the ratio that was three decades ago.
Economists are still looking for reasons to “Why?”. But we’re sure of one major umbrella factor- Finance management. Small businesses always lacked the confidence to manage their finances. Over expenditure, unnecessary investments and lack of knowledge for management of finances.
Here are top 5 tips you can incorporate too, to keep your finance management game strong.
1. Pay yourself first.
Small business owners play a major role in building up the empire and company should compensate that. This helps you to ensure that your business finances are completely detached from your personal finances. It helps in keeping both of them in good shape.
Many small business owners often neglect to pay themselves. It is as important as you pay everyone else. Most importantly you’re the driving force behind it. Remember, you're part of the business and you need to compensate yourself as much as you pay others.
2. Have good billing strategy.
Every businesses has one client that is a pain in their head when it comes to getting paid. Managing small business finances also means managing cash flow to maintain healthy business operations on every day basis.
In order, to avoid chances of any conflicts in future, it is important to have best billing software for small business. A small business invoice software is a 360* package that has the power to manage your entire business finances and invoicing alone.
It lets you manage your entire invoicing online and save all the important data on cloud too. You are no more required to compile paper plies and save them in a different room. It lets you save time, efforts and most important extra costs spent on pen, paper, ink and staff to do that task.
After, you have set an invoicing software for small business. You’re required to set some terms and conditions too. Set payment terms and inform your clients well in advance. This way you’re eradicatinm all the possible chances of conflicts.
3. Track taxes.
Tracking and managing taxes is a rocket science we all fail to and run to our accountants like a diseased patient. But, to your surprise managing taxes can be easy if you apply little more smartly.
An “invested on” smart small business invoicing software helps you keep a track of your cash flow as well, taxes. Finance management makes taxing super smooth and easy.
4. Monitor your books.
Monitoring is obvious, but very important. Keep a tab on your books to make sure you’re on the right track. Unknowingly spending on activities can only be tracked if you’re aware.
A good Bookkeeper is always a better businessman! And the cherry on the top is when your work is done automatically. The best invoicing software for small business automatically creates reports for analysis, reducing your work to minimum. now , you have more time to strategize than to entangle threads.
5. Keep up with good financial habits.
Setting up internal financial protocols and then keeping up with it is very important. Start with simple habits such as, blocking a set time and then reviewing you books. This will help you keep a regular tab of your cash flow.
It can go a long way in protecting the financial health of your business. Keeping up with your finances can help you mitigate fraud or risk.
A small business invoicing software helps you as a guide and works as a full time accountant without demanding anything in extra. It fits in your pocket and carries your business with it.
LET'S DIVE INTO THE WORLD OF ONLINE INVOICING WITH INVOICERA
Invoicera is a cloud based Invoicing software for small business empowering account receivable & payable management for over 3 millions businesses worldwide since last 13 years.
Invoicera helps to automate and simplify your business processes and communication with online Invoicing and payments, expense management, recurring/subscription billing, client/vendor panels, time tracking, workflows, multi companies, multi lingual & multi currency support, staff permissioning, financial reporting & analysis, purchase order management, sub-contractor billing and time management, comprehensive reporting and APIs for 3rd party integration.
Invoicera is a cloud based Invoicing and billing solution empowering account receivable & payable management for over 3 millions businesses worldwide since last 12 years.
Invoicera helps to automate and simplify your business processes and communication with features like:
- Online invoicing & payments
- Invoice Approval Process
- Expense tracking
- Auto Recurring billing/subscription billing
- Client/Vendor panels
- Time tracking
- Custom workflow management
- Multi language & currency support
- Financial reporting & analysis
- Purchase orders
- Late Payment Reminders
- Instant payments with multiple payment gateways
- Staff permissioning
- Invoice scheduling
- Credit note management
- Customized invoice templates
- Sub contractor billing and time management
- Support for 30+ payment gateways
- Comprehensive reporting
- API access for 3rd party integration