When it comes to running a small business, most owners and startup managers will agree things can be pretty frantic from month to month. The chase to find sales and investment, hire good staff, and deal with exponential growth can easily create 14-hour workdays for those involved. No surprise, the administrative side of a business can suffer greatly as the priority is to get the product or service to customers and keep the business moving. However, it’s the administrative side that one needs when it comes time for obtaining larger financing, dealing with tax agencies, and meeting regulatory compliance. So it can’t be ignored. Here are three simple tips that will save a start small business lots of headaches in the long run using them early and often.
First, don’t rely on paper accounting records. Use a mobile accounting system to track all the business expenses, and make sure daily receipts and transactions are all recorded and closed into the system at the end of the day. Why? Mobile tracking reduces human error significantly, ensures entry of data is done correctly, and it produces clean reports for decision-making when needed. Daily reconciliation avoids the month-end crunch of paperwork, keeps expenses tracked as they occur, and helps a business manage cash flow far better. After all, one of the biggest challenges of a small business is balancing cash flow versus revenue. You can have lots of sales, but cash in the bank is still needed to actually pay bills.
Second, check and prepare clean accounting reports with your mobile payment facilitator every month with an organized archiving of receipts, invoices, and paperwork supporting that accounting. Why? One of the top three reasons a business can end up in bankruptcy is going sideways on tax reporting and taxes. And tax agencies win almost every time when a business says it can’t find its records to explain a deduction or new funds coming in. The taxes due, plus penalties and interest can skyrocket in a matter of weeks, going well beyond any ability to pay them and keep the business going. Good record-keeping is a must to stay out of tax trouble.
Third, take advantage of electronic payment processing and purchasing as much as possible. It provides an extra defense against fraud in that the transaction can be reversed if an issue is caught within the first 24 hours or so. Even afterwards chargebacks can be initiated where a party doesn’t follow through for a business. Paying in cash or by check doesn’t come with these benefits. And your customers will definitely appreciate a business that takes their credit card, especially if operating online. Businesses of all types see significantly more sales with electronic payment than other methods.
Propay’s payment systems are a huge advantage for small businesses in executing the above three tips. They provide accurate activity statements, process payments of all types, and allow a business to function in the digital world seamlessly. Run your small business the right way and grow fast!