Probably the most boring thing about owning a business is accounting, payroll, taxes, etc. Unless you like these things of course! Unfortunately, if you don’t, you have to think about these things when owning a business.
For payroll, you can hire an outside payroll company, have your accounting firm do it, or do it yourself through payroll software. You must file your payroll taxes, otherwise, you can go to jail. You also want to make sure you avoid high late penalties. The government will charge you if you are late on anything.
Make sure you send out invoices to customers promptly because the sooner you send them out, the sooner the money comes in. Cashflow is extremely important. You have to stay on top of open invoices, even if your accounting firm is doing your invoices, more than likely they are not going to make collection calls. You will also need to send out a statement of account, which is a document that outlines everything the customer owes. When you send this out, people tend to pay quicker because they see all of the money they owe.websitextra
You must pay your bills promptly in order to secure a good credit rating. You want to have a good credit rating because prospects are going to run a D&B on your company. Get rid of credit cards that you do not use because this can also harm your credit score. Additionally, avoid running up credit card debt. Do not get into debt no matter what. It will kill the business and stress you out.
There are two very important documents you must have. One, is a balance sheet (assets & liabilities). Assets are cash in the bank, furniture you might have, etc. Liabilities are accounts payable, outstanding loans, collecting 401K from an employee, etc. Second, is an income statement (revenue/expenses/profit.) This would include what your sales and expenses are. You take what you sold, minus expenses, and that is what your profit is. At the end of the year, that profit gets carried over to your balance sheet and becomes part of your owner equity for the next year.cashbackhut
It is very important to understand your financials. If you don’t, get a book, attend a seminar, etc. You don’t want to rely on your accountant. You have to be cautious of embezzlement when hiring an outside company so it’s key to understand your financials and be able to notice anything that doesn’t look right.
CORPORATE TAX FILING
Never do your corporate tax filing yourself. It is complicated and, more importantly, you will always want an accounting firm to sign off on it.
IMPLEMENTATION & SOFTWARE TOOLS
At some point, you have to deliver the product/service. If you are a staffing firm and are placing candidates, you have to make sure they stick or you will not get paid. You also need to always provide high quality service. High quality service means repeat business and referrals. This is one way to help grow your company.zee5news
If you are a staffing company, you need a database that can manage clients and candidates. Make sure you input all clients, candidates, and follow-ups into the solution. A cloud-based software is the way to go with an easy monthly subscription fee. Training is very important. You need to know how to use your software. If you are going to invest in software, use that tool to help grow your business. It will make processes more efficient. It can also help increase customer service. If someone is out of the office and a question comes in from a client, you can take a look at the notes in the software and see where everything was last left with that client. You don’t need to wait for that person to be back in the office.
Once you invest in your software, implement a mandatory use policy for your employees. For this you will need a process handbook. The book defines what you want them to enter and how you want them to enter it. Data did not enter leaves when an employee leaves. This is your data, this is your business, you want to keep it in the business. Additionally, with software you can monitor performance and gather important statistics on employee performance and the business. In order to continue to grow your business, you need a way to generate reports and identify what is going well in your business and where you need to improve.wartechgears