4 Ways to Avoid Financial Challenges in a Small Business

dreamstime_xl_36210307The most critical component of every small business is their finances. It informs every business decision and is crucial for business survival. Keeping finances in order not only saves a lot of time, but it will reduce stress and help you evaluate new business opportunities more clearly for your business. Timely bookkeeping can save businesses from getting surprised by financial struggles. Handling your business finances yourself can turn out to be nightmare, if numbers is not your thing. Here are few tips for managing finances in a as small business. Use Accounting Software: Traditional means for accounting can cost businesses an arm and a leg. However, if you leverage cloud- based accounting software you can get an avalanche of benefits that helps to streamline accounting operations cost-effectively. It will also dispel the need for investing in software, hardware

Use Accounting Software:

Traditional means for accounting can cost businesses an arm and a leg. However, if you leverage cloud- based accounting software you can get an avalanche of benefits that helps to streamline accounting operations cost-effectively. It will also dispel the need for investing in software, hardware upgrades and IT personnel. Several cloud-based accounting software options such as FreshBooks, Sage One, Outright, Kashoo, Xero and QuickBooks provide simplified platform for real-time management of financials. Track Expenses Carefully: Improper financial planning can make startups go out of business fast. In order to ensure success business owners should test marketing tactics and track your return on investment carefully. It is critical to plan for expenses like advertising, marketing, accounting resources, legal fees, technology,

Track Expenses Carefully:

Improper financial planning can make startups go out of business fast. In order to ensure success business owners should test marketing tactics and track your return on investment carefully. It is critical to plan for expenses like advertising, marketing, accounting resources, legal fees, technology, salaries and utilities. It is advisable to overstate your business budget. As marketing costs, for example, are easy to under budget. While computing costs and doing research, other variable costs such as labor costs, admin, shipping, and other cost of goods sold must be included. Variable costs are usually associated with sales. Leverage Technology: Leverage technology to get paid faster. Startups should use online services to process the signatures over document ranging from contracts, bank financials, employment agreements and any other business document. Executing digital signature means enable clients, staff members and partners to sign any document straight from their tablet, smartphone or

Leverage Technology:

Leverage technology to get paid faster. Startups should use online services to process the signatures over document ranging from contracts, bank financials, employment agreements and any other business document. Executing digital signature means enable clients, staff members and partners to sign any document straight from their tablet, smartphone or ipads anywhere, anytime. In addition, business owners don’t have to bother about security concerns as many of these providers add up a timestamp and distinct code to each signature. Several digital signature software services such as SignaShare, Hello sign, eSign Genie, Sky Signature, Docusign are looming up in business world to not only simplify document signing process but also, make sales team more productive while reducing the risks. Avoid Tax Errors: About 40% of small businesses acquire an average of $845 per year in IRS penalties. Keep your financial information organized online so as to collect accurate data monthly, so when the tax time comes around you’re not running to you

Avoid Tax Errors:

About 40% of small businesses acquire an average of $845 per year in IRS penalties. Keep your financial information organized online so as to collect accurate data monthly, so when the tax time comes around you’re not running to you. About 40% of small businesses acquire an average of $845 per year in IRS penalties. Keep your financial information organized online so as to collect accurate data monthly, so when the tax time comes around you’re not running to you

According to a study published by Bloomberg, 80 percent of businesses fail within the first year and a half, which is quite discouraging for striving entrepreneurs. Out of the several reasons that lead to business failure is lack of financial planning and fiscal discipline is the most common. To keep your business running on right track, stay on top of your financial planning. You’ll be glad you did.

About the Author

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Shraddha Tewari, skilled and accomplished ‘Editor’ is formally associated with AceCloudHosting that offers services related to quickbook cloud. In a nutshell, she can be best described as an elusive reader and technology evangelist. Her strong interest in cloud technology and software developments enables her associations to streamline business processes. Twitter Handle: @tewarishraddha1

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