Important tips that can save your business
Here are some simple tips that are can help you in the long run:
- Avoid unmanaged cash flow: Keeping a watchful eye on your records. Bookkeepers and accountants personally understand your resources and can track every transaction down to the cent.
- Pay attention to account receivable and accounts payable: Be familiar with these terms. Accounts payable are amounts a company owes since it purchased goods/services on credit from a supplier. Accounts receivable are amounts a company has a right to collect because it sold goods/services on credit to a buyer.
Your business may be going smoothly but your bank account reflects that you aren’t being paid by customers.
- Know your COGS and margins: Cost of goods sold describes the accumulated total costs used to create a product/service. It includes material, labor and allocated overhead that helps bring the item/service to the point of sale. To keep margins up, you need to keep your COGS down
- Don’t overpay your taxes: pay what you owe. Keep records of all your receipts. You have the right to a correct tax bill. Research your claims and taking full advantage of IRS programs.
- Watch time as closely as you do your money: “Time is money” is especially true while running a business. Opportunity costs can be dangerous. Accolate time and effort accordingly across your team.