Posted on December 2, 2019
When you start your own business, there are a lot of things to think about. You’re concentrating on that thing that you do best and may not even consider some of the accounting tasks that need to be done. Invoicing could be one of them. First of all, what do we mean by Invoicing? It’s pretty simple. If you want to be paid, you need to send your customer an invoice. It’s the document that explains what you sold and how much you charged for it. Your customer wants to see this document for a couple of reasons. First, he [...]
Posted on December 2, 2019
Many small businesses struggle with one very important component daily - Cash Flow. What is Cash Flow? What does that really mean? And why is it so important? On a basic level, it’s straightforward. Money flows into your business - payments from your customers - and money flows out of your business - payroll, expenses, etc. If you have more coming in than going out, you have Positive Cash Flow. If you have more going out than coming in, that’s the opposite: Negative Cash Flow. Obviously, you’d rather have positive cash flow because it’s exactly what it sounds like - [...]
Posted on December 2, 2019
The total in Accounts Receivable on your balance sheet is a great number to have. It means you sold some widgets or services, and someone is going to pay you for them. It’s a clear look at your future. A nice amount of money is coming your way. That’s great! But wouldn’t it be even nicer to have that money in your bank account now instead of in your future? While you will probably get that money eventually, how can you shorten the time it takes? Like in all things, start with good Communication. Are your terms clearly stated on [...]
Posted on November 6, 2019
Research has shown that  62% of invoices take 60 days or more to be paid. Unless you’re up for having to deal with the long and expensive legal process of retrieving what you’re owed, it’s best to work with your clients beforehand to prevent late payments from occurring.  Though sometimes, despite your best efforts at communication and understanding, a customer just doesn’t pay you. You know what happens to you when you pay your credit card late: You get a late fee added to your balance. Can you do that to your customers? How can you charge the late payment [...]
Posted on November 5, 2019
If you have a business, you probably know you need to track your income and expenses. But what is the best way to do that? Many small businesses begin the easy way - spreadsheets. But if you’re busy, you will very quickly find that spreadsheets are a tedious way to record everything. Even if you’re an expert at building formulas and creating macros, you’re still doing a lot of manual work. Do you have time for that? No, you don’t. Can you afford to pay someone to do that? Maybe, but your money is better spent on Small Business Accounting [...]