Small business Idea
“Small business idea: How to clean up your finances and keep your company in the black,” managing a business can be both rewarding and stressful. While keeping an eye on their small business finances might not be an owner’s top priority when first establishing their business, it should become ingrained into their daily routine. This article says this might be difficult at first, but with a few tips, business owners can begin to maintain their finances and clean up their accounts. Lawrence Teicher, founder of CFOConsulting Services and leading Long Island CPA, discusses five tips to help business owners clean up their financials. (click NEXT to see next idea)
1. Ideas for a Small business Budget: Develop a rolling budget.
Small business Idea “It’s a new year, meaning it’s time to set that budget and stick to it until circumstances warrant a change,” Teicher says. “Once finalized and approved, a budget should not be changed unless the business’ situation changes and a budget revision is necessary. This will help you stay on track with all expenses and allow you the flexibility to recognize that business is dynamic and always changing.”
2. Cash Flow Management: “Cash flow is what keeps all businesses operating,”
Small business Idea! Teicher says. “Don’t leave this up to the accounting department or bookkeeper alone. Owners should keep an eye on cash flow and properly manage disbursements and collections. businesses that do not actively monitor cash flow and working capital run the risk of failure.”
3. Expense Management: Monitor expenses and purchase commitments regularly.
Small business Idea! “Make an effort to devote time each day to review purchase orders to make sure your people are obtaining competitive bids and negotiating favorable terms,” Teicher explains. “This will help owners stay on top of their cash flow and give them a better idea on how costs could be cut in the future.”
4. Personal Finance: Separate business and personal finances. “
Small business Idea! business owners that blur the lines between business and personal finances often find themselves in financial turmoil,” he says. “It can also raise a red flag with the IRS, leaving you with a large potential tax exposure.”
5. Best Accounting: Consult a CPA or part time CFO. “
Small business Idea! Just because you own a business doesn’t mean you are an expert in finance,” he says. “CPAs, accountants and especially part time CFOs with a strategic orientation can help develop, improve and streamline necessary accounting processes. The right outsourced CFO can improve your business’ ability to compete and succeed. black entrepreneurs should recognize areas in which they are nor experts and obtain advice from those that are.”
By providing part-time CFO services on an as-needed basis, CFO Consulting Services is revolutionizing the delivery of financial services. Now small and mid-sized businesses have access to the financial expertise once available to only large businesses. Founded by CPA and financial expert Lawrence Teicher, CFO Consulting Services follows four main principles: independence, objectivity, competence and confidentiality. These core values have led its clients to achieve lasting success in their businesses.
Source: this article was published by The Washington Post, Lawrence Teicher, founder of CFO Consulting Services and leading Long Island CPA, details ways business owners can keep their finances in check.