Four Fail-Proof Hacks to Keep Your Business Profitable
By Daryl Blundell
Published May 20, 2016
You, as a business owner, make life sacrifices, take risks to follow your dreams and pursue your passions.
Here are four fail-proof hacks to keep your business financially sound:
- Separate business from personal accounts
Dedicating an account to a business’s income and expenses is vital to ensuring that personal and business expenses are kept tidy.
An itemised business account also helps with managing and projecting cash flow.
- Track business expenses
Supporting the bottom line isn’t just about increasing sales and revenue but also about keeping expenses in check.
Tracking and limiting expenses will automatically increase profit and also bodes well for tax planning. This not only helps with having a clear picture of the business’s financial standing but also helps with reducing costs and potentially increasing tax rebates.
- Get automated: Find a good software accounting tool
Good accounting software that can grow with a business, preferably from a supplier that also started small and understands the challenges of this market, helps a business owner keep a finger on the financial pulse of the entity.
The introduction of cloud based accounting software has also made the costs of this service more financially viable. Technology has the ability to automate and speed up the calculations of business expenses such as tax and payroll and ensure that these are accurate. By automating accounting processes, this will free up time for staff to focus on other activities.
- Accurate invoicing and payment collections
Ensuring that invoicing is accurate, delivered on time and up to date is an essential element of financial success. Using an automated accounting system keeps you up to date on clients who need to pay and when. This also ensures that the cash flow of the business is always kept healthy.
Daryl Blundell, Managing Director for Sage SSB (Start-up and small business) Accounting South and Southern Africa, consisting of Sage One and Sage Pastel Accounting.