Do a survey of successful business leaders and you'll find essentially similar qualities. Leadership is not about telling people what to do. Successful leaders demonstrate passion, perseverance and the willingness to get into the action to build their dream. Running a small business means wearing many hats, trying something new almost daily and admitting when help is needed. If you're starting a business or hiring new people...
If your company sells software as a service or SaaS, your business model and accounting may look different than others. Traditional software sales included purchasing a tangible disk - a finite sale that would be taxed appropriately. With more software being "leased" monthly rather than sold, accounting and tax standards are trying to catch up.
Whether you're starting your business and need a solid plan or your company is thriving, there are many benefits to hiring an accounting professional. Your small business may not be ready to hire an accountant or accounting department full-time, however, relying on an experienced hourly-based accountant can save time, money and headaches.
If your company is faced with any of the following, it may be time to invest in hiring an accounting professional.
Small businesses balance on a precarious line when attempting to collect debts from their customers. Business owners trying to grow their business certainly don't want to lose customers. If those same customers don't pay their balances on time, or at all, it hurts the business even more because time and resources are already spent. Depending on the type of small business customers, there is a right way and a wrong way to do debt collection.
If your business is feeling the pressure of financial stress, know that you're not alone. Some of the biggest enterprise corporations - like Netflix and Best Buy - have had to change things to pull out of a business death spiral. Those changes could be revamping marketing strategy, dropping product lines that aren't working, or letting go of staff that doesn't match the new face of the company. The stress could also be brought on by mismanaging company financials.
Typically, no one likes to talk about money. Whether it's personal shame of how you're handling your own debt or asking for money from people who owe you, talking out loud to someone about it can make your palms sweaty. If you're running a small or growing business, it can feel like even more of a struggle. After all, your business provides quality services or products and that's what you do best. Your clients know their part of the deal is paying for those products and services and yet... some invoices go unpaid.
The best way to collect on accounts receivable is to have an actionable plan. Consistency is the only way to know what to expect, when payments are late, and what your options are for getting paid on time.
If you've ever found yourself increasingly frustrated at a client who just won't pay, you may be considering taking them to court. You do have options before taking the legal route but if those options are exhausted, you may be too. If you're still unsure if it is indeed time to pursue litigation of your nonpaying client, you may be looking for a nudge in the right direction.
The word "audit" tends to put a shake in any business owner's boots but it doesn't have to. An accounting audit is a helpful way to ensure your business financials are accurate and up to compliance with any accounting rules and applicable laws. Your accounting information is important if you want to grow your business and avoid punitive actions from regulatory agencies.
Have a great business idea? Getting that idea to market may seem like the next challenge but there are plenty of other challenges ahead. The good news is that others have treaded the path of startup success before you. Yes, you may be creating your own industry or entering one already established but some basic business rules remain the same.
