New and small business owners often wear many hats at once, including sales, marketing, HR, and more. The one role that consumes a good portion of time, and can lead to a lot of late nights is accounting. For business owners who might not have a background in accounting, the process can be challenging, and a small mistake can have big consequences. Fortunately, there are a few tools that small business owners can use to streamline the accounting process.
Hire a CPA
A lot of small business owners spend late nights and experience many headaches trying to get through the accounting process. However, a CPA is trained in accounting, and they are aware of both federal and state tax guidelines to help your business stay on track and save money. Most small business owners meet with their CPAs weekly, once a month, or once per quarter. Hiring a CPA may seem like an extra business expense, but with a professional going through the accounting process, your business can save lots of money in the long run, and avoid accounting errors that could end up costing a lot.
Cloud-based services have helped revolutionize the way we do business. Having a safe and secure place to store information is great in case of local computer failures. Cloud-based accounting offers a wide range of options to small business owners, and can be linked to payroll, taxes, and other functions. Cloud-based accounting helps to create budgets, projections, and more to give business owners more insight into how to steer their operations. Cloud-based accounting can also be scaled to your business, and subscriptions for services are much more affordable than they were just a few years ago.
The Accounting Process and Receivables
One of the big hold-ups in the accounting process is the lag in payment on receivables. Business plans and budgets often get put on hold due to outstanding client invoices. Factoring offers fast turnaround on unpaid invoices to improve cash flow, so business owners can streamline the accounting process and achieve a better ratio between sales and revenue. Factoring is quick, simple, and transparent, with no contracts or hidden fees. Small business owners use factoring services in conjunction with a CPA or cloud-based accounting to get a better handle on finances and long-term plans.
If you want to learn more about factoring services, contact the team at New Century Financial today.