By Shraddha Tewari
The most critical component for a new startup is financial integrity. It forms the lifeblood of every business and is crucial for survival. Keeping finances in order not only helps save time, but it also allows small business owners to leverage business opportunities. Here are few tips on how to manage finances and reduce headaches in your small business.
Use the Cloud for Better Accounting
From managing social media platforms to accounting, the cloud has permeated almost every field of business. Cloud solutions have completely transformed the way we run various business operations by offering stability through its diverse mediums of redundancy. In line with this thought, hotels, local shops and large accounting firms are increasingly making a switch to cloud solutions.
Traditional means for accounting can cost businesses an arm and a leg. However, cloud accounting offer an avalanche of benefits that helps to streamline accounting operations cost-effectively by dispelling the need for investing in software, hardware upgrades and other IT personnel. Several cloud-based accounting softwares such as FreshBooks, Outright, Kashoo and QuickBooks provide simplified platform for real-time management of financials.
Watch Out for Every Expense
Improper financial planning can make startups land up at the valley of death. Hence, in order to ensure a sure shot at success, it is critical to plan for expenses for advertising, marketing, accounting resources, legal fees, technology, salaries and other utilities. It is advisable to overstate the costs in order to bypass less important expenses. Robust planning in each department is vital. While computing costs and doing research, other variable costs such as labour, goods sold and other financial activity must be included.
Use Economical Solutions
Startups can use online services to process the signatures ranging from financial, legal to any other business document. Several digital signature software services such as SignaShare, Hello sign, eSign Genie, Sky Signature, Docusign not only simplify the document signing process, but also make the sales team more productive while reducing the risks.
By facilitating the use of digital signature software, businesses can replace the administrative inconveniences linked to pen-and-paper document signing platform with a refined intuitive user interface. Also, executing digital signature means enabling clients, staff members and partners to sign any document straight from their tablet, smartphone or iPads…anywhere, anytime.
Avoid Taxation Errors
About 40% of small businesses acquire an average of $845 per year in IRS penalties. It is advisable to ensure the accuracy of every figure on return files. Information must be kept organized online so accurate data can be collected instantly, which is useful for when the tax time comes around. Also, keeping an eye on accounting errors can save businesses from faulty deductions.
So, what is holding back infancy-stage startups from crossing the harbor into success? Is it inability or fear of failure that stops businesses from expanding their reach beyond the horizons? Failing to keep a check on these potential financial hindrances may hit startups hard. In fact, failure is often caused by a lack of financial planning. So it is critical for businesses to perform a robust financial planning to keep running on right track.