Tips For Growing Your Small Business in 2020 - What to Know
The key to a successful business is continuous improvement and strategizing, especially when it comes to financial matters. Even if you have a good product or service, your business will become stagnant if you don't actively look for ways to improve your internal processes. If you feel like your business experienced a stifle in growth last year, it's not too late. You can still take action and take several crucial steps to improve your operations. With time and effort, your business will achieve your goals.
From outsourcing bookkeeping to designing an emergency fund, here are some tips that can help grow your business financially in 2020.
Be more mindful of your bookkeeping.
Some businesses only pay close attention to their bookkeeping at the end of the year, and it's usually because of tax season. But being behind on your bookkeeping while trying to operate your business at the same time is a quick way to run it into the ground. It's incredibly important to know your financial standpoint at all times.
That way, when you're having trouble with cash flow, you can instantly strategize a plan to solve it. The last thing you want is getting blindsided that your business is having financial problems. If you have no idea where your venture is at financially, start fixing your bookkeeping before it's too late.
Outsource your bookkeeping.
If you don't want to deal with numbers but still want to keep close track of your bookkeeping, you may opt to just outsource it to a reliable accountant or agency. If you're a small business, you might not even need a full-time bookkeeper. You can just choose to hire someone part-time, like a bookkeeper who will check and update your books a few times a month. When you hire a professional, you can rest assured that someone who knows their stuff is taking care of the financial side of your business. Plus, you can always ask them about your cash flow, profit and loss, revenue and expenses, and other financial matters, you're guaranteed to get a good answer.
Create an emergency fund.
When things go haywire, you need a pool of funds that you can pull from to get you out of a financial disaster. While you can always take out a loan when push comes to shove, it should be your last option. Businesses should make debt reduction a priority to maintain a good credit rating and keep your business afloat. It's always smart to design an emergency fund from a portion of your income so you can have something to rely on in the event that you run into trouble.
Perform a financial forecast.
Financial forecasts help your business meet your goals. You need to create a balance sheet that outlines your projected profits, expenses budget, assets and liabilities, and anticipated borrowing. When you have a solid idea of how much you're going to earn for a certain period, as well as the money you're going to be shelling out, you'll be able to create a better financial plan and make smarter money moves.
In Conclusion
Dealing with numbers can be intimidating, but if you want your business to thrive, you need to stay on top of your finances at all times. If you’re looking to outsource bookkeeping services, Totally Booked can handle all aspects of your bookkeeping. Get in touch with us today. We’re happy to help.