Some small business owners have MBAs, are seasoned in the private sector, and have strong knowledge in all things related to handling the finances for their business. This guide is for business owners who have little-to-no finance experience and want to ensure they are on track to business success.
1. Separate your business and personal finances
The first thing to do to begin getting your business finances in order is to separate your business and personal funds. Doing so will help you save time and money, and it will protect your personal finances from any potential legal trouble.
Creating a business bank account can allow you to separate your personal finances from your business ones. There are a variety of factors to consider when choosing a bank account for your company. Some of these include account fees, account features, and mobile banking capabilities. Be sure to consider all of these when choosing a bank account.
A business credit card is another great way to separate your personal and business finances. It lets you make purchases and establish your business credit without having to worry about transferring money from one account to another. There are a variety of business credit cards choices.
2. Learn the basics of accounting
The next step in managing your small business financials is to learn the basics of accounting. Although it may seem like a challenging task, taking the time to learn the terms and understand your reports will help you save time and money. As you begin to learn about small business financial management concepts, you'll likely encounter many terms that are confusing to understand. Our Accounting Terms Explained That Every Business Owners Should Know blog will help you understand the terminology and give you an idea of what to expect when it comes to accounting terms.
Aside from keeping track of your business expenses and tax returns, you'll also need to keep track of all your revenue and expenses.
If you're struggling to keep track of all of your accounting documents, then you've come to the right place. There are plenty of accounting software options that will help you streamline your tasks and save you time. We offer accounting software training to help you understand how to use some of the most popular accounting software.
3 Hire an accounting professional
Although accounting software can help you manage your business financials, some areas are beyond the capabilities of most small business owners. This is why it is always a good idea to hire a professional to review and improve your books.
No matter what role you decide to take on when it comes to managing the books, it is still essential that you stay involved with your small business' financial management. Doing so will help you stay informed and aware.
4. Focus on your credit
The next step in managing your small business financials is understanding and improving your credit scores. Various factors will affect your ability to get a loan or a property lease for your business.
Your personal credit score is critical to the success of your business. It can also affect your ability to get approved for a loan.
Establishing a good credit score is very important for business owners. Doing so can help them manage their expenses more effectively.
Aside from your personal credit score, you also want to establish a business credit score. Having a business credit score is a vital component of your business identity.
You've already taken the first step toward financial stability. It's time to take the next step and consider financing for your business.
5. Consider your financing options
There are many types of business loans and lender requirements that you'll need to consider before you apply for one. Understanding these requirements will help you make an informed decision when it comes to financing your business.
If you have a solid credit rating and have been operating for a long time, a traditional bank may be able to provide you with great terms. However, if your credit is not stellar, there are other options available.
Alternative lenders are typically more flexible when it comes to making loan decisions. They can consider a variety of factors when it comes to making decisions.
There is a lot involved with getting your business's finances in order. Understanding where your finances are is a great place to start. Schedule an accounting record cleanup and business review today.
Contact us for more information on our services.
Handling business finances is not an easy task. That’s why you have an accounting professional to assist you! But do you ever get utterly confused after having a conversation with your accountant? Understanding some of the key accounting terms will help you grasp what your accounting professional is talking about. By the end, you may just have a deeper understanding of what it is that your accounting professional does.
Here is a list of fifteen common accounting terms that you can refer to when trying to figure out what your accountant just said.
Accounts Payable (AP)
The expenses a business has incurred and recorded, but not yet paid.
Accounts Receivable (AR)
The total amount of a company’s sales where the revenue has not yet been collected.
Anything the business owns that has monetary value.
Balance Sheet (BS)
A financial statement that reports a company’s assets (what they own), liabilities (what they owe), and equity (assets – liabilities or the owner’s balance).
An expense that has not yet been received or paid but your business has agreed to pay in the future.
Book Value (NBV)
The original value of an asset less any depreciation or amortization recorded against it.
Cost of Goods Sold (COGS)
Expenses and costs related to the production of a product or service including materials and labor.
Gross Margin (GM)
A company’s profitability as a percentage after deducting the COGS from the revenue earned.
Gross Profit (GP)
A company’s profitability as a dollar amount after deducting the COGS from the revenue earned.
Income or Profit & Loss Statement (P&L)
A financial statement showing revenue, expenses, and profits over a specified period of time.
The length of time specified in a set of financial statements.
Cash Flow (CF)
The inflow and outflow of cash in a business. Positive cash flow means more money came in than out and vice versa.
A consistent cost that does not change regardless of the amount of sales. Rent and employee salaries are examples of fixed costs.
A cost that changes as the amount of sales changes. Production supplies and raw materials are examples of variable costs.
How quickly something can be converted into cash.
Understanding these terms will help you understand your accounting professional and feel less confused about what information they need from you. Use this accounting jargon when talking with your accountant if you really want to impress them. Or simply refer to this list later to further understand what they are talking about.
At CSB Creative Business Solutions, we are here to help business owners and accountants. Contact us to learn how we can help you.
Shiny app syndrome is real, and lots of business owners have it. How many apps are you using to operate your business?
With the recent shift to remote work, many business owners have compiled tons of apps to do everything they need. All these apps get confusing, and bouncing around from app to app can take up time. These apps also cost money, and the costs of purchasing new apps all of the time adds up.
In an ideal world, there would be a solution to this app overload. A subscription-based service that gives business owners all of the tools they need in one place at a reasonable cost.
Microsoft 365 Business is the solution. Replacing unnecessary apps and fully utilizing Microsoft 365 Business allows you to save money, improve security, and do it all in one place.
1. Save Money
Microsoft 365 Business Standard subscription costs $16.00 a month. It has features that could replace numerous apps, which cost upwards of $300.00 a month. Some of the most popular apps can be replaced with Microsoft 365 Business. If you use these popular apps in your business, you may be able to save over $280.00 a month by fully utilizing Microsoft 365 Business. Saving on app costs will give you money to spend on other aspects of your business and ultimately improve your bottom line.
Shelley Leroux, a recent student in our Microsoft 365 Business Course for Accounting Professionals stated,
“I gained amazing respect and knowledge of the variety of apps that Microsoft has to offer (all in one software). Microsoft can and will replace several other apps that I am currently using.”
2. Improve Security
Microsoft 365 Business allows you to safeguard all of your business data with built-in security features. These features defend against cyber threats like viruses and spam, keeping your information and devices safe. It also keeps all of your customer data protected and secure. With Microsoft 365 Business, you can confidently tell customers that their data is safe. Ease of identity and access management also makes Microsoft 365 Business an essential tool for business security.
3. Do It All in One Place
Bouncing around from app to app takes time out of your day, and when running a business, that is time you just don’t have to waste. Properly implementing Microsoft 365 Business in your business will allow you to manage all of the features and tools you need in one place. This ease of access will help you stay organized and save time while managing your business. Using one platform for collaboration, storage, and connectivity makes working with team members and clients much simpler. Remembering what app to use for each different project or task can be frustrating. Microsoft 365 Business offers a one-stop solution to access your email, collaboration tools, and so much more. With this subscription, everything is in one place.
Microsoft 365 Business is a powerful tool, and you want to ensure you are utilizing it to its full extent. Whether you are using Microsoft 365 Business as a business owner or an accounting professional, we offer courses to teach you how to get the most out of your subscription.
Contact us today at firstname.lastname@example.org to learn about our course and how we can help you streamline your business or accounting practice with Microsoft 365 Business.
Microsoft 365 is full of functions and tools that the average user isn’t aware of. The software is constantly updating to provide users with new tools and features. That’s why taking courses to learn about the software is a worthwhile investment. Fully understanding the ins and outs of Microsoft 365 could save you time and make business management much easier.
Here are five things we bet you didn’t know you could do in Microsoft 365.
1. Translate Live Events with Video Captions
Language barriers make video calls challenging. Microsoft Teams ‘Live Events’ feature offers easy translation. Organizers of the event can select “captions” and “translate to”, then choose up to six languages that attendees can choose from. For example, if the spoken language during the event is English, but there are French attendees, they can choose to have French live captions during the event.
This feature makes global communication much more manageable. Rather than dealing with miscommunication, everyone can fully understand each other regardless of the participant’s native language. Additionally, users can download the transcript later to review everything that was said during the event.
2. Use Keyboard Shortcuts in Teams Meetings
Have you ever had someone walk into the video frame while in an important virtual meeting? Or made some an embarrassing noise in the background? We have all either experienced or witnessed some sort of embarrassment or rude interruption while on a video call. Of course, those are the times when we just can’t find the mute button fast enough. In Microsoft Teams, you can use keyboard shortcuts to avoid a disaster quickly. Here are 3 keyboard shortcuts that may save you from scrambling to find the right button during a meeting.
3. Schedule Emails to Be Sent Later
Do you ever find yourself working late nights or on weekends and don’t want your email recipient to see when you are working? Or do you ever work ahead of schedule and draft an email that you don’t need to send until next week?
With Microsoft Outlook, you can delay the delivery of your emails, so they send when you want them to. When the best time to send an email isn’t the most convenient, this feature is there to help.
4. Customize Your Inbox
Microsoft Outlook also allows you to customize your inbox to make email communication easier. Prioritize and organize your emails, set up automatic default responses, and ultimately change your layout easily. Microsoft Outlook allows you to view your emails how you want to and stay on top of important emails.
5. Convert Scribbles to Text
Do you prefer taking notes with a pen but struggle to keep your handwritten notes organized? With Microsoft OneNote, you can take notes and quickly scribble rather than type; then, it will convert to text for easy reading. This feature is excellent for taking quick notes that you can easily share with others.
These are only a handful of the numerous features that Microsoft 365 offers. When all Microsoft 365 apps are fully utilized, they can replace many apps in your business. This streamlined functionality allows you to improve your bottom line by deleting the apps you no longer need and utilizing the Microsoft 365 subscription you already pay for. Whether you are an accounting professional or a business owner, we have a course for you to teach you how to get the most out of your subscription.
Contact us today to learn how you can fully utilize Microsoft 365.
It's About Leveraging The Technology Without Sacrificing Control
Technology is advancing rapidly, and the number of options are increasing. Often, small business owners who care deeply about their client's privacy fear handing over the control of sensitive information to technology and prefer to stick with a paper-based system. However, regardless of your business's size, leveraging the right technology offers time and cost savings, improved accessibility, privacy and security. Cloud accounting is a modern accounting system that gives you these benefits and more.
1. Time and Cost Savings
Implementing a cloud accounting system into your business will allow automation to save time transferring data, making entries on numerous spreadsheets, and manually recording expenses. Automatic system updates will also save you time and allow you to focus on other essential tasks. We all know that time is money, and cloud accounting will result in cost savings from the time you save. Big impact, small changes!
2. Improved Accessibility
With cloud accounting, you can access up-to-date financial information anywhere and from any device. As long as you have an internet connection, the cloud is accessible and at your fingertip. With old-fashioned desktop-based software, you are limited to your office, and you can only access your data from one place. Cloud accounting allows you to access your financial information from anywhere. You, your accounting professional, and your staff can access up-to-date information at any time from any device, making collaboration easier.
3.Privacy and Security
A common concern we hear from our clients is maintaining privacy and security with technology-based software. Cloud accounting uses military-level encryption to back up, store, and protect data. Since your data is no longer stored on a physical server or hard drive in your office, it is not subject to viruses, malware or spilled coffee destroying the machine. With cloud accounting, data is encrypted at source, and only you and selected members have access. Data is backed up in multiple locations to ensure it is safe and accessible when you need it.
Leveraging technology will advance your business by saving you time and money, improving accessibility to up-to-date information, and improving your privacy and security. You will appreciate peace of mind knowing that your data is protected and secure in the cloud. Through a virtual business consultation, we can determine if cloud accounting is right for you and your business.
If you are ready to advance your business and switch to cloud accounting, contact us to learn how to implement the software without any hassle successfully.
If you want to know more about how to streamline your business contact us at email@example.com
Cathy Badry, BComm, CPB