Five Financial Management Tips For Small Businesses

Many small business owners are driven by entrepreneurial inspiration to start their own companies. Small businesses drive new jobs and innovative ideas. However, for all the “pros” which accompany running your own business – the thrill of bringing a new idea to market, fulfilling a goal, flexible schedules – there are also challenges. Owning the business may be the simple part. Running it smoothly and profitably often can prove difficult. Following are five financial management tips that should assist in running your small business more effectively so that you can enjoy all the “pros” that influenced the decision to own a small business in the first place.

1 Develop a Budget – This is critical to the success of any business. A budget that lists your projected revenue and expenses serves as a road map in guiding business decisions and making sure you carefully consider financial decisions with the “big picture” in mind. When you create a budget, you can see the cash inflows and outflows. A budget functions as a financial barometer, allowing you to project accordingly, optimize and manage cash flow, as well as anticipate future financial needs.

2 Stay Abreast of Your Financials – As a small business owner, implement a routine practice of reviewing your financial reports. Staying abreast of your financials also equates to maintaining up-to-date accounting and bookkeeping records, as well as managing your expenses, payables and receivables. Timely and accurate access to updated financials allows you to make informed decisions quickly that could significantly impact your company’s profitability.

3 Retain the Expertise You Need – Recognize that running a small company or start-up does not require you to single handedly perform every function associated with that company. Focus your attention and efforts on growing your business. Establish partnerships with companies or contractors who possess expertise in areas at which you are not adept or those to whom you can outsource non-core tasks. This will be more efficient for you in the long run, as well as allow you to avoid costly mistakes that could occur by performing functions at which you have no experience. Leverage partnerships for CFO, CMO, IT or bookkeeping services to provide you with scalable access to expertise when you need it.

4 Invest in Technology – Recognize that investing in technology can significantly impact the infrastructure of a small business making it operationally more efficient. Use technology to automate processes wherever possible to reduce manual functions that take employee focus off of value added services. Accounting systems and software programs that assist with payroll, data entry or time and billing are examples of functions that can be automated with investments in technology.

5 Anticipate Changes – Above all, embrace the ability to be flexible and make pivotal decisions that can positively impact your business. One of the biggest “pros” of running a small business as well partnering with a small business is the ability to change directions quickly when deemed necessary. Anticipate and plan for change to remain competitive in the market.

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Tips for Outsourcing Your Business’ Payroll Accounting

Does your business have their finances in flawless order? Very few companies are able to obtain this flawless financial state, but it is something that they strive to achieve. An action that can be taken to achieve that financial flawless stage is having a payroll service. Now this is probably leaving you with the question, what is payroll service? It is simple; it is a service that allows an employer to manage all the dues that are owed to the employee. The dues can be anything from; wages, compensation, mediclaim, social security, to any other that may apply that the company my have to owe the employee. Once everything is calculated up as a whole, it is then generated into a check or direct deposit to the employee.

Do you want your company to handle its work more efficiently? The answer to the question is simple; a payroll service can help you do just that. With this service it allows the owner to tackle others tasks that are more important to the company. Want to establish an account with a payroll service? If you are the owner of the company all you have to do is provide the list of your employees and their various work and hours. Then the payroll service does all calculations and paying the employees. The benefits of payroll service are cut and dry, meaning a business benefits no matter what just by using payroll service.

Now with having the facts and being convinced about the benefits of a payroll company, now know how to select the best payroll company for your business. One of the most important things that you need is to know what kind of resources you have available. One way to do this is to select payroll software that will help to; calculate payments to employees, send out checks, and file taxes. There is only one drawback of having the payroll software. That drawback is it will not do the function of direct deposit in the employee’s name. To make sure that the accounting tasks of the software are done to perfection, it is required to hire someone with knowledge of the payroll software. Just like another software or program, you have to do periodic updates to ensure the software runs smoothly. Some other things that need to do to make sure your payroll software is running smoothly are; making sure customer support for the software works and installing a printer, just to name a few. One of the major factors as a business owner is having knowledge of the payroll laws.

If you have limited resources and time, outsourcing payroll duties is a great option. All you have to do is provide the needed information about your company and employees, to the outsourcing payroll service. Then they take care of all other company needs like; send out checks, tax payments, tax return filing, and taking care of year end forms. There is another option that can be consider and that is online payroll, this service can be altered to suite how your needs are.

Whichever option you decide to choose, just make sure that the payroll is maintain perfectly. By maintaining a perfect payroll, it will allow you to avoid many company hassles that can appear in the future.

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Payroll Software – Tips for Handling Payroll for Multiple Companies

Managing payroll seems fairly simple when a business starts up, but once a company grows and must manage the payroll for multiple locations, things become exponentially more complex. There are several locations, employee types, departments, and more that must be managed and maintained. And then there is the method of distributing pay to employees at all locations. Payroll software can help you manage this process and make multiple company payroll run like a top. Consider these tips for handling payroll for multiple companies.

Track employee locations.

Set up your payroll software system to track employee locations by profit centers, departments, companies, or a combination of these. Then when it’s time to run payroll reports, you can filter out the area(s) you have tracked.  For example, you could see the pay by department in one location, or your payroll costs by profit center, etc. This is also helpful for check printing, since you can print all your pay checks and sort by department and employee, or print paychecks for employees by the company they work in, which makes distribution much simpler.

Run payroll for multiple departments under one company.

If you are a single employer with multiple locations and want to run payroll for each location, setting them up as companies under one employer or by department can be extremely useful. This allows you to post the payroll data to the appropriate account, so you can keep track of expenses by location, and more. For instance, departments could be used across companies, so you could have an “office” department that could be used by all companies. Then when you process payroll, you can filter out and pay all office departments from all companies and pay them in the same pay run.

Pay employees via direct deposit.

By setting up your employees to be paid via direct deposit, you eliminate the worry of having to mail or deliver paychecks to multiple locations. Pay is simply deposited into employee accounts on pay day, and they receive a direct deposit pay advice, which is a sheet of paper representing their pay stub. Make things even more efficient by offering your employees the option of receiving and accessing pay advices electronically.

Take the time to learn more about what your payroll software has to offer, and you may just find ways to make your job of running payroll for multiple companies a simpler and faster process.

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