Small Business Accounting Tips to Get on Solid Financial Footing
It can seem daunting to make real improvements to both business and personal financial situations. Expenses keep adding up and piling on, fees and interest rates get raised, unexpected emergencies arise and so much more. However, with the right strategies, anyone can begin improving their situation immediately. Utilize the following eight tips from Margida & Associates, an accounting firm in Stow, Ohio, to start moving in the right direction.
1. Credit Score
While everyone knows about credit scores, few pay enough attention. A credit score makes up the financial DNA of a person or a business, and it’s a strong component of lending — not only for overall eligibility, but for pricing and interests. One of the crucial small business accounting tips to help moving ahead in 2013 is to learn more about improving credit scores, and managing them effectively.
2. Customer Service
One of the most important small business consulting tips that can be applied across the board is that every business is a “customer service” business. Customer service is crucial to maintaining profitability, and growing in the future. Business owners and managers need to have the pulse of their customers, understand what they like and dislike, what they want more of, and so forth. Communication is key, and these same principles can be applied internally towards employee retention, hiring practices and productivity.
3. Strategic Business Plan
Any small business accounting firm will drive home the necessity of a detailed, high quality strategic business plan. This should offer an overview of where a business currently is, and where it’s trying to go, incorporating vision statements, corporate values, objectives, major goals, S.W.O.T. analysis, and more. This helps drive growth internally, while also providing substance for both potential investors or lenders, and prospective clients.
Another one of the most important small business consulting tips is that most businesses need more insurance than they currently have, or realize they need. This includes employment practices liability coverage, general liability and product liability in totals more than the business net worth or value, disability insurance, life insurance, and more.
5. Bank Relations
Bank relations is another often overlooked aspect of small business accounting and management. When a business has a strong relationship with a bank, and a specific banker, they have a valuable ally and resource in times of need. Businesses should be able to reach out to their banks for support and guidance, learn how to avoid unnecessary fees, and to learn more about all of the benefits available to them, such as additional merchant services. Also, remember that the time for a business to get credit is when it doesn’t need it!
6. Legal Documents
Legal documents are important not only for corporate tax planning but also for overall compliance, accurate small business accounting, and more. Corporate records need to be up to date, ensuring that everything is in order. Sales agreements and other procedures need to be binding and seamless. Real estate should be re-appraised with lower land values to reduce taxes. Wills and living wills need to be in place, and up to date, and more.
7. Personal Net Worth
A financial advisor should be utilized to evaluate current financial positioning, but also strategies moving ahead, keeping pace with goals, and so forth. Retirement plans need to be re-evaluated for many individuals given the rapidly changing financial landscape of the past few years, and communication and guidance from a qualified personal and small business accounting firm is crucial.
Evaluating current the current budget and cashflow of a business is a key component to small business accounting. This includes projections for the coming months, bank reconciliations, reviewing the balance sheet and current debts, and even evaluations of clients.
Margida & Associates is an Ohio small business accounting and consulting firm. As an accountant in Stow, Ohio, clients are served throughout the region, including Hudson, Cuyahoga Falls, Akron, Twinsburg and Aurora, offering corporate tax planning services, personal accounting, small business consulting and more. With the right tips and professional assistance, anyone can quickly get on track in 2013. Call Margida & Associates at 330.926.0023 to get started today.
About Margida & Associates
Margida & Associates specializes in small business accounting and corporate tax planning. Their team of certified public accountants also offers personal accounting services and consulting. Located in Stow, Ohio, they have been working with local clients since 2000, and place an emphasis on the highest quality of personal service and professional results. Call 330.926.0023 or visit them online at Margida-Assoc.com to learn more about their services.