Most of the Small Businesses fail within their first five years, only one-third make it past their tenth anniversary, whereas staying on top of money management and keeping business on solid financial footing is one of the most challenging and important aspects of business ownership.
So let’s see few answers from experienced entrepreneurs who answered when asked for advice.
Keep an eye on numbers:
The best way to make sure your business stays solvent is to live by your numbers, which includes revenue, expenses, payroll, overhead, etc. Learn to read spreadsheets and balance sheet, create financial models and forecast sales, whether by finding a mentor, partner or by HR and Payroll software that can help you to feature the best deals for your business.
Track your costs:
You may be tempted to celebrate when your business has a great week, month or year. Just make sure you’re taking any related additional costs into account. If sales grew because you improved investment through online ads or sponsored a community event, that’s great. Your marketing strategy is working! But don’t forget to look at how much you spent on your additional revenue to figure out your return on investment.
Manage your expenses in real time:
Do you throw receipts in a shoe-box (real or virtual) and sort them once a year? Break that habit now. As soon as you spend money, whether it’s on supplies, travelling or any other business expenses, record it. This minimizes your overhead costs.
Value your payment:
This could make you think, not a big deal for you. But by paying your employees, suppliers, associates on time would help your organization to grow robust.
Human error can result in serious complications both financial and legal. A misplaced decimal point could cause serious issues, but automation and software reduces the amount of fallacy to a bare minimum.
HR Chronicle not only just helps to automate the most common process such as payroll information but even helps to maintain the work processes like expense tracking, payroll forecasting and more, appropriately.
Contact us to find out how HR Chronicle can save you hidden money.