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As a small business owner, you have a special skill set for the products or services you provide, such as baked goods, auto repair or photography. However, the administrative tasks, especially those related to finances, are oftentimes more difficult to get a handle on. If you need to get this part of your business organized, these four tips can help.
Whether you have a few employees or many, managing payroll can be a big undertaking. Using a payroll system not only saves you time and energy but also keeps payments to your employees clearly documented and organized should questions ever arise. You can also avoid making costly errors like misclassifying employees or forgetting overtime pay.
Payroll services vary; do your research to find one that is within your budget and has the features you require, such as auto payroll and same-day direct deposits. Many programs offer a free trial so you can test the product before committing. Once you narrow down the options, utilize any free trials before making a final decision. This helps you get a better idea of each product and how it runs.
Find Accounting Help
If accounting questions leave you dazed and confused, you are not alone. One report states that 60% of small business owners struggle when it comes to accounting. Employing an accountant provides professional insight into your basic financial questions or complex monetary situations. Some services these specialists provide include creating a budget, filing taxes, reducing overhead costs and even answering questions regarding payroll. Just be sure to hire an accountant who focuses on small businesses.
While you can purchase accounting programs, working with a real person has advantages. If you have financial questions, a qualified professional is right there, ready to help, whether it is via a quick email, a phone call or an in-person meeting. Plus, he or she can provide custom recommendations and feedback that may be more challenging for a machine to accomplish.
Another option is to handle your own accounting, but you’ll need to learn the ins and outs first. When you earn an accounting degree, you’ll learn how to evaluate financial information so you can make more informed business decisions. Fortunately, you can enroll in an online learning program which will give you the flexibility to work as you learn.
Invest in an Invoice System
Similar to a payroll service, an invoice system tracks client billing. While binders and excel documents may get the job done, a dedicated software system provides one secure place to store and track invoices and payments. Some programs also create quotes, so you can easily access exactly how much a new customer should be charged. As with the payroll system, utilize any free trials to ensure the program meets the unique needs of your business.
Delegate Tasks to an Employee
Your employees provide excellent resources for keeping everyday financial responsibilities in order. While there are certain duties you must manage as the business owner, a competent staff member can take some of the simpler tasks off your plate.
Who handles these assignments depends mostly on the size of your business. If you have many customers, you probably want a bookkeeper, someone with past financial management experience, to oversee the invoicing and payroll system responsibilities. If you have fewer customers or your jobs are more spread out, an assistant can probably handle the tasks just as well.
Although you can easily oversee many daily tasks as a business owner, administrative and financial chores often prove challenging even to the savviest entrepreneur. Apply these four tips to create an organized process flow for administering the various financial duties at your company.