Six key areas small business owners should focus on
By Dexter Ramsey | Special to the NNBV
Remember — if you run a cash-only business, you’re at a higher risk of loss due to theft.
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There’s a lot to consider when you have a small business in the process of growing and improving, and it’s not always easy to know where to focus your efforts. In fact, often it might feel like your business just won’t cooperate and you’re losing control.
How do you stay on track and help your business live up to its potential? Here are six areas that are critical to establishing a solid foundation for growth.
1. Sales
Sales figures can help you determine revenue and inventory purchases, so keeping accurate records is important. Implement detailed policies and procedures for all types of sales, whether it be cash, checks, credit cards or online sales.
Consider using an invoicing system when shipping goods and having proof of delivery. Be sure to check invoices against sales and payments to ensure everything matches up.
2. Accounts receivable
Income from your operations keeps your business going, so making sure you collect—on time—is very important. Establish collection policies in writing, and make sure to follow through on implementing these policies. Here are some ideas:
• Establish a solid system for billing, such as numerical or batch processing
• Have a timely review process for all accounts
• Keep your accounts receivable separate from cash
• Have security measures in place for communicating
3. Accounts Payable
Keeping up on payments to other businesses can help you establish a trustworthy reputation. Unfortunately, AP is an area many businesses struggle with.
To stay out of hot water in this area, consider setting up procedures for cross checking payments; always check pricing options from competitors and vendors; and be sure that billing amounts are being entered correctly.
Read the rest of the article at nnbusinessview.com.
Dexter Ramsey is a CPA and tax manager at Eide Bailly who helps clients comply with tax laws and think proactively about their business challenges and opportunities. Learn more at http://www.eidebailly.com.