Sagar Tarawade is an entrepreneur and CEO of SBT Research Inc.

Irrespective of your business profile, you can manage your company’s finances using some simple accounting strategies. One of the areas of work that you need to master from the very beginning of your business is finances and accounts. The right time to manage all your business finances is from the start of this journey. A crucial factor in the constant growth of small businesses around the globe is a well-planned and implemented accounting strategy. As a business owner, you must track your revenues, expenditures and profits systematically right from the start of your business.

To avoid running into issues such as improper taxation details or chaotic bookkeeping, it is wise to plan your accounting strategy well beforehand. Here are some finance and accounting strategies for small businesses that can help you to manage your work operations and plan ahead of time to achieve your business goals.

1. Separate business and personal expenses: One of the most common mistakes that small businesses commit is mixing up their personal and professional expenditures. When you start a new business, it becomes mandatory to have a separate account for your business-related finances. Having an exclusive business account streamlines the entire business transaction and makes it easy to maintain all the necessary records. It is always advisable to avoid making any personal payment via your business account or vice versa. Maintaining an account exclusively for business investments is the first step toward a successful accounting strategy.

2. Consider hiring a professional: One of the key factors behind well-maintained business finances and accounting is an experienced accountant. No matter how new you are in the business, you should seriously consider hiring a professional to look after your accounts. Bookkeeping is a crucial part of any business organization and it needs to be done expertly. Seek an accountant who can help you in calculating your money, keeping track of your expenses and designing a feasible financial plan. Remember, the success of your business depends largely on accurate financial managing strategies.

3. Use appropriate accounting software: The advancement in technology has made operational accounting quite organized. There is software available in the market that allows you to streamline the entire accounting process. Appropriate accounting software can track your income and expenses, categorize them accordingly, send and pay invoices and generate reports periodically. You need to choose the most appropriate one that resonates well with your business objectives and has a time-saving user-friendly interface. Go for software that can help you accurately and efficiently in maintaining your business finances.

4. Keep track of business cash flow: It is very important to minutely monitor and keep a track of the cash flow within an organization. You need to document all your business transactions very precisely. Documentation helps you in remembering all the business-related expenditures. One way to track the cash flow is to categorize each expense and assign it a label. Always try to store all the data related to your expenditure in the system digitally. You can even add it to your accounting software for better tracking and accessibility.

5. Back up your account records: Machines are, after all, machines and not humans, so there is always a chance of unpredictable system crashes, data mishandling or any other mishap that may occur to your stored data. Therefore, it becomes very apparent that you must always back up your bookkeeping files and essential accounting data to ensure no crucial information related to your finances is lost during such a technical glitch. To be on the safer side, always have at least two to three copies of your bookkeeping data.

Finance is the vertebrae of any business organization. Irrespective of your business profile, you must try to bring the above-mentioned strategies into practice to avoid any discrepancies later. Accounting for small businesses is not very complex, so if you follow the correct steps right from the beginning, things will be much easier for you later. Remember, the right business finance and accounting strategy can help you withstand any unforeseen circumstances later in the business.


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