You don’t need to be an expert accountant to understand basic accounting requirements. But no matter how well-versed you are in the books, certain accounting tasks are bound to be overwhelming as your company starts to grow more and more successfully. You can rely on affordable bookkeeping services online to keep you and your company afloat. But knowing the common small business accounting challenges for yourself can make it so much easier for you to overcome them.
Common Small Business Accounting Challenges
Below, we will talk about some of the biggest hurdles your company might face when staying on track with your accounting needs. Indevia provides tips and automated solutions to improve your bookkeeping processes without ever falling behind.
Challenge #1: No Data Backups
One of the most common mistakes that small companies and franchise owners will make when first opening their businesses are forgetting to make copies and backups of their transactions. Even when just dealing with paper receipts, it is crucial that you make a copy in case you ever lose the original documents. You can keep physical paper copies as well as digital copies through a secure cloud service that will give you peace of mind that your important financial information will never be lost.
Challenge #2: Lack of Expense Tracking
Tracking expenses might be a simple enough task when you are first starting out, but it can quickly get out of hand. It is not only vital to track your expenses correctly, but it is also the law. You will have a much easier time handling your taxes and understanding your financial state at the end of each fiscal period with proper expense tracking.
You might be in a good position to reconcile your expenses twice a year, or once every six months. Others prefer to reconcile much more frequently, using monthly or even weekly meetings to make sure every single piece of financial information is on the right track. This also helps you identify any red flags in your statements before the tax season comes along.
Challenge #3: Cutting Costs the Wrong Way
A lot of business owners have the instinct to cut costs immediately when faced with a financial obstacle. However, there is such a thing as pinching too many pennies. In fact, experts have concluded that cutting small costs for marginal gains is just not worth all the work you have to put in. New franchise owners need to understand the right way to cut costs – and when not to cut costs at all. Carefully measure your company’s needs and find the places where every penny counts before you start making cuts across the board.
Challenge #4: Not Enough Cash Flow
Starting a business means relying heavily on a healthy cash flow. This is one of the earliest and most frequent problems that small companies can run into when first opening their operations for the first time. If you are struggling to find a way to maintain a good amount of cash flow, you might benefit from automated accounting solutions to take some of those financial burdens off of your shoulders.
You shouldn’t have to run the books on your own, especially if you are trying to ensure that other business operations run smoothly on a day-to-day basis. You need reliable software that will manage your accounting for you and give you better peace of mind.
Challenge #5: No Automated Help
Again, it’s not a good idea to manage bookkeeping needs with a one-person staff. You need some extra hands on deck if you are going to prevent your company from falling behind once again. But that doesn’t mean you have the money or resources to hire more personnel. If you are in this position, then automated accounting software might be the perfect solution for you.
Indevia specializes in creating personalized solutions aimed toward accounting process improvement for small businesses. If you own a franchise or a small business and you are having trouble managing the books on your own, you can get in touch with one of our bookkeeping experts to learn more about how an automated software program can fine-tune your accounting needs and run multiple processes in the background so you never have to worry.
Clean up your books and get the kind of help that’s free of human error. Contact Indevia today to learn more.