Don’t Be Fooled By BEST EVER BUSINESS

One might be led to believe that profit is the main objective in a business but in reality it’s the funds flowing in and out of a business which keeps the doors open. The idea of profit is considerably narrow and only looks at expenses and income at a particular point in time. Cash flow, alternatively, is more powerful in the sense that it’s concerned with the movement of money in and out of a small business. It is concerned with the time of which the movement of the money takes place. Profits do not necessarily coincide with their associated money inflows and outflows. The web result is that cash receipts often lag cash payments and while profits may be reported, the business enterprise may experience a short-term dollars shortage. For this reason, it is essential to forecast cash flows together with project likely revenue. In these terms, you should discover how to convert your accrual revenue to your cash flow profit. You have to be in a position to maintain enough cash on hand to run the business, but not so much concerning forfeit possible earnings from different uses.

Why accounting is needed

Help you to function better as a business owner

Make timely decisions
Know when to hire a team of employees
Learn how to price your products
Learn how to label your expense items
Allows you to determine whether to grow or not
Helps with operations projected costs
Stop Fraud and Theft
Control the largest problem is internal theft
Reconcile your books and inventory control of equipment
Raising Capital (help you to explain financials to stakeholders)
Loans
Investors
What are the GUIDELINES in Accounting for SMALLER BUSINESSES to address your common ‘pain points’?
Hire or check with CPA or accountant
What is the simplest way and how often to contact
What experience are you experiencing in my industry?
Identify what’s my break-even point?
freight forwarding measure the overall value of my business
Can you help me grow my business with profit planning techniques
How will you help me to prepare for tax season
What are some special considerations for my particular industry?

To succeed, your company should be profitable. All your business objectives boil down to this one simple fact. But turning a profit is simpler said than done. As a way to boost your bottom line, you have to know what’s going on financially constantly. You also have to be committed to tracking and knowing your KPIs.
Do you know the common Profitability Metrics to Track in Business — key performance indicators (KPI)

Whether you choose to hire an expert or do-it-yourself, there are some metrics that you should absolutely need to keep tabs on at all times:

Outstanding Accounts Payable: Outstanding accounts payable (A/P) shows the total amount of cash you now owe to your suppliers.
Average Cash Burn: Average dollars burn is the rate at which your business’ cash balance is certainly going down on average every month over a specified time period. A negative burn is an effective sign because it indicates your business is generating cash and growing its money reserves.
Cash Runaway: If your organization is operating at a loss, cash runway helps you estimate how many months you can continue before your organization exhausts its cash reserves. Similar to your cash burn, a poor runway is a great sign that your business is growing its cash reserves.
Gross Margin: Gross margin is a percentage that demonstrates the total revenue of your business after subtracting the expenses connected with creating and selling your enterprise’ products. This is a helpful metric to recognize how your revenue compares to your costs, enabling you to make changes accordingly.
Customer Acquisition Cost: By focusing on how much you spend typically to get a new customer, it is possible to tell how many customers it is advisable to generate a profit.
Customer Lifetime Value: You must know your LTV to enable you to predict your own future revenues and estimate the total number of customers you need to grow your profits.
Break-Even Point:Just how much do I have to generate in revenue for my company to generate a profit?Knowing this number will highlight what you should do to turn a revenue (e.g., acquire more buyers, increase prices, or lower operating expenses).
Net Profit: Here is the single most important number you should know for your business to become a financial success. In the event that you aren’t making a profit, your organization isn’t likely to survive for long.
Total revenues comparison with final year/last month. By monitoring and comparing your overall revenues over time, you can make sound business judgements and set better financial targets.
Average revenue per employee. It’s important to know this number to help you set realistic productivity targets and recognize ways to streamline your business operations.
The following checklist lays out a recommended timeline to take care of the accounting functions which will maintain you attuned to the operations of one’s business and streamline your tax preparation. The accuracy and timeliness of the quantities entered will affect the key performance indicators that drive business decisions that require to be made, on an everyday, monthly and annual schedule towards profits.
Daily Accounting Tasks

Review your daily Cashflow position which means you don’t ‘grow broke’.
Since cash may be the fuel for your business, you never wish to be running near empty. Start your day by checking the amount of money you have on hand.
Weekly Accounting Tasks

2. Record Transactions

Record each transaction (billing buyers, receiving cash from buyers, paying vendors, etc.) in the proper account daily or weekly, based on volume. Although recording dealings manually or in Excel bedding is acceptable, it really is probably easier to use accounting program like QuickBooks. The benefits and control far outweigh the cost.

3. Document and File Receipts

Keep copies of most invoices sent, all income receipts (cash, check and charge card deposits) and all cash payments (cash, check, credit card statements, etc.).

Start a vendors record, sorted alphabetically, (Sears under “S”, CVS under “C,”and many others.) for easy access. Create a payroll document sorted by payroll day and a bank statement document sorted by month. A common habit would be to toss all paper receipts right into a box and make an effort to decipher them at tax time, but if you don’t have a small level of transactions, it’s easier to have separate files for assorted receipts kept structured as they come in. Many accounting software systems let you scan paper receipts and prevent physical files altogether

4. Review Unpaid Charges from Vendors

Every business should have an “unpaid vendors” folder. Keep a record of each of your vendors that includes billing dates, amounts due and payment deadline. If vendors offer discounts for early payment, you really should take advantage of that if you have the cash available.

5. Pay Vendors, Sign Checks

Track your accounts payable and also have funds earmarked to pay your suppliers on time to avoid any late fees and maintain favorable relationships with them. If you are able to extend payment dates to net 60 or net 90, the higher. Whether you make payments on line or drop a sign in the mail, keep copies of invoices directed and received using accounting application.