All the business houses should stay focused on accounting if you do not want your business to sink before it grows. Accounting includes managing bills payable, receivables, internal and external debts including other marketing expenses.
Here we suggest some important marketing strategies to be followed to save your company and grow organically in a competitive edge.
- Get rid of the internal accounting division
In small scale companies, the entrepreneurs might feel ready to perform all the accounting tasks including marketing and sales. This may be due to cost-cutting and capital constraints. But we suggest you hire a professional accountant to ensure that everything goes well and you aren’t racking up the errors. Hiring accounting services gives you assurance and peace of mind that someone with greater experience and deeper understanding is working on your finances. Hence for a startup, it is difficult to keep a separate internal accounting division. So the best solution to the problem is to outsource accounting services to a freelancer, outsourcing service providers or a part-time accountant. Here you are not paying a full-time wage hence you need to pay for the services you take. This is a better approach to get your required things done as per priority.
- Separate the borrowed funds from accounts receivables
Don’t forget the thumb rule of accounting, owner and business are two separate entities. So never mix your business receivables with the borrowed fund. Accounts receivable are the income of your business and that will appear in your profit and loss statement; hence, on the other hand, borrowed funds are the loans for the business. A business owner takes this loan for marketing campaigns, startup capital or other initial things in the early days. This borrowed fund is a liability for the business and should not be confused with receivables.
- Keep an eye on the clients who get away with not paying balances
Inclined to the next accounting concept that is the realization concept. Here money is not recognized as an income till it is not realized. A large amount in the receivables column of your books of account does not mean you have such liquidity. You cannot count the money until you get cash against it. Those are only the amount which is earned but not received. There may be a chance of bad debt to the amount if it could not be realized on time. So don’t let your clients go without paying the amount due. Send them invoices once you finished the task. Ensure not to extend credit till the last invoice is not been cleared. The professionals of Outsourced Bookkeeping know how to update your billing and invoicing and keep your company afloat.
- Make a list of daily expenses so you can budget for the coming weeks.
Following recording everyday expenses and analyzing it to downsize those expenses for the future is a good idea. Focusing on your business expenses daily instead of recording it weekly will help you control your business expenses. Thus you can do spend management. The strategy helps you to predict future expenses as well as determine the working capital needed for the smooth running of the business.
- Plan a minimum monthly profit
Yes, business involves risk. It is based on market behavior and future uncertainty. Every business is operated to make a profit. Hence there are strategies to be played to survive and to make some return. So the business owner should calculate a rough profit figure in his mind and plan accordingly to attain it. That is how the small business works. They establish goals and try their level best to achieve it through implementing an accurate system of expenses. Thus they can plan the minimum income they want to get every month. This is a safe plan where you keep the risk level at a minimum.
We the Outsourced Bookkeeping services can help you in managing your business by making you following the advanced business management techniques and profitability strategies. We aim to make your business stable on a competitive edge. Through fixing the achievable target your staff will get a clear picture of their duties and responsibility. They won’t get confused with any ambiguity. Thus they can contribute their best to the company on the road of success. Your staffs are your organization’s strengths. Make them empower. Reduce their workload by delegating the tedious accounting and finance tasks to us for a healthy and stable every day of business operation.