Five Ways To Keep Your Business Accounting In The Black

As a manager or owner, it has never been more challenging to keep your small business accounting numbers in the black. Staying profitable and viable in these lean times will require a certain amount of savvy and common sense. Chances are, if a person starts their own biz, it’s because they felt passionate about their service or product. Perhaps there was a lack in the market that this entrepreneur decided to fill. Running a company is not so different from being in the circus. It requires courage, the ability to juggle multiple balls and wear an array of different hats. Do all these things, and you’ll stay in the game. Here are five tips for keeping the red ink at bay:

1) Keep your eye on quality: When finances are lean, many individuals try to cut costs at the expense of quality. This is a bad idea. You can never bump up your bottom line by being cheap. Sure, paying your employees less or using inferior materials will save money in the short term. In the long term, your work force will leave you high and dry and your customers will stop using your product or service. Short term savings for belly up down the road.

2) Take care of your employees: Even if you can’t afford to give out big raises or bonuses, you can still take good care of your employees. Give them respect, praise their efforts publicly and privately, write thank you notes and give them a reason to smile. If you can’t afford huge salaries, you can probably afford to give them gift cards for a matinee or pizzas on Friday. Following through on all agreements, paying them on time and listening to their concerns will all be greatly appreciated.

3) Hire an accounting service: Most bosses have their hands full creating great products and keeping staff happy. Keeping track of taxes, receipts and payroll will require a specific skill set that not everyone has. Bookkeepers and accountants are trained and intellectually geared for that line of work. Having all of these accounting chores done in an impeccable manner will mean the difference between audits, bankruptcy and belly up vs. balanced books and black ink.

4) Watch the competition: Even established companies need to keep their eye on the competition. Who are you competing against? Know exactly who they are and what they have to offer then do it better or differently. Knowing one’s competitor gives an edge.

5) Stay passionate: The reason you started a biz is because you were passionate about it. Attending workshops and conferences, taking classes, reading up on your subject will fuel the fire. If you stay passionate about your organization, the good vibes will spread and keep your org viable.

Running a small company has never been easy. Today, there’s more competition than ever. If you want your business accounting to stay in the black, keep your eye on quality, take care of your employees, hire an accounting service, watch the competition and stay passionate. You, your customers and employees will be glad you did.