The U.S. Small Business Administration (SBA) has created a list of some critical finanical tools that every owner should be using to effectively plan for the future success of their business!
When used correctly and consistently these tools can improve productivity, reduce costs and increase profit margins. With the right financial reports and processes in place business owners will have the ability to make sound, swift decisions that will grow their business and provide them with the time to focus on the matters that are most important to them.
Following are the top 5 finanical tools that owners should begin using right away:
- Accounting Software – Organizing your business expenses in a computerized accounting system rather than paper-based accounting offers numerous benefits. With accounting software such as Intuit QuickBooks™; a business can free up time by simplifying, automating, and tracking its key financial data. This is especially useful when tax season comes around.
- Business Plan Software – Whether you aim to present a plan to an investor, creating a plan to get your ideas in order, or planning for growth or expansion, the business plan software you select should be simple to use and help you reach your goals. SBA’s Business Plan Tool provides a step-by-step guide to help you get started. To access this tool please visit: www.sba.gov/tools/business-plan/1.
- Financial Analysis – Knowing your numbers is the key to managing a successful business. By keeping tabs on your profit and loss statement, cash flow statement and balance sheet all in one place, you will be able to see where your business stands – and take steps to stay profitable. Explore Score’s library of financial statement templates to get started: www.score.org/resources/business-planning-financial-statements-template-gallery.
- Inventory Management – Every business needs an inventory management system. Whether you’re in wholesale, retail, service or basically any other industry, you have to keep track of your products. You can efficiently track inventory with cloud-based solutions available in the marketplace. Be sure to do your due diligence when choosing the right inventory tracking software for your business.
- Invoicing Software – Handling all billing by hand takes a great deal of time, and we all know that time is money. Invoicing software leaves little room for human mistakes, which means fewer missed payments or late payments will fall through the cracks. Just about every small business owner can benefit from switching from paper invoicing to dedicated invoicing software.
For more on finanical reporting please download the complimentary white paper “Financial Reporting: The Key to Success”: http://www.dh-cpa.com/client_media/files/pdf/Managing-Small-Business-Finance.pdf
For a list of additional financial tools please visit the SBA website at: www.sba.gov/blogs/top-10-financial-tools-small-business-owners
Davis & Hodgdon Associates has offered business advisory services include assistance in establishing and using financial reports to Vermont entrepreneurs for more than 25 years. With the right tools and a dedication to using them you are armed for sustained success. Implementing management reporting procedures is just one in a unique brand of services focused squarely on the needs of growing businesses. For more information call 802-878-1963 (Williston) or 802-775-7132 (Rutland).