Your accounting is key to business growth. It helps you with forecasting expenses, cash flow, and sales, so you can have a better handle on your bottom-line profits. But if you don’t know any accounting basics, it’ll be challenging to expand your business. Thus, it’s vital to know the essentials of accounting to foster business growth. Read on to discover how you can grow your business with these five accounting basics:
1. Integrate Your Accounting Software
It’s important to standardize your processes while leveraging technology that can save you time to scale your business. For instance, IntegraPay simplifies integration with Xero accounting software, so you can easily add payment options on a one-off or recurring basis.
2. Use Reports to Crack Cash Flow
Growing your business requires increasing the activities that will generate a positive cash flow. To achieve this, you’ll have to know how much money is coming from cash-generating activities, including income from accounts receivables and sales. Moreover, these earnings must exceed your expenses, including employee salaries and bills. Manage your cash flow better by using reports. Reports make it easy to quickly identify your profit or loss as well as help you to verify where your cash is going.
3. Keep on Top of Profit
Increasing your profit requires increasing the revenue you bring in while lowering your expenses. Consider using financial forecasts reports to determine growth opportunities and try increasing sales using a repeatable sales business model, such as subscription services.
4. Plan Ahead for Tax Deadlines
Plan ahead for tax deadlines by setting up installments so you can pay the taxes you owe on a quarterly basis, so you don’t end up owing more than expected. Also, set up a good record keeping system for tracking payments and receipts for business expenditures, such as transit costs or business software. This will help you leverage tax deductions, so you can lower the amount of tax you owe.
5. Help to Grow Revenue by Improving Efficiency
Enhance efficiency to grow revenue by automating processes. IntegraPay offers automated payment solutions with recurring payments. It helps you improve your payments collections process by automatically taking your customers payments on direct debit schedules, so that you don’t have to waste time collecting missed payments.
To expand your business, you have to know accounting basics. Take action to get your accounting together, including integrating accounting software and using reports. By understanding basic accounting tactics, you’ll improve your cash flow management and profit-generating activities, so you can grow your business.