Financial Management for Small Businesses

Growth Investment Opportunities Small Business Owners





can Utilize

As your business continues scaling, you’ll find the opportunity to explore further growth with enough profits and finances to keep your business afloat. Managing your profits and making sound investments within your team and company are essential in promoting additional growth. While there are plenty of investment opportunities for small business owners to explore, we’ve laid out a couple of them in this article:

1. Digital Marketing

With the continuous change in the digital landscape, more and more businesses have invested heavily in their digital marketing efforts which include search engine optimization, social media marketing, e-mail marketing, and much more. This allows businesses to consistently connect and accommodate consumers while providing them with a platform where they can get to know your brand. E-commerce website development has also been a developing trend for businesses to be able to reach a wider audience and showcase their products and services. An article from Aepiphanni says that it can even cut down on employee related costs.

Figure out which channels are most effective for your business and utilize investing in digital marketing to grow your business further.

2. Employee Training

With additional funds on hand, you can also consider investing in your employees and boost their productivity and skill levels with trainings and workshops that are relevant to their roles in your company. By investing in your own people, you not only increase their skills but also, makes them feel more valued for what they can contribute to your business which in turn, increases their efficiency in their current roles.

A paper from the International Journal of Social Sciences & Educational Studies has cited the direct correlation of training and development to job satisfaction and how it positively impacts businesses.

3. Launching Networking Events and Seminars

Placing your budget into launching events wherein you can build relationships with other entrepreneurs can also be a way of diversifying your financial assets. Many business owners might think that networking should come after you’ve build your business up, however, by networking, you actually boost your brand and label yourself as an expert in your field.

People like doing business with people they know. Networking allows you to get involved within your local community and industry. By getting known through these events, people are more likely to do business with you and even send referrals your way. Not only is it possible for you to get to know more clients, networking also serves as a way for you to get to know other businesses which may lead to favourable deals for your company.  Or the possibility of establishing strategic alliances.

4. Accounting and Finance

The two words that give headaches to every business owner.  Coming from a growing small enterprise, it might be time for you to invest in someone to do the accounting and finances. The circumstance must have been easier when you were working with a team of two or three people, but as your business grows, you’ll find working on your finances to be a bigger hurdle.

By either hiring an in-house accountant, or outsourcing your accounting needs to an accounting firm, you get the expertise that your business requires as well as advice on how your business can do better financially.

Effectively managing your finances will yield the best results and in the long run, create even more money for your business. Not sure where to start? WistBooks provides a free 30-minute consultation to help you get started. Get in touch with us and start your business’ financial journey today.

WistBooks provides integrated Bookkeeping, Advisory, and Financial Management services that leverage financial data to help small businesses execute a winning strategy. Through Quickbooks Online cloud accounting, financial dashboards and regular online advisory sessions, we support business owners and leadership in maximizing their financial decisions to maintain and support company growth.

From now through June 2020, we are offering all new clients a 10% discount on any service for the first year. Remember to mention WistGift to receive your discount.

We would love to hear from you.  Please share your thoughts and comments below

5 Small Business Survival Tips During the Outbreak


5 Tips to Keep Your Small Business Alive During the Coronavirus Pandemic

 

The effects of the coronavirus have swept across the marketplace both locally and globally and a lot of them are feeling the losses from the pandemic. Based on data gathered by a time tracking and scheduling application, 50% of local businesses in the US have already closed operations while hourly employees are working at less than 50%.

During these uncertain times, panic is understandable. But what every successful entrepreneur must do right now is to forge a solid game plan. Check out five of our tips to keep your small business surviving and thriving during the coronavirus outbreak:

1. Create a plan

Now this sounds basic, but what does this plan contain? Every business owner must now plan ahead of the pandemic and, if you haven’t already, create an emergency preparedness plan or a business continuity plan.

This plan needs to outline the steps that you, as a company, decide to take if the pandemic significantly impacts your business.  It also needs to lay out procedures that you will be following in the scenario that a disaster strikes. Be sure that you are able to tackle these points in creating your plan:

  • What you’re doing to protect your staff
  • What actions you will take if an outbreak arises in your business
  • Ways your staff can get in touch with you in case of emergencies
  • Possible outcomes for you

2. Protect your people

If possible, this entails creating a measure that will allow your employees to work safely from their homes. However, not all businesses can afford to lose people that are on the ground. Ensure that your employees feel safe and secure with their jobs. Get in touch with them and ask about how their personal lives are affected by the coronavirus and let them know your plans to support them in case anything happens to them or their families.

3. Strengthen external communication

In an interview with risk management expert, Nicholas Bahr, he mentions, “During a crisis, your biggest commodity is trust.” Make sure that you provide all your stakeholders, clients and customers, and the public at large specific information about what you are doing as a business to fight the pandemic. If possible, include any solutions or recommendations that you might have that may seem useful. Thanks to social media platforms, you can easily reach out to them and provide necessary reassurance and comfort.

4. Review risks

Assess every part of your business and how it might be possible for the virus to penetrate your operations. You might want to create a more tedious sanitation process or remind your staff about other measures that they can do in order to avoid getting infected. Review your financial risks as well with regards to continuous operation and how you can balance out your profits with your costs. Draft up a list of things that you need to have checked as soon as the coronavirus pandemic is over to fully resume operations.

5. Be productive

Utilize any spare time to improve your business and your processes. There may be a product that you can develop which you’ve only realized in crisis or had processes you could have eliminated when you were operating at full before this all started. Take advantage of this time to maximize your productivity and make your employees feel that they are valued by engaging with them for their opinions.

If your business needs additional funding during the outbreak, the US government has provided millions of dollars in loans for small business to help them ride out the pandemic. You can check out how you can apply for a loan with the Small Business Administration here.

Is reviewing your finances too much for you during this time of fear and panic? Our team at Wistbooks are fully prepared to help you manage your finances and find ways on how you can maximize them to keep your business afloat until this all blows over. Interested? Get in touch with us today.

WistBooks provides integrated Bookkeeping, Advisory, and Financial Management services that leverage financial data to help small businesses execute a winning strategy. Through Quickbooks Online cloud accounting, financial dashboards and regular online advisory sessions, we support business owners and leadership in maximizing their financial decisions to maintain and support company growth.

From now through June 2020, we are offering all new clients a 10% discount on any service for the first year. Remember to mention WistGift to receive your discount.

We would love to hear from you.  Please share your thoughts and comments below.

Financial Controller Benefits

4 Reasons Why Large Businesses Hire Controllers

 

If you own a smaller business, you might be all too familiar with the hassle of dealing with all of the necessary bookkeeping and finance-related work at the end of a long work day , while juggling all of the other extra work that needs to be done.

An article from Robert Half states that as your business grows, you will start to realize that there are more financial duties your business requires including tax accounting, bookkeeping, payroll, etc. This is when you start looking to hire your own bookkeeper or accountant or for outside assistance by outsourcing these tasks to an accounting or bookkeeping firm.  

However, a bookkeeping or accounting firm isn’t always the right answer. Bookkeepers tend to do more data entry, where accountants are typically the “heavy hitters” of the accounting world – with an appropriate cost.

This is when and why larger businesses tend to hire controllers – someone who doesn’t just observe and report their finances, but rather, someone who takes an active role in supporting the leadership’s financial management plan.  While the controller tends to be expensive than a bookkeeper, they provide the firm with a great deal of value and will act as the liaison between the leadership or owner and the accountant.

As your business organization increases in complexity, whether you simply need to focus your energy on management and leadership, you have opened multiple sites or other business divisions have been added, your finances and operations become segregated. According to Gene Marks, President of The Marks Group, in an article from Entrepreneur.com, a controller comes in to help with:

1.     Cost Savings

It is a controller’s job to improve your company’s profitability by reading your financial data. Your controller will know if your sales are adequate and in line with your expenses. It is the controller’s responsibility to find effective and efficient cost-cutting methods for your business whether with regard to your products and services, human resources, or other areas of the business, your controller will be able to determine the best practices you can put in place to cut costs, and save money.

2.     Financial Ownership

When it comes to everything financial, your controller is the go-to person. Your controller owns all of your financial data coming in from every aspect of your business, interprets that data, and makes recommendations for major decisions based off that data. Your controller can build a budget for your business that can be measured against the results from other financial data such as sales and costs of sales. If you’ve got questions about your numbers, there’s no one better than your controller.

3.     Data Entry Management

The controller should be able to work with your finance team of accountants and bookkeepers to ensure that the data entered into the system is secure and accurate. It is not part of the controller’s job to do data entry itself, but rather to oversee how data entry is being done and how it can be improved.

4.     Decision Making

With your controller knowing all of your financial data, they should know the best direction your business should take — financially. In this regard, a controller will have a vital part in major decision-making processes involving large transactions. This includes finance decisions made with the purchasing department, operations expenses, overhead costs for hiring new employees, and whatever you, as the owner of the company, are thinking of using the money for. Your controller will be there to assess every little step and every tiny detail to make sure you are on the right path.

All of these are great but if you own a small to medium-size business, you might be thinking that getting a controller can be a little bit too much on the overhead cost, considering you might already have an accountant, or a bookkeeper, or maybe both on your roster.

If this is the case, then you can choose to hire a Finance Manager instead. While a finance manager’s role is not that different from that of a controller, the finance manager is easier on your overhead, and won’t have to juggle as much data if you were handling a bigger business.

A financial manager can assist your business with monthly business reporting, cash flow forecasting and budgeting, as well as strategic planning, while also working with your in-house or outsourced team of accountants and tax professionals, as specified in an article from managementstudyguide.com.

You know your business is growing when you don’t have time to work on your business financials yourself, and would need to bring someone else in, whether that is a financial manager, or a controller. This is something that we, at WistBooks can help you with. Get in touch with us by filling out the form below and we can recommend a financial management plan to keep your business growing.

WistBooks provides integrated Bookkeeping, Advisory, and Financial Management services that leverage financial data to help small businesses execute a winning strategy. Through Quickbooks Online cloud accounting, financial dashboards and regular online advisory sessions, we support business owners and leadership in maximizing their financial decisions to maintain and support company growth.

From now through June 2020, we are offering all new clients a 10% discount on any service for the first year. Remember to mention WistGift to receive your discount.

We would love to hear from you.  Please share your thoughts and comments below