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

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

5 Things Your Bookkeeper Can’t Tell You

So, What IS a Bookkeeper's Job Anyway?

The bookkeeper is the person who documents all of your financial transactions across your accounts.  Typically, they use some kind of software to keep track of everything. Some may provide you with financial reports such as a P&L (Profit & Loss Statement), a balance sheet and perhaps a cash flow.

The bookkeeper’s primary job is to record what you have done and tell you where you are right now – financially. They may also help you send out invoices, collect payments, assist with check writing and bill paying, monitor debt, pay taxes, run payroll and other related tasks.

Don’t get me wrong: all of this is vital to the health of the business.

There are 5 things, however, that your bookkeeper won’t do – that you’ll typically pay your accountant a fee to cover for you:

1)     A bookkeeper won’t tell you what your financial statements actually mean!  While it is great to get the reports every month and see that net profits are positive, your financial statements can tell you a lot more information, especially when looking at a series over time. An Accountant is trained to look beyond the numbers for additional insights into your financial reports.  For example, when an Accountant reviews your financial statement, he can give you an indication of how much cash you will have on hand next month so that you can know if and when you can purchase that widget that will make your life better.

2)     A bookkeeper won’t tell you how much money you should be receiving in a particular timeframe! Knowing how much cash you will have helps you to understand what you need to do in order to grow your money. Perhaps you need to raise some capital to move things forward, or perhaps you need to incorporate some more aggressive Accounts Receivable activities. There is nothing worse than not being able to pay your bills or not being able to pick up materials because you are strapped for cash.

3)     A bookkeeper won’t tell you how you should spend your money. Sure – it is your money and you can do with it as you please. But history has shown us that entrepreneurs don’t always make the best spending decisions. Many owners are impulsive and will spend money on something if they think it should do something. Knowing where and how to spend your money is like having a stock advisor whose goal is to get you the greatest return on your investment.

4)     A bookkeeper won’t tell you how your finances are performing against your financial goals. Yes – they may offer assistance with preparing a budget. However, budgets are static…they don’t change. Meaning that changes in your business will impact your business, requiring answers to questions like these: Will you be able to recover? Do you need to make some adjustments in your business operations? It is one thing to identify that there is a gap, and another to help you understand why your finances are or are not performing as expected.

5)     A bookkeeper won’t participate in your company’s strategic planning in order to help you determine what kind of budget your company needs to have in order to support growth.  While it is great to have ideas, it is something else entirely to finance them: how much you need to finance, and if you are borrowing money – how much you can really afford to pay back.

At WistBooks Financial Management, we help our clients bridge the gap between what a bookkeeping firm will offer and what your accountant will offer. We offer fixed fees which includes regular advisory on both your finances and your business, in addition to ongoing feedback about your company’s financial health. We feel that an educated client is one who understands their business’s finances a in order to make good decisions on how to move their company forward.

If you’d like to learn more about WistBooks and how we can support you in taking your business finances further, click on the “GET STARTED” button on the top of this webpage to set up a complimentary meeting to discuss your business goals to see how we can help you get there more quickly.

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