Small business owners are now spending more time and effort than they have been spending five years ago, says a recent study by Sage Small Business. According to another study, around 25 percent of small business owners said that each hour they spend on the job is worth up to $500. The point emerges that the majority of business owners are pressed for time, yet a major percentage of their time goes into non-core activities, such as, finance management and accounting.
Are day-to-day finance management activities holding you back from focusing on your core business? Are you spending too much time in managing your account? If yes, perhaps it is time to revisit your finance management techniques. Simple changes like using accounting software and services instead of human resources can go a long way to help you save time on managing your small business finances. Here are some useful tips.
Ways to manage your small business finances in less time:
#1. Organize your finance management tasks –The first thing to do is to make a list of your daily, weekly and monthly tasks relating to finance management. Many business owners do not have any such list written on a paper or excel sheet. If you are one of them, act now! List down your tasks and arrange them based on priority. This will give you a clear idea of what needs to be done for managing your accounts or finances on a daily, weekly or monthly basis.
#2. Identify the repetitive tasks – You’ll find that many of your finance management tasks are simple and repetitive – so much so that someone else can take over the responsibility, leaving you free for your core business activities. For instance, some small business owners spend around hours in collating invoices, while they can easily allocate the task to a team member or accountant.
#3. Consider outsourcing – Maybe you cannot afford to (or don’t want to) hire in-house staff for accounting or finance management at this point of time. No worries! Consider outsourcing to a third party vendor on an as-needed basis. This is a good way to get the job done, without having to increase your overhead costs. Some business owners, for a valid reason, are skeptical about sharing sensitive business data with others. They can use accounting software and services as an alternative to human operators.
#4. Use the right tools – When it comes to using tools for automating finance management and accounting tasks, it is important to choose the right tool. One good idea would be opt for cloud accounting like the xero accounting software that let you and your team members access the dashboard from a web browser. One of the benefit of cloud accounting cloud, while you get full control over what data your team members can or cannot access. For instance, you can allow your sales people to raise an invoice, but deny them the permission to approve it. Unsure how xero accounting software works? Come and attend our trainings!
With careful planning and strategic use of software and tools, you can stay on top your small business finance management tasks, without having to spend more than two hours a week. If you have decided to get a cloud computing software for your finance management, read here for more information on choosing the right software.