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Business owners are Jacks and Jill’s of all trades, especially in the start-up phase. Budget? Forget it, start-ups don’t have cash to spare. That being said, there are two main financial scenarios most business owners tend to ignore.
Insurance
It won’t happen to you…until it does. If I asked you what is the largest business asset you will ever own, what would you answer be?
Your office building?
Your employees?
Your retirement account?
All of those answers would be incorrect.
The biggest asset your business will ever own is the ability to earn income. Much of that income potential rests firmly on the shoulders of the CEO or company founders. Protecting that fact is easily ignored. Three main ways a business’s biggest asset can be threatened?
- Disability or death of a key employee.
- Lawsuit or legal liability.
- Natural disaster.
An entire blog post could be written on each bullet above, but the main idea is pick up your phone and call an expert to explore what types of insurance policies your business should have in place.
Bookkeeping
As a savvy entrepreneur, you have better things to do than bookkeeping…or do you? Knowing when to spend, and how to save, is vital to company success. Sometimes new business owners simply do not know – what they do not know. Business tax laws are complex and highly specialized. It is such an easy thing for a business owner to ignore. A trusted tax advisor is the key to company tax strategy. Compiling business income and expenses into measurable categories allows accounting professionals to give recommendations for growth. The entrepreneur is responsible for translating those recommendations. The best news is bookkeeping delivery is changing and the following delivery modes may fit your business best:
Traditional face-to-face help: Let’s admit it; sitting down with a “numbers person” can be comforting. However, entrepreneurs are willing to pay for that comfort. Start-ups however must minimize first year expenses or risk failing. Professional face-to-face consultations can be costly and threatening to precious cash. Living the life of a lean start-up means innovation, not tradition. Many accounting professionals now offer online services to stay competitive. Technological strides enable entrepreneurs to push the boundaries of tradition and save.
Freelance bookkeepers: Freelance bookkeeping experts can be virtual or local, but both options are less costly than traditional bricks-n-mortar accounting firms.
The rise of freelance bookkeeping talent is cost-effective and efficient. Freelance accounting help is 80%* cheaper than traditional face-to-face help. Cost set aside, freelancers are also far more productive and can be located globally. A freelancer can be working while the business owner sleeps. National freelance websites allow entrepreneurs to capitalise on expertise not found locally.
Software programs: QuickBooks and Sage (in the UK) have traditionally been the the most well-known option for business owners. Other options include Xero, FreeAgent and FreshBooks.
Kashoo, Mint.com and PayPal also offer extensive transaction reporting free of charge.
DIY accounting software is difficult to use. Entrepreneurs need every bit of cash, but making sure bookkeeping software is properly utilized is vital.
As an entrepreneur, you owe it to your success and the success of your company to stay proactive. Admitting you procrastinate in certain financial areas is the key step to fixing the problem. Don’t go it alone, seek the help of a qualified professionals to make sure you have covered all your bases.
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