Starting a small business is exciting! You have an idea. That idea buds with your first sale. Then, a second sale, and before you know it, your company is in full bloom.
Excitement can sometimes fade quickly, however, as you realize all the tasks that need to be performed and the regulatory issues that need to be followed. Some days you get overwhelmed with everything that needs to get done. You are unsure how to handle these details, much less grow your business.
The first thing you need to do is select an accounting platform. One of the best solutions, used by over 800,000 subscribers, is Xero. Xero handles all those necessary functions including invoicing, payment processing, sales tax, basic inventory, payroll, bill payments, and asset management.
Xero has a secure, easy to use dashboard and mobile app to let you perform critical functions on the go.
Two additional features that set Xero apart, and helps you grow your company, are; a Business Performance Dashboard that display key metrics, and Small Business Guides, with valuable answers to common business management questions.
Business growth starts with accurate financial data. Apart from providing customers with the best possible product or service, your business boils down to numbers. There are key numbers you need to look at in order to make decisions which will lead to improved numbers.
Monthly reports you need to look at include:
Profit and Loss - this report tells you how much income you brought in, how much money went out, and how much you made (bottom line)
Balance Sheet - this report, or snapshot, tell you what you own (assets), what you owe (liabilities) and what interest you have tied up in the company.
Aged Receivable - this report shows you how much money customer owe you and how old those receivable are. A/R monitoring is essential to cash flow and growth -the money should be in your bank - not your customers.
Aged Payables - just as important to your business, the Aged Payables report shows how much you owe to your suppliers, and when you should pay them. Paying your bills on time is vital to your vendor relations and can impact your credit score and risk value for investors.
The Business Performance section in Xero includes additional financial data such as Gross Profit, Net Profit, Debt to Equity Ratio, Fixed Assets to Net Worth Ratio, Current Liabilities to Net Worth, and more. This data shows you at a glance how your business is going. These key indicators can be added to your main dashboard, providing a powerful tool for managing your business and making the best decisions based on your current financial data. You can set goals and budgets in Xero so that your growth is intentional, and not left to chance.
The second key feature of Xero, which helps you grow, is the Small Business Guides. They provide valuable answers to common questions that business owners ask, along with industry insight into the best practices for running a small business in today's mobile environment.
Articles such as "Does your business need a mobile site?" and "Why you need to get an accountant in 2017" all have one central focus - to help you grow your business. Growth comes through developing intentional strategies based on accurate financial data and learning.
You need to invest time in both your bookkeeping, to provide accurate financial information, and learning, which helps you continually improve your processes and procedures as you adapt to growth.
Sign up for your free trial of Xero today and start growing your business.