As a small business owner, you know how important it is to stay on top of your finances and to keep them well organized. With football season around the corner, take a cue from the game, and have your financials ready for the playoffs!
Be a team player: Don’t try to do it all yourself. Focus on what you do to generate revenue, and ask for –or hire– help for those areas that are weaknesses or time “bandits.” Hire resources and have them at your disposal, such as an attorney, banker, CPA, or marketing and public relations expert.
Having a trusted CPA is crucial to the success of your business. Work with them to keep your taxes up to date and ask them to show you how to correctly use your financial software. Plan to have quarterly check-ins with them.
Have a game plan: Use timelines to keep your business focused and on track, and write down your expectations for each goal. Set aside time for administrative and financial planning so that you don’t get behind on these two critical business areas. A good rule of thumb is to dedicate the 15th and 30th of every month to financial matters: logging and paying bills, tracking and entering vehicle mileage, updating financial projections, etc.
Practice daily: It’s important to fully grasp your financial climate. Track your mileage every day, log it every month and keep all of your receipts. Reconcile both your bank and credit card statements, and always keep your business and your personal bank accounts separated. Purchase good financial software and be diligent when it comes to your administrative financial work every month.
Quarter “back up” your finances: No matter what platform (such as QuickBooks) you use to track your financials, back it up! Statement charges, bills, invoices, payment records− everything needs to be backed up! A loss of financial records could mean financial ruin.
Don’t rush; go at “game speed”: Many small business owners want to become bigger faster without understanding the pros and cons that rapid and sudden growth would have on their resources. It’s critical for small business owners to know that most businesses fail within the first one to two years, and remember not to rush progress.
Again, if you find yourself growing and in need of financial assistance, don’t be afraid to seek it out. A little financial boost now in the form of a loan or line of credit could mean the difference between success and failure later.
Telhio Credit Union has various financial planning services and advisors to help keep your small business finances on track. For more information about Telhio financial services, visit our website at Telhio.org or contact me at [email protected] or 614-221-3233 ext. 8196.
Telhio Credit Union is open to everyone who lives, works, worships or attends school within Franklin County and surrounding communities. Founded in 1934, originally as the credit union for the Columbus Telephone Co., Telhio is a not-for-profit financial cooperative where its members are also its owners. Driven by its philosophy that members come first, Telhio is committed to the highest standards of responsibility and conduct.
Telhio offers a variety of innovative programs, services and products to support its members’ financial needs. Telhio offers seven branching offices throughout central Ohio and nearly 4,000 shared branching locations nationwide. Additionally, Telhio participates in the highest level of combined federal and private share savings insurance available, insuring deposit accounts up to $500,000.*
* Federally insured by NCUA. Additional coverage up to $250,000 provided by Excess Share Insurance Corporation, a licensed insurance company.