To any business owner, the matter of finances is something that can bear an undeniable weight in the “success equation” that so many firms rely on to perform daily.
While many would like to argue that “the best things in life are free,” the truth is that this same idea doesn’t apply in the business world, where nearly everything is made possible with funding. In the case of small businesses looking to get their groundbreaking idea off the ground, having financial control is more critical than ever because the days of free opportunities are far behind.
When it comes to running a SaaS or tech company, there is no doubt that financial-related matters stay top of mind because of how they are intertwined with most operational aspects. Whether it’s finding top talent to assist your start-up in its early stages or investing in key pieces of equipment to improve efficiency, money will always matter in different ways.
Unfortunately, things have only become more challenging and complicated at this point in time because of increasingly-rigorous standards that have thinned the margin for error to the thickness of a single strand of hair. This is especially apparent when it comes to dealing with financial worries that you may have in mind.
Common financial worries that small businesses have (and a few proven solutions)
At this point, you may have a list of different challenges that you’ve been worrying about while running your start-up for success. As daunting as some of these worries may seem, it’s worth noting that they—like any other problem you’ll face—have solutions that aren’t as long-winding or meticulous as you may expect.
If you’ve been thinking more about your finances lately and want to stay on top of your facts and figures, here are two solutions for your most common financial worries:
1. Tax compliance
Often at the top of the “worry list” of small business owners, tax compliance is undoubtedly complicated, but the truth is that everything lets up once you get over the intimidation hurdle.
Suppose you want to avoid being one of the 85 percent of small business owners that overpay their federal income tax annually. In that case, you’ll need to pay attention to finding solutions to the problem instead of solely fretting. Apart from proper planning and year-round preparation with your bookkeeping-related matters, enlisting the help of a dependable expert like A4E to handle your books will save you from worrying about tax compliance!
After all, you won’t want to make your small business ownership experience any more complicated by forcing yourself to do something that you’re not entirely familiar with or skilled enough to handle.
2. Cash flow matters
You may currently be in a common predicament that many other small business owners struggle with: A challenging experience with your business’s cash flow. In fact, 33 percent of small business owners share the same sentiments.
Far more common than any other financial worry, the issue of unbalanced or restricted flows can happen for various reasons like shifting to higher overhead expenses, low sales, or cost-cutting. Unfortunately, many fail to get over this common hurdle and get caught up in difficulties to the point where cash flow issues themselves have become catalysts for 82 percent of small business failures.
When it comes to ensuring that you don’t crumble under the pressure of your start-up’s cash flow matters, it’s critical to note that you should pay attention to the way you organize and track your particulars. This is why taking the time to invest in a piece of accounting software and constantly updating your records will help you get a stronger grip on your cash flow and make it easier to perform the right tweaks!
Among the different matters of running a small business that you’ll need to worry about, the task of getting your finances right is something that you can’t overlook. Thankfully, keeping this guide in mind will allow you to stay on top of any concerns that you may have and ensure that you won’t get caught up in your financial worries ever again!
A4E offers accounting and tax services in Boston, MA, for solopreneurs and small business owners so that they can focus on growing their business. If you need an expert that can handle your money matters and manage your finances for success, get in touch with us today to see how we can help!