- Mixing Business with personal….
Cash flow complications usually arise whenever you mix your business finances with your personal finances. A lot of small businesses across the globe make use of the same bank account for both, leading to a twisted clutter which is quite tricky to clean up. If you mix both, you would end up withdrawing money as required for your personal expenditures and there could be cases when you don’t have the funds to bear business expenses or fulfilling government financial obligations, such as the dreaded taxes!
By distinguishing your company and personal bank accounts rom the first day you will be freeing up yourself from a lot of problems in the long run.
CDC can help you improve this process if you have things mixed together. By running all your personal expenses through a personal account, it also saves time on data entry therefore decreasing costs!
- Accounts Receivables and Collections
What is the process followed by your small business from invoicing to the collection of payments? This process often can be very complicated, therefore usually gives birth to a lot of more complications. Getting invoices made by your bookkeeper and sending them on a regular basis, ideally whenever the products or services are rendered will make sure that all things are documented and also facilitate proper cash flow.
Likewise you require an approach to follow up on pending invoices on a consistent basis. A lot of businesses do not implement this and end up being in financial troubles consequently. Furthermore to overcome this problem, it is advised to put into practice a process that will periodically send email reminders and you will undoubtedly find that a large number of clients pay you without delay.
Don’t have time to stay caught up on your receivables? CDC can handle your collections for you? We can make periodic phone calls and emails to aging accounts, sending monthly statements and make sure your Receivables are within the terms of each contract!
- Poor Payroll Management
Handing payroll is a complicated process and in case you happen to make mistakes, there are chances of getting penalized by the government authorities. Payroll management isn’t just related to the wages, but it additionally involves tax liabilities, benefits, as well as other aspects.
Tired of trying to handle payroll on your own? CDC can handle all your payroll needs and will take away all the stress involved. We offer direct deposit and emailed paystubs to all your employees. Monthly reporting for your government remittances too! Never be late again and pay the insanely high penalties and interest CRA charges for being late!
- Unorganized Paperwork
Keeping track of receipts and maintaining them methodically is amongst the significant challenges faced by small business owners nowadays. Expenses could be missed which would equate to net income being overstated therefore leading to more tax having to be paid. To over come this problem, ensure that you organize all the paperwork in a proper manner and keep them someplace safe since a lot of accounting aspects depend on accurate management of expenses.
Don’t have time to organize your paperwork? – bring it into CDC in one of our customized totes and we will handle it for you – all you have to do is gather it up! We will even pick it up free of charge!
- Irregular Financial Reports
In a small business venture, it is usually believed that it is alright to generate financial reports on a quarterly or perhaps a bi-annual schedule. Nevertheless, monthly financial statements help in demonstrating to investors that you are meticulously keeping track of your business earnings and spending.
If you do not generate financial reports on a monthly basis, the chances are that you may have a negative account balance just because you took care of expenses blindly forgetting to update your income statement. Invoices to be paid by the business might get overlooked and it could result in the negative creditability of your business. It may terminate your contracts with vendors. Business growth may also impede or perhaps considerably drop.
Let CDC provide you with monthly reporting so all your decisions can be made as calculated informed decisions based on what is really happening in your business!
- Wrong Understanding of Accounting Data
Accounting software is just a tool to make your work easy. However, you still need to make decisions and they should only be taken after thoroughly reading athe reports and understanding the financial data. Data interpretation is done by making the comparison of financial reports with the income statements as well as balance sheets. This often is complicated and confusing, thus using the services of a CDC would be the ideal solutions.
Small business owners should consider focusing on longerm outcomes of their financial decisions upon obtaining the complete knowledge of their business accounting data. Taking short run decisions after analysis of financial records will not present render your business any long run benefits.
We understanding Accounting isn’t at the top of the list of must things to know for every small business owner. Let CDC review and explain each report to you so that you can clearly understand the financial picture the reports are painting!