Do you know how to stop the conversation dead at the dinner table? Tell them you are an accountant! Let’s face it, most of us find accounting boring. In fact even the accountants will admit that. But if you are a small business owner you need to get a handle on your accounts. Sage accounting software will help you do just that.
But I could just employ an accountant I hear you say. Well yes you could but it is never wise to trust somebody else with your money without having at least a basic understanding what they are doing. Also accountants aren’t cheap and when you are starting out in business you need to keep an eye on your costs.
Don’t fret. I am not suggesting that you head off to study for an accountancy qualification. But you need to have a good idea of how every section of your company works even if you aren’t able to do the full job. The Revenue won’t accept the excuse “but I didn’t know” if your taxes are late, incorrect or your employee records are a mess.
You need to be able to read a profit and loss statement and the balance sheet to know how your company is fixed financially. Knowing your own financial position will help you to develop the right employee benefit package and correct pricing policy to keep you ahead of your competitors. It will also help you to work out the terms you can afford to offer your debtors and those you need from your creditors.
Cash flow is the lifeblood of any business and using a system like Sage accounting software makes it very easy to manage. Companies go out of business not because they do not have fantastic products or great staff but they run out of dollars. Get the right financial controls in place now and don’t let that happen to you!