If you are a small business just starting out, your accounting system could be the one thing that makes or breaks your business. We at Daston are here to ensure that your accounting system is robust enough to meet business challenges head-on.
According to the Small Business Administration, only half of small businesses keep their doors open for at least five years, and only one-third of them last 10 years. There are various reasons a small business might close, but the failure to focus on the key aspects of financial management is a big one.
Here are nine issues that almost every business confronts at some point. Recognizing them early and addressing them with the help of a nimble accounting system is critical to keeping your doors open.
Managing Cash Flow
Managing liquidity is a major concern for businesses as they try to bring in money to cover monthly bills while accumulating cash to invest in growth.
Access to capital is critical to realizing business goals, and securing credit is a challenge for small businesses.
Closing the Books
The financial close process can be difficult. Even small businesses may have hundreds or thousands of accounts to track and reconcile, and it only gets more complicated as firms grow.
Paying Bills on Time
While the occasional late payment may be OK, consistently remitting payments late can cost a small business dearly.
Paying Off Debt
Maybe you ran up a little too much money on a personal credit card, or perhaps your local banker extended a line of credit that’s now used up and commanding a high-interest rate.
Consistently paying employees, payroll taxes, employee health benefits, and the owners’ salaries from available cash is a strong indicator of financial health.
Using a Budget
Companies need to develop a budget and then spend within their means. However, there should be flexibility to adjust as conditions change.
Tracking Key Metrics/Ratios
Keeping a close eye on a few areas will help businesses avoid financial trouble by providing an early indication of potential problems.
Calculating and Paying Taxes
Applying changes in tax laws is a common concern for accounting teams, especially understanding total tax liability and navigating shifting trade and tariff policies.
Daston and NetSuite Financials Can Power Your Success
As a NetSuite partner, Daston is pleased to help companies overcome these obstacles with NetSuite Financials. This powerful accounting software provides all the information that you need to make more informed decisions, leading to better results.
NetSuite Financials gives you visibility into all revenue and expenses, allowing you to track and analyze key financial metrics over time. Additionally, it tracks bills, automates accounts receivable processes, reduces sales outstanding, and increases cash flow. This system makes it easier for you to provide financial statements and other essential information required to secure financing and satisfy compliance standards.
Don’t become a statistic! Are you ready to invest in an accounting system that will help you stay in business, then grow and thrive? Daston can help! Contact 703-288-3200 for a consultation today!