Guest article provided by: TedKnowsMoney.com
Many entrepreneurs have amazing ideas that often turn into awesome businesses that are around for years. However, while they may be brilliant, understanding the smaller administrative procedures like handling business finances is not always their strong suit. However, having a handle on the money is essential, so if this describes you, then it is time to make a change. Here are some tips for how you can push your big ideas and also understand the financial side of things.
Take the Time to Learn the Basics
If you know that your shortcoming is understanding how to handle the finances of your business then you need to take some time to educate yourself. Tasks like payroll and budgeting are too important to forget, so if you need to learn these processes from scratch then you should consider taking an online class so you can become educated on the lessons that you need to help your company thrive.
While you are thinking about education, you should also consider returning to school to get your master’s in business administration. When you get your MBA, you learn many important skills, including strategy, analytics, and even a bit about handling company finances. You will also get real-world examples and you can take the knowledge that you learn back to your business. If you can’t afford an MBA, then at least consider taking some accounting classes.
Be Smart About Your Business Structure
If you want to spend less time worrying about finances then you should consider setting up your company as a limited liability corporation. As an LLC, you will get certain benefits that could make life easier, including the need for less paperwork and more flexibility, and you can get benefits at tax time so you don’t need to be worried about losing all of your money when paying the IRS.
When setting up an LLC in CT, you must be careful and set it up exactly as your state laws dictate or you could land in legal trouble. It is advised that you contact a formation service because the professionals there know all of the laws, and with their help, you can be confident that your company is fully compliant.
Delegate Financial Tasks to Others
If handling the finances of your business is still a bit over your head, then you should consider working with the The Innovative CPA Group team who can manage the money and keep your company going strong. Entrepreneurs often fall into the trap of wanting to do everything themselves, but if you don’t relinquish control and delegate some of these responsibilities then something will fall by the wayside.
Find Payroll and Accounting Software
In the case that you do not have the funds to hire a money expert, you can turn to online software that can make many financial processes much easier. For instance, when it comes to payroll, consider a program like Gusto that tracks all employee checks, keeps track of all necessary tax information, and makes direct deposits for your employees. Many of these payroll programs will also supply you with detailed reports that can tell you exactly where your business stands and where your money is going.
Many small business owners also turn to well-known software programs that are a one-stop shop for all things corporate finances. This software can keep track of your invoices, help to manage your inventory, create and file 1099s, and more. If you need a lot of help, this type of program may be the solution.
As you can see, just because you are not a financial wizard, it doesn’t mean that you can’t still run your company and find amazing success. Learn the basics, choose the right business structure, hire an accountant, and take advantage of helpful software.
For questions or assistance, contact The Innovative CPA Group at 203-489-0612 or fill out our contact form.