July 3, 2012
Through my experience working as a certified public accountant with Citrin Cooperman, I’ve learned to recognize some of the challenges that consultants may come across while handling bookkeeping and accounting. Here are 10 tips to help you navigate financial matters:
1. Make sure that the person who makes the bank deposits and pays the bills is not the person who reconciles your bank account statements.
2. Be sure that you understand the cash inflows and outflows of the business.
3. Plan a budget before you start a small business or consultancy.
4. Avoid hiring or doing business with friends and family. This can present complications. If you do hire them and regret the decision, then it is essential to act swiftly to reconcile the situation.
5. Invest in a good accountant to help navigate tax filings.
6. Remit payroll taxes to the government in a timely fashion. Failure to do so can cause a major headache, or earn you time in a federal facility.
7. Diversify your accounts. Avoid relying heavily on a small number of major clients or suppliers.
8. Make your life easier by using technology and software such as QuickBooks, electronic transactions and scanning capabilities.
9. Build relationships with vendors. Some vendors may be willing to negotiate in order to keep or expand your business.
10. Ensure that your business has top-quality client service. On average, research shows that consumers are five times more likely to tell others about a negative experience with your company than a positive one.