There are lots of factors that contribute to business growth. While you may think of sales and marketing and operations, you should not neglect accounting as integral to your business success.
Choose the method of bookkeeping. Proper accounting is an important part of business growth, so it is important to use the right method. The two primary methods small businesses choose from are accounting software or a bookkeeper. The software will do a lot of work for you, easing your load if you take on the accounting yourself. A bookkeeper, on the other hand, will have the experience and insight to understand the books as they relate to operations.
Separate borrowed funds and accounts receivable. Keeping finances separate, specifically accounts receivable and borrowed funds will help you keep track of what is yours and what needs to be repaid as a debt.
Collect on invoices. You need revenue to build your business. Insisting on payments on invoices is part of business, and will keep your revenue coming in so you can keep operations going the way they should.
Keep track of daily expenses for better budgeting. Many budgets are established on a month-to-month basis, but operations are day-to-day. Keeping an eye on daily expenses will ensure that you know how the budget is going throughout the month so there are no surprises later.
Know your minimum monthly profit. No matter what kind of growth you want to happen, it is important to know the minimum you need in revenue each month to keep things going. That should be the foundation for any growth you plan.
Accounting practices can be a good way to help build your business. While accounting is not the only department that will help with growth and success, it can make a big difference in achieving your goals.