For small busines owners

Table of Contents

Finances play a vital role in the success of every business, but financial management often falls on the back burner, because of the countless other responsibilities business owners juggle. Bookkeeping is time-consuming, requires specific knowledge, and may feel intimidating – which is why it gets put off. In fact, 25% of business owners are behind on their bookkeeping for these very reasons.

Keeping your books up to date enables timely and meaningful financial decisions and maximized tax savings for your business. Accounting helps you evaluate your past business performance, make timely decisions, and inform projections for the future.

While financial management may feel stressful, there are steps that can be taken to save time and ensure accuracy in your financials. We have compiled our top financial tips to help you keep your bookkeeping and accounting on track and grow your business!

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Review Your Financial Statements

Hire an accountant who is available to communicate with you regularly. Make sure they understand your goals for the business and any upcoming changes, especially plans for growth. The more tuned in they are to your business goals, the more they can advise you on the steps needed to achieve them.

Throughout this guide, we have briefly mentioned financial statements. Three important statements are the Balance Sheet, Profit & Loss Statement, and Cash Flow Statement.

The Balance Sheet

Summarizes your business’s assets, liabilities, and equity at a specific point in time. This statement provides insight into your cash, inventory and other asset levels, how much money is owed to you (Accounts Receivable), how much money you owe (Accounts Payable), credit card and bank balances, and the equity in the company.

The Profit & Loss Statement

(Also referred to as an Income Statement) shows Profit and Net Income. Your Net Income provides insight into the profitability of your company, and includes all the operating costs of your company.

The Cash Flow Statement

Allows you to see when cash flows into and out of your business, and how your cash balances have changed over a period. It can also be used to project cash needs of the business.

The best practice is to review each of these financial reports on a monthly basis, as they gauge your business’s financial health and provide insights to timely decision making. They provide visibility to indicate whether you are on track to meet business goals, make projections, and even prepare you for tax season. Whatever type of business you run, it is crucial to stay on top of your business’s financial health.

Xendoo is Here to Help

Real people. Real bookkeepers. Real CPAs. All focused on your financial success. You deserve an online accounting team that is dedicated to the success of your business. Let Xendoo handle your bookkeeping while you put more money in your pocket, reduce your stress, and get back to what you love to do

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