Running a small business can be less complicated when you have a few clients, and everything is easily manageable including job scheduling and making payments for raw materials and tools. However, keeping track of these small daily transactions will start requiring more of your time as your business grows.
Understanding every aspect of your business not only ensures that you are in control of your business but also enables you to forecast and prepare it for the future. Tradies that are hands on usually focus on getting the actual work done, however, the financial side of the business needs equal attention.
You might have just started your trade business or have been in business for a while now, but one of the things that any business owner looks for is profit. Profit is why most people start their own businesses because it comes with early retirement or peace of mind knowing your income is secure.
Making the decision to start your own business is a bold move that involves risk but can also come with greater rewards. As a potential entrepreneur you need to conduct your market research in order to estimate the size of the potential market, competition and potential sales, as these are some of the factors that will determine your business’ success.
It is a plan to:
1. Control your finances
2. Enable you to make confident financial decisions and meet your objectives
3. Ensure you have enough money for your future projects
Cloud Accounting or online accounting has garnered a significant stake in today’s globalised market. It is very similar to your old accounting software, however your information is no longer stored on your personal computer, instead all data is securely stored and processed on offsite servers known as “the cloud”, enabling you access from any device as long as you are connected to the internet.
How can a business making plenty of sales possibly go bust, you may wonder? The answer is cash. Your cash can be in a surprising number of places other than where it belongs - in your account.