Implementing Processes To Keep Your Business Afloat
Blog Contributor Carla Lopez
Entrepreneurs tend to be full of ideas. From the bright concept you had to start your company to the continuous improvements you make as your business grows, you likely have many big ideas to implement. But the most important ideas are those that keep your business operating smoothly and efficiently, including the following processes that deal with finances.
Evaluate Your Financial Situation
When things begin to go awry, it’s tempting to delay fixing them. Many business managers call this “putting out fires” — the inefficient busy work that entails running around solving immediate issues instead of allowing for time to fix the underlying problem that caused the “fire.” This often includes the financials.
But the longer you put off examining your books, the worse things get. If you have not been recording your expenses, logging your profits or tracking your bank balance, you may encounter serious problems. Gather all the available data to get a clear view of the financial situation. Once you understand how money flows in and out of your company, accounting firm Henry+Horne notes that you have greater flexibility to respond to critical decisions.
Assess Payroll Needs
If managing money is not your strong suit, important tasks may slip your mind. Neglecting to pay your employees in a timely fashion can lower morale and lead to legal trouble. Automate your payroll system to make sure your staff members are paid promptly and to avoid issues with accuracy. Ensure that the payroll service you use has features that fit your needs, such as direct deposit, tax penalty protection or a timesheet calculator.
Determine how many employees you need and the number of hours they should work. If the business is in financial trouble, it may be necessary to cut hours during slow periods.
If the reasons for your financial struggles are unclear, HR Daily Advisor suggests talking to employees and bringing in an outside professional for assistance. Staff members may often point out redundant tasks or unprofitable activities to eliminate. After examining your finances, a financial advisor can make recommendations for saving money.
You should have a clear understanding of what you want to accomplish with your business. Whether you wish to become the most beloved pet store in town or hope to expand your reach to the global market, you should have an idea of what the future of your company looks like. Setting realistic goals helps achieve your vision, notes PositivePsychology.com. For best results, break large goals down into smaller endeavors. This helps track your progress and gives you a sense of accomplishment.
It is counterproductive for you to focus on ineffective tasks. According to the Occupational Safety and Health Administration, long hours can lead to fatigue and poor health. Delegating duties frees you to concentrate on more important aspects of the company without getting buried in day-to-day operations and suffering burn-out.
For example, if you work directly with contractors but don’t have the time to compare their quotes, assign the task to a trusted employee. If you have been handling all the accounting needs, hire an accountant or bookkeeper even if you can only afford someone for a few hours a week.
Having a qualified professional do the work can result in faster and more efficient achievements. The bookkeeper can also store necessary paperwork to make tax time easier.
Another potential area for delegation is inventory management. A large inventory can be unwieldy to manage, especially if multiple people work in shipping and receiving. Lost or stolen products can hurt the bottom line. Delegate inventory management to a trusted employee or reorganize the system to keep better track of it yourself. Scanning barcodes on products as they enter or leave the building can assist in the tracking process.
Every company experiences setbacks occasionally, but examining and improving business processes can get things back on track. It is important to remember that financial situations can change quickly so be ready to meet challenges when they occur.
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