For any business, regardless of size, poor accounting practices can be one of the most damaging issues there is. Not staying on top of all your incoming and outgoing finances is a sure-fire way to invite big problems down the line.
It's a nasty cycle, one which can leave your company vulnerable to illicit behaviour, both from outside and within. With the right small business accounting software, you should be able to avoid any of this drama, however there are some warning signs to easily look out for.
Delays or irregularities with financial statements
The first place to look for problems with your company's accounting practices will be your regular reports. If you find your monthly or quarterly financial statements are consistently arriving late, or often contain a lot of inaccuracies, that could be a sign there are problems within your accounts department.
Cash expenses are not accounted for
Particularly for a small business, it can be easy to get into some bad habits when it comes to cash expenses. Ducking out of the office to make some minor purchases may not seem like a big concern, however those expenses can quickly add up and leave shortfalls in your business accounts. Effective finance management means logging all company spending in your business accounting software, large or small.
Limited access to financial information
As the owner of a small business, you should have full access to your accounts with little fuss. If you're unable to get a clear idea of your company's performance, forecasting or general financial position, it might be time to implement a better accounting strategy.
If you find yourself having to jump through too many hoops just to get fundamental data, give the team at Accomplish a call and see how CashManager can make your small business accounting much easier to handle.