Accounting tools for your business serves more as an asset to the business than that of an expense, however, many small entrepreneurs make the mistake of not taking their business’ cash flow seriously. This is one of the main reasons why most startups die within their first 5 years. The entrepreneur may anticipate the profits faster than is realistic and may not re-invest wisely. It’s very easy to use extra cash from the business as disposable without consideration to reinvest for expansion and sustainability.
Another key benefit of establishing an accounting system is the ability to track, measure and compare your business performance. Customers appreciate a business that is in order and without a doubt, they will realize based on your output. For example the way an invoice is structured communicates the quality of the business to its clients or customers.
It is important to document your expenses and gains accurately and holistically. Set the standards for proper management in your business. Here are a few low cost tools you can use to start managing your accounts. You will need little or no expertise to crack and to ensure you are keeping track of every dollar.
A free accounting software that creates a double entry system and is available through Microsoft excel.
Offers free invoicing and accounting features, also facilitating card payments.
Money Manager EX
Is excellent for keeping track of spend – where, when and what.
It is also important to seek advice if you are not proficient in the area and is not yet able to hire a specialized personnel. Get some amount of training even if you are not the resource performing the function. As the leader, awareness will lead to better management as you have a clear understanding of the function. The accounting choice for your business may differ but ensure that it is credible and in accountable hands.