TO KEEP CONTROL OF THE FINANCIAL
control of the financial reins poses
a dilemma for the average small
business owner. What to do first?
There are nearly 60 different hats
you have to wear to keep your business
fully functional and operational.
That's quite a wardrobe.
to develop a suitable daily, weekly
and monthly routine is the key to
feeling and being organized. When
you feel overwhelmed and don't know
in which direction to turn, productivity
immediately takes a nosedive, and
important jobs are often rushed,
overlooked, or left incomplete.
can boil down to some very daily
basic strategies. Many small businesses
are inundated with provincial
and federal tax payments, along
with personal tax payments.
Here are some tips to help you get
Transfer 5% of every bank deposit
into a GST savings account.
If you collect PST, increase
the amount to 12%. These are
funds in trust and shouldn't
be mixed up with your daily
cash flow in the first place.
Even better, add 15% towards
your personal taxes. If you
don't need it all at year-end,
it can be used towards an RRSP.
Learn to write a weekly priority
list and update it every day.
Attend to the priorities in
order of urgency.
When accounts arrive for payment,
note their payment date in your
Day Timer to avoid penalties
and interest . Keep them filed
alphabetically in an 'accounts
to be paid' file for easy reference.
When you write a cheque, note
the amount of GST, the type
and net amount of the exp on
Spend at least an hour a day
doing follow-up and marketing.
Send thank-you cards to new
clients and people who have
referred business to you.
Keep a well-organized filing
system with a folder for everything.
File daily when the mail arrives
and clean the files out every
Know how much a week you have
to bill to meet both your business
and personal monthly financial
commitments. Total your sales
each week to see whether you
are on track or not.
Have your books updated at least
quarterly, if not monthly and
ask your accountant to teach
you how to read and understand
To help keep cash flowing, phone
outstanding accounts at least
weekly and where possible, offer
to pick up cheques.
Budget to consult with your
accountant at least three times
a year and have your books updated
before year-end.. Your accountant
can then assess your business
and plan some tax strategies