At Sherman Oaks Accounting & Bookkeeping powered by One Source Services, Inc., most of our clients are big-picture folks: entrepreneurs and managers in a wide range of industries with great ideas that often come with big accounting challenges.
Very few of them ventured into business so they could stare at financial spreadsheets or enter accounting data for hours-on-end. So, they hire us.
Because we all know that good habits and well-managed accounts are essential to a thriving business.
Along that line, we compiled a list of 5 good habits that all business owners should have:
1. Delegate, delegate, delegate! This is a big one, is easier said than done, and definitely takes time to master. Delegation is simply the transfer of responsibilities to somebody else. Tasks like scheduling, inventory tracking, answering phones, and stocking shelves can be handed over to someone who perhaps enjoys it more, is good at it, and hopefully has more experience doing it. For example, our clients delegate their bookkeeping and accounting to us. When you delegate properly, productivity and sales will rise.
2. Don’t delay! One of the costliest mistakes we see is that folks often procrastinate their bookkeeping. We get it; not everyone is as financially-minded as we are. The problem is that what we put off today doesn’t go away tomorrow, no matter how hard we wish it would. It just gets bigger until we’re eventually faced with an overwhelming mess to sort out. And the bigger the mess gets, the more we’ll procrastinate. So much so that we wrote an entire article about cleaning up messy books. Sherman Oaks Accounting & Bookkeeping powered by One Source Services, Inc. ensures the books are more controllable, hopefully lessening the tendency to procrastinate. Referring back to habit #1: delegate, don’t procrastinate.
3. Understand your cash flow! Does your business have to pay vendors before receiving customers’ payments? Effectively managing your cash flow can help. Being familiar with your sales cycles, including seasonal spikes and dips, can empower you to take anticipatory action.
4. Focus on your strengths! We learn from each other’s mistakes; shouldn’t we also capitalize on existing products and solutions? Don’t waste your time reinventing the wheel. It’s far more cost-effective to work with providers who specialize in their areas and have already perfected the tools. Your time is much better spent on what you are good at. Which leads us back to the first habit: delegate, delegate, delegate! Or in this case, outsource, subscribe, and take advantage of what already exists.
5. Don’t run yourself ragged! This one is often understated. Many business owners invest all of their time and energy in their new business, sometimes at the expense of important things like their health and relationships. If you’re working yourself to the bone to keep your finances in the black, then you are not being profitable. It may be necessary at times, but working long hours should not be part of your long-term financial plan. Working 80 hours a week is not sustainable! And when you do finally have to cut back your workload because you collapsed from exhaustion, your finances will take a major downturn. Undervaluing the time invested in your business is dangerous; all labor costs (including your own work) must be accounted for. Again – delegate what you can!
Most entrepreneurs start out with a big vision, motivated to overcome great challenges along the way. Whether they like accounting or not, they won’t get far without good habits and properly managed finances.
Sherman Oaks Accounting & Bookkeeping powered by One Source Services, Inc. is here for you!