Small business owners spend over one hundred hours every year working on their taxes alone. For businesses that are run primarily by the proprietor, that’s essentially like taking two weeks off every year just to pay money.
Finance and accounting skills are difficult to master. Just because someone has a great idea for a business doesn’t necessarily mean that they are natural to accounting as well. In this article, we examine ways that entrepreneurs can get the most out of the time they put into accounting and finance.
No matter what your business needs, there is probably a software program out there that is designed to make the task more accurate and efficient. When it comes to making tech stack purchases, it’s mostly a value proposition. Ask yourself “Will I use this program? Will I understand it? Will it really help?”
When it comes to accounting and finance tech, the answers are yes, it depends, and absolutely.
Buy smart. Find tech solutions that are sized to fit your business. Ask questions from the sales representatives. Believe it or not, they are incentivized to only bring in customers who are a good fit from their product as well (the software industry depends on recurring business over one-time sales) so you can usually trust them to steer you in the right direction.
The right FinTec stack will be able to help with things like sales tax (for businesses with out-of-state or international sales this alone is huge) data implementation, billing, and more.
Data implementation is a key component of staying competitive in accounting. While public opinion seems to associate Big Data with big business, the fact is that anyone can use it to their advantage if they know what they are doing.
Data can help you make informed investment decisions for your business. It can improve marketing, sales, and even day-to-day considerations like inventory management.
It’s not always easy. Advanced data usage usually requires a degree. However, for the business owner who wants to survive and thrive, it’s an important tool to have on the belt.
Many small business owners may be reluctant to take this step. It’s not at all uncommon for the average small business owner to clock in sixty hours a week as it is. Throw in a few college classes, and little things like sleep and seeing your children may become elusive.
There is no denying that taking classes on data or accounting takes time and money. However, both investments get paid in spades. The stress you get from the coursework is temporary. The benefits it has for your business, on the other hand, will last forever.
A better understanding of data allows you to make informed decisions that impact every aspect of your business. More accounting knowledge, meanwhile, allows you to make the most of your tech, while also gaining autonomy on the financial aspects of your business. Every entrepreneur has heard the sad story of the small business that folds because the wrong person was hired to handle its finances.
By gaining the ability to handle finances on your own, you make sure that this isn’t your story.