5 Business Finance Improvement Tasks For Summer
Posted by: Brookside Admin
With summer finally here, you may have an opportunity to perform some cleanup on your business's finances. Many industries slow down over the summer with more families on vacation. If that's the case for your business, this is a perfect time to take a critical eye to each component of your finances and ensure they're in the best shape possible before things pick up again. Here are a few good places to start:
Analyze your cash flow
If you're moving at a fast pace and are short staffed, it's easy to miss a bill, or miss when a client is past due on their invoice. Your first priority is to pay what you owe, and get paid what you're owed. An be sure you end up with an up to date balance sheet.
Review vendor contracts
If you've been in business for a while, you likely have contracts with a variety of vendors. If you've let contracts continue without reviewing them lately, you may be spending money unnecessarily. Take a critical eye to each contract and contact the vendors to go over them, even if they're not up yet. Many times, you can renegotiate, or eliminate services you no longer need.
If your rely on accounting software like Quickbooks to manage your business's finances, you may have been wary to update in the heart of your busy season. Now might be a good time to update in order to take advantage of new and improved features. Letting your software get too far out of date introduces security concerns, or may cause functionality issues that create errors in your books.
Pay quarterly taxes
Most small business owners pay taxes quarterly. If you do, your next payment is due June 15th. Before then, you'll want to review your income statements and expenses if you haven't already. If you missed a payment during a busy season, be sure to talk to a CPA about how much you'll need to pay during the next tax period to minimize penalties.
Deciding on an initial pricing structure is difficult. Failing to re-evaluate your pricing as your company and client list grows is a potential disaster. Periodically, you may find that you need to raise prices, or even discover you can afford to charge less. Many business owners will have developed an irregular pricing structure over time as they've negotiated special pricing with different clients. Now's a good time to review your prices across the board and make the necessary changes.
For help with these tasks, or additional recommendations concerning your business's finances, contact the CPAs at Brown Kinion and Company at our offices in Broken Arrow and Tulsa.