Owners of small businesses do not have to lose sleep worrying over their cash flow because there is small business accounting in Norwest that will streamline cash flow management and budgeting for day-to-day expenses. At least 66% of business owners revealed that their cash flow is impacted by the amount of time that it takes money to process after receiving payment.
According to a study, 53% of small businesses will send out invoices to bill their customers for services rendered on a specific date. Meanwhile, 47% use advanced payment wherein the customers are charged for a service before they receive them or when they do. Those who send out invoices have to wait for more than 30 days to receive payment.
Failure to receive payments when they become due results into lack of readily available funds to play employees on their payroll. More than 2 in 5 or 43% of small business owners that have cash flow issues are at risk of not being able to pay their employees on the assigned payday.
An example is the partial government shutdown early in the year that impacted employees who depend on their paychecks. If a small business fails to pay employees on payday, it is very likely for the employees to look for another employer who can pay them on time. When a small business does not have liquid finances, the owner opts for loans and other capital for financial support. However, getting loans from banks is not easy and the interest is too high.
An accounting professional can provide a business owner with sound financial advice and provide help in sorting out the issues. Accounting professionals can help entrepreneurs with better billing practices. When the business has resolved the financial issues, relationships with employees will become stronger as well as vendors, clients and customers.
A wealth of expertise can be shared by small business accounting in Norwest so that businesses can increase their profits and improve performance. An accounting team will provide guidance in areas like quoting, cost management, marketing, bookkeeping and tax returns. The team knows the ins and outs of everything from income taxes to capital gains tax and the superannuation tax.