Good accounting is the basis of any successful small sign making business. If you don’t know what you are spending or what you are earning, you can’t expect to magically see the profit margins grow.
Many small sign shops put off bookkeeping until the end of the year, which is a big mistake. Better to keep up on it and do it monthly. Many have the goal of closing the previous month’s books by the 15th or 21st of the succeeding month.
Rather than leaving money issues up to chance, keep track of your accounts. Use the information gathered in financial reports to the benefit of your sign making business.
If you are overwhelmed with accounting these 5 tips can help you get on the right track today:
- Get an accountant you can trust and communicate with him. Whenever you have any questions regarding your accounts the first person you turn to should be your accountant. They will be able to give you good advice and guidance, possibly saving you from making costly errors.
- Use a solid bookkeeping system. Without good records you have no way of keeping track of how much you are making or how much you are spending.
- Watch the cash flow – closely. Dipping into funds on unexpected occasions too often can leave you without enough money to pay the bills.
- Check your monthly bank statements religiously. Don’t expect banks to record transactions perfectly or not make any errors. Also don’t expect them to notice the error; bank reconciliation is a must on your end.
- Remember that business plan you made? Pull it out of the file cabinet and compare what you are actually making and spending as opposed to what you had thought your income and expenditures would be.