Keeping Things Simple Can Lead To Greater Profits
Some small businesses are run very simply.
Donavan Janus launched his company, 17hats based on keeping management tools simple.
Here is his six steps to simplifying management while still keeping close tabs on the business.
- Flash the Cash:Accrual or Cash? If your business is coming in under $5 million in annual sales and inventory isn’t necessary to account for, there is really no need to use accrual methods of bookkeeping. The IRS advises sole proprietors to instead adopt the simpler cash method of accounting. Not sure? It can always be changed later, check it with the IRS here.
- Keep it Clean:Looking for an ultra simple way to stash company documents? Try a dedicated yearly storage box. Drop in records, receipts, statements, tax return labels, and more to easily reference by year. Keep the box stashed on or under a desk so organization is never far.
- Pay and Keep Tabs:Tracking expenses is a necessary evil; no fun to do, but those with attention to detail can be rewarded. Many don’t realize the write off potential beyond meals and entertainment, but the IRS offers credits for health care, home office, driving, and even child care. With 17hats, all transactions are organized and categorized in one place, making these credits a snap to identify.
- Save Now, Win Later:Some of us are impulse shoppers, but it’s important to avoid it when it comes to certain expenses. Don’t be tempted by office or equipment upgrades when you’re rolling in dough. Setting aside a budget at the beginning of the year for necessary (and surprise) expenses alike will save you a headache in the long run.
- Habit Forming:When crunched for time, it’s tempting to fall into the bad habit of using 1099s from client as a means of record keeping. Beware, this isn’t bookkeeping at all, and can only complicate matters in a number of ways. Instead, try our automated bookkeeping suite at 17hats to simplify record keeping and get back your time.
- Make a Date:Bookkeeping is neither fun nor sexy, but making time for it is essential. Set a weekly calendar reminder to spend 15 minutes on Monday morning with a cup of coffee and 17hats, poring over the previous week’s records. In a few minutes it will be possible to be organized and ready for the week ahead.