Accounting must-knows for growth
What is the flip side of outsourcing your business’s accounting function? It may result in you taking an arm’s length approach to the business’s accounting matters. It makes good business sense to outsource. However, you must continue acquiring accounting knowledge because they can guide you in driving the business’ growth.
1. A healthy credit rating score
If there’s any certainty in running a business, it is uncertainty. To some, that’s the thrill of being an entrepreneur. Fortunately, it’s a mix of pleasant and unpleasant surprises, that is, problems and opportunities. As a result, you’ll never know when the extra cash will come in handy, hence why keeping a healthy credit rating score is important both in your personal life and in business. To this end, you’ll need to know how your score is determined.
2. Learn to budget
A budget isn’t designed to curb your business ambitions. In fact, it is the roadmap to help you realise them. After all, money is the currency that measures the success of your business. Planning for as well as tracking its movement in and out of the business is important. It helps you to make informed financial decisions of significance to the business’s wellbeing.
3. Know how to spend
This may sound strange as most people and businesses should know how to spend, but there’s a critical difference between them. Personal spending is primarily for consumption. On the other hand, business spending is usually investment-focused. It takes money to make money. Having said that, staying prudent and having a clear understanding of the return on investment is imperative.
4. Responsible borrowing
In relation to the above, knowing why, how much and when to borrow is important. The flourishing fintech market is a boost to small business borrowing. From quick approval times to flexible repayments, they have increased access to the capital market for small businesses. But borrow responsibly. Having the knowledge to evaluate borrowing needs and options helps.
Working in partnership with our clients, we equip them with the relevant accounting knowledge as well. To learn more about how we do it, contact us today.