Life Events

Business Accounting Strategies

  1. Send out customer statements on time so you can get paid.
  2. Never lose track of a customer invoice.
  3. Know exactly who's behind in paying you in order to resolve these problems quickly.
  4. Never make another sale to a customer who isn't paying their bills.
  5. Never risk losing a customer because you didn't record their payments properly.
  6. Accurately calculate interest, and collect it from overdue accounts.
  7. Reduce the need to borrow due to poor cash flow.
  8. Don't lose sales because you're out of stock on items.
  9. Avoid rush delivery charges to obtain out-of-state items.
  10. Don't waste money buying more of what isn't selling.
  11. Set your sales prices based on profit instead of guessing.
  12. Concentrate on selling the most profitable items instead of the easy ones.
  13. Identify profitable cross-selling opportunities. 
  14. Don't sell a product at a loss because you didn't take markdowns on time.
  15. Know which money-making product lines to expand, and which ones to drop because they're money-losers.
  16. Find out if you have a theft problem before it's too late.
  17. Never pay a bill twice by mistake.
  18. Never lose a discount by paying a vendor late.
  19. Plan for your payment due dates and reduce the need to borrow.
  20. Maintain your good credit rating and keep your borrowing costs low.
  21. Obtain better credit terms based on your good payment history.
  22. Know how much payroll and sales taxes you owe, in order to avoid penalties and interest.
  23. Never write a bad check by mistake.
  24. Never pay another bad check service charge.
  25. Make sure all your cash receipts are credited to your account.
  26. Know when you have excess cash so you can put it to work.
  27. Keep track of all of your expenses in detail so you know which ones can be cut back.
  28. Never spend beyond your budget.
  29. Get the maximum possible tax deductions for the expenses of running your business.
  30. Figure your profit on a cash or accrual basis so that you pay the lowest taxes.
  31. Learn how much profit you've made, and what your business is worth each month, in order to:
    • Know when it's the right time to grow.
    • Know when it's the right time to hold back.
    • Plan accurately for taxes.
    • Save hundreds to thousands of dollars on your year-end tax return.
    • Comply with the reporting requirements of any business loan.
    • Respond immediately to any supplier's or customers request for financial information.
  32. If you service provider:

    • Know on an ongoing basis which services are profitable and which ones aren't.
    • Get paid on time as you complete the job.
    • Avoid working on projects where progress payments are behind.
  33. If you sell products:

    • Know what it costs to make each item.
    • Set a selling price to cover your costs and achieve a fair profit.
    • Know what product lines to expand because they're profitable.
    • Know what product lines to drop because they're money-losers.

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