Accounting Tips For Success

The Forbes Finance Council members offer 19 effective accounting tips for business success, emphasizing the importance of sound financial practices in achieving accurate records, informed decision-making, and regulatory compliance. Key insights include:

#1 – Develop a Close Partnership with the Financial Planning and Analysis Team:

Forge a strong collaboration between accounting and financial planning teams to understand current performance and guide the company’s accounting treatment before financial decisions. – Geetanjali Tandon, Ceridian

#2 – Include a Well-Structured Chart of Accounts:

Ensure a well-organized chart of accounts to prevent discrepancies during year-end close and audits. – Oluwatoyin Aralepo, Mastercard Foundation

#3 – Implement Effective Budgeting and Forecasting:

Create detailed budgets, monitor, and adjust them regularly based on actual performance for better financial control and stability. – Jose Rodriguez, Got Credit?

#4 – Maintain Organized Records:

Utilize bookkeeping services and tools like QuickBooks or Quicken to keep organized records, facilitating financial management. – Letitia Berbaum, The Zandbergen Group

#5 – Utilize Balance Sheets:

Understand and substantiate all balances on balance sheets for clarity and informed decision-making. – Letitia Berbaum, The Zandbergen Group

#6 – Manage Accounts Receivable Properly:

Prioritize accounts receivable processes for timely payments, leveraging innovative technologies for efficiency. – Letitia Berbaum, The Zandbergen Group

#7 – Keep a ‘Money-Owed’ List:

Accrue for expected and incurred expenses, maintaining a list of money owed to avoid cash flow issues. – Letitia Berbaum, The Zandbergen Group

#8 – Prioritize Internal Audits:

Regular internal audits provide essential insights into financial health. This can aid informed decision-making and addressing potential challenges. – Letitia Berbaum, The Zandbergen Group

#9 – Update Books Weekly:

Keep books updated weekly and conduct regular “money dates”. Make sure to track cash flow, income, and expenses using financial tracking apps.  – Leo Kanell, 7 Figures Funding

#10 – Avoid Too Much Debt:

Exercise caution with debt to prevent financial stress, considering the impact of debt on the company’s financial health.  – Paul Daneshrad, StarPoint Properties

#11 – Invest in Excellent Accounting:

View accounting as an investment in success rather than a cost, recognizing the importance of high-quality accounting services. – Julio Gonzalez, Engineered Tax Services Inc.

#12 – Maintain Adequate Working Capital:

Ensure sufficient working capital by collaborating with customers and vendors for timely funds and improved relationships. – Omar Choucair, Trintech

#13 – Invest Back into Your Company:

Reinvest in growth, development, and technology to demonstrate confidence in the company’s success. – Austin Mac Nab, VizyPay

#14 – Establish a Realistic Budget:

Develop and adhere to a realistic budget aligned with objectives, regularly reviewing and adjusting it to maintain positive cash flow. – Anthony Georgiades, Pastel Network

#15 – Set a Budget to Track and Control Expenses:

Create a budget to monitor and control expenses, identifying areas for cost reduction or reallocation. – Sean Frank, Cloud Equity Group

#16 – Save Cash in Reserves:

Build reserves to support the business for three to six months, providing resilience during challenging periods. – Justin Goodbread, WealthSource Partners, LLC

#17 – Understand Monthly Cash Flow:

Separate personal and business finances, knowing the monthly inflow and outflow for better financial management. – Carolina Martinez, CAMEO

#18 – Review Key Financial Ratios and Indicators:

Regularly analyze financial ratios like gross profit margin and operating margin for insights into financial health. – Jared Weitz, United Capital Source Inc.

#19 – Work with a Qualified Bookkeeper:

Collaborate with a qualified bookkeeper for accurate and current financials, laying the foundation for financial fitness. – Julie DeLong, Backyard Bookkeeper