Small and medium sized businesses, to a large degree, are what drive the economy in Canada. We have our share of large corporations that we frequent everyday, but, numbers indicate that a significant amount of our day to day transactions take place in businesses of a much smaller size. This means that more and more Canadians are choosing non-traditional ways of making money as opposed to the traditional 9 to 5 job working for someone else in an established business or company. The entrepreneur’s dream of self-sufficiency, and prosperity, is becoming reality for more and more of us everyday.
When the dream of being your own boss does take hold, it’s valuable to think in the most basic terms and not get too romantic about “creativity”, “freedom” or any other ideal that will come with success. The reason that anyone goes into any business is to make money; plain and simple.
Although you might love what you do, and it might not feel like work, without positive cash flow there is no business. It cannot exist. The danger, then, for an owner doing his best to make money is to lose sight of the fact that this new venture that they have started is something that exists separate of themselves. As much as it might seem at times; you are not your business. Success comes when the business that you started becomes the source of your prosperity and not a financial, emotional, physical drain.
Scaling Your Business
A large part of that prosperity comes when systems are in place that maximize a business’s efficiency in day to day operations while minimizing time and energy expenditure, allowing for more profit generating activities. Billing, scheduling, bookkeeping and accounting are such tasks that are easily automated using technology that is available to us and largely cloud or internet based. Establishing these kinds of tools at the beginning of a start-up saves time, money and effort as a business moves through the different stages in it’s lifecycle from introduction to growth, prosperity and maturity. It is best to design a business that can be scaled for expansion before the need for expansion arises.
A business that is scalable is one that grows smoothly, without turmoil, as it’s demands and workload increase. Being able to scale a business for growth depends largely on the ability to plan and forecast income and expense projections and while this is something that used to happen on a monthly basis, online accounting programs now offer the ability to know your true financial position on a daily basis. Updates happen in real time, allowing for daily reconciliation and a snapshot of the business health at any given moment.
Cloud Accounting App Integrations
The way that this “real time” accounting works is by linking your bank with an online accounting program like Xero. Setting up a direct bank feeds platform allows transactions to flow seamlessly into your accounting software, reducing manual administrative work as well as the risk of data entry errors. If you have not set up yours on your accounting platform you should not that It is a stress-free way to keep your records up to date, as they happen.
The viability and financial stability of any business depends on accurate data about revenue, expenses and cash flow which are build through the bank feeds process on a daily basis or as part of a monthly package consisting of standard Xero reports.
Having timely bookkeeping and accounting records for a business is like turning it’s headlights on. They show you where you are going and if you are on the right track. When these record keeping tasks are accurate, reliable and automated, you’ll experience the peace of mind that comes from running a business that is serving your clients and helping you to build prosperity.