As a small business owner, it’s important to have multiple ways to accept payments from your customers. Around 36% of all sales are made with cash. That means over 60% of your sales will be via credit card, check, or another method.
Managing payments is essential to running a business. Not paying attention to your business’s financial health and the income you have coming in could hurt your company. There are multiple ways you can track your payments, expenses, and other financial factors.
This guide will discuss our top five tips for managing payments for your small businesses. Stay on top of your company finances to improve the success of your venture.
1. Accept Multiple Payment Options
Your small business might be entirely online. You could also make sales in person. Perhaps your business is a hybrid of the two options.
Whatever structure your small business is, you should offer your customers more than one payment option. Some of the ways your customers could pay you include:
- Credit and debit cards
- Venmo
- PayPal
- ACH or eCheck
One thing you’ll want to be mindful of is any fees associated with accepting different payment options. You’ll want to price your products or services accordingly to account for those charges.
2. Have Accounting Software
Once you’ve determined the ways your customers can pay you, you’ll need a program to manage their payments. While some business owners might want to use a spreadsheet or notebook to manage their finances, accounting software can streamline your operations. Other software options, like androsysinc.com, can help you stay on top of other aspects of your business.
The features you should look for in accounting software include:
- Reliable customer support
- Cloud access so your accountant can review your information
- Integration options
- Automated tasks
3. Pay Yourself
You might be tempted to put any extra funds you have into your daily operations. However, you shouldn’t overlook what role you’re performing at your business. You should be compensated for the tasks you’re completing to grow your business.
4. Monitor Your Financial Documents
Your financial statements will give you insight into your company’s financial health. The three main documents you should review include:
- Balance Sheet: What your business owes and owns
- Cash Flow: The money that moved out and into your business
- Profit and Loss: Shows your businesses payments and expenses over a specified period
5. Separate Your Finances
On top of ensuring you pay yourself like an actual employee, you should have separate checking accounts for your personal and business funds. You could miss out on growth opportunities if your money is intermingled. Additionally, you could accidentally overspend, harming your business.
Effectively Managing Payments
Managing payments and expenses is one aspect of your small business finances. You need to have a finger at the pulse of your company. Failing to monitor your finances could negatively affect your organization.
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