Follow These Three Steps to Operate Your Business in Real Time
You have probably heard the expression “Cash (flow) is King”. This is precisely why you want to operate your business in real time and be able to view a dashboard of accurate balances every day! Otherwise, how do you know if you can afford to pay your bills next week, cover payroll, or purchase that next big item? Follow these three steps to see how you can operate your business in real time.
1. Use an accounting tool that is streamlined to save you data entry time.
This can’t be stressed enough. If you are using a system meant for a larger business you could be wasting precious time. To correct entry errors in that large system can be daunting. You don’t have time for that! If you view your current system as a time waster, you are less apt to use it. If the snowball keeps getting bigger and bigger, consider using a more streamlined and small-business-oriented system like Big E-Z.
2. Enter data as it happens.
Whenever you write that check, record it in your accounting system that day. Whenever you make that deposit, record it that day. Whenever you transfer that money or put a purchase on that credit card, record it that day. Once your data entries are categorized and reconciled, be assured your balances are accurate. In reality, daily data entry can be time-consuming and difficult to accomplish. However, this is a very necessary task if you plan to meet with an accountant to forecast and budget for next year.
3. View your dashboard for daily accurate balances.
If you choose to record in real time, your dashboard will have daily accurate balances including a list of all pertinent totals to help you stay in control of your business. Examples include your current cash available, direct cash flow amounts, assets, liabilities, and profits, etc. You can view an example dashboard displaying daily accurate balances using our Big E-Z Sample Company Demo.
Congratulations! Now you are operating in real time. Your records are completely up-to-date and you are totally in charge of your finances! You know exactly where you stand and can make better business decisions.