Accounting is not an easy job and therefore, not many people like it. However, things are a bit different when it comes to the business world. The majority of the people working in the business industry are linked with accounting in some way or another. Furthermore, it is the need of every business. Despite that, you will not see a lot of people saying that their favorite part of the job is accounting.
However, it is more like hype because more than 41 percent of small business owners handle their accounts by themselves.
Handling business accounts
If it was that big of a deal, how could they handle it all by themselves? Of course, the nature and level of the business are quite important here as well. Big businesses have different departments and all of them have their own budgets. Therefore, all their finances are different too.
Thus, it is not possible for one person to handle all these expenses independently by himself. That is why, in such big companies, there is a complete department for accounts.
However, if you are doing a small E-commerce business, you can manage things all by yourself. As for bookkeeping, it is not that difficult now.
Use technology tools for bookkeeping and accounting
You will get different application software that helps you with bookkeeping. This is something that even large enterprises are also using. So if your business is growing and you are facing difficulty in making account records, you should try this, linkmybooks.com. This bookkeeping application software is widely used, even by large enterprises, and is particularly useful for ecommerce accounting.
Click the link and read about it. As you scroll down, you will see the option of whether you are a seller or an accountant. The software options vary with the option that you select. So if you are a seller, your needs will be different than that of an accountant.
E-commerce accounting won’t be a headache after your bookkeeping is handled by linkmybooks.com. So make your job easy and relax.
Your guide to managing your business finances
1. Create your budget
You must have heard and read about budgeting a lot of times. However, if you are still not able to do so, it means you need to put extra effort into it. And of course, we are here to help you as well. If your budget is not right, you will fail to manage other expenses.
If you are continuously failing to meet the set budget, you need to pay attention to what mistake you are making. All those failed experiences are still of help because they are telling you about your shortcomings.
Record all the previous budgets and look at how they went wrong. Thus, you will have an idea of the limit that you should set for your business. If you set this budget well, all other goals will become easier targets.
The first thing that you need to do is line all the things in front of you. This will tell you where your money is going. Afterward, you need to use the 50/30/20 framework for your budget. This framework tells you to spend only 50 percent of your income on necessary things. 30 percent should be spent on some other needed expenses like streaming plans etc. Finally, 20 percent. This 20% should be saved.
Thus, you will be managing your savings and expenses as well. There won’t be any extra spending and you will be able to remain within your set budget.
2. Your emergency fund
Business growth is not always smooth. Therefore, you should expect to see the ups and downs and not be demotivated by the falls. However, when you are down, there is one thing that you need the most. And that thing is funding. But the problem is where will you get the funding?
You never know if you will be able to get the funding from someone. That is why, when you are having a good time, you should create an emergency fund. You should never touch this fund if there is no emergency and no way to go.
As for the emergency fund, there is not any certain limit to set. It completely depends on what you need and how much you need.
For example, as for a common person, it is recommended that your emergency fund should contain an amount equal to three months of your salary. This means that if you lose your job, you will still have money to spend three months looking for a job.
So you can set a budget for your business in this way too. Set a limit by yourself and keep it in the emergency fund account.
3. Stop delaying your credit card payments
You should not remain in debt, especially with a bank. If there is an unpaid balance on your credit card, you will be charged a 17 % interest rate. Therefore, these small payments end up making you lose a lot of money. That is why you should try to not use credit cards too often. Moreover, you should pay all the training bills.
However, if you are already late and not sure what to do next, what now? You do not seem to have an option right now. Well, if you are already in this state, make sure to visit the bank and ask for some options. They have certain options. For example, if you have a strong and solid credit score, you can have your interest waived. So make sure you check this option with the bank first.
Conclusion
Choose your business partners carefully
This is the life lesson that you need to learn. Whether you are doing good business or the times are hard for you, never choose a dishonest person as your business partner. You can work on improving your budget plans. Likewise, you can have savings. But if your business partner is not honest, you can never be successful.
If your e-commerce business is at a small level, try doing it all by yourself. Do not depend on others and manage your business and expenses by yourself.