Organize a suitable accounting structure for your business.
How you operate your business and accounting for all the business transactions will give you satisfaction in running a business; if not will make you feel empty when you don’t know the results of your business achievements. The results mean the month-end accounting totals and your profit ratio that will help you to work harder toward your business. And also for your year-end tax calculations. When you are ready to choose an accounting system, there are two ways you can do your accounts, one is the manual method, and the other one is the accounting package; I would like to recommend Quick books; it is significantly easier to learn and suitable for small businesses.
Accounting packages.
It is easy to find by doing a Google search, there are many account packages, but some might be very expensive, and some companies give out a box with a monthly subscription, but you will not own it. It is usually easy to set up; you do not need to be a technical expert, and at the same time, you can get support from the accounts package company. If you want to speak to any staff before buying it online, you can go into the Office supply store and talk to the team to get your doubts cleared, and also you can discuss this with your accountant. I will be writing the benefits of using the Sage accounting package later in this course.
The type of control you need in the long run
If you have decided to computerize your accounts, get a simple package, load it up, and start putting your daily transactions, it is not tedious to practice; you can continue that for a month. By the end of the month, you can get your totals from the computer and pass them on to your accountant to do the rest of the work. When you start doing things like that, you will have better control over your business finances. Most of the accounts software packages will give much more information and not just the total of your sales and expenses; the best part is some packages will also give future forecasts; therefore, loading up data will save a lot of time and money. When you buy the software, you can put the purchase cost as part of your business expenses. You must start your accounting work using this method early to prevent any pitfalls later.
How to Price your product or services?
Many business owners try to check the competitor’s pricing plan and then try to bring their prices to the same level as the competitor’s prices. When you are pricing your product instead of depending on other people’s pricing levels, you have to make your costing like the cost of the product when you bought it from the manufacturer, the administrative and salary costs. The proper method is to do your calculations and then check them with your competitor’s price level to see whether you are in line with their price. If you do not know the method to calculate, you have to get some help to avoid a mistake; therefore, do not copy their price in case they have made mistakes in their calculations. You have to be careful in calculating your prices; remember, if the price is too high, there might be a possibility of not having enough sales, and if your price is too low, you will lose money because you are not covering your costs.