Many of the readers of The Rules of Thumb blog from MoneyThumb are small business owners. One thing each of you as a small business owner can probably agree on is that just because you own a small business doesn't mean you are an expert at finance. In fact, we often hear from small business owners whose biggest struggle is the accounting and finance aspect of their business.
To help you cross those particular hurdles, today we would like to share some advice from financial gurus on handling the finances and accounting of your small business. We hope the following tips will help you get a better handle on the finances of your small business:
"We meet with entrepreneurs all the time and they tell us what they think we want to hear, that they want to make money. When we hear that, it's so depressing. It took me 20 years to come to this understanding, but the companies that are successful are the ones who create meaning. Create the next curve; don't improve on sameness."
-Guy Kawasaki, Chief Evangelist at Canva
2. Remember That Your Team Defines Your Business
"Investors put their money in people, not a business. The better the team you have, the more money you will be able to attract. Get people on your team that have industry expertise and that have been there before. Investors want track records."
-Barry Moltz, author of Bounce! and How to Get Unstuck
"Every business owner wants to run a profitable business, but few entrepreneurs dedicate enough time to measuring actual results. The only way to do this is to have a dedicated accounting function. Just as sales can't happen without paying attention to prospects, good financial decisions cannot happen without paying attention to the numbers. It might seem like you can "get along" without accurate accounting during the good times, but it is impossible to navigate lean months without clear financial records."
-David Worrell, author of The Entrepreneur's Guide to Financial Statements
Small business owners aren't expected to be an expert in the finance, accounting, and legal side of the business, which is why there are professionals like accountants, bankers, and lawyers out there. Money spent wisely on a good CPA or lawyer will be returned in multiples of extra profit.
-Ken LaRoe, Founder and CEO of First Green Bank
"Don't be afraid to say no to projects. Prove that you're serious about specialization by turning down work that falls outside your area of expertise. The more people you say no to, the more referrals you'll get to people who need your product or service."
-John Warrillow, author of Built to Sell
The Rules of Thumb blog from MoneyThumb hopes the above tips from financial gurus will help you with the finances and accounting for your small business. Another way to make your small business stand perform at its optimum level is by using the best PDF financial file converters on the market. Quickly and seamlessly convert bank statements using these tools from MoneyThumb.