Ignition Video Series: Raj Thakkar on How to Organize Your Business FinancesBrittany Dow
To watch this weeks episode of Ignition click here, or simply watch below.
Here are three key points that Raj shares for businesses to organize their finances:
Every business should have internal controls set up with checks and balances to reduce the risk of fraud. To do this, there should be multiple people handling different areas of your finances. This means instead of having one person in charge of ordering, purchasing, cutting bills and reconciling bank affiliations, there should be multiple employees responsible for handling these duties. This will help improve the accuracy of your finances and reduce the risk of temptation for any employees to take some of your money for themselves.
Create a Budget
By creating a budget for the year, you can make monthly assessments against your yearly budget to see how your business is performing throughout the year. This will also allow you to see where your profits or losses are going at the end of the year. This is important for businesses to know so that they can track the progress and status of their business and whether they are able to expand by opening a new location or hiring more staff, or whether they need to cut back.
Every business should try to mitigate their tax liabilities by hiring a CPA or auditor. By working with a professional, businesses can avoid being hit with a large bill to the IRS and find alternatives strategies to reduce their tax liabilities.
If you need additional assistance with organizing your finances, watch the video to learn what to look for in a finance professional and different programs that you can attend to learn how to better manage your finances.