Cash Management: The Linchpin of Small Business Success
Making money is at the heart of owning a business. How business owners handle cash flow is extremely important to the success of the company. Whether it’s an office or a retail location, pretty much every small business in Raleigh deals with cash in some form.
Here are three tips on handling cash in your small business:
Know how much is needed: Think about how much cash is needed and what denominations are best for the business. A high-volume retail location or restaurant will need more than an office, but most businesses need some on hand. It might take a little bit of trial and error, but eventually, owners will find the right balance for the company.
Set policies: Make clear the policies so employees know how cash should be handled, what it is used for (in the case of petty cash), who can make bank deposits and how, the way to organize a cash drawer and any other aspect of how the cash should be handled. Also think about what you accept and don’t. For example, some businesses won’t accept bills larger than $20, while others don’t mind. If there’s an area to be picky and strict with policies in a business, cash handling is it.
Keep track of it: Five bucks here and ten bucks there doesn’t seem like a big deal, but over the course of a month or two, it can leave big holes in a business’ bookkeeping. Keep records of where every penny goes. Not only will it help track the funds, it will help to have a clear idea of the business’ spending habits. Check into software to help keep track of cash transactions more easily.
How a business handles its cash needs is essential to how it runs. If you need help managing cash flow at your Raleigh business, Raleigh bookkeeping can help! Contact us to get started.