The 5 A’s for Your Business Finances

Business finances are a complicated, time-consuming monster. There’s all the transactions to get through, the payments to collect, the bills to pay, and all the paperwork that comes with keeping track of your money. 

It’s rarely fun, but I want to remind you that your finances represent the health and wellness of your business. And, just like you take care of your physical health, your finances need regular check-ups.  

To help with that, you can use the Five A’s of Business Finances to keep them healthy all year long. 

What Are the Five A’s of Business Finances?

The five A’s of business finances are:

• Automate
• Automatic
• Accounts
• Accounting
• Analyze
  
  

These five hacks will help you stay organized, save time, and confidently navigate the financial landscape- not to mention how happy it’ll make your accountant.

Here’s how they work. 

Automate

First, you need a system that automates your payments, invoices, and other financial dealings. That way, you don’t have to worry about bill deadlines, collecting money, or payroll. 

It can be something simple, like Stripe or Paypal, that gives you the bare minimum while keeping you on track. Or, it can be a bit more complicated, like Dubsado, where you can have more control over the process and automate most of the work. 

Once you have a system in place, you’ll never have to worry about getting paid on time again, and that’s one weight gone.

Automatic

Now that you’ve automated your end of the business, it’s time to get your clients payments automated.

By having them sign up for auto-pay, you’ll never have to chase them down for a payment. Instead, you’ll have their card on file, so any invoices you send can automatically get paid. 

And if, for some reason, the payment fails, you can also set up automatic payment reminders that alert your clients every so often that they need to pay. I recommend scheduling them for three, five, and seven days past the initial due date- but no more than 14.

That way, they have ample opportunities to pay what they owe you and you barely have to lift a finger. 

Accounts

If you don’t have a business bank account already, PLEASE get one as soon as possible. 

Aside from keeping your business finances separate from your personal funds, business accounts offer certain perks that a personal account doesn’t have. 

Plus, separate accounts will help things go smoothly in the event you get audited. 

If you’re a Canadian-based business, I recommend the Royal Bank of Canada for your business accounts. They offer secure banking options that will fit any business model or need, and their rates are reasonable. 

If you’re a US-based business, check out Chase for Business. They offer three different business checking accounts, two savings accounts, and a host of credit card options that are sure to fit your needs. 

However, no bank is perfect, so you should compare your top options. That way, you can make sure to get the services and amenities you need to keep your business running smoothly. 

Accounting

Now that your accounts are in order, you’re going to need accounting software.

I recommend Quickbooks because it lets you keep track of your income and expenses, run a Profit and loss report, look at forecasting, and have a balance sheet. 

Plus, you can connect your business account and credit card to the software and easily import your transactions. Trust me- your accountant will love you for keeping track of it all.   

Analyze

Finally, you need to analyze your data. Create a personalized routine to check your finances once a month and see how your business is doing. 

You can take this time to run a Profit and Loss statement and check the sales and expenses for that month, examine any missing or incomplete data, manage subscriptions, and get an overall view of your business. 

You can also take this time to set new goals for the month, check your automated systems, and make sure everything is as it should be. 

It shouldn’t take you over 30 minutes if you have everything automated, and once-a-month check-ups will make your End-of-year review a breeze. 

Business finances may seem like a complicated monster, but using the five A’s will have your accounting process going from atrocious to amazing in very little time. 

Remember: a healthy business is a happy business!