Imagine you’re a new pilot, preparing for a flight. You walk around the entire plane, running through your pre-flight checklist and making sure everything is a-ok. Rudders? Check. Landing Gear? Check.
Then you get in your plane and off you go into the wild blue yonder. You’re having a great time enjoying the freedom of flying solo, and then you encounter a low-level system. It starts with haze and increases to a thick fog. Soon you have no visibility at all. By the way, since you’re a new pilot, you haven’t gotten your instruments training yet. Uh-oh.
So often, new business owners do their homework with zeal, researching all the supplies they need, getting their permits and inspections done, and making sure they’re complying with all the laws. They open their doors, the money starts flowing, when suddenly things get hazy. Then and only then do they think, maybe we need some accounting software.
Whether you’re opening a food truck or an auto shop, the devil isn’t just in the details, it’s in things like the flow of inventory and goods that come in and out of your door. It’s imperative that you know your inventory costs so you know whether you’re making money or losing money. You’ve made too much of an investment to go flying blind at this point.
Let’s say you decide to give out samples to drum up new business. That’s all well and good, but shrink from over-zealously feeding friends and providing free oil changes will send you into a tailspin like nobody’s business. This is where you need Microsoft accounting software – before, not after you select your loss-leaders.
Maybe you decide to provide a new product or service. You calculate in your head what it will cost, advertise the price and everybody comes running. By the end of the week the cash drawer is full but your inventory is depleted, and it takes all your cash to replenish your inventory. Inventory reports tell you whether the new offering is a good idea before you put it out there. And if things don’t turn out as planned, further analysis will reveal the flaws. For example, you may find the employee costs for providing the new product or service ended up being greater than expected.
Speaking of employees, keeping track of timesheets is just the beginning. You must also deduct and set aside state and federal taxes, which are paid quarterly along with unemployment insurance payments. These costs aren’t always apparent when you’re just starting out and the money is rolling in. More than a few startups encounter major turbulence when they hit that first quarterly payment.
It may look like you made a killing in the first month, but you won’t know for sure until you do some number crunching and review your business reports and analytics with Microsoft accounting software.
So don’t fly off the handle with your great business plan, only to be shot down along with your investors within a few short months. We do this sort of thing for a living at BuyERP.com, and we can help you set up the Microsoft accounting software system that fits your needs.
Contact us today and let us help you prepare for takeoff.
Written by B.H (Sales Team)