Small business owners generally wear multiple hats. Faced with the challenge of limited time and funds, many small businesses make the common and costly mistake of not setting up general operation protocols and procedures. Below are some ideas which will not only help improve productivity of your small business, but save time and money in the long run.
Track Your Employees Time
Utilize timesheets, expense reports, vacation tracking, and even project management spreadsheets to keep track of what your employees are working on and how they are spending their time. This type of information can be used to not only gauge productivity, but also identify employees who go above and beyond.
Keep a Timely Account of Budgets
Be sure to create an overall company budget as well as budgets for each department. Track spending, earnings and sales goals on a regular basis. Staying on top of your cash flow can give you a relatively accurate idea of where you are and if need to make any adjustments. And, you’re accountant will be pleased!
Develop a Process for Invoicing
Healthy cash flow is essential. It’s easy for a small business to get busy and delay invoicing, which can dwindle cash flow. Developing an effective and streamlined invoicing process will ensure customers are billed in a timely manner and help you and/or your finance staff stay on top of accounts receivable.
Establishing a few simple protocols can help ensure your business is operating in an efficient and cost-effective manner. It may take some time to develop in the front end, but once the procedures are in place, your company will realize the time and cost-savings almost immediately. Vertex42.com contains a number of useful tools to help get you started, including ready to use timesheet, budgeting, invoicing, vacation accrual, expense report and project management templates.