Opening a new business takes great diligence. Making sure you re providing good service that satisfies your customers and perfecting your products. But with all that going on, many business owners often overlook one important area - accounting. You don t have to be an expert on the subject, but knowing the basics will definitely help to keep your business afloat during hard times. Here are some essential accounting tips every new business owner should know:

Provide Payment Incentives and Rewards

Whenever you re pricing your goods, try to provide incentives for your customers to buy those items. For example, establish your ideal margins and slightly mark-up the products above that margin so you can offer discounts. Everybody loves getting things for less and when people think they are getting a deal, there s a good chance they will end up making a larger purchase.

Use the Latest Accounting Software and Payment Technology

If you re still writing paper checks and keeping folders of invoices, then you re just asking for trouble. In order to avoid hiring a professional and also allow for easy scaling of your business, use a cloud accounting service. There are many companies which offer online invoicing and accounting solutions for businesses small and large. And since they operate in the cloud, you will have the opportunity to access your finances from anywhere you are and always know what's going on with your business in real time.

Have a Cash Reserve

Having a contingency plan is just as important in business as in your personal life. In order to scale your business, it usually takes a certain amount of cash. But in order to do that, means putting a portion of your income into a cash reserve. Financial experts recommend having at least three months of basic operating expenses on reserve at all times. But having more is always better.

Always Have Multiple Financing Options

Having a cash reserve is great, but sometimes it might not be enough. Sometimes a business needs to acquire loans and investments to grow. This is especially true for startups who often don t have the required funds to get their business going. Funding methods like venture capital can take a while to secure, always have multiple options to avoid bringing your business to a standstill.

Delegate Your Accounting to a Professional

Not everybody is able to do their own accounting. Although it s highly recommended to know the basics, sometimes you still need to hire a professional to be responsible for your finances. These experts will most certainly be able to save you money in the long term since they know all kinds of tricks and loopholes.

Final Thoughts

Owning a business is a huge weight on your shoulders. Your company s financial health is a major part of that. Use the tips we outlined to ensure success for you and your business.