By using this site, you agree to the Privacy Policy and Terms of Use.
Accept
AmextaFinanceAmextaFinance
  • Home
  • News
  • Banking
  • Credit Cards
  • Loans
  • Mortgage
  • Investing
  • Markets
    • Stocks
    • Commodities
    • Crypto
    • Forex
  • Videos
  • More
    • Finance
    • Dept Management
    • Small Business
Notification Show More
Aa
AmextaFinanceAmextaFinance
Aa
  • Banking
  • Credit Cards
  • Loans
  • Dept Management
  • Mortgage
  • Markets
  • Investing
  • Small Business
  • Videos
  • Home
  • News
  • Banking
  • Credit Cards
  • Loans
  • Mortgage
  • Investing
  • Markets
    • Stocks
    • Commodities
    • Crypto
    • Forex
  • Videos
  • More
    • Finance
    • Dept Management
    • Small Business
Follow US
AmextaFinance > Finance > Opinion: These 3 tips help small-business owners make better money decisions
Finance

Opinion: These 3 tips help small-business owners make better money decisions

News Room
Last updated: 2023/07/18 at 6:09 PM
By News Room
Share
5 Min Read
SHARE

Owning a small business comes with many challenges and responsibilities, and the pressure to make the right decisions can feel downright daunting. Our latest American Express Small Business Financial Confidence Report found that just 54% of small-business owners feel confident making financial growth decisions. For the smallest businesses (those with fewer than 10 employees) that rate of confidence drops to just 29%.

The numbers tell two stories. On one hand, almost half of small-business owners are confident when faced with big decisions. On the other, there’s an opportunity to give the other half greater support, particularly for the smallest of small businesses.

Small businesses are a major engine of growth in the U.S., representing about half of jobs and GDP. It’s their agility and speed that make the U.S. economic ecosystem so powerful. If that entrepreneurial energy is paralyzed by indecision, we all lose.

While I am not a small business owner, I work for a financial institution that serves millions of small businesses’ financial needs. From my experience, here are three ways these businesses can build confidence around financial decisions: 

1. Leverage data: Your business can’t be reduced to spreadsheets, but measuring the relevant variables can give you fresh insight. Maintain accurate financial records and measures of performance, and review them regularly to identify changes and patterns. Look carefully at customer behavior, cash flow patterns, your vendors, and expenses.

You may find you’re overpaying for services, underutilizing tools, or there’s a trend in customer behavior to address. Digital cash-flow management tools also can help summarize and forecast the company’s financials to help inform future purchases or hiring. Getting those trends back in alignment will help you more clearly anticipate your company’s future.

2. Maintain a cash reserve or access to credit: This might seem a no-brainer, but set aside funds to cover a revenue shortfall or unexpected expense. If you must tap that reserve, replenish it as soon as you can. Knowing you can withstand the unexpected improves your ability to make the right choices for your business, instead of the safe or easy ones.

Challenging times come for all of us and access to cash, like a business line of credit, provides greater flexibility, stability and peace of mind when tough choices have to be made. Even when your business is at the top of its game, a solid short-term funding option means you can add staff, increase inventory, and seize on a big opportunity.

3. Hire an accountant: Many small business owners shoulder their companies’ bookkeeping responsibilities in the startup stages. Even as a business grows, many owners figure they can’t afford an accountant. But managing your business’s finances yourself is time-consuming and accounting or tax mistakes can have especially nasty and costly consequences.

As soon as you can, delegate transactions, payroll and tax planning to a professional. You don’t have to hire an accountant — you can may only need to retain an accounting professional for as little as a few hours a month — but find someone who keeps up with the latest laws and tax breaks. Discuss your cash flow, goals and key business metrics.

A savvy accountant won’t just report what’s already going on. They’ll organize your financial data to power your decision-making, identifying potential improvements, efficiencies and cost savings. Someone you can trust to keep your financial house in order gives you peace of mind, and time back to focus on what’s next for your business.

Improving your financial decision-making boosts your confidence and helps you make strong choices that grow your business. This self-reinforcing loop of trusting yourself and growing your company requires thoughtful analysis, humility and flexibility. Implementing these best practices empowers you to navigate tough choices, so your business can continue to thrive.

Anna Marrs is group president of global commercial services and credit & fraud risk at American Express.

More: With wages soaring for younger workers, teens are reaping ‘amazing’ opportunities this summer

Also read: Suze Orman tells us why you need not one, but two, of these accounts: ‘There’s a vital difference that people have to get in their head.’ 

Read the full article here

News Room July 18, 2023 July 18, 2023
Share this Article
Facebook Twitter Copy Link Print
Leave a comment Leave a comment

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Finance Weekly Newsletter

Join now for the latest news, tips, and analysis about personal finance, credit cards, dept management, and many more from our experts.
Join Now
Nvidia’s big $4 trillion milestone: Why some say the stock could go even higher

Watch full video on YouTube

Why 3D printed houses are on the rise

Watch full video on YouTube

Elon Musk wants to launch a new political party. Here’s why some people think it won’t work.

Watch full video on YouTube

Why Even High Earners Are Living Paycheck To Paycheck

Watch full video on YouTube

Bank of America: Higher Yielding Preferred Stock Is Still Attractive (NYSE:BAC)

This article was written byFollowThe Investment Doctor is a financial writer, highlighting…

- Advertisement -
Ad imageAd image

You Might Also Like

Finance

4 Ways To Avoid Fake Shipping Fee Swindles

By News Room
Finance

Dell Supports Endeavor Miami’s Quest To Empower Black Founders

By News Room
Finance

The World’s 10 Most Expensive Cities To Live

By News Room
Finance

Biden Sends Student Loan Forgiveness Emails To 800,000 Borrowers

By News Room
Finance

New Student Loan Forgiveness Application For Those With Medical Issues

By News Room
Finance

Who Really Owns Nursing Homes, And How The Feds Are About To Learn More

By News Room
Finance

Gone Are America’s Cushiest Federal Prisons

By News Room
Finance

Can You Still Get Insurance After A Cancer Diagnosis?

By News Room
Facebook Twitter Pinterest Youtube Instagram
Company
  • Privacy Policy
  • Terms & Conditions
  • Press Release
  • Contact
  • Advertisement
More Info
  • Newsletter
  • Market Data
  • Credit Cards
  • Videos

Sign Up For Free

Subscribe to our newsletter and don't miss out on our programs, webinars and trainings.

I have read and agree to the terms & conditions
Join Community

2023 © Indepta.com. All Rights Reserved.

YOUR EMAIL HAS BEEN CONFIRMED.
THANK YOU!

Welcome Back!

Sign in to your account

Lost your password?