Being an effective and successful lawn service franchise owner means having a general knowledge of the many aspects of operating a business — including management, marketing and customer service.
But one crucial aspect that you should really pay attention to is accounting. Your business’ financial health depends on it. If you’re just starting out, below are some tips to help you with your accounting.
1. Keep your personal and business finances separate.
This means having a separate bank account for your personal finances and another one for your franchise. If you mix your personal and business finances, you’d have a difficult time monitoring your expenses.
When tax season comes around, having separate accounts would reduce some stress and effort of organizing everything you need for filing your taxes properly.
2. Keep track of every little thing.
It’s fairly easy to overlook a transaction you used cash for, and while you might not see this as a huge deal right now, if you do this often enough, you could end up spending more on tax than necessary.
With that said, whenever possible, use your credit or debit card, especially for big purchases so you could track your expenses easier and more accurately.
3. Take care of your credit score.
Having good credit is useful for taking out a business loan or when negotiating better terms with suppliers. This is why maintaining good credit and always paying your bills and suppliers on time, every single time is crucial.
4. Get professional help when you need it.
You might find that it’s more cost-effective and better to have a professional help you with your finances so you could spend more time operating your business.
If you don’t really require the services of a full-time accountant, working with a third-party one for a couple of days a month would help make certain that your finances are updated and that you won’t be on the IRS’ bad side come tax time.
Keep these accounting tips and tricks in mind to make sure your finances are always on point and do not hinder your ability to run your lawn service franchise the most efficient way possible. Otherwise, you might end up hurting your cash flow and getting in trouble with the taxman.