Many small business owners often think they can simply keep track of their strategic planning and budgeting in their heads or by scribbling notes on scraps of paper. And while this approach may work for a select few, the vast majority could use help when formulating their budgets.

Preventing data loss 

Small business owners often juggle many tasks, one of which may be creating a forward-thinking financial plan for their business. Although some may have an accountant or financial planner on staff, these employees likely have enough on their plate that they're not able to properly dedicate the time and energy needed to craft a realistic strategy. If both the small business owner and his or her staffer are unorganized or unsure of how exactly each part of the budget connects, they may end up forming an unsustainable plan.

One way small business owners can make sure they don't make any errors while budgeting is to use budgeting and forecasting software in the cloud. Using this type of software to keep track of their expenses can not only help the small business team craft their strategic plan, but protect it as well. The leading budgeting software solutions include a cloud-based backup feature that automatically copies files every hour.

Monitoring invoices

Staying on top of bills gives small business owners a better opportunity to see their available cash flow. By slacking on bill payments, business owners run the risk of spending money they don't have and putting themselves into debt.

A smart practice many small business owners use is to accrue for regular bills before payment and have one employee responsible for monitoring incoming invoices and the A/P balance. With one person in charge of the bills, he or she can make the payment and enter it into the bookkeeping software. These methods prevent businesses from unknowingly getting themselves into a cash flow crunch.

Keep a close eye on all expenses

Small businesses have a number of costs that they need to monitor. Fixed expenses such as, internet, phone and  rent are the same every month, but there are some unexpected costs that small businesses owners will also encounter.

Using a business credit card is one way small business owners can make sure they keep track of all of these unforeseen costs. Most statements for business credit cards categorize expenses, allowing small business owners to efficiently see where they are spending their money, which enables them to adjust their budgets accordingly. Business credit cards also help small businesses by helping them establish credit to make them more appealing to potential lenders.

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