Managing a small business is an exciting and fulfilling endeavor that allows individuals to create their own schedules, hone their passions, and create real wealth for themselves. But entrepreneurship isn’t for the faint of heart.

One of the biggest challenges you’ll face, particularly in the early days, is managing your finances. Keeping expenses under control, keeping up with taxes, and separating the person from business are just some of the ordeals to wrestle with. In this article, we’ll provide some high-level tips to help small business owners manage their finances:

Separate Personal & Business

Separating your personal finances from that of the business’ protects your personal assets from any liabilities of the business. This is also the best way to simplify your accounting and tax obligations, ensure accuracy of your records, and meet legal requirements.

Incorporation

To start, you’ll need to register your business as a corporation. This action legally separates you and your personal assets from your business.

Bank Account

After you’ve legally separated your business from personal, it’s time to split the finances. Open a business bank account at a reputable financial institution and keep only the business’ money inside. This is where all business income should land.

Credit Card

Once you’ve got a bank account for the business, you’ll need a business credit card to track purchases. All business expenditures should be made with this card, while being careful not to pull it out for personal use.

Pay Yourself

As the business begins to bring in money and mature, you’ll want to start paying yourself. You can either establish a regular paycheque for yourself like an employee, or you can draw from the business during times of plenty. You’ll just need to make sure every transaction as a withdrawal or owner’s salary expense.

Plan for Taxes

With your business separated from your personal life, you’ll be set to receive two unique tax bills during tax time. While most individuals who are simply employees don’t have to think about taxes until it’s time to file, entrepreneurs will need to be more proactive.

Estimate Your Tax Bill

Rather than waiting until tax time and incurring a huge tax bill that must be paid with one big lump sum, business owner’s should plan in advance. Remember, nobody is there to automatically take off tax from your income – that all falls on you. Looking at the business tax rate in your area, make calculated estimations, well in advance, of just how much you’ll owe.

Make Payments

Armed with your tax estimations, business owners are able to make tax payments whenever they choose. To stay on top of things, it’s a good idea to set aside money every month and make quarterly payments towards your impending tax bill.

Keep Receipts

As a business, you’ll have the ability to write off a number of expenses towards your income. But this is only possible if you keep detailed, accurate records. It’s imperative that you not only track all expenses and income, but keep all receipts related to the business.

Budget & Track

Planning for the future and making strategic decisions for your business will be a straight up nightmare without proper budgeting and tracking in place.

Create a Budget

All businesses should use some kind of a budget, which will empower business owners to make good financial decisions, anticipate future needs, and manage risks. If you’re just starting out, the budgeting process will be a little trickier, but an established business will be able to look at historical records to make more accurate forecasts about the future financial position of the business.

Cash Flow Forecast

Similar to a budget, which is focused on spending estimates, the cash flow forecast estimates how much money the business will receive. This kind of document will live alongside your budget to give you a more complete picture of how money is expected to move in and out of the business.

Track Profitability

At the end of each month, it’s a good idea to review your financial statements to get a clear picture on how much money the business made or lost. Budgets and forecasts aside, the profit and loss statement will give you the actual bottom line. This number can help you make important financial decisions when it comes to paying yourself, planning future expenditures, and assessing risks.

Practice Good Bookkeeping

Managing a small business requires accurate tracking of everything coming in and out of the business, while taking the time to review forecasts and financial statements and using them to make strategic decisions. If you don’t have a bookkeeper, learn to use an accounting package and make sure you enter your sales and expenses as they occur (or as soon as possible).

Use Accounting Software

These days, there are a number of free or low-cost accounting software products out there that can help you automate tasks, limit errors, and streamline your bookkeeping process. Using the product of your choice, every dollar spent or made can be accounted for.

Establish a Schedule

Bookkeeping will be less cumbersome and more efficient when done on a regular schedule. During this time you’ve set aside you can categorize transactions, check out financial statements, and ensure accounts and transactions are accurate.

Generate Reports

One of the greatest benefits of these accounting software products is their ability to generate clear, visually-appealing reports in seconds. Reports like profit and loss statements and balance sheets can be built on demand and used to inform stakeholders along with your decision-making process.

Use an Advanced Point-of-Sale System

If your business has brick-and-mortar locations for selling products and services, an advanced point-of-sale system is a no-brainer. The right system can modernize your business and streamline your processes, making financial management much easier.

MyPOS Connect, from Tri-City Retail Systems, is a Cloud-enabled point-of-sale software solution that comes with a variety of features to help business owners manage transactions, inventory, and payments. Our POS system also allows you to manage accounts receivable by processing and tracking invoices, issuing statements, and applying payments to specific invoices. It can also synch up online and in-person sales for accurate revenue reporting and tax accounting.

Learn more about MyPOS Connect and book a demo today: https://tricityretail.com/features/

The technology we use on a daily basis is rapidly advancing. While flying cars never came to fruition, plans for robots, artificial intelligence, and virtual reality have certainly made their mark in a relatively short period of time.

This new tech is everywhere you look, improving lives and disrupting how we work across just about every sector. All you have to do is visit modern retail shops to see this ever-improving tech in action. In this article, we’re highlighting the several pieces of technology that have completely reshaped the retail shopping environment over the past few years.

Inventory Management

The world of inventory management has changed for the better thanks to real-time visibility, advanced analytics and automated processes. While reducing costs and boosting efficiency, new inventory management technology also creates a better shopping experience.

RFID

RFID (Radio Frequency Identification) is one piece of tech changing the game. An upgrade over traditional barcodes, RFID enables retailers to track their inventory in real time, streamlining the process. This tech has been adapted quickly by giants like Walmart, Zara, Nike and H&M, but smaller retail chains are also looking at ways that RFID can improve the shoppign experience and improve their bottom line at the same time.

Digital Shelf Labels

Also known as electronic shelf labels (ESLs), digital shelf labels are a welcome alternative to paper or plastic labels you see on store shelves. Completely wireless, retail shops can update these labels and change prices in real-time without having to make any manual adjustment on the shop floor.

Robot Assistants

Still a ways away for smaller retail companies, big brands around the world are increasing implementation of autonomous mobile robots for simple tasks like counting, tracking, and restocking. They have the ability to scan RFID tags, edit inventory records, and navigate warehouses without human intervention. Mega brands like Walmart and Amazon have been leaders when it comes to robotic inventory management.

Virtual Reality & Augmented Reality

Virtual reality (VR) is an exciting piece of technology that generates a simulated, three-dimensional world that users can interact with using headsets or some type of controlling device. Augmented reality (AR) is similar, but instead superimposes computer-generated content into a user’s view of the world. Popular for video games, retailers are jumping on this tech as well.

Retail giants like IKEA use VR to allow their customers to visualize their plans for furnishing their homes. Instead of trying to imagine what that new couch will look like, VR allows customers to see it in their home first.

AR has enabled virtual try-on technology. Before virtual try-on, people would buy things online blindly or have to make the trip to a physical store. Brands like L’Oreal and Warby Parker are using AR to allow customers to first try on makeup and sunglasses before making a purchase decision.

Car companies like BMW are also using VR and AR tech to provide a more interactive experience for customers. Using this rapidly advancing tech, the company has been able to create virtual showrooms and setup virtual test drives.

Improved In-Store Shopping Experiences

Aside from inventory management and exciting digital experiences, technology has changed the in-store shopping experience too. Here are some of the ways shopping in-store has changed:

Automated Checkout

One of the most obvious advancements has been automated checkout. You probably first noticed this technology years ago, but since then the roll-out has been more aggressive. Nowadays, it’s common for stores to have more self checkout than traditional checkout.

Next up will be AI-driven automated checkout. This advancement will lean on computer vision, removing the need for barcodes or manual input from customers.

Robot Assistants

While robots have been a huge help behind the scenes for inventory management and other tasks, they’re also being put to use to help customers. The retail chain Lowe’s introduced their LoweBot to help customers navigate the store and find things they’re looking for. The footwear brand Skechers has deployed their assistant robot Luna in select stores. Best Buy and IKEA are among the other brands implementing robot assistants.

Point of Sale Systems

Point of Sale (POS) Systems have evolved from simple cash registers to comprehensive tools that help retail store owners manage operations, customer experiences, analytics, and more. The power granted by these advanced POS systems has helped retail shops boost efficiency, save money, and turn occasional customers into loyal ones. Learn more about implementing the latest POS technology for your business.

In-store Apps

In-store apps are another tool retail stores are using to create better experiences for shopping. The idea behind the app is a shopping aid, while also boosting customer engagement. These apps allow shoppers to scan barcodes, learn more about products, and search for things that aren’t in stock. Retail brands like Sephora, Target, Walmart and Nike are leading the charge with in-store apps.

Biometrics

Biometrics are measurable characteristics used for both identification and authentication – most notably fingerprint scans and facial recognition. Biometrics are nearly impossible to replicate or impersonate, making them an easy way to control access, authenticate payments, and monitor activity.

Security

One of the most obvious use cases for biometrics is security. Retail shops can implement biometric technology to identify and prevent serial shoplifters from entering the store again.

Payments

Biometric payments are being experimented with, which involves using a fingerprint or palm scan to pay for things like food and groceries. Amazon’s palm recognition tech called Amazon One is being rolled out to select Whole Foods stores, plus venues like stadiums and airports. American retail chains like Panera Bread and Steak ‘n Shake are also integrating biometric payment options.

Personalization

With seemingly unlimited data available to retail brands, personalization is being used to drive more sales while creating a more authentic and personal shopping experience. Users hand over information in exchange for access to newsletters, apps, loyalty programs, exclusive sales and promotions.

Retail brands can leverage purchase habits, purchase history, location, and other data to create unique experiences, hand out personal benefits, send push notifications, and more. Brands like Apple Music, Tim Hortons, Nike, Sephora and many more are using customer data to craft personal experiences.

 

Bring your retail store into the future with an advanced POS system. Fit for all types of retail shops, these systems are highly customizable, with features like inventory management, purchasing tools, loyalty programs, powerful analytics and more. Contact Tri-City Retail today to get started.