(NAPSA)—Everyday financial tasks such as paying bills and managing expenses are likely to be the last items on the “to-do” lists of small business owners. Most would rather focus their energy on growing their business, FINANCIAL everyday reality for the 26.8 million people who the Small Business Administration estimates own small businesses in the U.S. According to the Visa Commercial a small business checking, debit or credit card account. By signing up for automated bill payment r - eeeANAeKEN? options with their bank, small not poring over paperwork. How- ever, business payments are an nesses with late fees or, worse, no service for a period of time. Most bills can now be paid directly from oo = > a4 — Gj hy NE offs | BS ee - | ta/ biHe tHE _ HH Consumption Expenditure index, nonpayroll spending by the nation’s small businesses reached almost $5 trillion in 2006. By fol- small businesses may streamline paperwork and receive payment more quickly. cash managementpractices, small tailored to small businesses’ save time, money and effort— Prepare Forecasts of Cash Flow and Expenses Early and lowing a few simple financial and business owners can potentially allowing them to concentrate on what they do best: running their business. Streamline Payments and Simplify Expense Tracking. While checks are still the pri- mary form of payment for small businesses, business card usage has increased in recent years as By using credit and debit cards, needs such asoffice supplies. Often. Cash flow is king—and a good discipline for any small business is the preparation of fore- casts for short- and long-term cash flow requirements. For instance, business owners should create an annual estimate based on regular expendituresfor travel, businesses can consolidate and track payments on single statement and ensure that all bills are paid on time. Accept Credit/Debit Cards for Payment. By accepting payment cards for goods and services, small businesses may reduce the number of paper invoices they need to process and may get paid more quickly. With payment cards, you may receive payment within days, versus the 30-60 days it could take for remitting checks and invoices. Get Advice from the Ex- perts. There is a wealth of infor- mation available online and through local organizations and groups. Organizations such as SCORE (www.score.org) and the National Federation of Independent Business (www.nfib.org) provide valuable support and advice small business owners have seen how they can help streamline their payment practices. Accord- rent, office expenses and taxes, ees use a credit or charge card for business expenditures—up from less than two-thirds in 2004. tal for day-to-day operations as aging profit and loss statements, budgeting and preparing for gies for larger capital expendi- mation and services tailored ing to a recent survey by Synergistics, more than seven in 10 small business owners or employ- Raghav Lal, Senior Vice President, Small Business, at Visa Inc., notes that “by switching from paper to plastic, small busi- ness owners can reduce the time it takes to manage paperwork and write checks. Payment cards can also provide small business owners with details on every payment, so they can easily track then keep accurate records of when those expenses actually occur. This practice helps enable small business owners to more effectively manage working capiwell as to plan financing strate- tures. Another key aspect of plan- ning for unexpected financing needs is to ensure that you are carefully managing your credit. growth. Visa also provides inforespecially for small businesses (www.visa.com/smallbusiness). Good financial managementis what puts small business owners at the controls for long-term success. In addition to the above, a and access the 8 Steps to Managing Your Money podcastseries. track for good financial health, on www.visa.com/smallbusiness Automate Bill Payment Pro- cedures. Utilities, phone service offer other benefits such as easy for these bills to fall through the cracks, leaving small busi- rewards and discounts, which are get free and confidential advice on topics such as cash versus accrual accounting methods, man- For more information on this topic, go to the Resource Center and manage their spending against forecasts and budgets.” Additionally, some payment cards to help small businesses survive and thrive. Small businesses can and materials are essential for any small business. However,it is few other commonsensetips can help small businesses stay on such as clearly separating personal expenditures from business ones, building and maintaining a good credit score and, just as with personal finances, within one’s means. spending
