6 Key Strategies to Keep Your Business on Track

Everyone knows how important it is for a business to maintain best practices for company finances. While faults in customer service or marketing can hinder your business, accounting mistakes can stunt your growth and leave your company struggling to survive. 


Small business owners wear many hats, dealing with duties ranging from marketing, to inventory management and everything in between. With the hustle and bustle of trying to stay on top of everything, errors can occur, especially with respect to accounting. But with prudent planning and smart choices, even accounting errors can be mitigated or avoided altogether. 


Here are six things you can do to help avoid common accounting mistakes.

1. Hire the best Accountant and Bookkeeper you can afford- it will save you money

The do-it-yourself approach is a tough one. And even if you think you are up to it, proper accounting takes time and energy that you could be devoting to other areas of your business. 


Setting up a QuickBooks Online account is a good option. This will help you to track everything going in and out of your business. It saves time and headaches.


Not every online financial tool is created equal. As such, it’s important to do your research and find the right software for your business. Remember, the cash your business could lose through poor financial practices isn’t worth the savings you make on cheap or “free” software. 


Doing it yourself may work in the beginning stages of your company, but as your business grows, you’ll probably need some help.


If you want an accountant that is qualified and attentive, be ready to pay a premium for those qualities. By paying less for an accountant, you may think you’re saving money, but hiring a subpar accountant can lead to missed deadlines and inaccurate reporting.


Like financial software, competent accountants are worth the extra investment. They have the ability to not only take care of the basics, but they can also offer insight into the proper ways to spend your money and grow your business. On top of that, most professional accountants use QuickBooks to handle their clients’ finances, so if you started with QuickBooks on your own, your new accountant will be able to easily take over your books.

2. Get Comfortable Discussing Finances

Finances are hard to talk about but you will need to find an accountant/bookkeeper that you can talk to and just as importantly, understand. They should be able to explain your financial situation in terms that you can understand. Find someone that is patient with your questions and is willing to teach you enough to understand the answers. 


Don’t be too proud or afraid to expose your personal lack of knowledge to your accountant/bookkeeper. This is especially important when you’re talking about money, so find someone that you feel is competent and honest enough to give you an accurate picture of your business.. 

3. Control Your Expenses

Reviewing your expenses monthly or more frequently is a good habit to start. As you review, look for expenses that are not essential or that could be reduced by finding another vendor or asking for a discount. Over time, an incidental expenditure of $20 here or $30 there can really add up. An accountant/bookkeeper can help you keep this spending in check.

4. Keep Personal and Professional Expenses Separate

When starting a business, the first thing you should do is open a business checking account; this is where all business income should be deposited. Keeping your business income separate from your personal income minimizes the likelihood of errors that are bound to happen when using a single account. It can also help you stay compliant with IRS regulations. 

5. Choose the Right Accounting Method 

Business accounting has two main methods: cash and accrual.


Using the cash accounting method, you record income when it is received and process payment transactions at the time of payment. The cash method deals with the actual flow of cash coming in and out of the business. Most small businesses are run on the cash basis and pay taxes based on this.


The accrual accounting method, on the other hand, differs in that it records expenses and income when the transaction occurs, even if the cash itself has not yet changed hands. 


It’s vital to talk with an accountant or tax professional and determine the best accounting method for your business.

6. Employee or Contractors?

The IRS classifies workers into two basic categories: employees and independent contractors. There are a lot of differences that go into making that distinction. Make sure you know the difference


  • For Employees: You will have to pay payroll taxes on full-time, part-time and temporary employees. This means that you will be responsible for paying a portion of your employees’ contributions to Social Security and Medicare, as well as withholding a portion of their paycheck to pay their federal tax bills.
  • For Independent Contractors: As an employer, you likely won’t need to deduct anything from an independent contractor’s pay. Beware, however, that if you control the structure of the work of your independent contractor, the IRS may classify him or her as an employee, which could lead you to pay the IRS and State agencies back employer taxes, plus fines and interest.


More information can be found here on the IRS website about the differences between an employee and contractor.

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Business Growth Strategies: How to Finance Growth Without Destroying Cash Flow

By Alisa McCabe • October 28, 2025
Evaluate Internal Cash Flow to Guide Business Growth Strategies Before pursuing any expansion, leaders must understand their current financial position. This means analyzing revenue patterns, expense categories, and liquidity levels to determine whether operations can genuinely support new initiatives. Growth that compromises your ability to meet payroll, vendor payments, or operational costs isn't growth at all. A thorough internal cash flow review exposes both strengths and vulnerabilities. Are receivables stretching beyond 60 days? Have fixed expenses climbed faster than revenue? Do seasonal fluctuations create liquidity gaps? Identifying these issues early allows you to address weaknesses before they become crises. Rolling cash flow forecasts provide the forward visibility essential for confident decision-making. By updating projections monthly or quarterly, you can anticipate how expansion initiatives will impact liquidity and adjust accordingly. 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First Steps Financial partners with you to design business growth strategies that balance ambition with financial discipline. Together, we analyze your position, identify sustainable opportunities, and implement approaches that expand your organization while protecting liquidity. Connect with our team to build a growth plan rooted in both confidence and financial resilience.

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By Alisa McCabe • October 16, 2025
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Customer Lifetime Value (CLV) Customer Lifetime Value predicts the total revenue you can expect from a customer throughout your entire relationship. Financial KPIs like CAC and CLV help you make informed decisions about how much to invest in customer acquisition and retention. When your CLV significantly exceeds your CAC, you have a healthy, scalable business model. Focus on increasing CLV through improved customer service, upselling, and building long-term relationships. 6. Accounts Receivable Turnover This metric measures how efficiently you collect money owed to your business. Calculate it by dividing your net credit sales by average accounts receivable. A higher turnover ratio indicates you're collecting payments quickly, which improves cash flow. If this ratio is declining, you might need to tighten credit policies, improve collection processes, or reconsider which customers you extend credit terms to. 7. Inventory Turnover Financial KPIs for businesses that carry inventory, show how quickly you're selling and replacing stock. A high inventory turnover typically indicates strong sales and efficient inventory management, while a low turnover might signal excess stock, poor demand forecasting, or products that aren't resonating with customers. Strike the right balance to avoid stockouts while minimizing carrying costs . 8. Debt-to-Equity Ratio This ratio compares your total debt to your business equity, providing insight into your financial leverage and risk profile. A high debt-to-equity ratio might indicate heavy reliance on borrowed money, which increases financial risk but can also accelerate growth. Understanding this ratio helps you make informed decisions about financing options and manage your capital structure effectively. 9. 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However, implementing robust financial tracking systems and interpreting these metrics correctly can feel overwhelming when you're already juggling countless other responsibilities. That's where expert guidance makes all the difference. At First Steps Financial, we specialize in helping small business owners like you establish comprehensive financial monitoring systems, interpret key metrics, and translate data into actionable strategies. Our team understands the unique challenges you face and can help you build the financial foundation necessary for sustainable growth. Don't let uncertainty cloud your business decisions any longer. Let’s connect and discuss how proper financial tracking can accelerate your path to success.

Pricing Strategies That Actually Increase Profit Margins

By Alisa McCabe • October 3, 2025
Understanding Cost, Value, and Competitive Pricing Strategies Let’s start by exploring the fundamental relationship between cost structure, perceived value, and market positioning. Understanding these strategies will help you develop pricing strategies that maximize profitability while remaining competitive. These core concepts enable you to make informed pricing decisions that align with both your financial objectives and customer expectations. Cost-based pricing ensures each product or service covers expenses while providing a reliable baseline profit margin. Relying exclusively on cost plus markup may miss opportunities to generate additional revenue strategically. Comparing internal costs against industry benchmarks allows pricing that stays competitive without reducing profitability. Value-based pricing emphasizes the benefits customers perceive rather than only production costs. 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At First Steps Financial, we deliver tailored consulting solutions designed specifically for your business needs and goals. Our experts can help you evaluate your business strategies through financial analysis and forecasting. With a results-driven approach, we continually monitor outcomes and make adjustments to create measurable impact. With First Steps Financial, you’re not just getting a consultant; you’re gaining a trusted ally in achieving your goals! Let’s connect.

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