Hardwood Floors August/September 2025

By Dana Rogers

ADOBESTOCK ©

USE ACCOUNTING SOFTWARE Manual spreadsheets can work early on, but they are time-consuming and prone to errors. Accounting software automates tasks, syncs with your bank accounts, and generates real-time reports. Look for features such as invoicing, expense tracking, tax estimation, payroll, and financial reporting. TRACK EVERY EXPENSE From office supplies to client dinners, track every dollar spent. This helps with budgeting and maximizes your tax deductions. Get in the habit of saving and digitizing receipts. Many accounting apps let you scan receipts directly into the system. STAY ON TOP OF INVOICING AND PAYMENTS Late invoices seriously can impair your cash flow. Create a system to send invoices promptly, follow up on overdue payments and reconcile deposits regularly. Consider offering incentives for early payment or using software that sends automated reminders. SCHEDULE REGULAR FINANCIAL REVIEWS Set aside time weekly or monthly to review your balance sheet, profit and loss statement, cash flow, and any upcoming expenses. This routine helps you spot trends, flag issues early, and stay aligned with your financial goals.

PLAN FOR TAXES YEAR-ROUND Don’t wait until April to think about taxes. Set aside money regularly – typically 25 to 30 percent of profits – to cover estimated quarterly tax payments. If you’re unsure, work with a bookkeeper or certified public accountant (CPA) to stay compliant and avoid surprises. WORK WITH FINANCIAL PROFESSIONALS Even if you manage day-to-day accounting, it’s wise to have a bookkeeper or accountant review your records quarterly or annually. They can spot inefficiencies, offer tax strategies, and ensure compliance with evolving laws. TAKE IT TO THE NEXT LEVEL Create a budget: Outline your expected monthly income and expenses. A budget helps control costs and plan for growth. Use cloud storage: Back up financial documents securely using services like Google Drive or Dropbox. Automate where possible: Set up auto-pay for recurring bills and automate savings for taxes or emergencies. Track KPIs: Monitor key financial metrics such as gross margin, net profit, and customer acquisition cost to measure performance and growth.

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the magazine of the national wood flooring association

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