The US Small Business Administration initiated National Small Business Week over 50 years ago, raising awareness for small businesses and their owners throughout the country. And while the dates of National Small Business Week change nearly every year, the ideals behind it remain the same. Building a successful small business is something to be proud of; it may not be easy, but when managed effectively and efficiently, the rewards are significant.
Every year since 1963, National Small Business Week has been recognizing the critical contributions of America’s entrepreneurs and small business owners.
More than half of Americans either own or work for a small business, and small businesses create about two-thirds of new jobs in the U.S. each year.
As part of National Small Business Week, the U.S. Small Business Administration highlights the impact of outstanding entrepreneurs, small business owners, and others from all 50 states and U.S. territories.
Small Business Statistics in the US
According to the US Small Business Administration, there are more than 30 million small businesses in the US. In the recent years, some of the industries containing the highest number of small business employees include:
- Health Care
- Social Assistance
- Retail
- Construction
- Manufacturing
- Wholesale
- Finance
- Insurance
- Transportation
- Education
- Real Estate
- The Arts
- Information Technology
In 2019, small businesses accounted for nearly 2 million newly created jobs. And as the devastating effects of the COVID-19 pandemic continue to ease up, these numbers should continue to rise.
Successfully Managing Your Small Business’ Finances
The are a wide range of factors that go into building a small business that stands the test of time. In this article, we are going to focus on one of the most crucial aspects of a thriving small business, financial management.
Bookkeeping
Accurately keeping track of revenue and all types of expenses is crucial in helping to ensure the financial stability of your small business. Developing a detailed balance sheet accounting for items such as liabilities, assets, and various costs is usually a good first step. If you have more than just a small amount of these items that need to continuously be accounted for, you may want to consider hiring a bookkeeper. In the long run, the benefits of having meticulously kept financial records should far outweigh the costs.
Accounting
Properly tracking your transactions will not only keep your small business’ finances more organized but will also help when tax season comes around. Similar to the consideration of hiring a bookkeeper, you may need to hire a certified public accountant (CPA) to assist you with accounting.
Ensure that someone can manage the following:
- Accounts receivable
- Accounts payable
- Available cash
- Bank reconciliation
- Payroll
Credit
There may be times when your small business requires new assets without having the money on hand to cover their costs. Securing a healthy line of credit and making timely payments can keep your business afloat, enabling you to remain a competitor within your industry without falling into debt.
