In business, there is nothing more important than making sure that you keep on top of your finances. No matter how strong your idea is and how enthusiastic people are about it, everything will fall apart unless you keep a firm grip on your financial situation. Essentially, it all comes back to making sure that you stay organised and on top of things as much as possible. So, let’s take a closer look at a few ways that you can do this better so your small business has the best chance of thriving and succeeding.
Keep Your Accounts Separate
You will simplify things greatly if you keep your business and personal accounts separate. This way, you are not having to comb back through past transactions to separate the two things. Keep all your deductible expenses in a single place and this will make it so much easier when you get round to filing your tax return. Keeping track of your finances is vitally important in both your personal and business lives so give yourself the best chance of doing this by keeping them separate.
Call in the Professionals
No matter the size of your business, it is always worth calling in some professional support when it comes to your finances. The right accountant and tax attorney will save you money just because of their intimate knowledge of how to make the law work for you. Even though you may be thinking that you can save yourself a quick buck by doing it yourself, this is rarely the case unless you have the intimate financial knowledge required. Making sure that you stay organised all year round is a good way of reducing your number of billable hours.
Set Aside Weekly Financial Time
Try to give yourself at least a few minutes every week to check over your finances. This should become a habit that becomes so firmly entrenched that you don’t find yourself with any nasty surprises down the line. Even though you may feel like there are certain things that take precedence, this is one of the most important habits that you can get into as a business owner and one that will stand you in good stead long into the future. Even if there is nothing much to report in a single week, you still give yourself the peace of mind that you are totally on top of everything.
Consider Your Staff
Employing members of your team is one of the biggest expenditures that you can have as a business owner, so you need to make sure that you are getting the most for your money. That is not to say that you just want to cut corners all the time as good staff usually don’t come cheap, but you should still monitor costs of wages, benefits, overtime and any other costs associated with labour. You may find that you are able to save yourself some money by employing freelancers, contractors or outsourcing to other companies. Also, you should be looking for ways that you can keep hold of your team as a high staff turnover inevitably becomes very expensive. There are plenty of ways in which you can keep staff members happy which are worth looking at in more detail.
Don’t Forget to Get Paid
It may seem obvious, but a surprisingly high number of small businesses forget to properly track their invoices and customer payments. The last thing that you want to be doing is working for free – this is always going to be a recipe for disaster. You need to have a proper system in place that allows you to track the payments you are due recording exactly when each invoice is paid, how long customers generally take to pay, and which ones are always late and you have had difficulty in the past. If you can get customers onto a direct debit system of payment, this is always going to be beneficial as you will then know that you are going to receive a particular amount of money at the same time each and every month.
These five tips are a great starting point that will keep you on the road to business finance organisation. First of all, you should keep your accounts separate and set aside a time every week to monitor your financial situation. Calling in the professionals is usually a good idea as they will help you out significantly. Keep track of all your big expenses including your staff and don’t forget to get paid every month!