5 Tips to Manage your Finances as a Small Business
Running a small business is no small feat. With the millions of tasks a small business owner already has to complete, it is difficult to manage every aspect of your finances as well. Taxes, payroll, product purchase, phone service, internet service, parking, equipment, deliveries, office supplies… the list of financial obligations you have is endless, and it’s easy to forget some of them, which will put your business at risk. Here are five quick tips to help you manage your finances as a small business owner:
1. Consider hiring an Accountant – If you have the money to do so, it’s always best to leave that which you don’t know much about to the professionals. Accountants will be the most up-to-date with new tax laws and possible tax write-offs so they can save you the most money and make sure all of your financial obligations are taken care of.
2. Do you research and invest in good accounting software – Whether you decide to go it alone with your finances or hire an accountant, you will need a computer with the proper software to keep all your expenses organized. Make sure you do ample research to choose the right software for your company’s needs.
3. Consistently Review your Budget and Plan Ahead – The cost of things can fluctuate, so it is important to review your budget and financial obligations regularly. Also, it’s good practice to map out your finances in advance; at least a month in advance is good practice. This way, when surprises do pop up unexpectedly, you have a plan in place.
4. Evaluate your expenses and minimize unnecessary purchases – The little things purchased for a business can add up to a lot. If you typically purchase water bottles in bulk for your employee break room, consider getting a water cooler delivery service. It’s more eco-friendly and depending on your situation, can be more cost effective. Change Internet plans, research credit card processing companies and cut-down on unnecessary office supplies. You’ll be surprised how much you can save.
5. Keep Business and Personal Finances Separate – Don’t dip into the company piggy bank to pay your personal credit card bills and don’t funnel money meant for your kid’s school supplies or family vacation into the business. Obviously personal and business is bound to cross over in certain areas, but finances should not be one of them.
Are you a small business owner who has a firm grasp of how to handle their finances? Comment below and share your tips!