If you’re the proud owner of manager of a business and are looking to simplify managing your business’ finances, continue reading to discover how
Tips on managing your business finances:
1. Purchase DIY accounting software to make managing your business’ books a whole lot easier
In order to stay on top of your business’ books, it’s a smart move to install DIY accounting software onto your primary laptop. As you’ll be able to meet your business’ accounting obligations, in a short amount of time.
2. Try to forecast the future performance of your business, if your business remains on the same financial trajectory
It’s a great idea to try and forecast the future performance of your business, to see how your business’ finances may look in six months, 1 year, 3 years, 5 years and 10 years. As if your business’ projected profit margins disappoint you, you’ll be able to make quick changes to your business plan, in order to try and change the future of your business’ finances.
3. Make sure that your personal finances are kept separate from your business’ finances
Make sure that your personal finances are kept completely separate from your business’ accounts and finances. As your business’ accounts may need to be audited in order to comply with taxation laws, it’s a wise idea to keep your business’ accounts and your personal accounts separate.
4. Make sure to keep all of your business related receipts
In order to keep track of your business’ finances and to meet your business’ tax obligations, it’s also a great idea to keep all of your business receipts and invoices. If possible, make sure to collect all of your physical receipts and invoices as well as your online receipts and invoices for your business’ expenses.
5. Limit your high-interest debt
If you’re offered a large business loan from your bank manager, don’t accept the offer if the interest rate which is associated with the loan is too high as you’ll end up increasing your business’ debts unnecessarily. Instead, try to negotiate a lower interest rate for a smaller business loan or to book meetings with bank managers at other branches or banks.
6. Make sure to carefully manage your business’ credit cards
It’s also a wise idea to look at your business’ credit card statements each week. In order to see if there are unnecessary payments on your credit cards, which you may be able to cull from your future budget.
7. Plan for the future but putting aside money for your business’ upcoming major expenses
In order to ensure that your business will be able to grow as the years pass, make sure to start budgeting now, for your business’ future expenses. As an example, you may want to start saving for your business’ second premises or for a new website for your business.
8. Don’t rely on an accountant
Even if you choose to hire an accountant, it’s still worth looking over your business’ accounts, to ensure that you’re aware of your business’ numbers.
So if you want to ensure that your business remains financially viable in the future, it’s well worth following the 8 financial tips listed above.