You might think that being short on funds is what is going to ruin your business. But actually, more often than not, is a lack of simple organisation. In the early days, it might seem like a good idea to not entirely keep track of all of your receipts and to use one account for everything.
The issue is that the longer this goes on, the more likely it is that when it comes to paying your taxes, you won’t be able to make heads or tails of what you owe.
1. Finance apps
Financial software isn’t just for people who are making investments. You can find a whole range of financial apps to keep you on track. These can be anything from household expenses to much more significant things like the invoices for your recent work.
Within most of the apps, you can get detailed information as to where your money is going this will enable you to create a much better budget.
While you can use accountancy apps, you are much better off using something like a QAccounting because real accountants will be able to give you in-depth information advice for your accounts.
Just like your house has a budget your business is going to need a budget too. You will need to know precisely what you can and can’t spend every month. A great example is it during the spring and summer months you tend to turn your heating down as we hit the winter months you turn it up, but you need to budget for both of these.
It becomes even more critical when you are running a small business the small change can make a significant impact. Look at where you are spending money you don’t need, for example, coffee runs in the morning, excessive lunches out, or even subscriptions to software that you’re not using.
As soon as you get a bill pay it. It is a simple as that. There is the possibility that you are running on 30, 60 or even 90-day payment terms, but really to micromanage your money you should be looking to have everything paid ahead of schedule.
And when it comes to payments have a checklist each month for all of the bills that you are expecting and tick them off as they arrive and they are paid.
4. Two Bank Accounts
As soon as you start making money, you really should have a business bank account. This is one of the most essential things that you will find in almost all start-up tips posts. However, people still skip this step thinking that it will get too messy. When actually, having a single bank account for your income from your business as well as your personal bills is where things get messy.
Top Tip! Starling Bank have free busines banking!
A lack of organisation is one of the critical issues when it comes to small business financial issues. If you aren’t great with numbers hire an accounting firm, if you find that you don’t keep track of receipts find an app that you can take a photo and will store them for you. This makes tracking expenses less monotonous and allows you to be super organised!