Running a small business means you’re in charge of every department. From tech support to customer sales; as a business owner, the buck stops with you. However, your company’s finances are the most important aspect of your business.
As well as giving you essential insights into your commercial performance, your company’s finances underpin your liabilities and obligations. If you’re eager for your enterprise to be a success, take a look at these top tips for managing your small business finances…
Keep a financial calendar
Knowing exactly when your tax returns are due, when supplier’s invoices need to be paid and when service subscriptions are due to run out will give you the base knowledge you need to run your business. What’s more – having the heads up on contract end dates will put you in a good position when it comes to negotiating better prices and service terms.
Whether you use a cloud calendar for easy access or a handwritten diary for detailed forecasts, keep your financial calendar updated throughout the year.
Stay on top of things
When financial records and tax returns only need to be submitted annually, it can be easy to put them off until a later date. Of course, this means you’re in for a lot more work at some point down the line. By staying on top of your finances, however, you can maintain clear records and safeguard your company’s financial data.
There are a variety of accounting programs designed for small businesses, so it’s easy to collect and collate financial information throughout the year. By processing relevant entries as they come in, you will be able to access up-to-date financial information in real-time, on any day of the year.
Protect your finances
If your business will have numerous financial obligations and it’s vital you can meet them. However, it isn’t always possible to predict when disaster will strike. To prevent unforeseen issues affecting your financial standing, make sure you have the relevant protection in place. Access more information on business loan insurance and find out whether it’s right for your firm, explore business interruption policies to see if they could safeguard your enterprise and seek independent advice before investing your assets.
Maintain cash flow
For small businesses, cash is king. If times get tough, you’re going to be even more reliant on cash flow to keep your business operational. To ensure you’re prepared, take the time to plan ways to maximise and maintain your cash flow now. Diversifying your business can generate different revenue streams, for example, which can ensure cash flow even if one market flounders.
Outsource your needs
Managing your company’s finances can be an onerous and time-consuming task. Although business owners are used to undertaking a variety of tasks, there’s no need to take on the responsibility of managing all of your organisation’s finances. By outsourcing to other professional firms, you can access the skills and expertise you need at any time.
Instead of battling with your tax return, select a reputable small business accountancy firm to handle it for you. If you don’t want to deal with monthly accounts, subcontract to an experienced bookkeeper. When you want to minimise the time you spend on administrative tasks, use a payroll company to manage staff wages.
Outsourcing may seem like you’re spending unnecessary cash on tasks you could do yourself, but you may find that it’s more cost-effective than you think. When you use qualified professionals, they are able to complete specialist tasks in a fraction of the time. Furthermore, your own time is less occupied with admin. Instead, you’ll be able to focus on the strategic growth of your enterprise and your core business areas.
Understanding Small Business Finances
Not all business owners have a natural talent for finances. If you’re a creative entrepreneur, for example, you might dread the dull task of formulating your company’s accounts. Alternatively, if numbers aren’t your forte, you may worry that an accidental error will leave your business in jeopardy.
Fortunately, you don’t have to be a financial whizz to get your business off the ground. With plenty of online resources to provide the help you need; you can learn everything you need to know about small business finances.
Whether you’re launching a business, expanding your enterprise or searching for investors, it’s always important to seek independent financial advice. By gaining impartial and objective guidance from a certified adviser, you can access the expertise you need to make the right financial decisions for your business.