Owning a business means you’ll always have a lot on your mind. This isn’t something that everyone is going to enjoy, and it’s part of the reason why not everyone is cut out to be a business owner, but for many more, this is all part of the excitement of running their own business. It might even be why you wanted to start something for yourself to begin with; being the one in ultimate control with no one to ask for certainly does have its advantages.
Unfortunately, when there is so much to think about, even the most organised of people can sometimes make mistakes and let some areas of the business get on top of them. The business’s finances is one of these areas. One way to combat this is to outsource your accounts, but although that might help in some ways, it may not get to the root of the problem. Read on to find out how to stay on top of your business finances.
Don’t Mix Your Accounts
When you first started your business and you weren’t sure whether it was going to be a viable concern, or if you would ever run it full-time, you may not have opened a separate business bank account. Perhaps you just used your own personal account rather than making things complicated for yourself.
If this is still the case today, the complications will have appeared. Trying to determine what a business cost is and what a personal cost is, or trying to budget for anything when you have two sets of finances in one bank account, is going to be hard. You might find you accidentally spend business funds on your weekly shop, or that you use money allocated for your rent to pay a supplier.
Having a completely separate business bank account is the best option. Everything will be much easier to see, and you won’t make any costly mistakes. Plus your accountant will find their job is easier too!
Look At The Smaller Costs
There are lots of significant costs associated with business, often relating to buying stock, paying salaries, or paying the rent on a business premises. These are easy to keep track of, and you should always be able to budget for them. However, have you considered the smaller costs? These are the ones that often go unnoticed, and because of this, they can easily grow out of control.
These smaller costs might surprise you, but they can be contained. Using bank loans or payday loans to combine them and pay them off entirely, and then, once you are up to date, factoring them into your budget is the best option.
Remember To Invoice
Finally, we can’t not mention the fact that cashflow can suffer because business owners forget to invoice their customers. No matter how busy you are or how tedious the job is, without proper invoicing you won’t get paid when you expect to be, and that can have a seriously negative effect on the rest of your business.
Ensure you invoice everyone right away and check you have done so at the end of every week.