Whether you’re into number crunching or not, as a business owner you will need to dedicate a lot of time to it. Sound accounting practices are essential for any business to stay afloat, so it is important that you get it right from the start. Here are 5 essentials when it comes to business finances:
- Take Out a Loan
If you are concerned that you don’t have enough capital for your business to flourish, then it is well worth considering taking out a loan. Loans from companies like Mutual Service can give you the boost you need to get your business off the ground or to expand your ideas even further if you are already established.
- Hire an Accountant
If you are not money-minded and are more into ideas generation and the bigger picture, it can really help to hire an accountant to aid you with your finances. While most small businesses will not have the capacity to hire a dedicated in-house accountant, you can hire a freelancer to take on things like your book keeping, tax and invoicing. This will free you up to concentrate on expanding your business.
- Keep Track
It is essential to keep track of your finances from the very beginning and not to put off this task. What could take you 5 minutes a day could easily turn into a behemoth of a task if left to pile up. As time goes by, receipts get lost and expenses get forgotten, so the only way to ensure your finances are recorded accurately is to stay on top of them little and often. There are now apps and websites that can make light work of tracking your finances and helping with invoicing, so utilise these to lighten the load. You can also make it more manageable by categorising all of your finances into expenses, payments and invoices, which makes it simpler to stay on top of.
- Project Your Cashflow
It is important to forecast your cashflow in terms of sales and income so that you can plan ahead for the future. What many new business owners fail to recognise is that there are many external factors that may affect cashflow, the main one being seasonal changes. Depending on your product, you may be likely to see spikes at certain times of year, such as over summer for holiday products, or over Christmas for gift items. It is essential to factor these elements in when developing your projections in order to gain an accurate picture.
- Make Smart Investments
While you won’t be able to purchase everything you need right from the very start, there are certain investments that it pays to make at the beginning, such as the software needed to help your business run smoothly. By making smart investments in time-saving elements such as this, you can free yourself up in the essential early stages to focus on developing your business and succeeding fully. If you are concerned about money, then it is always worth asking for discounts – if you don’t ask, you don’t get, and you’d be surprised how often the answer is a yes!
By securing your finances and keeping track of each and every step, you can give your business a great financial base to start from.