by Haris Quintana
Running a small business is a challenge, albeit a rewarding one. Building up your own company into something to be proud of is incredible, but it can take a lot of work to get there. As a small business, you and your employees will be expected to carry out multiple roles - one of which is the finances.
To make running a small business easier, there are some tips and tricks you can use to get a handle on your finances. Here are 4 things to help make small business finance easier.
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1. Use an online accounting tool
Hiring an accountant can be a large expense for a small business. Using an online accounting tool could be an affordable solution to help you manage your finances. Some of the best online accounting tools for small business include QuickBooks and FreshBooks, with no experience necessary to be able to use them effectively.
2. Do the books regularly
With the tools in hand to do the books, there’s no excuse for not doing them regularly. If you keep up with your books on a monthly basis, you’ll make sure that you know how much you’re bringing in, what your outgoings are like and make sure your expenses are all in order.
If you stay on top of your books, it will make filing your taxes much simpler at the end of the financial year. Keep all of your receipts in a safe place and upload them electronically regularly.
3. Learn how to handle late payments
Late or missing payments can have a serious effect on a small business. As a small business, you’ll want to make sure you don’t get taken advantage of. Put clear payment terms on your invoices, and whether they’re 7 days or 30 - it’s important to chase those late payments. If you’re struggling with making collections, then using a collection agency for small business could be the way forward. Take the hard work out of collecting payments by using a professional solution.
4. Keep your outgoings low
One way to make managing your business finances easier is to keep your outgoings low. There are a lot of ways to reduce your business expenses, including cutting down on your waste. By going paper-free and limiting your energy consumption, you’ll be able to bring down your running costs and learn to run your business on less.
Just as you would with a personal budget, having a business budget can help you stick to your costs and make savings for the future. Review your budget regularly to keep a clear picture of your business’ finances.
Succeeding in small business takes a lot of work, but there are ways you can make it easier. From learning how to manage your money, to understanding which marketing methods to use, you can soon make a strategy for success. Start finding simple but effective ways of managing your business to take away some of the stress of running your business.