Getting your small business finances in order is one of the best ways to keep your business running smoothly. It can also help you create a financial buffer that will take care of emergency expenses that tend to pop up throughout the year. These are the 7 financial tips that can help your business put its best foot forward in 2019.
1. Stick to the ‘A’ plan
Sticking to a solid administrative plan tend to be the not so exciting part of a business, but it is important for your finances. What this means is planning around those day-to-day tasks that will need you to track your business expenses. Hiring an accountant can ease the stress of keeping track of your business, especially when business is booming and you have many things to juggle. Keep a record of every cent that goes in and out of your business to help you better use your money.
2. Adopt a frugal mentality
Every dollar counts when you are running a small business. Having a frugal mentality doesn’t mean you have to be Scrooge, especially when it comes to areas that will benefit you when you invest in them. You can reassess the budget of your business, including your own salary to see where you can cut back. This can lead to better functioning of your business.
3. Separate business from personal
To avoid the stress ball of dipping into your finances for personal use which can result in a loss of profit, separate your business and personal accounts. This can also increase your business's focus to push margins. The bonus is that you can skip the confusion especially when it tax time comes by
4. Make payments on time
Whatever you do for the rest of the year, make it your motto to meet payments on time. If you take out a commercial loan to finance your business on time. This also includes paying off business credit cards, invoices, and other accounts. It will also be useful to keep track of these by assessing if the interest rate and features are still beneficial to your business. If these are costing you more then it's time to make a switch.
5. Compare your finance options
Not all finance options will be suitable for your business. Therefore, speaking to a financial advisor or a broker can let you know what options are out there and which one will be more suitable for your business. You can also compare whether buying or leasing equipment will be more beneficial for your business.
6. Finance what your business can afford
Try not to fall into the trap of having a champagne taste on a beer budget. This means working around what your budget can afford. When the money starts coming in then you can slowly expand and spend more on things such as marketing, cars, technology, and improving the office space.
7. Know when to DIY
There are some things that you can do on your own instead of forking out money to get them done. For example, you can get legal documents or business plan template documents online for your business. However, there are also things that you will need professional help such as branding or marketing for your business.