It can be tough running a small business. Finding new customers, delivering quality services or products, sticking to budgets, maintaining a healthy and happy workforce, and keeping your clients satisfied.
Making sure you are on top of your business finances can be a headache for a small business, but if you follow a strong plan, it doesn’t have to be.
Image by mohamed Hassan from Pixabay
Whether you complete your own accounts or use a Business accountant, let’s have a look at some of the tips you should be following below:
Follow A Plan
You need to know where you are going, otherwise, you will never reach your goals. This is where a business plan comes in. A business plan can not only help you to gain investors but it can also help you to keep track of where you are. When it comes ot cashflow issues, your business plan can help you to identify where things may have gone wrong. Make sure you include profit and loss cash flow forecasts, financial targets, and budgets.
Know Your Financial Position
You need to monitor your bank account regularly. Online banking has certainly made this easier for businesses, you can even keep track on your mobile devices. You need to know exactly how much cash you have and if you have enough to cover any upcoming payments.
Always Meet Tax Deadlines
You are looking at a hefty fine and penalty if you fail to meet your tax deadlines. Make sure you are either able to do this yourself or use a great accountant. You need to stay on track, by keeping track. Your books should be up to date every week.
Chase Unpaid Invoices
You aren’t running a small business so that money can sit in someone else’s pocket. Make sure any unpaid invoices have been paid. It may be uncomfortable to ask for money, but you need to be forthright and strong with a polite but forceful email including your strict payment terms.
Be Smart With Money
There is a good chance that you are not operating your small business as efficiently as you can. Look through your financial records and identify where you could be making savings, especially in high-cost areas like energy. Look at your electricity, gas, raw materials, and water. Often small changes make the biggest difference in these areas, so look at changing light bulbs, turning off computer screens, and recycling.
Don’t Stick Your Head In The Sand
When times are tough, there is no point in sticking your head in the sand. It won’t fix anything, and could just make things worst. If your business is heading towards a financial meltdown you need to face the facts and take action sooner rather than later. This way you are reducing damages to your business, your employees, customers, and clients.
This short guide should help you to keep on top of your small business finances. Using these tips will keep you on track and help you to stay focused when it comes to your financial success.