Managing finances is crucial to the survival of any business. For start up businesses, it is even more important, or importanter, lol.
Below are a few tips for managing your business finance.
1. Get Financial Education
Learn how to read financial statements. They tell you all you need to know about your money – where it came from, where it went and where it is now.
2. Separate Business And Personal Finances
Keep your business and personal finances separate. Open dedicated bank accounts for your business. The account statement will come in handy when proving the viability of your business to potential investors and when seeking for loans.
3. Cut Costs
Seek opportunities to cut down expenses without impacting on customer’s satisfaction.
For example, instead of travelling long distance, make free online calls or video calls.
4. Monitor And Measure Your Performance
It is crucial to monitor your business’ financial performance and compare with past performance.
Knowledge of your business’ financial history and performance will help you make informed decisions and projections for your business.
5. Get Professional Help
It is advisable for a small business to hire an accountant, preferably on a part time basis as a consultant, to help with keeping the books.
They can help you determine where your business is and where it is going by using and analysing your data.
You can send an email if you want us to connect you to trustworthy accountants.
If your business appears to be doing well but you don’t know where your money is coming from or going to, your business is very likely to crash soon. Get your books in order TODAY.
Inspired by Melinda Emerson.