As much as running a small business can (and should) be a fantastic experience, there are always those little issues which can cause stress levels to rise out of control.
Among all the possible reasons for stress and concern, financial worries must be the leader bar none.
Here’s a look at some quick and straightforward tips for helping to get on top of your small business finances and reduce that stress as much as possible.
Keep your receipts in a folder
One of the best and most straightforward financial practices to pick up today is simply keeping all of your receipts together in one marked and organised folder. This will be invaluable for when it comes time to handle taxes, write-offs, and so on. It will create a level of legal protection for your business should you get caught up in any financial disputes, and it’ll give you an insight into the flow of money in your company.
Of course, for this system to work you’ll need to ensure that you get paper confirmation and copies of all receipts and financial agreements. It can also be useful to invest in a paystub maker for your staff, and to photocopy and file each stub for your own reference.
Hire a trustworthy accountant
The world of accounting is a strange and complex place, and for a small business owner, it can be impractical (to say the least) to try and handle all financial matters directly.
This is where an accountant comes in — but it’s essential that the accountant you choose comes highly recommended and has a reputation for being trustworthy. Allowing unscrupulous people access to your financial records is a clear recipe for disaster, and sadly there continue to be stories of small businesses being ripped off by the people they entrust with such sensitive types of information.
Take a course on business finance
While you’ll probably want to hire an accountant, it’s nonetheless entirely worth your while investigating personal and business finance courses on your own time. This isn’t to say that you have to have the mindset that you’re preparing yourself to be your own accountant. It’s simply an acknowledgement of the old quote that “knowledge is power”.
By taking a primer course on financial management, you’ll only be better equipped and more insightful with regards to the flow of money in your business. You’ll also be able to engage in more fruitful discussions with your accountant and team members about financial matters.
Give every incoming dollar a job
It’s a great idea in your personal life to assign every incoming dollar a job. In a business, it’s absolutely essential in preventing wasteful spending, missed opportunities, embezzlement, and a hundred other negative things.
You simply need to have a clear vision for how your earnings are to be spent, and this should entail different categories and projects which require an allocation of funds. This can be as simple as “10% of income put aside for new marketing strategy”, for example.
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