Knowing the state of your finances is important, but when you have a small business that you’re running from your home, it’s even more important to stay on top of the numbers. You don’t have to be an accounting genius to manage your finance, but you do need to know all your numbers back to front to ensure that you are going to be able to keep your cash flowing properly.
Staying on top of the finances is vital, and while you can always take the advice from a bankruptcy lawyer at Dove Law Firm, you want your business to remain current and stable. Bankruptcy can help your business when you need some help, but in the meantime, you can check out these twelve tips to help you to manage your small business finance.
- Keep control of your day to day money management by properly managing your accounting. This means hiring a good bookkeeper or taking yourself to night school to learn how to manage it properly yourself.
- Constantly review your costs. You need to keep your business receipts and expenses under control, and this means reviewing your incoming and outgoing costs as you go.
- Planning is important, and projecting your finances is so important. Your business plan will be the main document that tells you what you should be expecting from your finances over the months, and it can help you to see obstacles coming
- Send out invoices as quickly as possible after you’ve sold a product or provided your service. All payment terms should be set out clearly in a contract and never forget to follow up!
- Divide your personal and business finances. You may be working from home, but that doesn’t mean that you should be mixing your personal income with your business income.
- Personal borrowing that pertains to your business should be separated and tracked. Bootstrapping your business by lending cash to it works, but only if you keep track!
- Pay yourself a consistent amount first and foremost each month so that you can have that safety net for unexpected expense.
- Where possible in your business, remain as frugal as you can. Shop smartly for office supplies and be sure to compare suppliers so that you are getting the best possible deal.
- Plan expansion with your accountant and your legal team so that you can do it wisely and slowly. Growing your business too quickly can pop your financial balloon faster than anything else.
- Bringing on an intern to help you with your marketing strategy is doing to do your business wonders. They’re always keen to please and other than their expenses, you can keep your spending low.
- Keeping overheads low by only hiring business offices for meetings can make a huge difference to how much money you spend.
- Don’t spend stupidly! If you haven’t started making a profit, you don’t need to pay out too much, yet!
These tips can help you to go a long way to managing your business finances from home.