One of the least fun things that you have to deal with when running your own business is your finances. However, where it is a necessary thing you need to do, it doesn’t have to be an arduous task just so long as you keep everything under control. Anything in manageable if you keep on top of it. Your business finances includes your budget, your spends and your income – and everything that goes along with those points. One big factor to consider, which will make you want to stay on top of things, is that it will be so much easier and quicker to complete your tax returns when it comes time to do so. It will also allow you to see where you can save money and where you can afford to be investing some back into your business.
The main thing that people forget is to keep track of their spends. If you dedicate a small amount of time each week to update your budget, it’s a great way to see where your money is going. Over a short amount of time you can see bills that you don’t need, expenses that can be cut, and even luxuries that can be adapted. If you spend out on an in-office coffee machine, will it cut the cost of heading to the coffee shop every day? A budget spreadsheet is also great place to keep track of your business expenses.
If you’re not keeping track of your invoices then how do you know if they are all getting paid? You can manually track them with another spreadsheet, use a company like Portfolio credit control to to keep on top of it for You, or even an app like Zoho to keep track of your invoices in a way that allows you to check them on the go. Date each invoice you send, and add an invoice payable note to each one.
Business Credit Cards
Many businesses have a credit card specifically used for business expenses. But if you don’t keep on top of it you can easily get into debt. So make sure that you are spending within your means, and pay off your credit each month with regularity. A credit card can have some great benefits for you personally as well as for your business, with things like flight miles, ticket and discounts on frequently shopped at stores.
There are always ways in which you can save money within your company. And with the help of an accountant and a detailed budget you will be able to see exactly where you can make those savings. Start by going green – spending out to install some solar panels can really help to cut energy costs. Going paperless can also cut costs on paper, ink and waste removal. Start promoting email over memos, use hard drives rather than paper folders, and encourage recycling throughout your business.