Every company is always concerned about managing money. Proper financial management is crucial to surviving a volatile economy and the industry competition. Small businesses, especially, need to exercise caution with their financial decisions from the very beginning.
Here are 5 tips for managing small business finances:
- Don’t mix business affair and personal affair
There are much reasons to do not mix the business account and yourself account, including tax issues, self-responsible, and accountant notes. When the situation is getting strict, hold your desire to secure your business finances with self-fund because it will cause chaos that you must face later on.
The best way for keeping the separation of expenditure clearly is with establish the self-budget and business budget. You obey them strictly and separate, so your credit card and loan for your business not get used with self-finances and otherwise.
- Make a negotiation with vendor before sign a contract
Sometimes you must dig a bit for a good offer. When buying from vendor or contract with suppliers, you try to negotiate for making a good deal. Don’t forget to check the purchase terms.
- Pay your invoice on time
It’s important for you to pay all your business invoice diligently. Late fees make us can spend expensive cost, however paying small late fees for vendor invoice and utility consistently also increase. The same things also apply for taxes.
Prepare a monthly reminder for making sure no business invoice is falling through the gap. Avoid late fees can be the difference between end year in red or black.
- Makes frugality as a habit
You do not must change yourself to an extreme coupon to save ordinary business expenses. Follow the offers for offices equipment, buy some furniture’s and used equipment.
- Spend times for accounting’s refreshment
Became a small business owner do not automatically make you an ace with money, but you must still make a decision related to big money for your company. So, if you hire a book holder or work with accountant, you must know the basic for business accountant. Follow the course for online introduction accounting or community at your university if necessary, and keep study about how money moves from inside to outside from your small business.
Don’t let your business suffer due to poor money management. Keep the above tips in mind and give your venture a bright future.