So, you’re running your own business. How are you managing your money? Some people are naturally brilliant at it – they seem to know exactly how to file a tax return, what invoicing software to use and how to create a complex spreadsheet. For others, this process doesn’t come naturally. As an entrepreneur, however, you have to become a master of your own finances, so you can see exactly how well you’re doing, where you need to cut back or pour more money in, and you definitely don’t want to fall foul of the taxman. So, for some hints, tips, and tricks on managing your money as a small business owner, read on.
Become a pro at budgeting
By carefully planning where to spend your money, you can stay in control of what you’re doing. It’s crucial to do this realistically and to keep this plan entirely separate from your personal finance planning. If you find the idea of setting up a complex plan daunting, you can pick up free templates online to help you along.
Sounds simple, right? Wrong. This is where entrepreneurs can fall at the first hurdle. Make sure to do your research and make sure you’re selecting the right bank for your business, and don’t forget to open a commercial account (rather than a personal one). If you start off with this strong foundation, you’ll find every next step easier.
Get invoices right
Without an invoice, you won’t get paid. Fact. But invoicing can be hard, or simply just easy to forget. So, consider using invoicing software that does the hard work for you. With professional, easy-to-use systems, you’ll look more official, and you’re much more likely to get paid quicker. That’s a win/win situation.
If you’re confident in your bookkeeping abilities, then this could be something you do yourself. However, for many busy people, this is either too hard or too time-consuming as you’re running your own business at the same time. You can employ an accountant to help you, or you can use online software (which is often much cheaper than an accountant) such as Quickbooks. Most of this software will let you track balances, expenses and create invoices. If you do go down the route of hiring an accountant, make sure to hire someone with the relevant qualifications and associations – the last thing you need is a run-in with the tax office.
Remember to invest in yourself
Investing in the future is key for the success of so many businesses. As the old saying goes, sometimes you need to spend money to make money. That could mean hiring the right finance associate, or reinvesting your money on new finance software, or even renting a new office space. It can be easy to forget that managing your money doesn’t mean trying to save as much of it as possible — by managing your money, you can choose wisely where to invest it to help your business venture flourish.