When you're seeking out money to get into business for yourself, you're going to enter a whole new world of numbers. Your loans, mortgages, lines of credit, and credit cards will come with various interest rates and APRs attached, and you'll need to know what all of those numbers mean, or you'll be caught by surprise when you have to start making the payments. It's a good idea to sit down with a financial adviser before you start taking out loans and signing up for credit for your business. You need someone who speaks the language of finance on your side.
If you are just getting started with a small business venture, you are most likely very excited to meet new customers, provide quality service or products, and ultimately make money. It is very important to start a financial organizational plan from the beginning of your small business venture so it can be tweaked and improved as you become established, rather than trying to catch up with the information when you are in the thick of other business activities. Here are some tips you can use to organize your money ins and outs, making it easier to run your business overall.
Put Aside Time
When you are first beginning, you will be drawn in several different directions to get things done within your business. It is important to set aside just ten or fifteen minutes a day to go over your financial situation. Do this at a time that is not that busy, such as right before you go to lunch or as soon as you open up your shop, so you will have a bit of time to look over numbers without distraction. Doing the work at the same time every day will become a habit, allowing you to keep on top of income and expenses.
Find Some Help
Having a great accountant to take care of your year-end finances can be beneficial. You will not need to worry about crunching numbers on your own, and they will let you know if there are any problems within your business that could save you money with a change of procedures. They will regularly take a look at your finances, input them into a program, and track them for you so you will know exactly how much you are worth or how much you owe at any given time.
Keep Business Separate
One mistake small business owners make is combining their personal and business purchases together. Using your business credit card to purchase a personal item can quickly disrupt the flow of your money, making it difficult to see the overall picture of your financial status. Rather than estimate or go through the motions of subtracting personal expenses to find out your financial outlook, keep them completely separate.
Follow Up On Payments
When you get involved in a new business, tracking down those who owe you money may take a backseat when you are busy with other tasks. Do not let your payments get away from you altogether. Designate someone to follow up on late payments and file with a collection service after a customer has not responded in a timely manner. Letting payments slide will alter the amount of money your business has really made, so a proper record system should be in place so these bills are not forgotten.
For more information, contact Danta Chase & Co CPAs PS or a similar firm.
Share12 August 2015
