Tips for Small Business Finance

One of the most important parts of running a small business is keeping on top of the finances. If you are a freelancer, then this can be particularly important as the money coming in is the money that pays your personal bills like a mortgage or car payment. If you employ people then it is your responsibility to pay them on time every month too.

Here are some tips for managing small business finance.

Managing Your Small Business Finances

Keep Expenses to a Minimum

Whether it is just you or a small team, keeping expenses to a minimum is crucial. If people are out of the office, then it can be easy to rack up a couple of hundred dollars on food and drink without thinking about it. One way to effectively manage this is to put a limit on spending for different types of purchases on company expenses.

For food, you may put a $50 limit on food and drink for an evening meal. You may put a $200 limit on hotel expenses too and ask employees to take public transport instead of a cab where possible.

Lease the Equipment you Need

If you run a business that requires equipment for production, or somewhere like a restaurant, then leasing business equipment is a great way to keep those initial startup costs down. Sometimes you could be saving thousands of dollars a year by doing this which is money that could be spent on marketing your business and gaining new customers.

Manage Your Cash Flow

Knowing your figures is really important. Costs, profits and cash flow are some of the most crucial metrics you need to have a handle on.

The implications of poor cash flow can be devastating for a business, and could lead to you no longer being able to operate successfully. Sometimes though this is unavoidable and you may need to take out a short-term loan from somewhere like Cashlady.com to be able to pay suppliers and other bills in the short term.

Hire an Accountant

Potentially the best thing you can do when starting out is to hire an accountant. A professional accountant is a great source of advice and will be able to give you tips and solid advice on how best to use your money, what you should be putting back for taxes, and any tax advantages you may be able to take advantage of. They will also be able to help set up payroll, file your accounts for the year, and help to pay taxes and other bills.

Always Send Invoices on Time

To keep the money coming in regularly, you need to make sure that you are sending out your invoices on time. If you don’t then this can cause issues with cash flow. If you have a trustworthy member of your team then assign them the task of sending out the invoices every month. Delegating tasks like this will allow you to continue with what you are best at and will take this off your list of things to do.

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About Dequiana Jackson

Dequiana Jackson, Founder of Inspired Marketing, Inc., helps overachieving women entrepreneurs conquer limiting beliefs and create marketing plans that grow their businesses. This includes one-on-one marketing plan development, digital product creation, web design and content marketing. Dequiana is the author of Know Your Business: How to Attract Ideal Clients & Sell More and runs the award-winning blog, Entrepreneur-Resources.net.

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One comment

  1. One of the most important parts of running a small business is keeping on top of the finances. These tips are very beneficial for small business finance management.

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