The financials are a necessary part of any successful business. Unless you are a numbers whizz, they can be a challenging part of your day to day tasks.
We are all about working smarter and not harder, so we have put together out 10 10 tips to make your business finances easier.
10 Tips For Making Your Business Finances Easier
The key to easy finances is to have great accounting software and Xero really is the best. With a wide range of features to help small business, you can’t go wrong with this powerful cloud-based option.
2: Have A Business Bank Account
Keep your business expenses separate from your personal ones by having a dedicated bank account for your business. Otherwise, you could find yourself trying to unravel a very tangled web of grocery costs from invoice payments.
3: Invoice Regularly
Good cash flow is vital in small business. Ensure the money keeps rolling in by raising and sending your invoices on a regular basis. Also, make sure you follow up with any unpaid ones as soon as possible. The longer you wait, the harder it will be to get your funds through.
With great tools like Receipt Stash, you can automatically extract the information from each invoice or receipt and export it to your accounting software in less than 5 seconds. That means no more manual data entry! It also means you don’t have to have a drawer full of receipts any more as you can store the data online instead.
5: Accept Online Payments
Waiting to get paid can be a real pain. So, give your clients and customers an easy way to pay what they owe with an online payment option. It is very easy to set up an account with PayPal or Stripe and add a link to your invoices. Then voila… the ability to accept credit card payments. If you connect with your clients face to face then you might want to consider a mobile payment option like PayClip or FastPay to collect payment on the spot.
6: Know Where Your Money Goes
Does the money in your account seem to leave as quickly as it arrives? Keeping an eye on exactly what you are spending can improve your business cash flow. Once you have a clear picture of your costs, you can work out if all of them are necessary. Tightening up your spending can give you more actual dollars in the bank, making it easier to afford the things you need.
7: Keep Up To Date
Transactions become more complicated the longer you leave them unattended. After all, some days it is hard to remember what you had for breakfast, let alone why you spent $100 at the local cafe 3 months ago and expensed it! Staying on top of your day to day transactions keeps confusion to a minimum and doesn’t allow them to pile into a huge job.
8: Set Aside For Tax
Tax time can roll around awfully quickly and if you aren’t prepared it can be hard to conjure up funds on the spot. Instead of wondering where the money will come from at tax or GST time, put a portion of your earnings aside each month.
9: Look At ROI
There is something more important than examining the cost of something. And that something is ROI or return on investment. What will happen in return if you spend on an advertising campaign? The return is what you should focus on, not the initial cost outlay.
10: Have A Bookkeeper
You don’t need to be a financial expert when you have one on your team. Engaging the help of a bookkeeper means that you don’t have to worry about the daily tasks of reconciling accounts, coding statement lines and working out what has taken place in your bank account. Save time and energy by letting a financial whizz take care of all that for you!