Finance is at the very heart of all businesses, but as an entrepreneur, money isn’t really the thing that keeps you driving forward, is it? The whole point of setting up your business was to see your idea come to life and figure out new ways to pioneer in your particular industry.
Money trouble is one of the main reasons that so many start-ups fail before they have really got going. When you are spending all your time researching and developing your cool new solution, it’s easy to forget the basics like securing funding or paying tax.
Fortunately, there are some very simple things you can do to get yourself out of the red and into the black.
Outsource your accountancy
Accountancy might sound boring, but it is the foundation of all good economic choices. Outsourcing your business finances to a trusted accounted could be the best thing you ever do and paying their fee will be significantly cheaper than messing it up yourself.
Accountants can sort out everything from paying wages to small business quarterly tax preparation and are guaranteed to do it faster than you. They can also offer advice about where you can get funding from and whether you qualify for any tax breaks.
Keep track of every cent
When you are spending a bit here and a bit there, it is easy to lose track. When you are managing your own finances at home, this probably isn’t too much of a worry unless you start exceeding your income, but in a business, every single cent you spend needs to be worth the investment and earn you profit in some way.
Keeping track of all your expenditures and going through them regularly will improve the way your treat money as well as show you where you could be cutting back on costs. Hold review meetings with your senior staff to figure out how much you should be spending and prioritize where that money should go. You don’t want to get to the end of the month and realize that you can’t pay your staff.
Cost before you spend
On the theme of tracking your money, you should also cost every item before you spend on it. This means getting a few quotes where necessary and being certain that you are getting the most for your money. You will also have to think about this when costing your products and services.
While gathering quotes and searching for comparisons might take a little more time, in most cases, the extra time spent will save you vital cash. If you already have a good idea of what is a reasonable amount to spend, you might instead set a budget that can’t be exceeded (and should be seen as a challenge). This will help you to project your finances into the future and ensure that every spend is worth the money.
Getting the hang of business finance is a balance between educating yourself about how much things should cost and how to keep track of your income and spending. Starting with an accountant who can advise you is the best move. And it could turn out to be the only move you have to make.