Do you own a small business?
If so, you’ll want to make sure you understand the following five simple ways you should be managing your small business’ finances.
Being a small business owner means wearing many hats.
One of the most important is that of amateur accountant. Even if you’re going to eventually hire someone to handle your books (or currently employ someone to), you still need a certain amount of financial literacy in this area.
Fortunately, there are all kinds of free accounting courses online that can help you with this.
Don’t Mix Personal Finances with Your Business
Nothing good will come from mixing these two. Keep them completely separate or your accounting is going to turn into a mess. You could also overspend without realizing it right away because it’s from another account.
To help with this, get a credit card for your small business. Think about opening a savings account, too. You can send a certain amount of money from each purchase to this account and use it for taxes and/or other investments.
Your small business’ finances could potentially be a lot better if not for unnecessary costs that may be getting in the way.
Looking for these should become a habit. The more you find, the more money you can save and the better your business will do.
You do not want to become one of those small business owners who finally realize how much money they’ve wasted on unnecessary overhead only after years and years of doing so.
Use Cloud-Based Software for Your Small Business’ Finances
It’s the 21st century, so you better not be handling your books in an actual book. However, your computer isn’t any better if you’re not able to save to the cloud. Without the cloud, if anything happens to your computer, your records will go with it.
Cloud-based accounting software is everywhere these days. Pick one with a solid reputation and good customer support. Then take the time to become proficient at it so you’re able to use it with ease.
Again, even if you have an accountant, this kind of software is a good idea just to keep you in the loop.
Seek Professional Guidance
Finally, as we’ve mentioned a couple times, you should think about securing the services of an experienced financial advisor.
Even if you have typically done well with your own personal finances, this is very different. There are all kinds of regulations, laws and technicalities you need to understand.
Otherwise, you could be losing money or even find yourself in trouble with the law.
Furthermore, you have enough to do running a small business. Let someone else handle your finances, so you can focus on what you do best.
Whenever you’re ready to sit down and talk, Mooney Lyons is here to help. We’d love to learn about your small business and the goals you have for it.
The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for anindividual