Starting your own business takes hard work and determination. One of the toughest aspects of starting your own business is the finances. Business finances operate very differently from personal finances, so it’s extremely important to have an understanding of how to properly manage your finances to bring your business to success. Continue reading for the top three financial hacks for new entrepreneurs.

1. Keep Track Of The In-Flow & Out-Flow Of Cash

As with personal finances, it’s smart to have a budget to stick to. When you’re starting your business, you will have smaller revenue so you may be relying on self-funding. It’s imperative to ensure you are not spending more than you are receiving. The main reason businesses fail is due to running out of money. In the beginning stages especially, you have to be conservative with your expenses. Instead of moving forward with an expensive office space or the newest equipment, look for lower-cost alternatives. You can use a program such as Quickbooks to monitor expenses and send invoices easily.

2. Manage Your Personal And Business Finances Separately

While you’re in the beginning stages of starting your business, it may be easy to keep your personal and business finances in the same place. However, this can become complicated and muddy the waters over time. When you keep personal funds and business funds in the same accounts, it’s harder to keep track of your business expenses and revenues. By having a dedicated business account, you can accurately track your revenue and expenses. If you start a business bank account when you create your business, you will be better off in the long run.

3. Set SMART Goals

Your business is where you fulfill all of your hopes, dreams, and aspirations. However, it’s much easier to reach success if you have direction. By setting SMART goals, you are outlining exactly what you want to achieve. SMART stands for simple, measurable, achievable, realistic, and timely. These goals will help you stay on track and allow you to measure your progress as you continue building your business. You can also create several timelines and variations of your SMART goals from weekly goals to 5-year goals. As you achieve your goals, you can celebrate your progress.

As an entrepreneur, you will now have to handle your own personal finances in addition to your business’s finances. To take some work off your plate, consider utilizing a financial advisor. Our advisors at Mooney Lyons are here to help and provide you with guidance for your personal and business finances. Schedule your consultation with us today.