Being Smart About Business Finances
November 3, 2015 Leave a comment
With so many things to keep track of, from tax forms to employee payroll to deliveries and customer care, it can be hard to make sure your business’ books are in top shape all the time. Managing a business is a learned skill that requires practice (and hopefully not too much trial-and-error). To be able to see where your business is headed, you need to know where you are—financially. Here are some tips to help keep you on the right path.
Don’t mix business finances with personal ones.
It’s essential that you keep your personal finances out of your business’. Putting them together will absolutely backfire on both accounts. So if you’re tempted to just charge everything to one credit card, don’t. Have separate cards and separate accounts for each purpose. Having separate accounts will be much easier and much more responsible. Equally important to these finances is setting a budget and sticking to it.
Get a professional bookkeeper.
If you started the company and you want to oversee it, you can, and maybe should, do that. But to be available where you’re needed, and especially if you’re not so great with the accounting side of things, consider hiring a trained professional to do it for you. This is one of the smarter tasks to pass off to someone else who can dedicate their time to keeping the books right and everything well-accounted for.
Use the right services.
From software to banking, choose wisely. Select the best software programs for your business. There are lots of options for electronic bookkeeping out there, like Xero, Quickbooks, or Freshbooks. Depending on what kind of business you run, there may be even more options to optimize what you do. Just as important as choosing the right software is choosing the right bank. If you can find the right local credit union, go with it. Credit unions usually have fewer fees (for everything!), and because the businesses are smaller, plans are often a little more customizable.
Keeping track of your finances can make or break your business, so make sure you’re doing it right, doing it ethically, and leave it in the hands of the right person.