Own a small business? Stuck with how to deal with the financial side of the company? Don’t let ongoing spreadsheets and multiple pages of numbers put you off. Get your financial brain into place. We have some financial hacks that can help you so you’re not left in the dark. Running your stainless steel banding company is the easy part.
Invoices. Basically a document to prove that a customer has bought something from you and your company, a record of the transaction that has just been placed. They are very important. They essentially hold how much money is coming into your company via sales. Invoicing correctly ensures that you will get paid, your staff will get paid, and more importantly, your bills will be paid on time. So it is essential to keep up with them.
As daunting as it may sound to deal with them, don’t let all your invoices build up till the end of the month. Watching that pile get higher and higher is more likely going to put you off in comparison to doing them. Why not keep your workload to a minimum? Continuously do you invoices throughout the month, possibly even weekly will save yourself a chunk of time, and trust me, you will thank yourself for it. When you have one million and one other things on your mind to do at the end of the month, this is one thing crossed off. Don’t keep putting it off, as they won’t magically disappear into thin air as much as you wish they would.
Create a financial plan
Having a plan allows you to stay organised. Jot down a list. Where will your money be going? What expenses will need covered on either a daily or monthly basis? This will then give you a better indication of where your money will be going and what you will be doing with it, so you don’t get too much of a shock when you see £25 coming off for Adobe Photoshop every month. Having this will then take you forward into planning a budget. All your money will be planned out accordingly. It also prepares you for unseen circumstances for other resources and inventory in the future.
Plan your business around the seasons
Stay alert through all the seasons. If your business is one that performs well in summer, but when it comes to winter it tends to quieten down, you, as a business owner, need to prepare for that by planning your finances accordingly. Say you have a machine that has been playing up for a few weeks and is close to breaking down, don’t wait until the last minute to do something about it. Plan in advance. Do something about it while you have the money. If you leave it too late, you could be one machine down with hundreds of work to do, and no ability to match up to it.
Separate business from personal
And by separate, I mean have separate bank accounts. Don’t mix your business and personal together, this can only make matters worse and leave you in a wide state of confusion. When was my business trip? Wait was that personal? Where did all my receipts go? No. Keeping everything separate will make it easy for everyone, especially your accountant! (She won’t be pulling her hair out demanding for the multiple receipts that you have lost.) By having a separate business account, this allows you to keep an accurate record of all spending coming in and out of your business. This will also save time when it comes to the end of the tax year. Instead of running around crazy wondering if the meal you had that one time was business or personal, everything will be dealt with separately. Plus, your accountant will love you forever for not mixing up your accounts when it comes to dealing with taxes and book keeping.
Pay the bills
Obvious, but true. Always pay your bills, and pay them on time. Putting off bills creates late fees, which will only cause you more hassle as it builds up over time. Just as you would your personal bills, it is important to pay your business bills on time too. Paying your bills on time, as silly as it sounds, allows your business to keep running smoothly, and prevents things from piling up. Simple things like setting a reminder on your computer or writing a note in your diary for the date that everything comes off will allow you to keep up to date with everything and less likely cause you any fines or get you into any unwanted trouble.
Sales & Marketing
It may be near the bottom of the list, but it is still equally as important. Now that you have your financial side of things under control, you can look at branching out and getting your company name out there for new customers. Implementing a marketing strategy is the best way to do this. Here you can invest some of the profits you have gained, or money you have saved to reach out to new people. Whether it be online, in a paper or even just a regular advertisement, putting some money into this side of things will probably earn you more back in the long run. This way you can introduce more people to your business and what it is all about. The budget is up to you, the more you put into it, the more you will get out of it. But by starting off small, then gradually increasing, this could see your business branch out into some new opportunities.
No matter if you are a small business selling steel strapping or a large business selling clothes, money needs to stay stable in order for the business to run smoothly. Getting on board with some financial hacks will help keep your company on track! Keeping yourself updated on all aspects of your business is a great indicator that you care enough to have your business succeed.