Managing business finances can be a challenge for any small business owner, especially when you have to juggle it with the day to day running of the business. Not only can it feel like a chore and overwhelming, but you could also be unknowingly making bad financial habits that could one day damage your business. Here are five quick tips to effectively manage your small business finances from accounting specialists Drumm Nevatt & Associates (DNA)
Don’t Forget To Pay Yourself
For start up’s and small business, it is very easy to want to invest every dollar they have in the business. They believe it is more important to get their business up and running and pay everyone else before themselves. As such, business owners often neglect their role in the company and forget to compensate themselves accordingly. Try starting with paying yourself 10% of the earnings. This a great way to both set-aside money regularly and to test the productivity of your business.
Invest In Growth
As well as paying yourself, it's vital to put aside money and look into growth opportunities. This can allow your business to thrive and move in a healthy financial direction. As much as business owners need to focus on the day to day running of their business, they should always keep an eye on potential future prospects. Investing in your growth will create more value for your business, leads to innovation and attracts more customers.
Managing your own business can feel quite isolating at times, especially if you are managing a heavy workload. It is key to remember that you don’t have to go through it alone. Seeking professional help when you need it. Hiring a financial professional is always a wise business decision because it will help you understand how to best manage your finances, helping you save time and money. A great accountant will free your time so you can concentrate on your business while assuring you that your numbers are working for you.
Don’t be afraid to take advantage of the technology available to you. “It doesn’t matter what industry your business is in, there are always areas where you can use technological tools and apps to streamline your business processes, that will save you time and money,” says Craig Nevatt, Director of DNA. Look into apps for payroll, enhance employee schedules, improved time tracking, and much more. Technology can free up your time so you can focus on business growth and innovation.
A business can’t grow without a budget. A financial plan shows where your business should be in the future, and how your business will get there. It should guide your decision-making, and prevent you from making impulsive purchases and streamline the way you manage your business money. A budget will also allow you to keep a better record of your business's progress, which will allow for long-term planning for everything from current operating costs to possible expansion.
Contact Drumm Nevatt & Associates for all your business development, bookkeeping and accounting needs.
Phone: 64 9 534 4382
Address: 23 Myres Street Tauranga
Phone: 0274 587 724