Starting a business is overwhelming – it doesn’t matter how big it will be. In fact,dealing with small business finances might be even trickier, since usually there’s not much working capital, so they should be very well tracked. We combined some tips from this Forbes article and from our specialists to give you five steps to organize your small business finances.
Separate personal bills from business bills
The company’s credit card was on hand when you needed to pay for something personal, and then you used it. Sure that happens, but it can’t become a habit and it should be documented when it happens. Mixing personal and business bills can give you an unnecessary headache and hours of extra work trying to find out where expenses are coming from.
Hire a professional
It is easy to get lost with your small business finances, especially if it is your first business. You might argue that you don’t want to have another expense with a professional, but the truth is that an accountant will save you time and money. Their knowledge can help you not only to keep track of your finances, but also to be on day with your taxes. You have way too much to worry about with your business – leave this for a pro to take care.
Yes, exactly. On paper or computer, take time every week to make sure you take notes about what your costs that week, and if there’s any changes your accountant is not aware about. It’s a great way to have more information when making a financial decision.
Considerer your people
Labor is possibly our major expense, so mark that as priority when analyzing your small business finances. If details like benefits and overtime are not noticed, you might not have a realistic dimension of one of the most important costs you have.
Don’t forget to get paid!
It doesn’t seem to be something people forget about, right? But it is! With everything the owner has to do, sometimes customers payments pile up and you get worried about your small business finances when, in fact, you do have money.
Still don’t know if your small business is on track? Check out this post from our blog. You can also contact us to get more information or visit us! We are on #505 – 1055 West Broadway, Vancouver, BC.