Keeping track of your finances is important for any type of business, but especially if you are just getting started or are running a small company. If you don’t keep a close eye on things, costings can quickly end up spiralling out of control. This is an ongoing process, but it is also one of the most important parts of running a business. Here are some ways that you can keep a closer eye on your company’s expenditures and get a grip on your finances.
Invest in the Right Equipment
Certain equipment allows you to keep a close eye on what your business is using. For example, big strides have been made in smart metre technology that gives you a better idea of how much power your business is using. Non-intrusive ultrasonic flow metering helps with businesses that need to measure waterflow. Whereas some equipment is disposable, some is longer lasting and can be serviced and maintained rather than needing to be replaced on a regular basis. Always investigate equipment lifespan before making your final decision.
Keep Separate Accounts
It makes sense to have separate accounts for business and personal use. This will give you a much clearer idea of what you are spending and will also draw a clear line between your business and personal life. You can then also have all your deductible expenses in a single location which can end up saving you hours of work.
Call in the Professionals
If there is one area of business that it may well be worth outsourcing to a professional, it is the finances. Their expert knowledge on business finances, as well as complex tax laws can end up saving you a great deal of time and money. Doing this yourself never usually ends up being the most cost-effective solution, unless you have prior knowledge in the field. Making sure your finances are in order throughout the year can help you save on your billable hours.
Set Aside Time Every Week
Setting aside some time every week to organise your financial situation should be something that you always have in your diary. Even if is is just 15 minutes a week of being focused on this particular important task, it can really make all the difference. You will be in a much better and more informed position to make the financial decisions that are essential for the successful running of your business. Remember, nothing should be more pressing on your time than making sure your finances are in order.
Don’t Forget to Get Paid!
As crazy as it may seem, many small business owners forget to do the one thing that this absolutely central to their success or failure: actually get paid! Make sure to properly track invoices and customer payment. Record the date when every invoice is paid so you know how long each customer generally takes to pay up. This will give you a better idea of your best clients to keep doing business with.