5 Tips for Managing Small Business Finances
Many business owners, especially those starting out, find keeping track of their finances a struggle. Operating Cash Flow is probably the most important part of running any business. It is the lifeblood, and even small mistakes due to lack of knowledge are not only problematic, but they can also be extremely costly.
Everyone has an opinion on this. Finimpact.com has made the financial side of business operations a part of each client’s operational portfolio and has five tips to keeping business finance in order.
1. Find the Best Loan
There are many online tools to finding the best loan. Finimpact offers a platform technology which links businesses with the right lending partners. The company has a system to sort through the red-tape put out by traditional banks and offers customers a new look lending platform which will source alternative lenders who provide competitive rates and honest, quick answers to small business finance needs. Each of the lenders is registered in the UK and follows FCA ruling on money lending.
2. Find a Professional Mentor
Access to free help is also a click away on Finimpact. No-one in business today can afford not to have expert advice from a trusted advisor, whether it is an accountant or financial advisor. There are several free outreach programs available to small businesses in the UK, and the government has taken a serious look at the development of small businesses and entrepreneur startups around the country.
3. The Right Accounting Software
Finding the right software to operate your business is often more complicated than it appears. There are dozens of companies offering secure accounting solutions. If you are new to bookkeeping, managing accounts software can be a challenge. Luckily there are several excellent online resources which help small business managers to get started. As a small business, you could go for a basic package of QuickBooks alternatives. Our advice is to use one of the packages to get the hang of keeping the books up to date while you shop around to find a full version if you expand your enterprise and need one.
4. A Professional Account Does a Lot
If you are not happy doing your own books, hire someone to do it for you. Bookkeepers are trained professionals, and the services of an honest accountant will definitely help you to keep on top of things and sleep better knowing that your tax is up to date, apart from anything else. By leaving the day to day cash flow, payments, tax returns, salaries and wages to the professional, it frees up your entrepreneurial talents to spend on finding new customers and tackling the marketing.
5. Make Your Money Do More
Do you know how to measure capital vs. operational costs? Often the goal is to keep the capital costs down by moving more to the operational costs. This is because operational expenditure is easier to adjust and don’t require complex depreciation calculations. One of the best methods of keeping operational costs down is to outsource different areas on the cash flow budget. For example, the service budget over a year could be increasing because you have the payroll to consider for service employees. If you are able to outsource these tasks, you will score two-fold:
- You can shop around for the best deal, which usually keeps the bottom line trimmed.
- You won’t have people on the payroll that you don’t need when things are slow and only hire on an ad-hoc basis.
There are many more things that you can learn about operating a small business. Everything is available online in one form or another. We have taken five of the most basic tips for small business owners to consider. Getting them right could be the start of a bright financial future for your entrepreneurial training. One thing for sure, if you manage your funds,” that is your cash flow,” you will win.