As a small business owner sometimes you can lose sight of your personal finances. This is common due to personal and business priorities not always aligning. Let’s face it small business owners have their work cut out for them! In some cases trying to manage both personal and business task can feel like a juggling act. Therefore, it is important to stay on top of your finances to avoid unforeseen debt while investing in and growing your business. Here are a few tips for small business owners to stay on track.
Keep your Business and Personal Finances Separate: As an entrepreneur separating your personal and business finances saves you from being frustrated during tax time. It ensures you’re not burdening your personal accounts for your business. Start by opening a business account and apply for a business line of credit. This will allow you to build business credit and separate your personal finances even more.
Budget and keep Expenses Low: If you’re already budgeting your personal expenses, you’re on the right track. Use those same budgeting skills for your business. It’s important to devote equal time to your business and personal budget. I’m a firm believer that you can never have too many list or be too organized. Know your income and list your business expenses. Depending on the type of business, shop for discounts to a keep your expenses low and save money. Keep in mind life happens, always be prepared to revise your budget accordingly.
Plan, Track, and Review: Set new financial goals and targets for your business. This will help you identify priorities and inefficiencies. Whether you’re just starting or you’ve been in business for 10 years plan for big expenses. Planning a year in advance for larger expenses will ensure your cash flow will stay strong during the less fortunate months. If accounting is not your specialty, take advantage of easy to use accounting software. Utilize Excel for your basic tracking and invest in accounting software such as, QuickBooks. This will give you good financial management control. Set aside time on a regular basis to revise and review your finances. Detect weak spots, and think of ways you can improve.
Know your Resources: Take advantage of free resources online or in your area for small business owners. YouTube offers many videos to assist you in having a successful business. Research free webinars and networking events on Eventbrite. Another great resource is the Small Business Administration which will help you plan, start, and grow your business. Contact Apprisen for professional help with separating your business and personal finances.
Running your own business requires you take on a number of responsibilities, which can be intimidating. However, knowing how to manage your finances will help keep a firm and stable grasp on your business’s financial health. Remember to Manage, Market, and Sale to ensure your business will continue to be successful.