Starting a business is a formidable idea, but this doesn’t mean it is a business venture you should cower away from. While finding the finances that’ll let you build (and grow) the business you’ve envisioned isn’t easy, the notion that starting a business is hard isn’t wholly correct. Starting a business can be easy, it’s keeping it afloat that is difficult. For those who are worried about staying financially stable, here’s how to keep your finances in order when starting your business.
Separate personal and business finances
Mixing finances can cause confusion and chaos, plus dipping into your business’s money can lead to temptation down the line. Keep them separate, and have separate cards for your business and for your personal life. You’ll be thankful for keeping these two things worlds apart when it comes to tax.
Buy used
There are, of course, some instances where buying new is best. Hardware shouldn’t really be bought second-hand, as you’ll want electronics and technology that are quick and untampered with. However, buying a used company car or, if you’re in the construction business, finding used forklifts for sale online can help you save money in the long run. Just be sure to buy from a trusted seller, from a reputable site, and assess the equipment or product you’re thinking of buying properly.
Hire a professional bookkeeper
Although this is an expense if you don’t work well with numbers, bringing in a professional to do the job for you can help keep your business’s finances in order and uncomplicated. Plus, having someone knowledgeable with finances means they could advise you on how to better spend your money and where you could cut expenses. While your bookkeeper is number crunching, you’re able to do what it is you do best – run the business.
Accounting software
It’s time to move your finances online, by investing in accounting software that can reduce the tediousness of working with literal books. There is a wide variety of accounting software to choose from, with QuickBooks and Xero being popular choices. However, you need to ensure the medium you’ve selected works well with your particular industry needs.
Remain organized
While hiring a bookkeeper and investing in software should help organize your finances, you still need to keep on top of everything, and double check all the cogs are working in unison with one another. Keep any paper copies filed, ensure you update your software, and ask for updates from your bookkeeper. By keeping your eye on the ball, you’re able to make long-term decisions, such as business expansion.
Have a budget
You could be the most organized person on the planet, but if you fail to have a budget, then money can run away from you, with you wondering why you’re only managing to break even. Sit down with your accountant and talk about what it is you wish to save, how you could do so and why. Do you want to save so that you can hire more employees? Do you want to spend more money on marketing overseas in 5 months’ time? By having a goal, you’ll be more inclined to save, and by having a budget in place, there’s limited temptation.