Many people believe that in order to deal with your business finances the right way, you need to have a team of professional accountants at your sides. They also consider accounting to be a dark art which only a selected few understand and are allowed to dabble in. Well, if this was the case, there would be a lot less startups and SMBs out there. Namely, running your business finances on your own and doing it in an efficient and honest way is possible, although it is far from easy. You would however, first have to learn a few simple tricks.
1. Keep Apart Your Personal Finances
When you have a huge company, keeping apart your personal and business finances becomes a no-brainer, but the same doesn’t go for a family business or a one-person startup. Still, with enough will and care even this can be done. For example, buying a new toner for your printer is a business expense, but purchasing a backpack for your kid is definitely not. The easiest way to make this division as efficient as possible is to have separate accounts. All you have to do after this is resist the temptation to use your business credit card to buy groceries.
2. Trust Goes Both Ways
Trusting in your clients is a wonderful idea, but trust is not necessarily what a business is built on. Sometimes, a customer will purchase your product or receive a service, only to later on proclaim that they can’t pay at the moment. Whether you allow this or not is on you to decide. Just keep in mind that you have the price of doing business to think of, as well as your own staff that will expect to get paid for a work well done.
Furthermore, your bills need to be paid in time and no excuse is going to help you there. Because of this, if one or several of your clients are not paying in time, you can always turn to someone to collect these debts for you. According to experts behind debt recovery agency from Melbourne this is especially useful when it comes to international debt recovery, which you would have no means of enforcing on your own.
3. Write Everything Down
As a business, you have to keep an eye for two things, your income and your expenses. The easiest way to go about this and more importantly not forget something is to write it down right away. Always keep a notebook at your side or even mark it down in your phone so as to not forget it later. Sure, you may keep your memory in high regard, but running a business sometimes takes 110 percent of your brain capacity. This is a mishap you simply cannot afford. At the end of each week note this down in your business ledger and you should do just fine. In fact, some even to do this at the end of each day, since it doesn’t take them more than a few minutes to do so.
4. Get a Financial Course or Two
Even though online courses are not for free and they take quite a bit of time, in the long run, it is much more affordable than hiring an accountant. Of course, no one claims that a person with a few online courses has the same financial proficiency as an experienced accountant, but for a startup or a very small business this can work quite well.
Keeping your finances in check is something anyone can do with enough will and a proper training. Another important thing here is the experience, which will come in time if you just persevere long enough. As you can see, setting your business finances strait isn’t that complicated after all.