Although this is certainly a difficult time for business owners regardless of industry, clientele, product/service or how well you prepared for emergencies, I’ve been thinking about the basics that would probably make things a little easier. An ounce of preparation is worth a pound of cure and planning for the worst but hoping for the best isn’t the worst business strategy. Although I won’t confess to knowing it all, I do run a small business (i.e. this site) and work with growing businesses in my day job and have picked up on a few essentials!

Ironically enough, many of these could just as equally apply to our personal finances, being setup for success financially looks similar!

Get & Stay Organized

Being organized is super fundamental and will make your life easier today, tomorrow and beyond. There are many ways to get and stay organized when it comes to your business finances. Firstly, I’d recommend investing in a technology tool and say goodbye to all the paper. Go digital wherever possible and find ways to automate repetitive processes. I personally use Dropbox and Google Drive, scanning and then throwing away actual papers. Secondly, create a financial tracking and reporting system so you have clear documentation of your spending habits and for you to know quarterly profit and loss statements. For me this is a simple spreadsheet, but for businesses there are plenty of online and affordable accounting systems. Be sure to pay your bills on time to avoid late fees and souring external relationships!

Separate Business & Personal

A wise first step to take if you want to keep your business running smoothly and get better at money management is to separate your business and personal accounts. Making this separation is critical to you being able to manage your money adequately. You’ll need business bank statements to track profitability, reconcile your books, and monitor spending. Having your personal accounts and information mixed in will only cause you confusion and headaches. It’s easy to get separate bank accounts, no excuses! Same goes for your time; as best you can separate work from home and ensure balance!

Enlist Help When Necessary

Another financial tip to keep your business running smoothly is to enlist the help of outside professionals when necessary. For instance, you may want to hire a financial accountant or book-keeper and get in touch with accounting firms that focus on International tax issues that can help you work through complicated situations and issues. These experts will be able to help your business minimize your tax expenditures. Be open and willing to take their advice and feedback so you can make the necessary modifications regarding how you handle your finances. Same can go for lawyers, or other professionals. Take things serious and get help when you’re over your head.

A financial advisor can be a brilliant asset to your business. Running a business inherently involves making many significant financial decisions. In many cases, and especially when it comes to small companies, the existing knowledge in the business is not enough to ensure optimal conduct while addressing both current needs and future plans. As we have already said, getting other professionals on board is important, however, a financial advisor is one person that will benefit you greatly. In fact, if you don’t take care of your finances, you can cause financial difficulties, inability to grow and even survival struggles. In order to navigate the financial minefield based on extensive expertise and skills built up over many years, it is advisable to avail the service of financial consulting for businesses. First, it is worth emphasizing what does not include financial advice for businesses: This service does not include assistance in managing investment portfolios – for this purpose, contact a professional with an investment advisor license. On the other hand, financial consulting for businesses may include the following: economic feasibility studies, preparing budgets and finding financing solutions for investments and expansion, preparing a business plan and in particular a detailed budget, recovery plan, cash flow management. Formulating a real and accurate pricing policy and pricing, managing collection and credit for customers and ensuring a sound financial safety net for recessions and slowdowns. This will be made much easier when you have the eye of a financial advisor who can look at the best decisions for you to make going forwards.

Follow Strict Budgets

Just as in our personal lives, having a business means you probably should have a budget. Simplify your business finances by creating and following strict budgets. A budget will help you set revenue and expense goals and get a clear picture of your financial situation. You’ll be able to see how much you need to operate your business and how much is left over to spend on other priorities. Budgets will also allow you to see when your revenue drops, and you need to cut back on your expenses. Following a budget will help you to monitor your spending and quickly see when you’re spending too much and misusing funds.

Conclusion

These financial tips are going to help you run a smoother business and avoid money problems! Be diligent and committed to your business finances, and you’ll experience less stress and more success as the year’s pass. Learn from your mistakes and be honest with yourself so that you can work through any issues that arise effectively and efficiently.  

Disclosure: Some links are affiliate links that earn me a commission.