Money Management Tips For Your Small Business
by Arina Smith Small Business 24 September 2018
Running a small business is an exciting undertaking, but it helps to first know a few things about fulfilling the role of small business owner. One of the most important “hats” you’ll wear as a small business owner is that of a finance manager.
You will need to have a few skills up your sleeve when it comes to managing your small business finances. Lacking financial management skills can lead to bankruptcy. Take some time to read through this brief look at some helpful money management tips for your small business operation.
Never mix your business expenses with personal expenses:
You probably already know that mixing business with personal finances is not the best route to take as a small business owner. You could run into some pretty hairy tax issues by mixing finances, so make sure to keep your laundry receipts separate from your vendor receipts.
When things get a little sketchy with your business finances, resist the urge to dip into your personal finances to bridge the gap. You could easily find yourself financially overextended in business and at home.
Don’t take this piece of advice lightly. Never mix personal finances with business finances. The best thing to do is to adhere to strict separation, and you’ll thank yourself in the long run.
Learn to negotiate vendor pricing:
Vendors are relatively accustomed to making deals with bargaining business owners. You won’t be overstepping a professional boundary by negotiating pricing and delivery services. Take the initiative to save your business a little money, and just ask.
Stay organized and pay the bills:
The organization is critical to your company’s financial security. Anything involving the movement of money should always be strictly documented and analyzed for future development, reference, and auditing purposes.
The organization will also help you maintain a regular payment schedule on all of your monthly bills. Simply paying your bills on time each cycle will help say hundreds over the course of the year.
Cut costs whenever the opportunity presents itself:
Get crafty with your thrifty resolve, and cut costs whenever you spot the opportunity. Going “paperless” is one extremely beneficial move, as it provides protection for the environment and the business bank account.
You may also want to consider hiring remote professionals once your business grows to need the staff. Hiring remotely gives you the opportunity to run your business from your home office, but it also saves loads of money overall.
Put any financial surplus to work:
Once you have a budget and gain more control of your organizations’ finances, you can begin using your financial surplus for growth. Put your extra dollars to work making even more dollars by investing in strategic aspects of your business operation.
Invest the extra money your business is drawing back into the business. Splurge on that new and improved software package. Purchase more PPC ads for a marketing boost. Whatever your choice, make it standard to invest your surplus back into the operation.