The beginning of any business demands a lot from the entrepreneur , who, at this early stage, usually does a bit of everything. From organizing inventory, customer service to after-sales, all tasks are handled by the entrepreneur. Having access to business finance tips at this stage is essential to make the routine easier.
After all, not every business owner understands financial management , which is completely normal, since everyone has their own skills. However, this area involves many important activities for the company, such as controlling accounts payable and receivable, issuing invoices and accounting processes.
Those who are just starting out may feel that the number of obligations is only increasing. But there is no need to despair, because in this text we have brought you 7 business finance tips that will make your day-to-day life easier.
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Business Finance Tips for Startups
Finance is an important sector for any company and deserves special attention from the entrepreneur. With the business finance tips listed below, you will see that organizing your finances is not an impossible task.
1. Create a separate checking account for your business
While it might seem easier to use the same account for both personal and commercial needs, doing so might have a negative long-term impact on the financial stability of your firm.
To have total control over your business’s financial transactions , use a legal entity account and a corporate credit card.
This way, it will be easier to separate the business’s costs and income, in addition to avoiding possible income tax problems.
2. Know all the costs
Make a list of all the costs of opening and maintaining your business for the next 12 months. Include everything from employee salaries, space rent, material purchases and marketing expenses.
This will help you have more control over your business finances , allowing you to identify medium and long-term expenses and recognize unnecessary costs.
3. Take advantage of technology
The use of technology has a positive impact on various areas of a company. In addition to speeding up some activities, it also helps reduce costs and organize business processes as a whole.
One of the tools you can use to have greater control over your accounts payable and receivable is an online ERP system . Some even allow you to issue invoices. These tasks are often done manually and end up taking up a lot of time.
Furthermore, storing documents and data in the cloud avoids the use and accumulation of so much paper and also the loss of important information and numbers.
4. Have a corporate card
Accidentally using your corporate credit for personal expenses only creates more headaches for you, your partners, and your accountant. So, discipline yourself to use the correct card.
If you have trouble remembering which one to use, leave it at home when you go to personal appointments or with someone you trust. You can get a card for personal use at a different bank or with a different brand.
5. Opt for electronic payments and online invoices
Once again, technology provides benefits to make the business owner ‘s day-to-day life easier .
The evolution of electronic payments and internet banking allows you to track your finances online. In just a few minutes, without spending money on gas or getting stuck in traffic, you can make your payments online safely or send invoices to your customers by email.
6. Consult professionals
Entrepreneurs who do not come from an accounting or administrative background often have many questions about their company’s finances. However, fear of the costs means they only seek help when it is too late .
It’s true that working with a financial advisor can help you understand your money better. This isn’t the only choice, though.
Since accountants are crucial to your organisation, you have most likely already paid for their services. Thus, make use of all of this professional’s knowledge to manage your taxes, remember crucial paperwork, and make financial decisions.
7. Monitor cash flow
The logic that low stock is the result of high sales is wrong, as profit also depends on other factors, such as total inputs and outputs.
To stay on top of these movements, the ideal is to use a platform that allows you to analyze your cash flow . An online system allows you to record, plan and monitor all of your company’s expenses anywhere and at any time.
We know that running a business requires effort and hard work, but as you’ve seen, some changes can help make everything easier. By following these business finance tips, you can simplify your financial management.