When running a small business, it is easy for your finances to get out of hand. This is especially true if you are new to small business operations and are planning on doing your bookkeeping in-house! There is plenty of affordable help out there, and a lot you can do to help organize cash flow on your end, too. In this article, we will share 5 cash management tips for your small business.
Keep Your Personal and Business Finances Separate
Far too often, small business owners won’t prioritize the separation of personal and professional finances. While it might seem more simple to keep everything in one place, this will make your bookkeeping much harder in the long run! Not to mention, there might be some questions about what was a business charge, versus a pleasure expense.
The best thing you can do is have completely separate accounts for both your personal finances and your business expenses. This means opening a brand new bank account and having no ties to your personal savings. Using a business card is also a great idea so that you can budget better and reflect on spending when needed. If you need an employee to purchase a business item, you can simply hand over this special card, too.
Update Your Books Regularly
Keeping a tight bookkeeping schedule can also help you from scrambling at the last minute, fighting with your finances. Make a schedule and stick to it! If you review your books bi-weekly, set aside time in your calendar to dedicate a few hours to look over your cash flows.
When you can, be sure to automate your processes! Technology is your friend, although confusing at times. This is why we offer services specifically tailored to helping small businesses sync their accounting and bookkeeping services.
Avoid Frequent Promotions or Sales
To help simplify your bookkeeping process try to avoid offering customers frequent promotions or sales on products and services. This can make your bookkeeping seem more ambiguous and poses a challenge for newer business owners. Reward loyal customers with excellent service, gratitude, and maybe a free item here or there!
Dodge Debt Whenever You Can
Debt is a small business owner’s worst enemy. Debt can accumulate extremely quickly and be difficult to pay back over time as it grows. Whenever you can, try to avoid going into debt. Get creative with some of your processes and cut costs when you can! Taking out loans can be helpful when needed, but it’s important to have a strong financial plan in place prior to moving forward with this.
Streamline Your Payroll Services
Payroll is a process known as low-hanging fruit. It is easy to streamline this process to make life easier for you and your employees. Bottom Line Consulting is proud to offer top-tier financial services that are tailored to the specific needs of your business. Some of the payroll and tax services we provide include:
- New employees’ documentation
- Complete Payroll Management Services
- Employee file management
- Employee benefits administration
- Annual leave management
… and so much more! If you are in need of support for your small business, we are here to help. We hope this article helps to provide you with a few quick and easy cash management tips for your small business, keep up the good work! Contact Bottom Line Consulting today if you need help with your cash management.