Last updated on March 27th, 2023
If you have a business, then you know getting organized can really help run things smoothly. Most importantly, coordinating your company finances in an orderly manner is of great benefit to any entrepreneur or business venture. Consider these tips to stay organized with your business’ finances.
Stay Organized With Your Business Finances
Running a business has various moving parts and amongst the many entrepreneurial duties, your business finances should absolutely be a priority. Stay organized and be on top of your business investments with a few tips.
Research and Plan
Get a good start on your business finances with a few simple actions. Use your business plan as a compass to guide you in the right direction. Include a section dedicated to your business finances such as in-depth figures and your financial goals.
In your research be sure to seek business resources. There are a variety of business programs that offer grants and guidance for business owners. These resources can be an excellent way to gain additional funding for your business, therefore assisting you in your finances.
In addition to preparing a business plan and seeking resources, prepare yourself to contribute a considerable sum of finances to your business. According to Shopify, business owners with zero employees spent $18,000 in their first year.
Create a Budget for Your Business
Similar to how you might have a budget for your personal finances, you will want to do the same for your business. Creating a budget for your business is a way to keep your spending in check. A budget prevents your from overspending and will help you as a business owner stays in control of your finances.
Ask yourself these important questions when creating a budget for your business:
- How much capital do you have now and coming in soon?
- What are your business’s fixed and variable costs?
- Do you have funds set aside for future expenses or emergencies?
It is also recommended to create a financial statement that summarizes revenue, costs, and expenses, aka profit and loss (P&L) or income statement. The document is typically issued quarterly and annually for every business. Most importantly, if you plan on accessing resources via a business loan, the lender will request your business P&L statement.
Use Accounting Software
Maintain your business budget with the right accounting software. Using tools, like accounting software, to assist your business processes can help you save time and money. These kinds of software can help manage finances across the different areas of your business, such as:
- cash flow
- paying vendors on schedule
- preparing you for tax time
Start a Business Bank Account
In similarity to creating a separate budget for your personal life and business, the same applies when opening a bank account for your business. A separate bank account from your personal savings is a good way to organize your business finances. Firstly, a separate bank account for your business will aid you in staying aware of your business cash flow.
Secondly, having a separate bank account for your business protects your personal assets from any legal action like lawsuits against your company. Additionally, you can also open several accounts under the same bank to keep your cash organized for different purposes like costs, salary, and taxes.
Pick the Best Business Credit Card for You
Not only do you need a separate bank account for your business, but you will also need a separate business credit card. Personal credit cards can be rewarding for personal purchases. However, business credit cards tend to offer a unique set of benefits and features for company expenses. Business credit card features may include the following:
- Free expense management tools
- Free employee cards
- Helps build business credit score – essential for accessing future financing, insurance, etc.
Related Article: Unique Features to Look for in a Business Credit Card
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Make Reviews a Routine
Set your financial reviews as a priority. Devoting time to regular reviews will aid in keeping your finances in control and within budget. Although running a business can get hectic, you don’t want to leave your business financial reviews on the back burner. Set yourself at least a monthly reminder to get it done. Preferably on a more frequent basis, such as bi-weekly.
Don’t Have Time for Finances? Hire.
If you find yourself to be pressed for time when it comes to your business finances, it may be time to hire. Seek a professional or delegate the task to a trustworthy qualified person. If the amount of work your business requests of you is too much pressure, you may also want to ask for additional help.
Related Article: What Is a Business Credit Score?