7 Financial Tips to Remember for Small Business Owners
Running a business is an incredible venture that only a select few people choose to take on. When owning a small business, it can be easy to get distracted by your sales, promoting your business and creating a name for yourself that finances tend to get stuck on the back burner. Before you know it, it’s too late and the amazing business you built from the ground up is tanking because you didn’t follow a financial plan. Our goal at Bumgardner Morrison is to help keep small businesses alive and thriving, which is why we have put together a list of tips to help your business stay successful.
Keep Tabs on your Budget
Creating a budget plan is one of the first and most important things you can do to help your business. Anyone can create a plan, but sticking to it is the hard part, especially when you’re in charge of everything and you can choose to cut corners if you want or feel like you need to. Don’t cut corners, though. Keep up with your budget, follow it, and make amendments to your budget as you start to generate more income and invest in your business.
As most people do with their personal bills, automating the bills for your business can greatly increase your productivity, as it can get pretty time consuming. In addition to saving time, you are also eliminating the fact that you might not remember every single bill that needs to be paid. Forgetting just one bill can lead to late fees and penalties against your credit. Make sure to keep track of all your payments and even schedule reminders on which days of the month each bill comes out so you can account for it.
Protect Yourself Against Fraud
Yes, even your business can become a victim of fraud so it’s important to be proactive about keeping your data safe. To make sure you, your business, and your client’s information is protected, make sure that your antivirus software is always up to date and train your employees to never open unidentified emails. Check your credit reports regularly for unauthorized use or transactions. In today’s online driven world, hackers are becoming better and better at swiping your information and going seemingly unnoticed.
Don’t Be Afraid of Loans
Many people are afraid of taking out loans, but it’s because most people weren’t taught how to utilize them the way they are meant to be used. Loans can help you secure more equipment as you grow your business, therefore generating more cash and, in turn, the ability to pay off your loan. Determine the amount for a loan that will help you succeed without burdening you – take just what you need and nothing more.
Spread Out Tax Payments
Taxes are an inevitable part of owning a business, but you actually don’t have to pay all your taxes upfront each year. You can split your tax payments up quarterly or even monthly, so you are paying less more frequently, instead of a large amount all at once. Treat it as one of your monthly expenses to make it just as easy as the rest of your bills!
Create a Cash Reserve
Again, just like you personally need an emergency fund, your business needs one as well. This is called a cash reserve, and you are essentially putting money away to help for a “rainy day” if you will. Take into consideration that businesses ebb and flow, it might get slow during some seasons, or a piece of vital equipment might need repairing, and an emergency fund can help ease the burden of these inconveniences.
Seek Help From an Accounting Professional
The great thing about finances is that, if they overwhelm you, you don’t have to manage them alone. It might be the best decision for your business to invest in an Accountant to help you navigate the financials. After all, they are the experts!
At Bumgarner Morrison, we are here to help you with your finances as a small business owner. We’ve been in the accounting business for more than 70 years helping people like you succeed. We offer bookkeeping, reporting, planning, and auditing services as well as advice to help you manage your wealth. Contact our professionals today!