4 tips to help keep your small business finances in tip-top condition
Running a small business can be hard and if your finances aren’t in good shape then it can be even harder. If you don’t have a good handle on your income and expenditure, then you won’t get an accurate picture of how well your business is doing, so you must know what is going on.
The healthier your finances, the more chance of your business surviving and becoming a success, so we’ve put tother some information that might help you on your journey. Here are 4 tips to help keep your small business finances in tip-top condition.
Set realistic budgets and targets
If you don’t set a budget, not only could your spending get out of control, but it will also make it exceptionally difficult to see whether the year ahead is financially viable. You may, of course, need to re-forecast throughout the year, but a budget will help you to stay on track.
Targets will keep you and your employees focussed on what needs to be achieved in the coming year and make it far easier to monitor how things are going.
Keep on top of your taxes
Although you don’t have to submit a tax return straight away, you must know the figures. The last thing you want in January of the following year is to be rummaging around trying to figure out how much you spent and how much you took in. A monthly cashflow will make this process far easier and will also allow you to keep track of things during the year.
If you are at all confused or feel that you need help, it may be worth employing a firm of accountant and tax experts to help you.
If you know that you have overpaid tax the previous year and want to calculate your tax rebate, online calculators can help.
Keep an eye on expenses
If your employees submit an expense claim each month, are you paying attention to what is being claimed? Are they, for example, filling up their car in the most expensive motorway service stations, or do they have an astronomical mobile phone bill each month? Are items being claimed that don’t fall under your expenses policy?
It’s worth monitoring just to find out where the biggest expenses are so you can establish whether any changes can be made to bring down the costs.
Renegotiate with suppliers
If you have used the same suppliers for a long time, it’s worth having a chat with them to find out if there is anything they can do in terms of cost. Loyalty should count for something, so if you have given them business for years, they won’t want to lose you to a competitor.
It’s also worth finding out what other products they have that you may not know about. If you can get a comparable product for a lower price, it could have a positive effect on your profits, so it’s worth asking the question.
