If you want to be the best business owner you can, then you need to have accurate and regularly updated financials. I know it may not be the most thrilling aspect of running a business. However, it’s necessary if you want to keep costs down and the whole venture afloat. If you’ve been putting it off for too long, then read on! Here’s my best advice on organising your business’s finances.
My first piece of advice is to get help. Seen as you’re reading this, I’ll assume you’re not an experienced accountant. If this is the case, then you should look for some kind of assistance in organising your finances. Whether this is from an accountant’s firm like Brown Smith Wallace or from some kind of tech, there are many solutions which will do a lot of the work for you. These days, accounting tech has really come a long way. BodeTree is a program designed specifically for small businesses. It links in with your bank and credit card accounts, meaning you get to see everything presented in real time. This is just one example of software you could use. Whatever you settle on, don’t tackle your business finances alone!
Secondly, you should be setting aside a weekly time window to look over your numbers. I’ve talked to dozens of business owners, and the way some of them neglect their accounts is truly shocking! Many business owners, especially those lacking in experience, will only blow the dust off their accounts when it’s time to pay taxes. Important financial decisions are needed throughout the year, not just when the tax man comes knocking. You should be doing a little work on your finances every week, no matter how small. This could simply be reviewing your cash flow as it stands, or analysing the impact of some big change. I won’t lie to you by saying it won’t be mind-numbingly boring to begin with! However, this kind of habit will really pay off in the long run.
Finally, make sure your long-term goals are a part of any financial decision. This will not only encourage smarter moves, but will also motivate you to become more involved with your finances. Every business owner has certain long-term goals they want to achieve. Make this much revenue by this date, hire 100 more employees within the year, and so on. Although managing your accounts is tedious, the things it leads to can be exhilarating! Whenever you’re tempted to put off that weekly session, think about your big dreams for the business. Then, consider the possibility that you won’t reach them if you neglect your company. This would certainly light a fire under me! Organised finances will make for smarter decisions, better communication with various departments, and ultimately higher profit margins!
I hope these tips have pushed you one step closer to having organised finances. Staring at all those columns of numbers and making sense of them is a real trial. However, the rewards of having organised finances make it well worth the effort!
