Your small business finances are incredibly important. Regardless of what you originally set out to do with your business, without money coming in you’re not going to get too far. So, in 2020 one of your top goals should be staying on top of your finances and here are a few tips to help get you started.
When it comes to staying on top of your small business finances, your first step is to check in regularly. Small business owners tend to be so focused on getting money coming in that they don’t spend the time to make sure the money’s actually there.
Make sure you’re regularly logging into your bank account, keep an eye on your books and stay in touch with your money. If you’re just starting out, it might help to set up a weekly check-in with your finances to keep you on track.
Use Bookkeeping Software
If you’re a solopreneur, you’re probably taking care of your books yourself. One of the biggest aspects of your small business finances is your day-to-day bookkeeping, and the best way to stay on top of your books is to do them regularly and use technology to make sure they’re the best they can be.
There are a ton of great software options out there for bookkeeping. I personally use Bonsai, but software such as Xero, QuickBooks and FreshBooks are all good too. In fact, any software is better than the shoebox method!
Create a Plan
Make a plan! In business, a plan is always the best plan. So make sure you have a financial plan and a budget, and if you don’t have one build it right now. A delayed plan is no plan.
One of the best ways to stay on top of your small business finances is to educate yourself. As a solopreneur or small business owner, you have to wear a lot of hats and one of them is typically Chief Financial Officer.
No one expects you to be a finance whiz, especially if you’re just starting out. But there are a ton of ways that you can expand your financial knowledge without going to get a finance degree. Check out a great finance blog, read a book or take an online class. Small steps will make a big difference.
When it comes down to it, one of the best ways you can help your small business finances is to get some help. Hire a bookkeeper, get an accountant or even have someone help you with your plan. Just make sure it’s in your budget before you spend the money!
How do you stay on top of your small business finances? Share your thoughts in the comments below!
Looking For More Posts On Small Business Finances?
- It’s Time to Raise Your Rates
- 5 Common Small Business Accounting Mistakes to Avoid
- 10 Small Business Accounting Tips for New Entrepreneurs