Keep Good Business Credit
As your company grows, you may want to buy new equipment, rent a new space, and hire more employees amongst others.
To do these, you may need external financial support and with poor business credit, getting approval for all these transactions and acquisitions can be more difficult.
To keep good credit, pay off all your debt funding as soon as possible. Only seek funding that you can quickly and easily repay and don’t take out loans with interest rates that you can’t afford.
Use An Accounting Program
When you begin, you can keep everything in a spreadsheet, but as you expand that might get unwieldy.
There are a lot of free and low-cost accounting programs available and they will save you time and lots of headaches down the road. QuickBooks, Wave, Zoho Books, Xero, and FreshBooks are a few examples of the best apps for small business owners.
Before you decide on an accounting program to get, think about the needs of your business. Some things to consider include: Do you need to send invoices? What level of income & expense tracking do you need? How granular do you want to get? What kind of financial reports are available? Do you need mobile access? What about multiple users?
By answering these questions, you can decide the best one for your business.
Schedule Time To Stay Organized
Set aside time each week or month to keep your finances organized. Depending on your situation, this may include adding data to your financial software, scanning receipts, filing, reviewing financial reports, paying bills, invoicing, collections, etc.
Invest In Growth
In addition to paying yourself, it Is important to set aside money and look into growth opportunities. This helps your business to thrive and move in a healthy financial direction.
As a business owner, it is important to always keep an eye on the future because your industry keeps evolving every day. In a bid to keep up or even outdo your competition, you need to constantly do better.
By investing in growth opportunities, you create more value for your business than if you were just spending all your profits on personal matters.
Without a working finance system in place, you don’t know if your business is profitable and you’ll struggle with your taxes. The tips outlined above will help you stay on top of your small business finances and establish a system that works for you.