Small Business Owners Guide to Finance

How much money is coming in and going out of your business? Knowing this is the first step to gaining control of your business’s financial situation. For most small business owners the financial side of owning a business is a headache. In order to get yourself organized, follow these tips.

Keep it Separate

Keep your personal and business expenses separate. We know, sometimes it may be more convenient to use whatever card you pull out first, but don’t do it. Your life will be so much simpler. If you keep separate bank and credit card accounts for business and personal, you’ll save yourself hours of work. It will also make it easier to keep track of your deductible expenses.

Call in a Pro

Accountants are a gift to small business owners. We know you are tempted to do it yourself around tax season, but bite the bullet and hire the professional. Their knowledge of the profession and tax laws will save you money. They will also most likely find more deductions and will definitely keep you penalty free. And, if your records are clean and organized, you won’t have to pay as many billable hours.

Pencil it In

Every week, force yourself to sit down for at least fifteen minutes and organize your finances. When you spend this time with your finances, you’ll have insight into your business and be able to make informed financial decision. Not to mention, you will be way more organized for tax season.

Consider your People

For most small businesses, the biggest expense is usually labor wages. Keep track of the cost of wages, benefits, overtime, and any other expenses associated with labor. When you have this information, you can make better decisions, and be sure you will have what you need to pay your employees.

Don’t forget to get paid!

Please be sure to track that your invoices are getting paid. If you aren’t keeping up with it, it could be months before you realize you haven’t been paid. This is a huge part of running your business and you would be surprised how many people aren’t keeping track.

Staying on top of your finances and running a small business can be hard. It isn’t impossible, but if you need help, we have you covered. Just call or email Carolina Money Minders today.