Managing your business finances has a huge impact on growing your business. This blog includes 3 tips and software you can use to make managing your business finances easier.
Managing your business finances starts with banking
The importance of banking is often underrated however, having a business banking account helps you separate your personal income and expenses from the business. Have you ever reviewed a business bank statement but you still not sure which income and expenses are personal, and which are business?
The first step to start managing your business finances, open a business banking account. It is very important to start using your business account for all your business transactions. Pay yourself a salary from the business account and avoid using your business to pay personal expenses. Review your business bank statements weekly to clearly understand your business income and expenses. Remember you can only manage and improve what you know about your business finances.
Keep records of all your business transactions
The best way keep records is to automate your business finances, you have already taken the first step by opening a business account. The second step to manage your business finances is to automate the process, this can be done by using financial management software. You probably thinking about the cost?
Good news, there is free software available to automate and manage your business finances. So why use software to manage your business finances?
- You will save time on business administration
- Save cash on accounting services
- Linking your bank account to the software automatically updates your financial records
- Quotes, invoices and receipts are professional and automatically recorded
- Convenience, you can use phone to manage your business finances 24/7
After trying many free and paid financial management software options here are the two options which were the easiest to use. Wave accounting is free to use, SlickPie has a free and paid option.
Wave Accounting: https://www.waveapps.com/
Manage your personal and business credit status
Your business credit status affects your business in numerous ways. Financial institutions check your business credit record when opening a business cheque account and when applying for finance. Keeping your personal and business credit record clear is extremely important to ensure your business qualifies for finance, with suppliers and financial institutions. Need to check your business credit status. https://www.transunion.co.za/product/business-credit-report
Managing your business finances is an ongoing process which you need to control and monitor daily. Having the correct tools and information makes managing your finances so much easier. However, this does not substitute budgeting, controlling your business expenses and knowing your numbers.