Simple Ways To Take The Stress Out Of Managing Business Finances
Managing money is arguably one of the most stressful aspects of running a business. Company finances are more complex than personal accounts, and there are multiple tasks to complete, including filing tax returns, making sure employees get paid and keeping an eye on the bottom line. In this guide, we’ll outline some simple ways to take the stress out of managing business finances to save you time and effort.
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Research business accounts
One of the first things to do when you set up a new venture is to open a bank account. Separating your personal and company finances makes life much easier when tracking spending, accounting and bookkeeping, and doing your taxes. There are many options to choose from. It’s worth conducting extensive research, comparing products and weighing up the pros and cons before you open a business account. Some providers offer a lot more than others. If you choose the right business account, you can access a host of features and services, which help with monitoring spending, creating invoices, tracking payments, setting up standing orders and managing expenses for your tax return.
Make use of tools, apps and software
Accounting has come a long way since the days of noting down every payment or expense using a pen and paper. Although some people still prefer traditional methods, it’s beneficial to make use of tools, apps and software. Today, there’s a raft of amazing programs and online tools available to simplify and streamline business accounting.
Among these, a well-structured cash management account can offer better control over how funds are held, moved, and allocated—especially for businesses juggling multiple expenses and revenue streams.
You can generate and send invoices, check balances, transfer money, record outgoings and payments, track expenses, and set reminders at the touch of a button.
Seek expert advice
If you don’t have a background or training in finance, managing business accounts can be confusing and time-consuming. For entrepreneurs whose strengths lie elsewhere, it’s wise to seek expert help and advice. From outsourcing and hiring part-time bookkeepers to contacting tax advisers, there are many routes you can follow. It’s best to check details and get help if you have any questions about company taxes, calculating profits and losses, borrowing money and clearing debts. If you try to muddle through without any support, the financial risks will be higher.
Analyze your accounts regularly
Analyzing your accounts is critical for gaining insights into how your business is performing. Often, we focus on data such as sales figures and revenues when talking about profits, but these figures don’t paint the whole picture. It’s equally important to evaluate your outgoings to calculate profits, pinpoint problems and areas for improvement and identify ways to improve profit margins. Getting into the habit of analyzing and auditing accounts frequently will help you manage spending, set budgets, forecast accurately, and reduce the risk of cash flow issues.
Managing money can be a complex and stressful job for business owners. Thankfully, there are multiple ways to avoid stress and improve your chances of staying in the black. Key examples include researching and setting up business accounts, seeking expert advice, making use of financial tools, software and apps, and analyzing your accounts regularly.
