Running a small business is difficult. We’ve all heard the statistics about how half the small businesses out there fail in the first year, and up to ninety percent of startups ultimately fail. The deck isn’t stacked in their favor, so small business owners must make sure that they aren’t sabotaging themselves. One area where this all too often is the case is in finance. Here are a few tips to help you manage your finances better, so you can concentrate on making your business succeed:
Hire a Professional: Not everyone went to school for accounting like Randall Dang. If you are an entrepreneur who had a passion for something and now spends most of the time struggling with the books, you may want to consider hiring a professional. An accountant like Randall Dang could help you get things back in order and free your time for more relevant issues related to your business. Even if you don’t think you can afford it, you may not be able to afford not getting some professional help.
Don’t Treat the Business Account like an ATM: Keep your business banking account and your personal bank account separate. Mixing the two is the easiest way to cause confusion and so many accounting headaches. Although you could just pay the business back, this creates more paperwork and tracking deductible expenses becomes even more difficult. Save yourself the trouble and just keep the two separate.
Stay on Top of All Invoices: If there is one thing that can’t be overstated, organization is the best way to keep your finances in order. You may have a number of different invoices, and a good organizational system is the key to making sure that you miss one and don’t get paid. Remember what we said in the beginning: running a business is difficult. Don’t make it more difficult by not paying yourself.